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Home My WebLink About02-23-2011 Board Agenda Packet February 16, 2011 NOTICE OF MEETING BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT Wednesday, February 23, 2011 — 6:30 P.M. Administration Building 10844 Ellis Avenue Fountain Valley, California 92708 The Regular Meeting of the Board of Directors of the Orange County Sanitation District will be held at the above location, time and date. Clerk of the Board Operations Committee - Wednesday, March 2, 2011 at 5:00 p.m. Administration Committee - Wednesday, March 9, 2011 at 5:30 p.m. Steering Committee - Wednesday, March 23, 2011 at 5:00 p.m. NS ANTTj VO Fir/NG THE ENV`Pp� BOARD MEETING DATES February 23, 2011 March 23, 2011 April 20, 2011 May 25, 2011 June 22, 2011 July 27, 2011 August 24, 2011 September 28, 2011 October 26, 2011 *November 16, 2011 *December 21, 2011 January 25, 2012 *Meetings are being held on the third Wednesday of the month Orange County Sanitation District �„z1 SAN11f ro Wednesday, February 23, 2011 Regular Meeting of the �% 6:30 P.M. Board of Directors Board Room 10844 Ellis Avenue Fountain Valley, CA THE E��Qd (714) 593-7130 AGENDA INVOCATION AND PLEDGE OF ALLEGIANCE: (Fred Smith — Buena Park) ROLL CALL: 1. Receive and file Minute Excerpts of member agencies relating to appointments to the Orange County Sanitation District Board, as follows: City/Agency Active Director Alternate Director Board of Supervisors Janet Nguyen Shawn Nelson Fullerton Sharon Quirk-Silva Pat McKinley Orange Jon Dumitru Denis Bilodeau Villa Park Brad Reese Robert Fauteux PUBLIC COMMENTS: 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. Speakers are requested to limit comments to three minutes. REPORTS: The Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CLAIMS: 2. Ratify payment of claims of the District, by roll call vote, as follows: Claims Paid for the Period Ending: 01/15/11 01/31/11 Totals $ 10,578,477.19 $ 43,223,956.94 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. 02/23/11 OCSD Board of Directors'Agenda Page 1 of 5 CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Board of Directors, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 3. Approve Minutes for the Regular Meeting held on January 26, 2011. 4. Approve Board Meeting change from April 27, 2011, to April 20, 2011. 5. Approve Amendment No. 1 to the Agreement with City of Fountain Valley for Permitting of Interim Improvements of the Orange County Sanitation District, providing for updated completion schedule and project list, in a form approved by General Counsel. 6. Adopt Resolution No. OCSD 11-02, Adopting Policies and Procedures for Providing Priority Service to Affordable Housing Projects, repealing Resolution No. OCSD 06-18. STEERING COMMITTEE: 7. Approve Minutes of the January 26, 2011, Steering Committee meeting. 8. Adopt the 2011 Legislative Platform and Goals. OPERATIONS COMMITTEE: 9. Approve Minutes of the February 2, 2011, Operations Committee meeting. 10. A. Approve a Service Agreement with Synagro West, LLC., the lowest responsive and responsible bidder, for Digester Cleaning and Disposal, Specification No. S-2010-467, for period March 1, 2011 through June 30, 2011 for an amount not to exceed $451,653.52; B. Approve a contingency of$22,583 (5%); C. Approve four one-year renewal options beginning July 1, 2011 through June 30, 2012 for a total annual amount not to exceed $1,354,960.54; and D. Approve an annual cost escalator of 5% of the renewal base contract of $1,354,960.54, plus an annual contingency of 5%. 11. Approve a budget increase of $733,000 for Temporary Upgrades to Plant Security Barriers, Job No. J-108, for a total budget of$3,118,000. 02/23/11 OCSD Board of Directors'Agenda Page 2 of 5 OPERATIONS COMMITTEE: (cont'd) 12. A. Authorize the General Manager to competitively bid and subsequently award a service agreement to the lowest responsive and responsible bidder, for the rehabilitation of Plant No. 1, Sunflower Pump No. 2 Auger and Trough Rehab, Project No. FR10-004, for an amount not to exceed $945,000; and B. Approve a contingency of $175,000 (19%). 13. Approve a contingency increase of $335,320 (4%) to the construction contract with Kiewit/Mass, a Joint Venture, for Replacement of the Rocky Point Pump Station, Contract No. 5-50, for a total contingency of $838,300 (10%). 14. A. Approve a Professional Design Services Agreement with AECOM for Digester Ferric Chloride System Rehabilitation, Project No. P2-105, providing for engineering design services for an amount not to exceed $478,548; and B. Approve a contingency of $47,855 (10%) 15. Establish a budget for Fall Protection Improvements at Plant Nos. 1 and 2, Project No. J-123, in the amount of $2,974,000. ADMINISTRATION COMMITTEE: 16. Approve Minutes of the February 9, 2011, Administration Committee meeting. 17. Approve the Budget Assumptions to be used for the presentation of the Fiscal Year (FY 2011-12) budget update. GWRS STEERING COMMITTEE: 18. Receive and file Minutes of the Joint Groundwater Replenishment System Steering Committee meeting held on January 10, 2011. NON-CONSENT CALENDAR: 19. Approve Amendment No. 2 to the Biosolids Management Agreement with EnerTech Environmental California, LLC, in a form approved by General Counsel. 02/23/11 OCSD Board of Directors'Agenda Page 3 of 5 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 (1) CONFERENCE WITH LEGAL COUNSEL RE. ANTICIPATED LITIGATION (Government Code Section 54956.9(b)) Significant Exposure to Litigation and Potential Initiation of Litigation Number of Potential Cases: 3 a) EnerTech Rialto Facility Contract b) Newport Trunk Sewer, Project 5-58 c) Claim from Kiewit Infrastructure West re. New Secondary Treatment System at Plant No. 1, Project P1-102 (2) CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION (Government Code Section 54956.9(a)) Number of Cases: 2 a) Case: Nguyen Nguyen v. Orange County Sanitation District, Orange County Superior Court, Case No. 30-2008-00115222 b) Case: Vu v. Orange County Sanitation District, Orange County Superior Court, Case No. 30-2010-00344656 Reconvene in regular session and consider action, if any, on matters discussed in closed session. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Board of Directors Regular Meeting is scheduled for Wednesday, March 23, 2011, at 6:30 p.m. 02/23/11 OCSD Board of Directors'Agenda Page 4 of 5 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. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for the Regular Meeting of the Board of Directors, items must be submitted to the Clerk of the Board 14 days before the meeting. Clerk of the Board, Donna Terrones (714)593-7130 dterronesCcDocsd.com 02/23/11 OCSD Board of Directors'Agenda Page 5 of 5 BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 02/23/11 AGENDA REPORT Item Number Item Number 2 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PAYMENT OF CLAIMS OF THE ORANGE COUNTY SANITATION DISTRICT GENERAL MANAGER'S RECOMMENDATION Ratify Payment of Claims of the District by Roll Call Vote. CONFLICT OF INTEREST NOTIFICATION Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving the Orange County Sanitation District. Further, you may not participate in the decision making process to award a contract to such party. For reference, you are directed to the Register of Warrants as to all current contractors/vendors with the District. In general, you must disclose the basis of the conflict by identifying the name of the firm or individual who was the contributor. For the specifics of Government Code Section 84308, please see your Director's Handbook or call the office of General Counsel. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION See attached listing. ATTACHMENTS 1. Copies of Claims Paid reports from 01/01/11 — 01/15/11 and 01/16/11 — 01/31/11 Page 1 of 1 Claims Paid From 01/01/11 to 01/15/11 Vendor Warrant No. Amount Description Accounts Payable Warrants A W Chesterton 36254 4,884.78 Repair&Maintenance Services and/or Supplies Absolute Standards, Inc. 36255 123.00 Laboratory Services&Supplies ADS LLC 36256 900.00 Professional Services/Engineering Design Services AECOM USA, Inc. 36239 32,634.00 Professional Services/Engineering Design Services Agilent Technologies, Inc. 36257 1,144.30 Laboratory Services&Supplies Agilent Technologies, Inc. 36416 1,063.96 Laboratory Services&Supplies Airgas Safety, Inc. 36258 3,499.61 Safety,Security, Health Equipment,Supplies,and Services Airgas Safety, Inc. 36417 3,453.96 Safety,Security, Health Equipment,Supplies,and Services Airgas West 36418 1,607.26 Repair&Maintenance Services and/or Supplies Alhambra Foundry Co., Ltd. 36259 15,616.50 Repair&Maintenance Services and/or Supplies Alhambra Foundry Co., Ltd. 36419 7,125.30 Repair&Maintenance Services and/or Supplies Alimed, Inc. 36420 118.49 Safety,Security, Health Equipment,Supplies,and Services Allen J.White 36562 195.00 Meeting/Training Expense Reimbursement Allied Packing&Rubber, Inc. 36260 68.64 Repair&Maintenance Services and/or Supplies American Express 36403 27,261.58 Purchasing Card Program for Miscellaneous Parts and Supplies American Express TVL Related Svcs Co., Inc. 36421 1,311.30 Purchasing Card Program for Travel American General Life Insurance Co. 36261 1,380.00 Life Insurance AMS Acoustical Material Services 36262 1,369.55 Repair&Maintenance Services and/or Supplies Amtech Elevator Services 36422 535.00 Miscellaneous Services AppleOne Employment Service 36263 1,520.00 Professional Services/Temporary Services Applied Industrial Technology 36264 25.93 Repair&Maintenance Services and/or Supplies Archie Ivy, Inc. 36423 3,886.00 Repair&Maintenance Services and/or Supplies ARS Enterprises, Inc. 36424 354.00 Laboratory Services&Supplies AT&T Universal Biller 36265 3,303.10 Telecommunications Atlas Underground, Inc. 36425 4,888.00 Repair&Maintenance Services and/or Supplies Atom Engineering Construction 36266 4,289.00 Repair&Maintenance Services and/or Supplies Awards&Trophies Company 36426 63.50 Awards and Framing Services Basic Chemical Solutions,L.L.C. 334 9,956.43 Chemicals,Water/Wastewater Treatment Battery Specialties 36427 983.61 Batteries,Various BC Wire Rope&Rigging 36428 1,448.87 Tools&Supplies Bell Pipe&Supply Co. 36429 643.04 Repair&Maintenance Services and/or Supplies BioMerieux Vitek, Inc. 36267 2,170.08 Laboratory Services&Supplies Black&Veatch Corporation 36240 134,556.09 Professional Services/Engineering Design Services Black&Veatch Corporation 36430 16,815.17 Professional Services/Engineering Design Services Blue Cross of California 36241 593,666.40 Employee Benefits BMC Business Machines Consultants 36431 494.50 Miscellaneous Parts and Supplies Bottomline Technologies, Inc. 36268 4,082.03 Computers,Software/Hardware Brian Bingman 36552 125.00 Meeting/Training Expense Reimbursement Butier Engineering, Inc. 36404 85,935.61 Professional Services/Engineering Design Services California Barricade Rentals 36432 1,420.00 Miscellaneous Services California Chamber of Commerce 36269 11.02 Subscription California Dept.of Child Support 36433 1,919.51 Judgments Payable California Recreation Company 36270 2,975.21 Boat Slip Rental-Nerissa Ocean Monitoring Vessel California Relocation Services, Inc. 36271 427.50 Miscellaneous Services-Moving/Relocation California Relocation Services, Inc. 36434 135.00 Miscellaneous Services-Moving/Relocation Carollo Engineers 36435 18,727.43 Professional Services/Engineering Design Services CDW Government, Inc. 36436 5,864.78 Computers,Software/Hardware Charles P.Crowley Co. 36272 659.19 Repair&Maintenance Services and/or Supplies EXHIBIT A fin/210/Ic Page 1 of 8 2/4/2011 Claims Paid From 01/01/11 to 01/15/11 Vendor Warrant No. Amount Description Cheyenne Livestock&Products, Inc. 36273 816.00 Safety,Security, Health Equipment,Supplies,and Services Circle, Inc. 36274 2,444.04 Copier Toner/Ink Supplies City National Bank 36550 19,441.45 Construction, Retention City of Huntington Beach 36316 28.51 Water Use City of Huntington Beach 36460 13.51 Water Use Clean Harbors Environmental Services 36275 683.70 Grit&Screenings; Hazard Waste Disposal Coastal Traffic Systems, Inc. 36437 550.00 Safety,Security, Health Equipment,Supplies,and Services Colich&Sons 36250 51,032.10 Construction Columbia Analytical Services 36276 500.00 Laboratory Services&Supplies Computer Protection Technology, Inc. 36277 640.00 Electrical/Electronic Equipment, Parts&Repairs Connell Chevrolet\GEO 36278 320.82 Autos,Trucks&Marine Equipment, Parts,Accessories&Services Corporate Image Maintenance, Inc. 36405 35,995.00 Janitor&Household Service&Supplies Counterpart Enterprises, Inc. 36279 886.40 Repair&Maintenance Services and/or Supplies County of Orange Auditor Controller 36280 375.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 36438 134.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 36439 795.00 Governmental Agency Fees&Charges Court Order 36469 2,179.38 Judgments Payable Court Order 36471 150.00 Judgments Payable Court Order 36477 225.00 Judgments Payable Court Order 36502 108.00 Judgments Payable Court Order 36549 912.50 Judgments Payable CPS Human Resource Services 36281 839.30 Professional Organizations Meeting/Training/Membership CR&R, Inc. 36282 2,205.00 Waste Disposal Crane Veyor Corp. 36283 1,152.00 Repair&Maintenance Services and/or Supplies Crane Veyor Corp. 36440 16,371.00 Repair&Maintenance Services and/or Supplies CS-AMSCO 36242 27,646.45 Repair&Maintenance Services and/or Supplies CWEA Membership 36284 132.00 Professional Organizations Meeting/Training/Membership CWEA Membership 36441 349.00 Professional Organizations Meeting/Training/Membership David's Tree Service 36285 375.00 Groundskeeping Deirdre E. Bingman 36393 231.00 Meeting/Training Expense Reimbursement Detection Instruments Corporation 36286 5,266.57 Electrical/Electronic Equipment, Parts&Repairs Donald B.Van Voorst 36561 1,490.05 Meeting/Training Expense Reimbursement Doug Rulison 36560 2,313.12 Meeting/Training Expense Reimbursement Dudek&Associates, Inc. 36287 10,470.52 Professional Services/Engineering Design Services Duhig&Company, Inc. 36442 328.53 Repair&Maintenance Services and/or Supplies Dunn-Edwards Corporation 36443 73.15 Facilities,Maintenance,Services&Supplies Eagle Protection of California 36444 275.00 Safety,Security, Health Equipment,Supplies,and Services Employee Benefits Specialists, Inc. 36288 1,896.25 Reimbursed Prepaid Employee Medical&Dependent Care Employee Benefits Specialists, Inc. 36445 12,755.17 Reimbursed Prepaid Employee Medical&Dependent Care Enchanter, Inc. 36289 760.00 Vessel Services-Monitoring Vessel Nerissa Entech Instruments, Inc. 36290 266.13 Laboratory Services&Supplies Environmental Resource Associates 36291 1,856.23 Laboratory Services&Supplies Ernesto Castro 36394 250.00 Meeting/Training Expense Reimbursement Ewing Irrigation 36292 152.18 Irrigation Repair&Maintenance Services and/or Supplies Ewing Irrigation 36446 345.96 Irrigation Repair&Maintenance Services and/or Supplies Fedex Corporation 36293 173.69 Freight Services Ferguson Enterprises, Inc. 36294 2,198.93 Repair&Maintenance Services and/or Supplies Fernando Herrera 36395 325.00 Meeting/Training Expense Reimbursement First American Corelogic 36295 651.17 Computers,Software/Hardware EXHIBIT A fin/210/Ic Page 2 of 8 2/4/2011 Claims Paid From 01/01/11 to 01/15/11 Vendor Warrant No. Amount Description Fisher Scientific 36296 840.67 Laboratory Services&Supplies Fisher Scientific 36447 1,333.46 Laboratory Services&Supplies Franklin Covey 36297 312.33 Office Supplies Frys Electronics 36298 160.35 Computers,Software/Hardware Ganahl Lumber Company 36299 88.18 Facilities,Maintenance,Services&Supplies Garratt Callahan Company 36300 3,732.32 Chemicals,Water/Wastewater Treatment Garratt Callahan Company 36448 4,952.73 Chemicals,Water/Wastewater Treatment Gates Fiberglass Installers 36301 6,796.25 Repair&Maintenance Services and/or Supplies Geneva Scientific LLC 36406 39,560.00 Laboratory Services&Supplies George L. Robertson 36559 106.52 Meeting/Training Expense Reimbursement Gierlich-Mitchell, Inc. 36302 1,427.05 Repair&Maintenance Services and/or Supplies Gierlich-Mitchell, Inc. 36449 4,935.30 Repair&Maintenance Services and/or Supplies Glens Alignment&Brake Service 36303 256.90 Autos,Trucks&Marine Equipment, Parts,Accessories&Services Glens Alignment&Brake Service 36450 110.00 Autos,Trucks&Marine Equipment, Parts,Accessories&Services Golden State Overnight Delivery Service 36304 169.40 Courier Services Golden State Overnight Delivery Service 36451 250.15 Courier Services Golden State Water Company 36305 140.62 Water Use Golden West Machine, Inc. 36306 3,762.75 Repair&Maintenance Services and/or Supplies Golden West Window Service 36307 420.00 Facilities,Maintenance,Services&Supplies Goodwill Industries of Orange County 36308 217.04 FOG Outreach Distribution Services Grainger, Inc. 36309 3,263.27 Repair&Maintenance Services and/or Supplies Grainger, Inc. 36452 1,089.05 Repair&Maintenance Services and/or Supplies Graybar Electric Company 36453 10,999.86 Electrical/Electronic Equipment, Parts&Repairs Haaker Equipment Company 335 133.05 Autos,Trucks&Marine Equipment, Parts,Accessories&Services Hach Company 36454 741.11 Laboratory Services&Supplies Hai-Thao T. Huynh 36554 119.38 Meeting/Training Expense Reimbursement Handy Hose Services 36311 404.73 Repair&Maintenance Services and/or Supplies Harrington Industrial Plastics, Inc. 36312 903.08 Repair&Maintenance Services and/or Supplies Hasco Oil Co., Inc. 36455 656.44 Fuel and Lubricants HDR Engineering, Inc. 36243 795,374.03 Professional Services/Engineering Design Services Hewlett Packard Company 36456 12,870.45 Computers,Software/Hardware Hill Brothers 338 139,712.99 Chemicals,Water/Wastewater Treatment Hilti, Inc. 36313 299.20 Repair&Maintenance Services and/or Supplies Home Depot 36314 773.10 Miscellaneous Parts and Supplies Home Depot 36457 518.12 Miscellaneous Parts and Supplies Horizon Technology 36458 2,064.08 Laboratory Services&Supplies Hub Auto Supply 36315 1,227.26 Autos,Trucks&Marine Equipment, Parts,Accessories&Services Hyatt Legal Plans, Inc. 36317 1,278.00 Voluntary Employee Benefit Program Indiana Child Support Bureau 36461 290.00 Judgments Payable Industrial Distribution Group 36318 347.27 Repair&Maintenance Services and/or Supplies Industrial Distribution Group 36462 952.90 Repair&Maintenance Services and/or Supplies Industrial Fabrics Corp. 36463 8,439.00 Repair&Maintenance Services and/or Supplies Industrial Solution Services, Inc. 36464 2,237.69 Chemicals,Water/Wastewater Treatment Industrial Threaded Products, Inc. 36465 3,633.06 Repair&Maintenance Services and/or Supplies Inland Chevrolet 36319 23,843.44 Autos,Trucks&Marine Equipment, Parts,Accessories&Services Insight Public Sector, Inc. 36320 1,348.12 Computers,Software/Hardware Interstate Batteries of Cal Coast 36466 2,308.55 Repair&Maintenance Services and/or Supplies Interwest Technologies 36321 13,650.00 Computers Applications&Services Intl. Union of Oper. Eng.AFL CIO Local 501 36467 4,858.35 Dues Deductions EXHIBIT A fin/210/Ic Page 3 of 8 2/4/2011 Claims Paid From 01/01/11 to 01/15/11 Vendor Warrant No. Amount Description Intratek Computer, Inc. 36322 3,279.06 Network/Server/Printer Maintenance Services J F Shea Construction, Inc. 36251 432,383.00 Construction James D. Herberg 36310 175.00 Meeting/Training Expense Reimbursement Jamison Engineering Contractors, Inc. 36324 9,965.00 Professional Services/Construction Support Services Jamison Engineering Contractors, Inc. 36407 60,577.36 Professional Services/Construction Support Services Jays Catering 36325 1,590.31 Catering Services Jays Catering 36468 657.99 Catering Services JCI Jones Chemicals, Inc. 332 59,658.43 Chemicals,Water/Wastewater Treatment JCI Jones Chemicals, Inc. 339 89,982.61 Chemicals,Water/Wastewater Treatment JG Tucker And Son, Inc. 36323 3,262.50 Safety,Security, Health Equipment,Supplies,and Services Jobs Available, Inc. 36326 315.00 Notices&Ads John L. Hunter&Associates, Inc. 36327 2,300.00 Professional Services/FOG Inspections Johnny J. Rocha 36398 250.00 Meeting/Training Expense Reimbursement Kaman Industrial Technologies 36328 1,117.65 Repair&Maintenance Services and/or Supplies Kemira Water Solutions 333 121,178.64 Chemicals,Water/Wastewater Treatment Kirchner, Linda L. 36555 112.63 Meeting/Training Expense Reimbursement L.Johnson Painting 36329 2,550.00 Facilities,Maintenance,Services&Supplies Lab Support-Remit 36330 5,321.50 Temporary Employment Services Lab Support-Remit 36470 2,320.00 Temporary Employment Services Lawson Products, Inc. 36331 1,363.64 Repair&Maintenance Services and/or Supplies Leyla. Perez 36557 231.00 Meeting/Training Expense Reimbursement LH Engineering Co. 36389 4,819.93 Construction Liebert Cassidy 36332 7,632.65 Professional Services/Employee Relations Malcolm Pirnie, Inc. 36244 120,586.66 Professional Services/Engineering Design Services Malcolm Pirnie, Inc. 36472 21,466.39 Professional Services/Engineering Design Services Mandic Motors 36333 65.00 Autos,Trucks&Marine Equipment, Parts,Accessories&Services Mandic Motors 36473 150.00 Autos,Trucks&Marine Equipment, Parts,Accessories&Services McKenna Engineering&Equipment Co., Inc 36474 8,292.19 Repair&Maintenance Services and/or Supplies McMaster-Carr Supply Co. 36475 2,562.35 Repair&Maintenance Services and/or Supplies Michael D.Larkin 36556 130.00 Meeting/Training Expense Reimbursement Michael H. Harting 36553 1,001.81 Meeting/Training Expense Reimbursement Midway Mfg.&Machining Co. 36334 3,810.60 Repair&Maintenance Services and/or Supplies Miele, Inc. 36476 1,802.47 Laboratory Services&Supplies Milton Rocha 36399 195.00 Meeting/Training Expense Reimbursement Mladen Buntich Construction Company 36413 581,824.16 Construction National Plant Service 36335 6,450.00 Repair&Maintenance Services and/or Supplies National Seminars Group 36478 199.00 Training Registration Neal Supply Co. 36479 1,649.37 Repair&Maintenance Services and/or Supplies Neutron Products, Inc. 36336 12,110.41 Chemicals,Water/Wastewater Treatment Neutron Products, Inc. 36480 5,992.57 Chemicals,Water/Wastewater Treatment Nickell Metal Spray 36337 2,998.00 Repair&Maintenance Services and/or Supplies Ninyo&Moore 36338 15,676.25 Professional Services/Geotech&Material Testing Norman A.Olsson Construction, Inc. 36414 44,353.00 Construction NPELRA Annual Training Conference 36339 525.00 Professional Organizations Meeting/Training/Membership NRG Engine Services, L.L.C. 36408 336,436.53 Repair&Maintenance Services and/or Supplies OCEA 36481 692.25 Dues Deductible Office Depot 36340 499.70 Office Supplies Office Depot 36482 386.21 Office Supplies Olin Corporation 36341 3,886.40 Chemicals,Water/Wastewater Treatment EXHIBIT A fin/210/Ic Page 4 of 8 2/4/2011 Claims Paid From 01/01/11 to 01/15/11 Vendor Warrant No. Amount Description Olin Corporation 36483 3,601.71 Chemicals,Water/Wastewater Treatment OneSource Distributors, Inc. 36342 4,720.37 Electrical/Electronic Equipment, Parts&Repairs OneSource Distributors, Inc. 36484 2,632.49 Electrical/Electronic Equipment, Parts&Repairs Oracle Corporation 36343 20,466.82 Computer Applications&Services Orange County Industrial Plastics 36344 218.90 Repair&Maintenance Services and/or Supplies Orange County Sanitation District 36563 1,143.97 Petty Cash Expense Orange County Sheriff 36485 807.56 Judgments Payable Orange County United Way 36486 40.00 Employee Contributions Orange County Water District 36409 54,960.20 GAP Water ORE Offshore 36487 6,920.85 Laboratory Services&Supplies Oxygen Service Company 36345 401.37 Laboratory Services&Supplies Oxygen Service Company 36488 1,042.92 Laboratory Services&Supplies PAC 36489 1,002.00 Laboratory Services&Supplies Parker Supply Company 36490 6,069.34 Miscellaneous Parts and Supplies Parkhouse Tire, Inc. 36491 524.61 Autos,Trucks&Marine Equipment, Parts,Accessories&Services Parkhouse Tire, Inc. 36491 236.68 Autos,Trucks&Marine Equipment, Parts,Accessories&Services Peace Officers Council of CA 36492 2,323.00 Dues Deductions,Supervisors&Professionals Peerless Wiping Materials Co. 36493 799.53 Janitor&Household Service&Supplies Performance Pipeline Technologies 36346 2,665.00 Professional Services/CCTV Inspection/Sewerline Cleaning Performance Pipeline Technologies 36494 24,152.35 Professional Services/CCTV Inspection/Sewerline Cleaning Perkinelmer Labs 36495 23,088.00 Laboratory Services&Supplies PL Hawn Company, Inc. 36496 391.36 Repair&Maintenance Services and/or Supplies Polydyne, Inc. 336 6,731.73 Chemicals,Water/Wastewater Treatment Polydyne, Inc. 340 35,606.86 Chemicals,Water/Wastewater Treatment Ponton Industries, Inc. 36497 5,638.71 Laboratory Services&Supplies Praxair Distribution, Inc. 36347 155.75 Laboratory Services&Supplies Primrose Ice Co., Inc. 36498 100.00 Water&Ice Services Procare Work Injury Center 36348 730.00 Medical Services Propipe Professional Pipe Services 341 500.00 Professional Services/CCTV Sewerline Inspections PRSA Orange County Chapter 36499 365.00 Notices&Ads(Public Relations Society of America) Prudential Insurance Company of America 36245 41,395.74 Benefits Prudential Overall Supply 36500 5,122.58 Uniforms Public Safety Management Assoc. (PASMA) 36349 150.00 Professional Organizations Meeting/Training/Membership Pyramid Fence Company, Inc. 36501 925.00 Facilities,Maintenance,Services&Supplies R L Abbott&Associates 36350 1,000.00 Professional Services/Advocacy Efforts Rachel J.Van Exel 36401 231.00 Meeting/Training Expense Reimbursement RBF Consulting 36503 8,888.13 Professional Services/Engineering Design Services Red Wing Shoes 36351 123.54 Safety,Security, Health Equipment,Supplies,and Services Restek Corp. 36504 289.34 Laboratory Services&Supplies Retrofit Parts&Components, Inc. 36352 171.08 Repair&Maintenance Services and/or Supplies Rockwell Engineering&Equipment Co. 36410 38,693.26 Repair&Maintenance Services and/or Supplies Roto Rooter NOC#11 36505 241.00 Repair&Maintenance Services and/or Supplies Royale Cleaners 36353 49.70 Miscellaneous Services Royale Cleaners 36506 41.60 Miscellaneous Services RPM Electric Motors 36507 7,171.01 Repair&Maintenance Services and/or Supplies S P Kinney Engineers, Inc. 36514 472.28 Repair&Maintenance Services and/or Supplies Sachs Electric Company 36551 3,696.51 Professional Services/Central Generation Automation Saddleback Materials Co., Inc. 36354 340.81 Miscellaneous Parts and Supplies San Diego/Orange Fluid System Technologies, Inc. 36508 86.06 Repair&Maintenance Services and/or Supplies EXHIBIT A fin/210/Ic Page 5 of 8 2/4/2011 Claims Paid From 01/01/11 to 01/15/11 Vendor Warrant No. Amount Description Sancon Engineering, Inc. 36509 23,278.00 Repair&Maintenance Services and/or Supplies SARBS-CWEA 36402 50.00 Professional Organizations Meeting/Training/Membership Schwing Bioset 337 13,176.75 Repair&Maintenance Services and/or Supplies Shamrock Supply Co., Inc. 36355 571.25 Repair&Maintenance Services and/or Supplies Shamrock Supply Co., Inc. 36510 440.59 Repair&Maintenance Services and/or Supplies Sigma-Aldrich, Inc. 36356 166.02 Laboratory Services&Supplies Sigma-Aldrich, Inc. 36511 295.59 Laboratory Services&Supplies Smith Paint and Supply 36357 97.13 Painting Services and Supplies So.Cal Gas Company 36512 18,460.68 Utilities South Coast Shipyard, Inc. 36358 2,475.00 Autos,Trucks&Marine Equipment, Parts,Accessories&Services Southern California Edison 36246 71,929.11 Utilities Southern California Edison 36513 1,718.89 Utilities Sparklett-Dallas 36515 1,395.28 Miscellaneous Services SPEX Certiprep, Inc. 36516 751.73 Laboratory Services&Supplies St.Croix Sensory, Inc. 36359 1,320.00 Outside Laboratory Services Stanley Steamer International, Inc. 36517 2,611.96 Janitor&Household Service&Supplies Staples 36360 621.77 Office Supplies Staples 36518 757.98 Office Supplies State Board of Equalization 36519 523.60 Governmental Agency Fees&Charges State Water Resources Control Board 36520 77.00 Governmental Agency Fees&Charges Subash Mysore 36400 120.80 Meeting/Training Expense Reimbursement Summit Steel 36361 838.60 Repair&Maintenance Services and/or Supplies Sunny Express 36521 20.39 Freight Charges Sunset Industrial Parts 36362 396.98 Repair&Maintenance Services and/or Supplies Sunset Industrial Parts 36522 79.73 Repair&Maintenance Services and/or Supplies Superior Sales Co. 36363 2,022.00 Repair&Maintenance Services and/or Supplies Synagro West, Inc. 36247 302,229.88 Biosolids Management Synoptek, Inc. 36364 20,400.00 Computers,Software/Hardware Systea Scientific, L.L.C. 36365 482.18 Laboratory Services&Supplies Technisource, Inc. 36366 914.25 Professional Services-MS Access Database Content Migration Project Technisource, Inc. 36523 920.00 Professional Services-MS Access Database Content Migration Project TekSystems 36367 7,777.80 Professional Services/Temporary Services Tektronix Service Solutions 36524 171.43 Laboratory Services&Supplies TestAmerica Ontario 36368 978.60 Laboratory Services&Supplies TestAmerica Ontario 36525 976.00 Laboratory Services&Supplies Tetra Tech, Inc. 36411 38,089.00 Professional Services/Engineering Design ServicesS The Cei Group, Inc. 36369 3,680.42 Repair&Maintenance Services and/or Supplies The Standard Insurance Company 36370 2,571.27 Disability Insurance The Trane Company 36374 18,192.15 Repair&Maintenance Services and/or Supplies The Wackenhut Corporation 36387 6,492.68 Safety,Security, Health Equipment,Supplies,and Services Thermo Electron North America, L.L.C. 36526 16,700.00 Laboratory Services&Supplies Thompson Industrial Supply, Inc. 36371 5,453.52 Repair&Maintenance Services and/or Supplies Thompson Industrial Supply, Inc. 36527 4,513.54 Repair&Maintenance Services and/or Supplies Time Warner Communications 36528 58.72 Telecommunications Tom B.Meregillano 36397 840.42 Meeting/Training Expense Reimbursement Tony's Lock&Safe Service&Sales 36372 399.75 Repair&Maintenance Services and/or Supplies Tony's Lock&Safe Service&Sales 36529 112.64 Repair&Maintenance Services and/or Supplies Total-Western, Inc. 36373 9,975.00 Repair&Maintenance Services and/or Supplies TPC Training Systems 36530 11,340.00 Computer Applications and Services EXHIBIT A fin/210/Ic Page 6 of 8 2/4/2011 Claims Paid From 01/01/11 to 01/15/11 Vendor Warrant No. Amount Description Traffic Control Service, Inc. 36531 5,019.71 Safety,Security, Health Equipment,Supplies,and Services Transcat 36532 2,141.88 Repair&Maintenance Services and/or Supplies Tremco Incorporated 36375 3,460.00 Repair&Maintenance Services and/or Supplies Tropical Plaza Nursery, Inc. 36533 12,497.50 Landscape Maintenance Services Truck&Auto Supply, Inc. 36376 200.60 Autos,Trucks&Marine Equipment, Parts,Accessories&Services Tule Ranch/Magan Farms 36248 111,127.07 Biosolids Management TW Telecom Holdings, Inc. 36534 3,564.70 Telecommunications Ultra Scientific 36535 287.08 Laboratory Services&Supplies Underground Service Alert of So.Calif 36377 1,189.50 Professional Services-Dig Alert Notification Service Union Bank of California 36378 1,695.00 Annual Administrative Fee for Series 2007A Certificates of Participation Union Bank of California Escrow 36390 22,757.00 Construction, Retention United Pacific Services, Inc. 36536 4,800.00 Groundskeeping United Parcel Service 36537 131.29 Freight Services United States Plastic Corp. 36538 37.48 Miscellaneous Parts and Supplies United States Postal Service 36539 5,000.00 Postage US Peroxide, L.L.C. 36412 312,500.04 Chemicals,Water/Wastewater Treatment Valin Corporation 36540 3,463.86 Repair&Maintenance Services and/or Supplies Vapex Products, Inc. 36379 4,617.50 Electrical/Electronic Equipment, Parts&Repairs Verizon California 36380 632.06 Telecommunications Verizon California 36541 99.00 Telecommunications Verizon California 36542 1,660.64 Telecommunications Verizon Wireless 36381 637.16 Telecommunications Verne's Plumbing 36382 4,995.30 Plumbing Services&Supplies Village Nurseries 36383 1,006.20 Repair&Maintenance Services and/or Supplies Vision Financial Corporation 36384 1,057.56 Employee Voluntary Benefits Vladimir A. Kogan 36396 290.74 Meeting/Training Expense Reimbursement Voided Check 36415 - Voided Check 36459 - Vortex Corp. 36385 913.31 Repair&Maintenance Services and/or Supplies Voyager Fleet Systems, Inc. 36543 21,857.79 Autos,Trucks&Marine Equipment, Parts,Accessories&Services VWR Scientific Products 36386 1,671.36 Laboratory Services&Supplies VWR Scientific Products 36544 2,498.66 Laboratory Services&Supplies Waxie Sanitary Supply 36545 406.85 Janitor&Household Service&Supplies Wells Fargo Bank Esc 80556300 Kiewit 36391 18,669.50 Construction, Retention Wesley G. Bauer, II 36392 255.00 Meeting/Training Expense Reimbursement West Coast Safety Supply Co. 36546 116.82 Safety,Security, Health Equipment,Supplies,and Services Western States Controls 36547 1,375.94 Electrical/Electronic Equipment, Parts&Repairs William F. Pierce 36558 142.00 Meeting/Training Expense Reimbursement Woodruff Spradlin&Smart 36249 66,478.61 Professional Services-Legal Yale/Chase Materials Handling, Inc. 36548 2,589.77 Electrical/Electronic Equipment,&Electric Cart Parts&Repairs 24 Hour Fire Protection, Inc. 36388 678.98 Repair&Maintenance Services and/or Supplies Total Accounts Payable-Warrants $ 5,840,825.12 Payroll Disbursements Employee Paychecks 46044 - 46072 $ 4,868.00 Interim Payroll-ARBA(01/03/11) Employee Paychecks 46073 - 46114 89,164.81 Biweekly Payroll(01/12/11) Employee Paychecks 46115 - 46266 307,999.62 Interim Payroll-Vac/Pers Leave Mandatory Payouts(01/13/11) Employee Paychecks 46267 326.80 Interim Payroll-Retro(01/13/11) Employee Paychecks 46268 - 46270 8,552.80 Interim Payroll-Retirement(01/13/11) EXHIBIT A fin/210/Ic Page 7 of 8 2/4/2011 Claims Paid From 01/01/11 to 01/15/11 Vendor Warrant No. Amount Description Employee Paychecks 46271 - 46273 75,068.21 Interim Payroll-Retirement Payouts(01/13/11) Employee Paychecks 46274 - 46275 400.00 Interim Payroll-ARBA Adj(01/13/11) Direct Deposit Statements 198343 198461 19,639.00 Interim Payroll-ARBA(01/01/11) Direct Deposit Statements 198462 199026 1,417,625.00 Biweekly Payroll(01/12/11) Total Payroll Disbursements $ 1,923,644.24 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 1,093,127.86 Biweekly Payroll(01/12/11) Intercare Insurance Services $ 24,401.71 Workers'Compensation Services Bank of America $ 250,986.76 Series 2000A&B Refunding COPs Remarketing Fee Kiewit Infrastructure West $ 1,090,771.00 Construction P1-102(01/12/11) Kiewit Infrastructure West $ 354,720.50 Construction 3-58(01/12/11) Total Wire Transfer Payments $ 2,814,007.83 Total Claims Paid 01/01/11 -01/15/11 $ 10,578,477.19 EXHIBIT A fin/210/Ic Page 8 of 8 2/4/2011 Claims Paid From 01/16/11 to 01/31/11 Vendor Warrant No. Amount Description Accounts Payable Warrants A W Chesterton 36582 2,583.60 Repair&Maintenance Services and/or Supplies A W Chesterton 36733 2,265.77 Repair&Maintenance Services and/or Supplies Accounting Options,Inc. 36587 180.00 Meeting Registration-Division 610 ACCURATE AIR ENGINEERING INC 36584 5,812.30 Repair&Maintenance Services and/or Supplies Ace Glass,Inc. 36734 969.81 Laboratory Services&Supplies A-Check America, Inc. 36583 788.00 Human Resources Services Adamson Industries 36735 247.30 Safety,Security,Health Equipment,Supplies,and Services AECOM Technical Services,Inc. 36564 200,618.48 Professional Services/Engineering Design Services AECOM Technical Services,Inc. 36736 9,297.83 Professional Services/Engineering Design Services Agilent Technologies, Inc. 36585 9,695.07 Laboratory Services&Supplies Agilent Technologies, Inc. 36737 2,176.08 Laboratory Services&Supplies Ago IndustriesDBA So-Cal Sweeping 36586 1,960.00 Street Sweeping Services AIR LIQUIDE AMERICA SPECIALTY GASES LLC 36588 79.45 Laboratory Services&Supplies Air Products&Chemicals, Inc. 36714 27,166.23 Chemicals,Water/WastewaterTreatment Airgas Safety, Inc. 36565 36,248.09 Safety,Security,Health Equipment,Supplies,and Services Airgas Safety, Inc. 36738 839.84 Safety,Security,Health Equipment,Supplies,and Services Airgas West 36589 1,088.80 Repair&Maintenance Services and/or Supplies Airgas West 36739 746.57 Repair&Maintenance Services and/or Supplies AKM Consulting Engineers 36740 15,921.00 Professional Services/Dig Alert Associate Engineer Allied Packing&Rubber,Inc. 36590 142.66 Repair&Maintenance Services and/or Supplies Amtech Elevator Services 36741 1,070.00 Miscellaneous Services APOLLO INFORMATION SYSTEMS 36742 6,253.22 Computers,Software/Hardware&Managed Services Applied Industrial Technology 36591 9,869.11 Repair&Maintenance Services and/or Supplies Applied Industrial Technology 36743 15.36 Repair&Maintenance Services and/or Supplies Arc Micro Optics 36592 351.33 Laboratory Services&Supplies Archie Ivy,Inc. 36744 9,562.00 Repair&Maintenance Services and/or Supplies Aspen Publishers, Inc. 36745 330.26 Books and Publications Association of Energy Engineers 36746 185.00 Professional Organization AT&T 36732 206.59 Telecommunications AT&T Long Distance. 36747 19.69 Telecommunications AT&T Mobility II,L.L.C. 36594 398.00 Telecommunications AT&T Universal Biller 36593 118.19 Telecommunications Atlas Underground, Inc. 36715 27,870.00 Repair&Maintenance Services and/or Supplies Bartel Associates,L.L.C. 36595 685.00 Professional Services-Actuarial Services,Benefits Review and Cost Analysis Battery Specialties 36596 552.02 Batteries,Various BC Wire Rope&Rigging 36597 854.78 Tools&Supplies Beach Wire and Cable 36598 446.42 Telecommunications Bentley Systems,Inc. 36599 6,994.74 Software Maintenance Agreement Black&Veatch Corporation 36566 78,528.57 Professional Services/Engineering Design Services Black&Veatch Corporation 36716 211,840.83 Professional Services/Engineering Design Services Black Box Corporation 36748 152.65 Computers,Software/Hardware Bondlogistix L.L.C. 36600 1,000.00 Professional Financial Services BP Energy Company 36601 15,040.52 Natural Gas BRANOM INSTRUMENT CO. 36602 183.08 Repair&Maintenance Services and/or Supplies BREA IMPERIAL, INC. 36749 2,500.00 Miscellaneous Services Brown&Caldwell 36567 143,383.36 Professional Services/Engineering Design Services Bush&Associates,Inc. 36603 6,672.00 Professional Services/Surveying Services Butier Engineering,Inc. 36568 71,215.86 Professional Services/Engineering Design Services EXHIBIT B fin/210/Ic Page 1 of 8 2/7/2011 Claims Paid From 01/16/11 to 01/31/11 Vendor Warrant No. Amount Description California Dept.of Child Support 36750 1,919.51 Judgments Payable California Municipal Treasurers Assoc. 36751 300.00 Professional Organizations Meeting/Training/Membership California Relocation Services, Inc. 36752 135.00 Miscellaneous Services-Moving/Relocation California Special District Association 36609 1,150.00 Professional Organizations Meeting/Training/Membership CALPELRA 36604 345.00 Professional Organizations,and Meeting/Training Registration CALPELRA 36753 690.00 Professional Organizations,and Meeting/Training Registration CARBON ACTIVATED CORPORATION 36754 13,845.00 Repair&Maintenance Services and/or Supplies Carl Warren&Co. 36755 300.00 Professional Services-Workers'Compensation Carollo Engineers 36717 123,053.37 Professional Services/Engineering Design Services CCG Systems, Inc. 36782 12,413.00 Computer Applications&Services Cheyenne Livestock&Products, Inc. 36757 916.00 Safety,Security,Health Equipment,Supplies,and Services Circle,Inc. 36605 194.79 Copier Toner/Ink Supplies Citibank Escrow Account#203514435 36710 339.01 Construction,Retention City Clerk's Association of California 36758 375.00 Professional Organizations Meeting/Training/Membership City of Fountain Valley 36569 44,581.98 Water Use City of Seal Beach 36848 109.06 Water Use City of Tustin 36759 275.00 Water Use Coast Rubber Stamp,Mfg. 36760 90.92 Stationery&Office Supplies Colich&Sons 36731 72,427.40 Construction Commercial Transportation Services 36761 2,294.10 On-Site Training Communications Supply Corp. 36606 68.08 Computer Hardware&Software Compressor Components of California 36762 8,160.00 Repair&Maintenance Services and/or Supplies Consumers Pipe&Supply Co. 36763 95.13 Repair&Maintenance Services and/or Supplies Controlled Motion Solutions 36764 124.00 Repair&Maintenance Services and/or Supplies Converse Consultants 36607 11,170.50 Professional Services/Professional Services/Materials&Geotechnical Testing COPPER AND BRASS SALES 36765 1,104.54 Safety,Security,Health Equipment,Supplies,and Services CORNER BAKERY CAFE(CBC) 36756 62.25 Meeting Expenses Corporate Image Maintenance, Inc. 36766 12,250.00 Janitor&Household Service&Supplies Coss,Ronald J. 36873 344.80 Meeting/Training Expense Reimbursement County of Orange Auditor Controller 36608 450.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 36767 88.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 36768 525.00 Governmental Agency Fees&Charges Court Order 36812 2,179.38 Judgments Payable Court Order 36813 150.00 Judgments Payable Court Order 36817 225.00 Judgments Payable Court Order 36841 108.00 Judgments Payable Court Order 36872 912.50 Judgments Payable CR&R,Inc. 36769 1,915.38 Waste Disposal CS-AMSCO 36770 627.51 Repair&Maintenance Services and/or Supplies Culligan of Orange County 36771 57.35 Repair&Maintenance Services and/or Supplies Curt V.Shelp 36883 250.00 Meeting/Training Expense Reimbursement CWEA Membership 36772 396.00 Professional Organizations Meeting/Training/Membership David Wheeler Pest Control,Inc. 36610 1,973.00 Pest Control Services David Wheeler Pest Control,Inc. 36773 5,412.00 Pest Control Services David's Tree Service 36774 9,775.00 Groundskeeping DLT&V Systems Engineering,Inc. 36775 2,491.21 Computer Applications&Services Drake Controls-West,L.L.C. 36776 3,695.46 Electrical/Electronic Equipment,Parts&Repairs Dunn-Edwards Corporation 36611 49.20 Facilities,Maintenance,Services&Supplies Electrabond 36612 4,975.31 Repair&Maintenance Services and/or Supplies EXHIBIT B fin/210nc Page 2 of 8 217/2011 Claims Paid From 01/16/11 to 01/31/11 Vendor Warrant No. Amount Description Employee Benefits Specialists, Inc. 36777 13,684.55 Reimbursed Prepaid Employee Medical&Dependent Care Enchanter, Inc. 36613 4,180.00 Vessel Services-Monitoring Vessel Nerissa Enertech Environmental 36571 572,015.06 Biosolids Management ENS Resources,Inc. 36778 7,500.00 Professional Services-Federal Advocacy Environmental&Occupational Risk Mgmt. 36614 5,900.00 Safety,Security,Health Equipment,Supplies,and Services Environmental Express,Inc. 36779 720.48 Laboratory Services&Supplies Environmental Resource Associates 36615 1,731.88 Laboratory Services&Supplies Environmental Resource Associates 36780 143.83 Laboratory Services&Supplies Ewing Irrigation 36781 64.77 Irrigation Repair&Maintenance Services and/or Supplies Fedex Corporation 36616 435.52 Freight Services Fedex Corporation 36783 299.26 Freight Services Fisher Scientific 36617 415.55 Laboratory Services&Supplies Fisher Scientific 36784 892.76 Laboratory Services&Supplies Fleetmatics USA,Inc. 36618 150.00 Professional Services-Human Resources Fleetmatics USA,Inc. 36785 152.08 Professional Services-Human Resources FOPCO INCORPORATED 36786 2,750.00 Repair&Maintenance Services and/or Supplies Frank R.Steiger 36712 125.00 Meeting/Training Expense Reimbursement Franklin Covey 36619 273.63 Office Supplies Franklin Covey 36787 162.42 Office Supplies Frys Electronics 36788 32.60 Computers,Software/Hardware Gabriel,Lawrence C 36875 195.00 Meeting/Training Expense Reimbursement Galco Industrial Electronics 36789 176.22 Electrical/Electronic Equipment,Parts&Repairs Garland Manufacturing Co. 36620 971.27 Repair&Maintenance Services and/or Supplies Gates Fiberglass Installers 36621 4,870.00 Repair&Maintenance Services and/or Supplies George Rivera 36880 901.93 Meeting/Training Expense Reimbursement Geo-Solutions, Inc. 36576 244,324.26 Construction Golden State Overnight Delivery Service 36790 30.01 Courier Services Golden West Machine,Inc. 36622 7,758.23 Repair&Maintenance Services and/or Supplies Golden West Window Service 36623 3,437.00 Facilities,Maintenance,Services&Supplies Golden West Window Service 36791 3,105.00 Facilities,Maintenance,Services&Supplies Govplace 36624 8,160.75 Computer Applications and Services Grainger,Inc. 36792 3,670.62 Repair&Maintenance Services and/or Supplies Graphics Press,L.L.C. 36625 760.00 Professional Organizations Meeting/Training/Membership Graybar Electric Company 36626 11.43 Electrical/Electronic Equipment,Parts&Repairs Graybar Electric Company 36793 649.87 Electrical/Electronic Equipment,Parts&Repairs GRM Information Management Services 36794 155.93 Miscellaneous Services&Supplies Guarantee Records Management 36627 455.18 Professional Services-Document Storage&Shredding Hach Company 36628 1,474.64 Laboratory Services&Supplies Harrington Industrial Plastics, Inc. 36629 1,179.41 Repair&Maintenance Services and/or Supplies Harrington Industrial Plastics, Inc. 36795 583.29 Repair&Maintenance Services and/or Supplies Hewlett Packard Company 36796 9,796.99 Computers,Software/Hardware Hills Brothers Lock&Safe 36797 250.00 Facilities,Maintenance,Services&Supplies Home Depot 36630 114.02 Miscellaneous Parts and Supplies Home Depot 36798 454.32 Miscellaneous Parts and Supplies IAEI 36631 90.00 Professional Organizations Meeting/Training/Membership Indiana Child Support Bureau 36799 290.00 Judgments Payable Industrial Distribution Group 36800 435.47 Repair&Maintenance Services and/or Supplies Inorganic Ventures,Inc. 36801 140.10 Laboratory Services&Supplies Inplant Sales,L.L.C. 36802 797.50 Repair&Maintenance Services and/or Supplies EXHIBIT B fin/210/Ic Page 3 of 8 2/7/2011 Claims Paid From 01/16/11 to 01/31/11 Vendor Warrant No. Amount Description Insight Public Sector, Inc. 36803 9,640.31 Computers,Software/Hardware Intercare Holdings Insurance Svcs., Inc. 36632 3,166.67 Workers'Compensation Service International Business Machines 36804 5,947.26 Computer Applications&Services Intl.Union of Oper.Eng.AFL CIO Local 501 36805 4,858.35 Dues Deductions Intratek Computer,Inc. 36806 3,294.48 Network/Server/Printer Maintenance Services Irvine Ranch Water District 36633 8.00 Water Use Irvine Ranch Water District 36807 47.38 Water Use J I Solutions, Inc. 36634 119.50 Laboratory Services&Supplies J I Solutions, Inc. 36808 371.84 Laboratory Services&Supplies J.F.Shea Construction, Inc. 36577 515,318.78 Construction James D.Ruth 36882 672.77 Meeting/Training Expense Reimbursement Jamison Engineering Contractors,Inc. 36718 90,719.22 Professional Services/Construction Support Services JCI Jones Chemicals,Inc. 342 36,295.60 Chemicals,Water/Wastewater Treatment JCI Jones Chemicals,Inc. 345 58,583.58 Chemicals,Water/Wastewater Treatment JOHNSON LIFT HYSTER 36809 292.97 Repair&Maintenance Services and/or Supplies Johnstone Supply 36810 938.75 Repair&Maintenance Services and/or Supplies JPR Systems, Inc. 36811 158.06 Repair&Maintenance Services and/or Supplies Julian Sabri and Micro Computers 36885 1,974.81 Employee Computer Loan Program Kaman Industrial Technologies 36635 550.10 Repair&Maintenance Services and/or Supplies Kemira Water Solutions 346 211,851.63 Chemicals,Water/Wastewater Treatment Koff&Associates, Inc. 36636 2,110.00 Professional Services/Comp&Class Study Lakes Environmental Software,Inc. 36637 1,265.00 Computer Applications&Services Larry R.Crandall 36874 986.97 Meeting/Training Expense Reimbursement Lee&Ro,Inc. 36719 84,263.67 Professional Services/Engineering Design Services Liberty Mutual Claims 36638 7,082.63 Insurance Lisa A.Rothbart 36881 1,090.84 Meeting/Training Expense Reimbursement Malcolm Pirnie,Inc. 36572 125,869.99 Professional Services/Engineering Design Services Malcolm Pirnie,Inc. 36720 49,425.91 Professional Services/Engineering Design Services Mandrick S.Taylor 36884 908.49 Meeting/Training Expense Reimbursement Marinus Scientific 36639 87.00 Laboratory Services&Supplies Marsella,Rose M. 36879 231.26 Meeting/Training Expense Reimbursement Maxim Security Systems 36640 17,248.10 Safety,Security,Health Equipment,Supplies,and Services McJunkin Red Man Corporation 36814 1,659.36 Repair&Maintenance Services and/or Supplies McMaster-Carr Supply Co. 36641 110.02 Repair&Maintenance Services and/or Supplies McMaster-Carr Supply Co. 36815 2,701.71 Repair&Maintenance Services and/or Supplies Mesa Consolidated Water District 36642 44.00 Water Use Michael I.Gold 36876 695.30 Meeting/Training Expense Reimbursement Mid-West Associates,Inc. 36643 1,461.13 Repair&Maintenance Services and/or Supplies Mid-West Associates,Inc. 36816 13,764.00 Repair&Maintenance Services and/or Supplies Minarik 36644 722.93 Electrical/Electronic Equipment,Parts&Repairs MWH Americas, Inc. 36573 345,262.47 Professional Services/Engineering Design Services NaHabit&Associates, Inc. 36645 1,049.00 Professional Organizations Meeting/Training/Membership NAS Associates, Inc. 36646 445.00 Laboratory Services&Supplies National Fire Protection Association 36818 150.00 Professional Organizations Meeting/Training/Membership Neutron Products, Inc. 36820 14,862.66 Chemicals,Water/Wastewater Treatment New Horizons Computer Learning Center 36647 300.00 Professional Organizations Meeting/Training/Membership New Horizons Computer Learning Center 36821 300.00 Professional Organizations Meeting/Training/Membership Nickell Metal Spray 36822 2,210.00 Repair&Maintenance Services and/or Supplies Norman A.Traub Associates 36648 5,418.00 Legal Services EXHIBIT B fin/210/Ic Page 4 of 8 2/7/2011 Claims Paid From 01/16/11 to 01/31/11 Vendor Warrant No. Amount Description NRG Engine Services,L.L.C. 36649 9,087.25 Repair&Maintenance Services and/or Supplies O C Tanner Recognition Company 36650 1,880.17 Service Awards O C Tanner Recognition Company 36823 1,449.12 Service Awards OCB Reprographics 36651 5,448.07 Printing/Reprographics Services OCEA 36824 692.25 Dues Deductible Office Depot 36652 2,136.52 Office Supplies Office Depot 36825 3,821.44 Office Supplies Olin Corporation 36826 3,899.64 Chemicals,Water/Wastewater Treatment OneSource Distributors,Inc. 36653 4,947.44 Electrical/Electronic Equipment,Parts&Repairs OneSource Distributors,Inc. 36827 2,437.01 Electrical/Electronic Equipment,Parts&Repairs Orange County Sheriff 36828 464.17 Judgments Payable Orange County United Way 36829 40.00 Employee Contributions Orange County Vector Control District 36830 164.48 Pest Control Oxygen Service Company 36655 786.31 Laboratory Services&Supplies Oxygen Service Company 36831 821.60 Laboratory Services&Supplies Pacific Investment Management 36721 101,208.74 Professional Financial Services Pacific Mechanical Supply 36656 716.69 Repair&Maintenance Services and/or Supplies Pacific Mechanical Supply 36832 33.42 Repair&Maintenance Services and/or Supplies Pamela A.Koester 36877 1,155.01 Meeting/Training Expense Reimbursement PBS&J 36833 18,897.62 Professional Services/Engineering Design Services Peace Officers Council of CA 36834 2,334.50 Dues Deductions,Supervisors&Professionals Performance Pipeline Technologies 36657 3,200.00 Professional Services/CCTV Inspection/Sewerline Cleaning Performance Pipeline Technologies 36722 35,715.61 Professional Services/CCTV Inspection/Sewerline Cleaning Polydyne, Inc. 343 21,232.50 Chemicals,Water/WastewaterTreatment Polydyne, Inc. 347 35,044.16 Chemicals,Water/WastewaterTreatment Ponton Industries,Inc. 36835 3,125.79 Laboratory Services&Supplies Port Supply 36658 356.28 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Primary Source Office Furnishings,Inc. 36659 693.83 Minor Equipment/Furniture&Fixtures Primary Source Office Furnishings,Inc. 36836 3,234.23 Minor Equipment/Furniture&Fixtures Primrose Ice Co., Inc. 36660 100.00 Water&Ice Services Primrose Ice Co., Inc. 36837 100.00 Water&Ice Services Procare Work Injury Center 36661 308.51 Medical Services Projects Partners 36723 30,036.00 Professional Services/Temporary Employment Services Propipe Professional Pipe Services 348 3,994.58 Professional Services/CCTV Sewerline Inspections Prudential Insurance Company of America 36662 2,938.85 Benefits Prudential Overall Supply 36838 3,741.37 Uniforms PSOMAS 36663 8,800.00 Computer Applications&Services PSOMAS 36839 10,780.00 Computer Applications&Services Pump Action 36664 877.72 Oil Filters QUAYLE CONSULTING INC. 36665 15,200.00 Computer Applications&Services Quickstart Intelligence 36840 975.00 Professional Organizations Meeting/Training/Membership Rainbow Disposal Co. 36666 232.91 Waste Disposal Rainbow Disposal Co. 36842 3,261.39 Waste Disposal Rainin Instrument,L.L.C. 36667 822.69 Laboratory Services&Supplies RBF Consulting 36843 1,478.47 Professional Services/Engineering Design Services Red Wing Shoes 36668 587.88 Safety,Security,Health Equipment,Supplies,and Services RMC Water and Environment 36669 600.00 Professional Services RMC Water and Environment 36844 468.12 Professional Services Robert Half International,Inc. 36845 2,482.00 Computer Applications&Services EXHIBIT B fin/210/Ic Page 5 of 8 2/7/2011 Claims Paid From 01/16/11 to 01/31/11 Vendor Warrant No. Amount Description Royale Cleaners 36670 127.80 Miscellaneous Services Royale Cleaners 36846 71.00 Miscellaneous Services S.S.Mechnical Corporation 36711 3,051.08 Construction Sachs Electric Company 36729 241,285.88 Professional Services/Central Generation Automation Safety Environmental Consulting 36671 350.00 Safety,Security,Health Equipment,Supplies,and Services San Diego/Orange Fluid System Technologies, Inc. 36672 307.66 Repair&Maintenance Services and/or Supplies Sancon Engineering, Inc. 36724 68,547.00 Repair&Maintenance Services and/or Supplies SCAQMD 36847 7,720.36 Governmental Agency Fees&Charges Schwing Bioset 344 13,578.34 Repair&Maintenance Services and/or Supplies Sea Coast Designs,Inc. 36673 364.86 Furniture SGE,Inc. 36674 2,493.31 Laboratory Services&Supplies Shamrock Supply Co.,Inc. 36675 3,926.84 Repair&Maintenance Services and/or Supplies Shamrock Supply Co.,Inc. 36849 278.74 Repair&Maintenance Services and/or Supplies Shureluck Sales&Engineering 36676 152.47 Repair&Maintenance Services and/or Supplies Siemens Technology 36677 295.80 Air Conditioner Automation System Siemens Water Technologies Corp. 36850 67.51 Repair&Maintenance Services and/or Supplies Sigma-Aldrich,Inc. 36678 210.06 Laboratory Services&Supplies SKC West, Inc. 36679 803.84 Laboratory Services&Supplies SkillPath Seminars 36680 149.00 Professional Organization&Meeting/Training Registration Smardan Supply Company 36681 75.14 Repair&Maintenance Services and/or Supplies SMEAD MANUFACTURING COMPANY 36682 1,530.00 Computers,Software/Hardware&Managed Services Society for Human Resource Management 36683 180.00 Professional Organizations Meeting/Training/Membership Source Graphics 36684 126.61 Computer Applications&Services Southern California Edison 36725 238,018.05 Utilities Sparkletts 36851 1,478.11 Miscellaneous Supplies SPENCER FLUID POWER INC 36685 194.64 Repair&Maintenance Services and/or Supplies St.Croix Sensory,Inc. 36852 3,545.00 Outside Laboratory Services Stanley Steamer International,Inc. 36853 1,274.00 Janitor&Household Service&Supplies Staples 36686 10.31 Office Supplies Summit Steel 36687 19.60 Repair&Maintenance Services and/or Supplies Summit Steel 36854 216.09 Repair&Maintenance Services and/or Supplies Sunset Industrial Parts 36688 10,870.35 Repair&Maintenance Services and/or Supplies Sunset Industrial Parts 36855 155.34 Repair&Maintenance Services and/or Supplies TEG STAFFING,INC. 36689 2,864.25 Temporary Employment Services TekSystems 36690 3,790.80 Professional Services/Temporary Services Terra Renewal,L.L.C. 36726 46,715.93 Grit&Screenings Disposal TestAmerica Ontario 36691 966.00 Laboratory Services&Supplies The Integration Works,L.L.C. 36856 1,602.00 Repair&Maintenance Services and/or Supplies The Orange County Register 36654 1,112.00 Notices&Ads The Pittsburgh Conference 36692 545.00 Professional Organizations Meeting/Training/Membership The Wackenhut Corporation 36703 14,103.88 Safety,Security,Health Equipment,Supplies,and Services The Walking Man, Inc. 36857 350.00 Miscellaneous Services Thermo Electron Corp. 36858 38.24 Laboratory Services&Supplies Thomas S.Hendy 36713 1,964.69 Meeting/Training Expense Reimbursement Thompson Industrial Supply,Inc. 36859 5,239.63 Repair&Maintenance Services and/or Supplies T-Mobile 36693 109.28 Telecommunications Tony's Lock&Safe Service&Sales 36860 843.80 Repair&Maintenance Services and/or Supplies Townsend Public Affairs 36694 7,500.00 Professional Services-State Legislative Advocacy Tropical Plaza Nursery, Inc. 36861 4,882.50 Landscape Maintenance Services EXHIBIT B fin/210/Ic Page 6 of 8 2/7/2011 Claims Paid From 01/16/11 to 01/31/11 Vendor Warrant No. Amount Description Truck&Auto Supply, Inc. 36862 214.86 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Tule Ranch/Magan Farms 36574 147,126.26 Biosolids Management Underground Service Alert of So.Calif 36863 1,015.50 Professional Services-Dig Alert Notification Service Union Bank of California 36864 2,523.75 Banking Services United Parcel Service 36695 700.80 Freight Services United Parcel Service 36865 60.61 Freight Services Universal Flooring Systems, Inc. 36696 498.00 Facilities,Maintenance,Services&Supplies UPDATE INTERNATIONAL INC 36866 2,631.00 Professional Organizations Meeting/Training/Membership US Peroxide,L.L.C. 36697 5,243.46 Chemicals,Water/WastewaterTreatment US Peroxide,L.L.C. 36727 178,909.85 Chemicals,Water/Wastewater Treatment USA Mobility Wireless, Inc. 36698 634.33 Telecommunications Valin Corporation 36699 1,574.48 Repair&Maintenance Services and/or Supplies Verizon California 36867 49.30 Telecommunications Verne's Plumbing 36700 3,900.00 Plumbing Services&Supplies Verne's Plumbing 36868 650.00 Plumbing Services&Supplies Village Nurseries 36869 365.77 Repair&Maintenance Services and/or Supplies Vladimir A.Kogan 36878 541.79 Meeting/Training Expense Reimbursement Voided Check 36570 - Voided Check 36578 Voided Check 36580 Voided Check 36728 Voided Check 36819 - Vortex Corp. 36701 2,177.20 Repair&Maintenance Services and/or Supplies Vortex Corp. 36870 1,406.76 Repair&Maintenance Services and/or Supplies VWR Scientific Products 36702 1,439.14 Laboratory Services&Supplies VWR Scientific Products 36871 118.93 Laboratory Services&Supplies WateReuse Association 36704 350.00 Professional Organizations Meeting/Training/Membership Watereuse Foundation 36575 25,000.00 Professional Organization Waxie Sanitary Supply 36705 717.49 Janitor&Household Service&Supplies Wells Fargo Bank Esc 80556300 Kiewit 36730 63,728.75 Construction,Retention Wells Fargo Bank Escrow 23518600 36579 217,364.55 Construction,Retention Wells Fargo Bank Escrow 23861100 Kiewit 36581 32,946.20 Construction,Retention Westport Apparatus dba Breaker Supply 36706 492.65 Electrical/Electronic Equipment,Parts&Repairs Workplace Resource 36707 178.34 Furniture Xerox Corporation 36708 944.24 Computers,Software/Hardware&Managed Services 1-800-Conference(R) 36709 200.81 Telecommunications Total Accounts Payable-Warrants $ 5,534,534.48 Payroll Disbursements Employee Paychecks 46277 - 46320 $ 97,438.94 Biweekly Payroll(01/26/11)*&" Employee Paychecks 46348 - 46350 460.66 Interim Payroll-Voided Ck#46260&Reissue of Ck#46260, IDEA,error correction(01/ Employee Paychecks 46351 - 46352 4,988.69 Interim-Retirement(01/27/11) Employee Paychecks 46353 - 46354 26,766.41 Interim-Retirement Payouts(01/27/11) Direct Deposit Statements 199027 - 199590 1,398,150.43 Biweekly Payroll(01/26/11) Total Payroll Disbursements $ 1,527,805.13 Check Numbers 46276&46321 were assigned to zero net pay,no cash effect. **Checks 46322-46347 printed out of order for a later pay date. ***Warrant 46260 was reported on 01/15/11 report. EXHIBIT B fin/210/Ic Page 7 of 8 2/7/2011 Claims Paid From 01/16/11 to 01/31/11 Vendor Warrant No. Amount Description Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 864,352.38 Biweekly Payroll(01/26/11) Union Bank of California 4,787,283.93 Series 2003A Certificates of Participation Interest Payment(01/31/11) Union Bank of California 2,037,569.40 Series 2007A Certificates of Participation Principal and Interest Payment(01/31/11) Union Bank of California 12,441,669.58 Series 2007B Certificates of Participation Principal and Interest Payment(01/31/11) U S Bank 503,178.39 Series 2008A Refunding Certificates of Participations Interest Payments(01/31/11) U S Bank 391,884.67 Series 2008B Refunding Certificates of Participations Interest Payments(01/31/11) U S Bank 7,933,800.65 Series 2009A Refunding Certificates of Participation Principal and Interest Payment(01/; U S Bank 2,228,953.00 Series 2010A Revenue Obligations and Interest Payment(01/31/11) U S Bank 1,477,608.35 Series 2010C Revenue Obligations and Interest Payment(01/31/11) Merrill Lynch,Pierce,Fenner and Smith Inc. 36,673.98 Series 2000 A&B Refunding COPS Remarketing Fee(October 1,2010-December 31, Kiewit/Mass,A Joint Venture 1,956,280.95 Construction 5-49(01/20/11) Kiewit/Mass,A Joint Venture 296,515.80 Construction 5-50(01/20/11) Kiewit Infrastructure West Co. 1,205,846.25 Construction 3-58(01/31/11) Total Wire Transfer Payments $ 36,161,617.33 Total Claims Paid 01/16/11 -01/31/11 $ 43,223,956.94 EXHIBIT B fin/210/Ic Page 8 of 8 2/7/2011 Final Minutes Approved 2/23/11 Orange County Sanitation District MINUTES BOARD MEETING January 26, 2011 N� THE EN�� Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 01/26/11 Minutes of Board Meeting Page 1 of 6 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on January 26, 2011, at 6:30 p.m., in the Administration Building. 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 X Troy Edgar, Vice Chair Ken Stephens X John Anderson Jim Winder X Charles Antos Gordon Shanks X Tom Beamish Rose Espinoza X Joe Carchio Matthew Harper X Bill Dalton Andrew Do X Jon Dumitru Denis Bilodeau X James M. Ferryman Bob Ooten X Jeffrey Lalloway Steven Choi X Roy Moore Ron Garcia X Prakash Narain Doug Bailey X Joy Neugebauer Al Krippner X Janet Nguyen Shawn Nelson X John Nielsen Jerry Amante X Sharon Quirk-Silva Pat McKinley X Brad Reese Bill Mac Aloney X Steven Rosansky Nancy Gardner X David Shawver Carol Warren X Harry Sidhu Gail Eastman X Fred Smith Steve Berry X Sal Tinajero David Benavides X Constance Underhill Scott Nelson X Mark Waldman Steven Hwangbo X John Withers Douglas Reinhart STAFF MEMBERS PRESENT: Jim Ruth, General Manager; Bob Ghirelli, Assistant General Manager; Jim Herberg, Assistant General Manager; Donna Terrones, Clerk of the Board; Lilia Kovac, Associate Clerk of the Board; Nick Arhontes, Director of Facilities Support Services Department; Ed Torres, Director of Operations & Maintenance; Lorenzo Tyner, Director of Finance & Administrative Services; Jeff Reed, Director of Human Resources; Jim Colston; Norbert Gaia; Juanita Skillman; and Paula Zeller. OTHERS PRESENT: Brad Hogin, General Counsel; Eric Sapirstein, Heather Dion- Stratman; Christopher Townsend; Steve Maguin; and Guillermo Garcia. MOVED, SECONDED, AND DULY CARRIED, the Board of Directors: 01/26/11 Minutes of Board Meeting Page 2 of 6 1. Received and approved filing Minute Excerpts of member agencies relating to appointments to the Orange County Sanitation District Board, as follows: City/Agency Active Director Alternate Director Anaheim Harry Sidhu Gail Eastman Buena Park Fred Smith Steve Berry Cypress Prakash Narain Doug Bailey Fountain Valley Larry Crandall Steve Nagel Huntington Beach Joe Carchio Matthew Harper Irvine Jeffrey Lalloway Steven Choi La Habra Tom Beamish Rose Espinoza La Palma Mark Waldman Steve Hwangbo Los Alamitos Troy Edgar Ken Stephens Placentia Constance Underhill Joseph Aguirre Newport Beach Steven Rosansky Nancy Gardner Tustin John Nielsen Jerry Amante Yorba Linda John Anderson Jim Winder PUBLIC COMMENTS: None REPORTS: Board Chair Crandall introduced Lobbyist Eric Saperstein, Heather Dion-Stratman and Christopher Townsend who gave legislative updates. Board Chair Crandall thanked Director Antos for his service; welcomed the new Directors and announced the New Board Member orientation dates. He reported his attendance at the CASA mid-year conference and a meeting with the Army Corps of Engineers. Chair Crandall Congratulated Irvine Ranch Water District (IRWD) in celebrating their 50th Anniversary. Chair Crandall announced the appointments of Director Anderson as the Chair of the Administration Committee and the appointment of Brad Reese as Vice Chair and as a member of the Steering Committee. He then noted the upcoming meetings. Board Chair Crandall called for a straw vote and agreed to consider changing the date of the Board Meeting from April 27 to April 20, 2011 if placed in the February Board agenda. General Manager Jim Ruth discussed his mid-year and status report. 01/26/11 Minutes of Board Meeting Page 3 of 6 INFORMATIONAL ITEM: This item was discussed following Item No. 8. 2. EnerTech Biosolids Management Contract Update. CLAIMS: MOVED, SECONDED, AND DULY CARRIED, the Board of Directors: 3. Ratified payment of claims of the District. Claims Paid for the Period Ending 12/15/10 12/31/10 Totals $16,443,011.99 $10,161,518.27 Directors Dalton, Dumitru, Nguyen, Sidhu, Tinajero, and Rosansky abstained from discussion and voting on all warrants pursuant to California Government Code Section 84308. CONSENT CALENDAR: Board Chair Crandall pulled Item No. 5 for discussion. MOVED, SECONDED, AND DULY CARRIED, the Board of Directors: 4. Approved Minutes for the Regular Meeting held on December 15, 2010. 6. Adopted Resolution No. OCSD 11-01, Authorizing Emergency Repairs to the Santa Ana River Interceptor (SARI) Pipeline Protective Cover and Ratifying the General Manager's Use of Emergency Purchasing Authority pursuant to Delegation of Authority Resolution No. OCSD 07-04, Section 6.03(J), and authorized a continuing need for the General Manager to issue the following purchase orders for the 2010 SARI Protection Repairs, Project No. 2-41-7: A. Purchase Order No. 81354-OS to Jamison Engineering Contractors for providing construction services, for a total amount not to exceed $500,000; B. Purchase Order No. 81407-OS to RBF Consulting for providing surveying services for a total amount not to exceed $100,000; and C. Purchase Order No. 81408-OS to TetraTech, Inc. for providing engineering services, for a total amount not to exceed $25,000. 01/26/11 Minutes of Board Meeting Page 4 of 6 STEERING COMMITTEE: Board Chair Crandall reported that the Committee Members met in Legislative Goal- Setting Workshop and in the Regular Meeting; and approved meeting minutes. Chair Crandall also reported approval of the General Manager's restructuring plan, appointing Jim Herberg as Assistant General Manager and Director of Engineering, and Jeff Reed as Director of Human Resources. MOVED, SECONDED, AND DULY CARRIED, the Board of Directors: 7. Approved Minutes for the Regular Meeting held on December 15, 2010. NON-CONSENT CALENDAR: MOVED, SECONDED, AND DULY CARRIED, the Board of Directors: 5. Board Chair Crandall noted a correction to the amounts in 5.D and 5.E. It was then MOVED, SECONDED, AND DULY CARRIED, the Board of Directors: A. Approved Plans and Specifications for the P1 CenGen Strainer Drain Improvements, Project No. FE07-23, on file at the office of the Clerk of the Board; B. Approved Addendum No. 1 to the plans and specifications; C. Received and approved filing of bid tabulation and recommendation; D. Approved award of a construction contract to J. F. Shea Construction, Inc. for P1 CenGen Strainer Drain Improvements, Project No. FE07-23, for an amount not to exceed $101,804; and E. Approved a contingency of $20,360 (20%). MOVED, SECONDED, AND DULY CARRIED, the Board of Directors: 8. A. Approved establishing a budget for the Joint GWRS Microfiltration Backwash Redirection Project, Project No. J-36-1 , in the amount of$1,061,000; and B. Approved a reimbursement agreement with the Orange County Water District for half the project expenditures, in a form approved by General Counsel, for an estimated amount not to exceed $1,061,000. 01/26/11 Minutes of Board Meeting Page 5 of 6 INFORMATIONAL ITEM: 2. EnerTech Biosolids Management Contract Update. Assistant General Manager Jim Herberg provided a historical presentation of the EnerTech agreement, and the technical difficulties encountered in performing per contract. Mr. Herberg introduced Steve Maguin, General Manager and Chief Engineer with the Los Angeles County Sanitation Districts (LACSD), who gave an update on his agency's perspective. CLOSED SESSION: CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS Government Code Sections 54956.9(a). The Board convened in closed session at 7:30 p.m. Confidential Minutes of the Closed Session have been prepared 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 8:30 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel announced the Board of Directors voted yes to move forward in settling the Nguyen v. OCSD case, Director Dumitru voted no. The Board unanimously voted to settle the Ioja, et al. v. OCSD case and the Board unanimously voted to deny the Ennis claim. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Director Reese announced he had taken the Nerissa Tour. ADJOURNMENT: The Chair declared the meeting adjourned at 8:35 p.m. Donna N. Terrones, CIVIC Clerk of the Board 01/26/11 Minutes of Board Meeting Page 6 of 6 BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 02/23/11 AGENDA REPORT Item Number Item Number 4 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Donna N. Terrones, Clerk of the Board SUBJECT: April Board Meeting Change GENERAL MANAGER'S RECOMMENDATION Approve Board Meeting change from April 27, 2011, to April 20, 2011. SUMMARY Board Chair Crandall is unable to attend the April 27, 2011 Board Meeting and is requesting Board approval to change the Board meeting date from April 27, 2011, to April 20, 2011. PRIOR COMMITTEE/BOARD ACTIONS At the January 26, 2011 Board Meeting a straw vote was taken to agendize the above request to the February Agenda for action. The vote passed. ADDITIONAL INFORMATION N/A CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A DW-102 Board AR, Rev 10/04/ Page 1 of 1 BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 02/23/11 AGENDA REPORT Item Number Item Number 5 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Assistant General Manager Project Manager: Dean Fisher SUBJECT: PERMITTING FOR INTERIM IMPROVEMENTS WITHIN THE CITY OF FOUNTAIN VALLEY GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 1 to the Agreement with City of Fountain Valley for Permitting of Interim Improvements of the Orange County Sanitation District, providing for updated completion schedule and project list, in a form approved by General Counsel. SUMMARY In April 2010, the Orange County Sanitation District (Sanitation District) approved an Agreement with the City of Fountain Valley (City) for Permitting Improvements of the Sanitation District administrative buildings subject to plan review by the City. In December 2010, Staff met with the City to discuss updating the agreement to reflect the current project schedules, scopes, and budgets. The primary change in schedule would allow the Sanitation District additional time in the near-term to incorporate newly discovered needed repairs for the buildings that are being brought up to current code under the Agreement with the City. The final completion date of 2018 for all buildings at our Fountain Valley property will not be changed. PRIOR COMMITTEE/BOARD ACTIONS April 2010 — Approved Agreement with the City of Fountain Valley for Permitting Improvements of the Orange County Sanitation District within the City of Fountain Valley, in a form approved by General Counsel. ADDITIONAL INFORMATION Proposed changes to project completion dates in attached Exhibit "A" reflect more detailed project completion schedules than were available at the time of the initial Agreement execution. DW-102 Board AR, Rev 10/04/10 Page 1 of 2 CEQA The construction activities are categorically exempt under CEQA because they consist of the minor alteration of existing structures, involving no expansion of use. Specifically, the project will involve activities under Section 15301(a) that include the interior and exterior alterations involving such things as interior partitions, plumbing, and electrical conveyances. A Notice of Exemption will be filed with the County of Orange BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. No project expenditures are being requested at this time. Date of Approval Contract Amount Contingency N/A N/A N/A CM:aln:el:gc ATTACHMENT Exhibit "A" — Proposed Completion Dates DW-102 Board AR, Rev 10/04/10 Page 2 of 2 Exhibit"A" (Modified Addendum No. 1) City Compliance Project This will include design and construction of the grounds improvements followed by the general building improvements. The proposed completion schedule for the improvements is as follows: PROPOSED TASK DESCRIPTION COMPLETION Ground Improvements Design March 2011 Ground Improvements Constructed February 2012 Trailer 42 Removal and Demolition September 2011 Building Improvements Design Preliminary Design Report—October 2011 Submit Design to City of FV—August 2012 Maintenance Buildings 5 &6 Shop A&Paint Shop June 2014 Purchasing,Warehouse,Body Shop,Building 4 June 2015 Administrative Building June 2016 Laboratory&Human Resources Buildings June 2017 Engineering Trailer Complex June 2018 BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 02/23/11 AGENDA REPORT Item Number Item Number 6 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Assistant General Manager Project Manager: Jim Burror, Engineering Supervisor SUBJECT: Adopt Resolution No. OCSD 11-02 GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 11-02, Adopting Policies and Procedures for Providing Priority Service to Affordable Housing Projects and Repeal Resolution No. OCSD 06-18. SUMMARY The passage of CA Senate Bill 1087 (SB 1087) in 2005 amended the Government Code Section 65589.7. The revised Code requires public agencies or private entities that provide water or sewer services to adopt written policies and procedures with specific objective standards for providing priority service to lower income housing projects. In addition, a public agency or private entity that provides water or sewer service, shall not deny or condition the approval of an application for services to, or reduce the amount of services applied for by a proposed development, that includes lower income housing units unless the public agency or private entity makes specific written findings that the denial, condition, or reduction is necessary. See additional information for examples. Currently, the Orange County Sanitation District (OCSD) does not have any quotas or other politically derived restrictions for new sewer connections. The Government Code changes and the passage of this Resolution will prohibit future restrictions from being placed on lower income housing projects by OCSD. SB1087 requires OCSD to update and approve the provisions of this resolution at least once every five years. PRIOR COMMITTEE/BOARD ACTIONS August 2006 — Adopted Resolution No.00SD 06-18; Policies and Procedures for Providing Priority Service to Affordable Housing Projects DW-102 Board AR, Rev 10/04/10 Page 1 of 2 ADDITIONAL INFORMATION Examples of acceptable reasons for the denial, condition, or reduction in services to a proposed development that contain lower income housing units, include one or more of the following: (1) Insufficient water supply or insufficient water treatment or distribution capacity; (2) A State Department of Health Services order prohibiting new water connections; (3) Insufficient sewer treatment or collection capacity; (4) A Regional Water Quality Control Board order prohibiting new sewer connections; or (5) The applicant has failed to agree to reasonable terms and conditions CEQA The recommended action is also statutorily exempt pursuant to CEQA Guidelines Section 15268(b) because this action establishes requirements for connection permitting, is absent of any discretionary provision, and is required by the State of California. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. Date of Approval Contract Amount Contingency N/A N/A N/A ATTACHMENT Resolution No. OCSD 11-02 JB:sa DW-102 Board AR, Rev 10/04/10 Page 2 of 2 RESOLUTION NO. OCSD 11-02 RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT Adopting Policies And Procedures For Providing Priority Service To Affordable Housing Projects (Government Code Section 65589.7) WHEREAS, the California legislature has declared that the lack of affordable housing is a matter of vital statewide importance; and WHEREAS, Government Code Section 65589.7 enhances the priority granted to lower-income housing by requiring that public agencies that provide water or sewer services shall adopt written policies and procedures with specific objective standards for providing priority service to lower income housing projects. NOW, THEREFORE, BE IT RESOLVED, that the following guidelines are hereby adopted by the Board of Directors of the Orange County Sanitation District ("District") with respect to providing priority service to lower income housing projects: (1) The District shall devote its best efforts to plan for and, to a reasonable degree (as determined on a case by case basis),prioritize providing water and sewer connections to the lower income housing element of a general plan adopted by the legislative body of a county or city that pertains to development within the District's boundaries; (2) Development projects that include lower income housing units shall not be denied approval of an application for service, nor shall conditions be imposed thereon or services reduced which are applied for,unless the District makes specific written findings that the denial, condition, or reduction is necessary due to the existence of one or more of the following: (a) insufficient water supply or insufficient water treatment or distribution capacity; (b) a State Department of Health Services order prohibiting new water connections; (c) insufficient sewer treatment or collection capacity; (d) a Regional Water Quality Control Board order prohibiting new sewer connections; or (e) the applicant has failed to agree to reasonable terms and conditions. (3) Areas with Available Capacity - In times where Orange County Sanitation District has available capacity in its wastewater collection, treatment and disposal facilities, the provision of public sewer service residential housing developments will be on an income-neutral basis. Page 1 of 2 (4) Areas with Limitations in Capacity- In times where when the Orange County Sanitation District experiences service limitations due to capacity or regulatory constraints, service priority shall be given to planned developments that include housing units affordable to low income households in accordance with Government Code § 65589.7, and the limitations set therein. (5) Procedure -Whenever lower income housing units are identified in a city's housing element or amendment thereto from any city within the service area of the Orange County Sanitation District, and the local sewer agency, or the developer where the Orange County Sanitation District is the local sewer agency, applies for a connection permit, the Orange County Sanitation District will give highest priority to the provision of services to that development and particularly to the affordable housing units contained therein. The applicant may appeal within ten(30) days following a denial of services to the Orange County Sanitation District Board of Directors, for consideration at the next regular board meeting following the denial of the issuance of the permit. (6) At least once every five (5) years, the Orange County Sanitation District shall update and approve the provisions in this Resolution, by Resolution or Ordinance. ADOPTED, SIGNED AND APPROVED this 23rd day of February, 2011. ORANGE COUNTY SANITATION DISTRICT Chair ATTEST: Clerk of the Board Page 2 of 2 MINUTES STEERING COMMITTEE SPECIAL MEETING AND REGULAR MEETING Orange County Sanitation District The Steering Committee Special Meeting convened on Wednesday, January 26, 2011, at 4:30 p.m. followed by the Regular Meeting at 5:30 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Larry Crandall, Chair Jim Ruth, General Manager Troy Edgar, Vice Chair Bob Ghirelli, Assistant General Manager Tom Beamish, Operations Committee Jim Herberg, Assistant General Manager Chair Nick Arhontes, Director of Facilities Support John Anderson, Administration Committee Services Chair Ed Torres, Director of Operations & Brad Reese Maintenance Sharon Quirk-Silva Lorenzo Tyner, Director of Finance John Withers & Administrative Services Michael Gold, Public Affairs Manager Jeff Reed, Director of Human Resources Donna N. Terrones, Clerk of the Board COMMITTEE MEMBERS ABSENT: Ryal Wheeler Tod Haynes Juanita Skillman Rob Thompson Jim Colston OTHERS PRESENT: Brad Hogin, General Counsel Heather Dion-Stratman Drew Kolosky Eric Sapirstein Chris Townsend * * * * * * * * * * SPECIAL MEETING: 4:30 P.M. — Legislative Goal Setting Workshop Minutes of the Steering Committee January 26, 2011 Page 2 of 3 PUBLIC COMMENTS: None Goal Setting Workshop: Public Affairs Manager Michael Gold reviewed last year's goals and accomplishments, then introduced Lobbyists Eric Sapirstein, Heather Dion-Stratman and Christopher Townsend who gave an update on federal and state legislation. Mr. Gold reviewed the legislative goals for the 2011 calendar year and requested input and direction on priorities for the Sanitation District. REGULAR MEETING: 5:30 P.M. - Steering Committee PUBLIC COMMENTS: None REPORTS: Committee Chair Larry Crandall briefly reported his attendance at the CASA Conference; his new appointment as Chair to the Groundwater Replenishment System Committee; his visit to the SARI Line site. Chair Crandall announced the appointment of John Anderson as Chair of the Administration Committee; Director Brad Reese as Vice Chair of the Administration Committee and as a member of the Steering Committee; and congratulated the Irvine Ranch Water District on their 50t" Anniversary. General Manager Jim Ruth, gave a brief summary of his mid-year report; noted that an update on the EnerTech agreement would be presented at the Board meeting. Mr. Ruth reported that labor negotiations with employee organizations will start in February; he commented on the "Beyond 2012" plan; and stated that a report on the Operations plan will be completed in May. Director John Anderson acknowledged General Manager Jim Ruth for keeping the Board Members updated on the condition of the SARI Line during the heavy rains. ACTION ITEMS: MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to: 2. Approve the Minutes of the December 15, 2010, Steering Committee meeting. MOVED, SECONDED AND DULY CARRIED: 3. Approved Restructuring of General Manager's Office (designate second AGM and establish HR Department). Minutes of the Steering Committee January 26, 2011 Page 3 of 3 INFORMATION ITEMS: 4. Public Affairs Report Public Affairs Manager, Mr. Michael Gold, did not give a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None ADJOURNMENT: The Chair declared the meeting adjourned at 6:15 p.m. Submitted by: Donna N. Terrones, Clerk of the Board STEERING COMMITTEE Meeting Date To Bd.of Dir. 02/23/11 02/23/11 AGENDA REPORT Item Number Item Number 2 s Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Michael Gold, Public Affairs Manager SUBJECT: 2011 Legislative Platform and Goals GENERAL MANAGER'S RECOMMENDATION Adopt the 2011 Legislative Platform and Goals SUMMARY Last month, at the workshop with the Steering Committee and lobbyists, staff presented the draft 2011 Legislative Platform and the group discussed goals for the coming year. These goals provide staff and lobbyists with direction in both policy and funding areas at the state and federal levels. PRIOR COMMITTEE/BOARD ACTIONS Legislative Platform adopted by the Board of Directors, February 2010. ADDITIONAL INFORMATION The Legislative Platform guides staff's day-to-day decisions on bills and policy issues and allows staff to act quickly on important matters. Each year, staff works with the Steering Committee to develop goals and priorities for the legislative program and, if needed, modify the policy statements. This year, there are no proposed changes to the Legislative Platform other than an update of the goals based on last month's workshop. Based on the Committee's input, staff has developed the following goals: State Priorities • Aggressively fight against Sacramento taking $60 million from OCSD's property tax revenues by: o Meeting with Legislators and their staff to make them aware of the impact such a take would have on our ability to serve the 2.5 million users of our system. o Developing fact sheets and other educational materials to explain how we use property tax revenues to support our mission. o Working with advocacy groups and trade association partners, such as CASA and CSDA on legislative strategies, specific bills and building coalitions to protect enterprise district revenues. o Ensuring that property tax revenues passed through redevelopment agencies to OCSD remain intact. Page 1 of 3 State Priorities (cont'd) • Build relationships with Sacramento legislators by: o Scheduling tours of our facilities and issue briefings. o Arranging briefings in Sacramento and in legislators' district offices. o Providing briefing materials and position papers in advance of key votes. This year, in addition to meeting with members of the entire Orange County delegation, we will focus special attention on new members of the Assembly: ➢ Curt Hagman (R-60tn) ➢ Alan Mansoor (R-68tn) ➢ Chris Norby (R-72na) ➢ Don Wagner (R-70t") • This year we will work with sister agencies, trade associations, and our lobbyists to aggressively pursue legislative and regulatory changes that would lower the cost of OCSD doing business. These include: o Relaxed rules on converting biosolids to energy. o Changing the income rules for serving on the State and Regional Water Boards to create a larger pool of eligible candidates. o Curtailing bans on land application of biosolids. o Greater flexibility for water recycling projects and chemical usage, based on sound science. o Increased flexibility for air emissions regulations, particularly related to the use of biogas and biosolids to energy. Federal Priorities • In support of future project funding, OCSD will request a $35 million authorization that will help us access future funds for clean water infrastructure. These funds will be used for: o Infrastructure replacement and rehabilitation o Energy efficiency upgrades o Plant improvements to improve water quality o Alternative and innovative treatment technologies o Projects in support of GWRS • To expedite the relocation of the SARI Line and ensure OCSD is repaid our $60 million loan to the County of Orange, we will work cooperatively with the County of Orange to ensure adequate funding is appropriated to complete the Santa Ana Mainstem Project in a timely manner. In addition, OCSD staff will work with County staff, the Army Corps of Engineers, and Congressman Gary Miller's office to provide regular updates on project status. Page 2 of 3 Federal Priorities (cont'd) • As Congress discusses the reauthorization of the Clean Water Act, OCSD will work with CASA and our lobbyist to address the regulatory issues identified above, and also: o Changing the income rule that disqualifies many otherwise qualified individuals from serving on the State and Regional Water Quality Control Boards o Modifying the SRF loan program to provide infrastructure grants and equitable funding for urban and rural agencies so OCSD can compete for these funds. Grants • Work with Congress, the Department of Energy and the private sector seeking funds for alternative fuel and energy-related projects with the goal of reducing OCSD's capital outlays . Projects may include: o FOG to biodiesel production o Expanding fuel cell/hydrogen energy facilities o Digester gas to energy projects • Seek grant opportunities, including round 2 of the Integrated Regional Water Management Funds and regularly report to the Steering Committee on grant efforts. Staff is requesting that the Steering Committee adopt the 2010 Legislative Platform. CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS 2011 Legislative Platform and Goals Page 3 of 3 Orange County Sanitation District 2011 Legislative Platform and Goals Legislative Updates y 4 I :eS Please click the link below for the latest Legislative Tracking Mah nation q I Inform ihael Gold, • ,� LegK a Ive p a e LJ Legislative Bill Tracking(42,9 KB) I - LP • • • - Strategize 4�JN1 v SANI)AT Oy _ 9 C � , n o � 4 1 THE ENV\Po� Orange County Sanitation District 2011 Legislative Platform Legislative Affairs Team OCSD Staff Michael Gold Ph: (714) 593-7529 mgold@ocsd.com Public Affairs Manager Cell: (714) 263-5541 Robert Ghirelli (714) 593-7400 rghirelli@ocsd.com Assistant General Manager James D. Ruth (714) 593-7110 jruth@ocsd.som General Manager Federal Lobbying Team Eric Sapirstein (202)466-3755 esap@ ENS Resources ensresources.com Sacramento Lobbying Team Townsend Public Affairs Christopher Townsend (949) 399-9050 ctownsend@ TownsencIPA.com Heather Dion-Stratman (949) 399-9050 hdion@ TownsencIPA.com 2 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform Introduction The Orange County Sanitation District(OCSD) recognizes the need for an active State and Federal legislative advocacy program to ensure the interests of the ratepayer and Board of Directors are protected.Towards that end, the legislative affairs team monitors activities in Sacramento and Washington, D.C. and takes appropriate action in support or opposition of legislative initiatives. Each year,the Board of Directors adopts a Legislative Platform, which is a summary of goals, key issues and OCSD's policy position. The following legislative policies have been developed by OCSD staff and legislative advocates in consideration of OCSD service area cities' and policy needs. These Board- approved policies serve as OCSD's official positions of support or opposition on issues of importance to the agency.The Legislative Platform is a dynamic document, adopted annually and changing to the needs of the Board. The legislative affairs team, in conjunction with the Board, may take appropriate action consistent with the Legislative Platform, including, but not limited to, drafting letters, lobbying legislators and staff and crafting bills. Procedure for Taking Positions on Bills 1. Staff will track bills of greatest interest to the District, particularly those that fall within the goals and objectives identified by the Board of Directors. Staff will monitor bills being watched by similar agencies in Orange County(OCWD, MWDOC, etc.) as well as State Agencies such as California Association of Sanitation Agencies (CASA),the California Special Districts Association (CSDA) and the Association of California Water Agencies (ACWA). 2. For those bills that are being tracked where there is clear policy direction stated in the Board- adopted Legislative Platform or adopted goals, staff can send letters and give direction to the lobbyists to advocate that position. 3. Where a particular issue is not urgent, all legislative letters will be hand-signed by the Chair or Vice-Chair. If a matter is urgent, staff may use the signature stamp, so long as a clear policy direction exists. 4. A summary of bills being tracked will be presented to the Steering Committee monthly. 5. When a bill does not fall within the scope of the Legislative Platform or is a politically controversial issue, staff will seek direction from the Steering Committee. 6. If a bill does not fall within the scope of the Legislative Platform, but the California Association of Sanitary Agencies (CASA),the California Special Districts Association (CSDA) or the National Association of Clean Water Agencies(NACWA) has an adopted position, staff may follow this position but must inform the Steering Committee of such action at the next regularly scheduled meeting. 3 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform State and Federal Legislative Goals for 2011 State Priorities • Aggressively fight against Sacramento taking$60 million from OCSD's property tax revenues by: o Meeting with Legislators and their staff to make them aware of the impact such a take would have on our ability to serve the 2.5 million users of our system. o Developing fact sheets and other educational materials to explain how we use property tax revenues to support our mission. o Working with advocacy groups and trade association partners, such as CASA and CSDA on legislative strategies, specific bills and building coalitions to protect enterprise district revenues. o Ensuring that property tax revenues passed through redevelopment agencies to OCSD remain intact. • Build relationships with Sacramento legislators by o Scheduling tours of our facilities and issue briefings. o Arranging briefings in Sacramento and in legislators' district offices . o Providing briefing materials and position papers in advance of key votes. This year, in addition to meeting with members of the entire Orange County delegation, we will focus special attention on new members of the Assembly: ➢ Curt Hagman (R-60tn) ➢ Alan Mansoor(R-68tn) ➢ Chris Norby (R-72nd) ➢ Don Wagner(R-70tn) • This year we will work with sister agencies,trade associations, and our lobbyists to aggressively pursue legislative and regulatory changes that would lower the cost of OCSD doing business. These include: o Relaxed rules on converting biosolids to energy. o Changing the income rules for serving on the State and Regional Water Boards to create a larger pool of eligible candidates. o Curtailing bans on land application of biosolids. o Greater flexibility for water recycling projects and chemical usage, based on sound science. o Increased flexibility for air emissions regulations, particularly related to the use of biogas and biosolids to energy. Federal Priorities • In support of future project funding, OCSD will request a $35 million authorization that will help us access future funds for clean water infrastructure.These funds will be used for: o Infrastructure replacement and rehabilitation o Energy efficiency upgrades o plant improvements to improve water quality and o Alternative and innovative treatment technologies o Projects in support of GWRS 4 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform • To expedite the relocation of the SARI line and ensure OCSD is repaid our$60 million loan to the County of Orange,we will work cooperatively with the County of Orange to ensure adequate funding is appropriated to complete the Santa Ana Mainstem Project in a timely manner. In addition, OCSD staff will work with County staff,the Army Corps of Engineers, and Congressman Gary Miller's office to provide regular updates on project status. • As Congress discusses the reauthorization of the Clean Water Act, OCSD will work with CASA and our lobbyist to address the regulatory issues identified above, and also: o Changing the income rule that disqualifies many otherwise qualified individuals from serving on the State and Regional Water Quality Control Boards. o Modifying the SRF loan program to provide infrastructure grants and equitable funding for urban and rural agencies so OCSD can compete for these funds. Grants • Work with Congress,the Department of Energy and the private sector seeking funds for alternative fuel and energy-related projects with the goal of reducing OCSD's capital outlays. Projects may include: o FOG to biodiesel production o Expanding fuel cell/hydrogen energy facilities o Digester gas to energy projects • Seek grant opportunities, including round 2 of the Integrated Regional Water Management Funds and regularly report to the Steering Committee on grant efforts. 5 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform Federal and State Legislative Policies 1. Air Quality: OCSD is committed to complying with federal, state, and local air quality laws and rules. OCSD is further committed to establishing an odor policy to assure that the district is a good neighbor to the surrounding communities. a. Support air quality legislation that emphasizes the use of advance technologies and applicable market incentives, and incentives for the use of alternative fuels and the development of the infrastructure for alternative fuel vehicles. b. Support measures that maintain and enhance local decision-making authority, where appropriate, in the development and implementation of air quality attainment strategies. c. Support legislation to ensure greater consistency between the California and Federal Clean Air Acts; including the need to demonstrate cost-effective public health or environmental benefit if California elects to exceed federal standards. d. Support strategies that clearly demonstrate and provide for the most cost-effective means for meeting air quality goals. e. Support, in concept, legislation that would utilize incentives and pricing strategies as a preferred alternative to traditional command and control regulations for meeting emission reduction objectives for all sources. f. Oppose actions that preclude implementation of the Air Quality Management Plan (AQMP)to the extent that such actions could subject the basin to sanction or conformity penalties. 2. Biosolids: OCSD strives to beneficially use biosolids through multiple management options performed at reasonable costs that are protective of public health and the environment. a. Support legislation that supports the use of biosolids as on non-food production agricultural lands. b. Support policies that encourage biosolids product use by horticulture and retail consumers. c. Oppose legislation that bans the use of biosolids for land application in any region, county, or state. d. Support science-based legislation that establishes a state-wide regulatory system for biosolids management. 6 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform 3. Grant Funding: OCSD is committed to offsetting its research, special projects and wastewater infrastructure project and construction costs by obtaining funding through grants and cooperative agreements. a. Support appropriations legislation, bonds, programs, and projects that provide funding for infrastructure construction and rehabilitation, special studies and research or projects relating to security, environmental education, water quality,wastewater processing, urban runoff, water conservation, and water recycling. b. Support projects that provide for public benefit, over projects that are primarily intended for private benefit or gain. c. Support continued federal funding for protecting and realigning the Santa Ana River Interceptor project and for secondary treatment upgrades. d. Oppose proposals placing further requirements on grant recipients that return low value for high administrative costs. 4. Labor Relations:OCSD is committed to the exercise of and provision of orderly procedures for the administration of employer-employee relations, including, but not limited to, meeting and conferring in good faith with recognized employee organizations regarding the wages, hours of work, and other terms and conditions of employment. a. Support measures to reform current workers compensation formulas to rely on higher thresholds for compensation or a proportionate exposure formula. b. Support health insurance reform that does not create additional financial burdens on special districts. c. Support measures to ease applicability of the Fair Labor Standards Act (FLSA) on public agencies. d. Oppose any measure imposing compulsory and binding arbitration with respect to public employees. e. Oppose any measure that imposes upon local government mandated employee benefits that are more properly decided at the local bargaining table. f. Oppose efforts reducing local control over public employee disputes and imposing regulations on an outside agency. g. Oppose any measure granting public employees the right to strike. h. Oppose a new mandatory Social Security tax for public employers and public employees. 7 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform 5. Planning: OCSD ensures the long-range planning of capital improvement programs in order to deliver the highest quality facilities. a. Support reform of existing state, regional, and local planning processes only if directly linked to reforms in the current revenue and tax structure of state and local governments. b. Support measures that provide new revenues for growth management and the public facilities necessary to support expected growth. c. Support proposals encouraging regional, sub-regional or countywide cooperation in planning urban development strategies, especially those that provide funding for effective implementation of agreed upon goals. d. Oppose legislation consolidating special districts that fail to address the concerns of cities affected by the proposed consolidation. e. Oppose measures that prevent or restrict the ability of cities or special districts to participate in the Southern California Association of Governments' (SCAG) sub-regional process. 6. Public Health: Protection of public health is OCSD's core mission. OCSD will work cooperatively with county and state health officers to assure local health protection. a. Support hazard mitigation, emergency response, planning and recovery through direct legislation, policy directives and funding toward floodplain security within the Santa Ana River watershed. b. Support (generally) measures that provide for improved public health through regulation. c. Support the protection of public health through the construction and implementation of advanced wastewater treatment technology. 7. Public Works: OCSD is committed to the achievement of effective and efficient projects that provide wastewater treatment services that benefit its ratepayers. a. Support measures that provide funding and support to publicly owned treatment works and sewerage collection systems. b. Support legislation that allows public agencies to procure goods and services in manners similar to private industry,thereby reducing overall costs of delivery. c. Support legislation that improves the Utility Underground Service Alert Program in order to improve coordination, identification, minimize damage, minimize environmental risks and minimize cost exposure to publicly owned facilities when contractors are performing sub-surface work. 8 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform d. Support a comprehensive response to the State's electricity and natural gas shortages that provide a stable energy supply, respects the ability of municipalities to provide power, recognizes that infrastructure (i.e. emergency and standby generators) exists that could be employed temporarily during weak periods with minimal air quality impact and protects ratepayers (including cities and special districts) against dramatic rate increases and statewide power outages. e. Support legislation that allows OCSD to utilize the Best Value Design/Build option for the construction of public works projects. 8. Revenue and Taxation:Track pending legislation to ensure OCSD remains in compliance with the government code as it pertains to wastewater system user fees and property tax revenues and the investment of public funds. a. Support measures leading to a greater financial independence from the state and would result in greater stability and predictability in local government budgeting. b. Oppose measures that impose mandated costs for which there is no guarantee of local reimbursement or offsetting benefits. c. Oppose legislation that shifts tax revenues away from local governments without the adequate provision of a constitutionally guaranteed backfill to offset the lost revenues of those local governments. d. Oppose measures that allow state retention of existing local revenue sources, including the special district share of property tax, sales tax,vehicle license fees and rate payer fees. e. Oppose the use of revenues traditionally used to fund the delivery of municipal services to fund programs for which the state is responsible, particularly the courts, health, and welfare programs. 9. Special Districts: OCSD supports the maintenance of special districts to provide specific services, in response citizen's demands, in a cost effective manner. a. Support outreach to local, regional, and state elected officials to foster a greater understanding regarding the critical relationship between adequate reserves and the successful short-and-long-term operation of water and wastewater agencies. b. Support the work of the Association of California Water Agencies (ACWA), California Association of Sanitation Agencies (CASA), and California Special Districts Association (CSDA) in any future discussions or negotiations pertaining to the legislative and budget issues relative to preserving control of members' reserves. c. Oppose further state regulations that adversely impact special district financing and operations. d. Oppose measures that create or grant powers to sub-regional or regional bodies that would result in an infringement on clearly local concerns. 9 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform e. Oppose any administrative or legislative efforts to access or transfer any reserve funds held by water and wastewater districts. f. Oppose the imposition of unfunded, mandated programs on local governments. 10. Water Quality and Supply: OCSD is committed to participating collaboratively in the protection of regional water resources for the benefit of the people we serve. a. Support continued federal and state funding for the Santa Ana River Interceptor Relocation project. b. Support (generally) measures to increase water supply and improve water quality in the region. c. Support measures that would increase funding for water reuse technologies, including support for the Groundwater Replenishment System project by the Orange County Water District and OCSD to create new water supplies through recycling. d. Support U.S. Army Corps of Engineers projects for Orange County regarding watershed and water quality protection and sand replenishment. e. Support measures that promote and provide for the use of reclaimed water. f. Support "watershed-based" solutions, including cost-shared studies with the US Army Corps of Engineers of water quality impairments that reflect state-of-the-art science. g. Support policy development,funding, and research for addressing urban runoff and beach closures, including funding for studies that identify the sources of bacterial,viral and other contaminants and human pathogens. h. Support measures to evaluate water quality standards, as needed,to ensure the objectives are appropriately protecting the designated use. i. Support measures to develop a state-wide consistent policy for total maximum daily load (TMDL) listing and delisting. j. Support State General Fund subventions and Bond revenue to special districts for local and regional efforts that educate the public on urban runoff,which provide for long- term capital improvements (like storm drain diversions and filters), and encourage municipalities to implement Urban Runoff Best Management Practices at the local level. k. Support legislation that would retain any Regional Board fines levied against a permit violator within the Region of the fine. I. Support legislation that provides "amnesty"from administrative civil liability(ACL)fines from Regional Boards for agencies participating in comprehensive watershed studies that will, when complete, address the problem that resulted in the ACL fine. m. Support efforts, including legislation, clarifying that Regional Water Quality Control Board rules that require spending funds are unfunded mandates. n. Support measures addressing non-point source pollution in order to protect our ocean water quality and provide funding to mitigate its effects. o. Support measures for alternative energy sources. 10 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform p. Support efforts to reduce the toxic and non-reusable waste load. q. Support legislation and regulations that promote improved water use efficiency in construction of water efficient buildings and communities. r. Support legislation that promotes improved water use efficiency through state and federal assistance in evaluating and implementing new programs and technologies and increasing public awareness of water use efficiency. s. Support legislation that provides for groundwater management on a local level, with respect to coordination of programs, extraction and production rights, long-term protection and groundwater quality protection. t. Support legislation that provides for the development of the watershed approach, including watershed management plans and watershed based permitting. u. Oppose proposed environmental constraints on government agencies that would result in economic damage to the region while providing only minimal protections. v. Oppose efforts to make all NPDES permits the same. Requirements of other permits may be too onerous or not applicable. OCSD's permit should be tailored to the Orange County region and watershed. w. Oppose the imposition of statewide/nationwide fees for environmental cleanup that is privately caused or regional in nature (e.g., when the nexus between those responsible for environmental abuse and those required to pay for cleanup or mitigation is absent). x. Support measures supporting urban runoff studies and urban runoff reduction. y. Support Coastal Water Quality efforts to ensure that clean beach projects remain a top priority for the state, whether through negotiations on upcoming resources bonds, in setting of legislative priorities, implementation of funding programs, and in any other relevant process. 11 Originally Adopted December,2005 Revised February, 2011 MINUTES OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Facilities Support Services Orange County Sanitation District A regular meeting of the Operations Committee of the Orange County Sanitation District was held on December 1, 2010, at 5:00 p.m. in the District's Administrative Office. A quorum was declared present, as follows: Operations Directors Present: Staff Present: Tom Beamish, Chair Jim Ruth, General Manager Sharon Quirk-Silva, Vice Chair Bob Ghirelli, Assistant General Manager Charles Antos Nick Arhontes, Director of Facilities Support Bill Dalton Services Jim Ferryman Jim Herberg, Director of Engineering Nancy Gardner Ed Torres, Director of Operations & Patsy Marshall Maintenance Roy Moore Lilia Kovac, Committee Secretary Joy Neugebauer Dean Fisher, Engineering Manager David Shawver Tod Haynes, Engineering Manager Harry Sidhu John Linder, Engineering Manager Constance Underhill Jim Burror Larry Crandall, Board Chair Jim Colston Troy Edgar, Board Vice Chair Gary Conklin Carla Dillon Operations Directors Absent: Mark Esquer Chuck Forman Norbert Gaia Vlad Kogan Victoria Pilko Juanita Skillman Rob Thompson Simon Watson Chuck Winsor Others: Brad Hogin, General Counsel James Clark Drew Kolosky Bob Ooten Minutes of the Operations Committee December 1, 2010 Page 2 of 4 PUBLIC COMMENTS: There were no public comments. REPORT OF COMMITTEE CHAIR: Committee Chair Beamish did not give a report. REPORT OF GENERAL MANAGER: General Manager, Jim Ruth, did not give a report. CONSENT CALENDAR: MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to: 1. Approve minutes of the October 6, 2010, Operations Committee meeting. MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to: 2. A. Award a sole source Professional Services Consultant Agreement with MWH Americas, Inc. for an amount not to exceed $125,206 for developing a Plan of Operation for Secondary Treatment; and, B. Approve a contingency of $5,000 (4%). MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to: 3. Approve a twelve-month real property lease, and subterranean license agreement with an option to extend, with Brea Imperial Inc. and RV Storage Depot Brea to allow mobilization of a chemical dosing station and injection of chemicals at 1225 West Imperial Highway in Brea, for a total cost of $2,500.00 per month, in a form approved by General Counsel. Staff notified the Committee Chair Beamish, to correct a calculation error made in the report, increasing the amount from $689,008 to $691,851 and the contingency amount from $48,231 to $48,430. It was then, MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to: 4. Approve a Professional Consultant Services Agreement with Black & Veatch Corporation to provide construction support services for Power Monitoring and Control Systems, Job No. J-33-3, for an amount not to exceed $691,851; and, B. Approve a contingency of $48,430 (7%). Minutes of the Operations Committee December 1, 2010 Page 3 of 4 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to: 5. A. Approve Amendment No. 3 to the Professional Services Agreement with M. J. Schiff & Associates, Inc., providing for additional engineering services for Interplant Gas Line Rehabilitation, Job No. J-106, for an additional amount of $104,450, increasing the total amount not to exceed $361,976; and, B. Approve a contingency of$18,099 (5%). NON-CONSENT CALENDAR: MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to: 6. A. Approve Professional Consultant Services Agreements with Black & Veatch Corporation; Brown and Caldwell; Carollo Engineers, Inc.; HDR Engineering, Inc.; and Malcolm Pirnie, Inc. to provide planning studies on a task order basis for a two-year term, with a one-year optional renewal; B. Authorize the General Manager to assign task orders throughout the contract duration in accordance with the Delegation of Authority Resolution No. OCSD 07-04; and, C. Approve exception to Resolution No. OCSD 07-04, Section 4.05, authorizing the General Manager to select any single suitable firm in the Planning Studies Program for a particular task order valued at $50,000 or less, without having to solicit proposals from multiple firms. 7. Director of Operations and Maintenance, Ed Torres, provided an update on the EnerTech negotiated terms to recover funds paid for biosolids managed by EnerTech at a lower cost than negotiated paid fees. Directors expressed concern that the Sanitation District does not hold a security in the case that EnerTech does not succeed in operating at contract levels. A substitute motion was made to direct staff to negotiate an agreement to incorporate a security to the interests of the Sanitation District: It was then, MOVED, SECONDED AND DULY CARRIED: To delay consideration of Amendment No. 2 to agreement with EnerTech Environmental California, LLC, until January 2011, incorporating terms providing for secured recovery of overcharged fees for diverted biosolids to land application. Minutes of the Operations Committee December 1, 2010 Page 4 of 4 INFORMATIONAL ITEMS: 8. Regulatory Initiatives Update Regulatory Affairs Manager, Jim Colston, provided a brief overview of the various regulations currently in force, as well as proposed legislation and its implications to the Sanitation District. DEPARTMENT HEAD REPORTS: Director of Engineering, Jim Herberg, reported that a consultant working for the EPA had conducted an unscheduled audit of the District's industrial pretreatment program. He noted an audit report would be forthcoming and the findings will be presented to the Operations Committee. Mr. Herberg also reported on the status of Santa Ana River levee repairs associated with Contract No. 5-58. Mr. Herberg then reported that an assessment report has been received on the Newport Forcemain inspection and that the deterioration of the pipeline is not as significant as reported to the July Operations Committee. Mr Herberg noted that the plastic liner had delaminated in some areas of the pipeline, but that the pipe had not experienced corrosion as severe as had been discovered on a similar pipline on Bayside Drive. Staff will follow-up with an updated report to the Operations Committee in February. Director of Facilities Support Services, Nick Arhontes, reported that a letter would be sent to the Public Works Directors reminding them to keep rain flows out of the collection system as part of the Sanitation District's planning for rainy season. CLOSED SESSION: There was no closed session. OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: There were no items. ADJOURNMENT: The Chair declared the meeting adjourned at 5:57 p.m. until February 2, 2011. Submitted by: Lilia Kovac, Committee Secretary OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 02/02/11 02/23/11 AGENDA REPORT Item Number Item Number 2 10 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: DIGESTER CLEANING AND DISPOSAL CONTRACT GENERAL MANAGER'S RECOMMENDATION A. Approve a Service Agreement with Synagro West LLC., the lowest responsive and responsible bidder, for Digester Cleaning and Disposal, Specification No. S-2010-467, for period March 1, 2011 through June 30, 2011 for an amount not to exceed $451 ,653.52; and B. Approve a contingency of $22,583 (5%); and C. Approve four one-year renewal options beginning July 1, 2011 through June 30, 2012 for a total annual amount not to exceed $1,354,960.54; and D. Approve an annual cost escalator of 5% of the renewal base contract of $1,354,960.54, plus an annual Contingency of 5%. SUMMARY The Sanitation District currently performs routine digester cleaning on a five-year cycle. This is done to remove materials that build up over time and limits process capacity as well as to assess the structural and mechanical conditions. The previous digester cleaning contract expired October 2010, approving the recommendations will allow O&M to maintain its current goal of completing three digester cleanings per year, and align the future annual cleaning cycles with the fiscal year. PRIOR COMMITTEE/BOARD ACTIONS September 2008: The Board of Directors approved Change Order No. 1 to the Purchase Order Contract (P.O. No.1029640A) issued to Walker Centrifuge Services, LLC, for Digester Cleaning and Debris Disposal, Specification No. S-2007-343, authorizing an addition of $1,885,001, increasing the total contract to an amount not to exceed $2,981 ,100 per year and for all subsequent authorized renewal periods; and, approved an annual contingency of $298,100 (10%). DW-102 Board AR, Rev 10/04/10 Page 1 of 2 ADDITIONAL INFORMATION This Contract was competitively bid with 29 perspective bidders with four bid packages being received by the District. The companies that bid (and the bid amounts based on three digesters being cleaned) is listed below. Staff recommends Synagro West LLC be awarded the Digester Cleaning and Disposal Contract as the lowest responsible and responsible bidder. Bidder Total Cost Synagro West, LLC $1,354,960.54 American Process Group $1,386,776.10 Ancon Marine $1,621,582.74 Bio-Nomic Services Inc. $1,826,900.00 The cleaning and disposal price is a set cost per 10,000 gallons of material removed and disposed of as well as equipment mobilization and demobilization. The average cost per digester cleaning has been $450,000. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted in Division 850 operating budget line item 53030. Date of Approval Contract Amount Continaencv 02/23/11 $1,354,960.54 $67,748 (5%) DW-102 Board AR, Rev 10/04/10 Page 2 of 2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 02/02/11 02/23/11 AGENDA REPORT Item Number Item Number 3 li Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Victoria Pilko SUBJECT: Temporary Upgrades to Plant Security Barriers, Job No. J-108 GENERAL MANAGER'S RECOMMENDATION Approve a budget increase of $733,000 for Temporary Upgrades to Plant Security Barriers, Job No. J-108, for a total budget of $3,118,000. SUMMARY This project provides a new 1,300-foot long, 8-foot tall masonry block wall along the north perimeter of Reclamation Plant No. 1, and other appurtenances including improved signage, landscaping, lighting, and electronic security systems. Phase 1 of this project was completed on November 15, 2010. Phase 2, which includes site landscaping, construction of the monuments, signage installation, and electronic security improvements is planned to restart in early 2011. There have been significant additional administration, inspection, and engineering costs incurred on this project due to unknown subsurface differing site conditions, requiring relocation of unknown utilities and footing design changes due to soil conditions. This requested budget increase is to cover these costs and estimated future staff costs to complete the work. This item does not change the construction contract amount. PRIOR COMMITTEE/BOARD ACTIONS June, 2010 — Approved contingency increase of $115,530 (12%) to the construction contract with LH Engineering Company, Inc. for Temporary Upgrades to Plant Security Barriers, Job No. J-108, for a total contingency of $259,943 (27%). December, 2009 - Awarded a Professional Consultant Services Agreement with RBF Consulting to provide construction support services for Temporary Upgrades to Plant Security Barriers, Job No. J-108, for an amount not to exceed $105,301; and approved contingency of$10,530 (10%). December, 2009 — Awarded a contract to LH Engineering Company, Inc., for the construction of the Temporary Upgrades to Plant Security Barriers, Job No. J-108, for an amount not to exceed $962,751, and approved contingency of$144,413 (15%). DW-102 Board AR, Rev 10/04/10 Page 1 of 2 ADDITIONAL INFORMATION The project was awarded to LH Engineering Company, Inc. on December 16, 2009. Notice to Proceed was issued to the Contractor on January 26, 2010. The budget was originally estimated utilizing minimal staffing due to the relative simplicity of the project. Unfortunately there have been complications during construction that were unforeseen and have required additional resources. There has been significant additional staff costs incurred on this project due to unknown subsurface differing site conditions requiring relocation of unknown utilities, additional utility crossings and footing design changes due to soil conditions. This work required extensive coordination with the O&M Department and District construction inspectors. The changes have also increased the effort of Engineering staff to respond to contract changes and contractor claims. The budget increase does not include additional costs for contractor claims. A claim was received on November 16, 2010 and is currently being evaluated for merit. If there are verified costs that exceed available contract contingency, they will be assessed in the future. CEQA This project was determined to be categorically exempt in accordance with Section 15301 (b). A Notice of Exemption was filed on August 24, 2007. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item requests a budget increase to complete the project. No changes to any individual contracts are being requested at this time. Funds for this request will be offset from reductions on other projects within the CIP budget (FY 2010-11 Section 8, Page 99). This item does not increase the construction contract authorization or contract amount. JH:DF:VP:el:gc DW-102 Board AR, Rev 10/04/10 Page 2 of 2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 02/02/11 02/23/10 AGENDA REPORT Item Number Item Number 4 12 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Ed Torres, Director of Operations & Maintenance SUBJECT: REHABILITATION OF PLANT NO. 1 SUNFLOWER PUMP NO. 2 GENERAL MANAGER'S RECOMMENDATION A. Authorize the General Manager to competitively bid and subsequently award a service agreement to the lowest responsive and responsible bidder, for the rehabilitation of Plant No. 1, Sunflower Pump No. 2 Auger and Trough Rehab, Project No. FR10-004, for an amount not to exceed $945,000; and B. Approve a contingency of $175,000 (19%). SUMMARY The Sanitation District operates the Sunflower Pump Station to bring wastewater into Plant No. 1 . The station consists of two pumps that are over 20 years old and have never been rehabilitated. In June 2010, the Board of Directors authorized the General Manager to bid and award a service agreement to perform major repairs to both pumps at the Sunflower Pump Station (FE08-14R). The second pump was removed from the scope of the contract that after discovering damage to the first pump was significantly more extensive than originally anticipated. Rather than pay for change order work on the second pump, staff elected to address the rehabilitation of Pump No. 2 at a later date when the full extent of repair costs for Pump #1 were understood. Staff has estimated construction costs for the second pump to be $945,000. Staff is also requesting a contingency amount of $175,000 (19%). This higher contingency is being requested because the pump is located in a very corrosive environment and there are likely unknown conditions that will be discovered when the pump is removed. PRIOR COMMITTEE/BOARD ACTIONS October 2010: The Board of Directors ratified the General Manager's purchasing authority, increasing the Plant No. 1 Sunflower Pump Station Rehabilitation project contingency amount by $40,000 for emergency repairs to Sunflower Pump No. 1 and approved an additional contingency of $40,000 for a total contingency amount of $205,000 (33%). Page 1 of 2 June 2010: Authorized the General Manager to competitively bid and subsequently award a service agreement to the lowest responsible and responsive bidder, for P1 Sunflower Pump Station Rehabilitation project Job No. FE08-14R for $625,000 and a contingency of$125,000 (20%). ADDITIONAL INFORMATION A new scope of work for the second pump has been established and is based upon the work recently completed on the Sunflower Pump No. 1. Project specifications and equipment drawings are being developed and will be used for competitive bidding. Staff is requesting authority to bid and award the contract under this one Board action to reduce the overall repair schedule in order to avoid entering into the 2011 rainy season with only one Sunflower Pump available for service. CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (FY2010-11 Budget Line item: SP-34, Section 8, Page 113). Total project budget is $11.7M of which $8.5M remains. Date of Approval Contract Amount Contingency 02/23/11 $945,000 $175,000 (19%) Page 2 of 2 OPERATIONS COMMITTEE Meeting Date To Bd.of Dir. 02/02/11 02/23/11 AGENDA REPORT Item Number Item Number 5 13 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Martin Dix SUBJECT: Replacement of the Rocky Point Pump Station, Contract No. 5-50 GENERAL MANAGER'S RECOMMENDATION Approve a contingency increase of $335,320 (4%) to the construction contract with Kiewit/Mass, a Joint Venture, for Replacement of the Rocky Point Pump Station, Contract No. 5-50, for a total contingency of$838,300 (10%). SUMMARY The purpose of this project is to replace the existing 70-year old Rocky Point Pump Station with a new pump station that meets national and state codes, utilizing the current Orange County Sanitation District (Sanitation District) Design Guidelines. The project will include a new pump station and all appurtenances located on property acquired from the International Bay Clubs, Inc. by the Sanitation District. The highest risk portion of the work is constructing new gravity sewers and force mains in West Coast Highway, a roadway heavily congested with traffic and underground utilities. This highway work is currently underway and changes to the design must be made to accommodate existing undisclosed underground utilities. These construction changes, together with a differing site condition claim made during the shoring of the pump station, have the potential to exceed the authorized construction contingency. To cover any further unexpected field conditions or interferences, staff has determined that the contingency budget of 6% is inadequate and requests an additional contingency of $335,320 (4%), for a total project contingency of$838,300 (10%). PRIOR COMMITTEE/BOARD ACTIONS August 2009 — Awarded a construction contract to Kiewit/Mass, a Joint Venture for Replacement of the Rocky Point Pump Station, Contract No. 5-50, for a total amount not to exceed $8,383,000; and, approve a contingency of$502,980 (6%). Page 1 of 2 ADDITIONAL INFORMATION During the shoring of the pump station, soils four times more dense were encountered resulting in more time and cost than originally planned. According to the Contractor's request for change, the installation of the shoring at the Rocky Point Pump Station was estimated to take 10 days. The actual installation took longer and as a result, the Contractor submitted a total cost claim of $321,992 for the additional shoring effort. Sanitation District staff is currently reviewing the merit of the Contractor's claim and has yet to make a determination. CEQA The Final Environmental Impact Report (EIR) for the Replacement of Rocky Point Pump Station, Contract No. 5-50, was certified by the Sanitation District's Board of Directors on August 25, 2004. The Notice of Determination was filed with the State Clearinghouse on August 27, 2004. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request for increase in the project contingency complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted (Line Item 05-50: Section 8, Page 24) and the budget is sufficient for the recommended action. Date of Approval Contract Amount Continaencv 08/26/09 $8,383,000 $502,980 (6%) 02/23/11 $335,320 (4%) Total Contingency $838,300 (10%) JH:MD:aln:el Page 2 of 2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 02/02/11 02/23/11 AGENDA REPORT Item Number Item Number 6 14 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Umesh Murthy SUBJECT: DIGESTER FERRIC CHLORIDE SYSTEM REHABILITATION, PROJECT NO. P2-105 GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Design Services Agreement with AECOM for Digester Ferric Chloride System Rehabilitation, Project No. P2-105, providing for engineering design services for an amount not to exceed $478,548; and B. Approve a contingency of $47,855 (10%). SUMMARY The Professional Design Services Agreement includes preparation of a technical memo to identify alternatives and engineering design to replace the existing ferric chloride storage and distribution facility. A Request for Proposal was sent to five firms and three proposals were received. Based on the overall qualifications and expertise, staff recommends awarding a Professional Design Services Agreement to AECOM for a total fee not to exceed $478,548. PRIOR COMMITTEE/BOARD ACTIONS None ADDITIONAL INFORMATION Digester Ferric Chloride System Rehabilitation, Project No. P2-105, will rehabilitate or replace the existing ferric chloride station and associated pipelines at Plant No. 2. The project also includes upgrades to the instrumentation and control systems that are currently operated manually. Staff Evaluation of Proposals: A Request for Proposal was sent to five engineering firms and three proposals were received by the Orange County Sanitation District (Sanitation District). A panel consisting of five members of the Sanitation District's staff reviewed and ranked each of DW-102 Board AR, Rev 10/04/10 Page 1 of 3 ADDITIONAL INFORMATION (cont'd) the proposals in accordance with Resolution No. OCSD 07-04, Section 5.07. The proposals were evaluated in the following five categories: project approach and understanding of the scope of work, plan for managing and performing the work, staff qualifications, related project experience, team organization and use of subconsultants, and project schedule. Staff also conducted interviews with two of the top ranked firms to meet the key team members and further explore the firm's proposal. AECOM was the top ranked team. All proposals were accompanied by a sealed fee proposal estimate. The fee proposal estimates were not opened until the proposals were evaluated and a firm was selected in accordance with Resolution No. OCSD 07-04, Section 5.07. Staff recommends awarding the design contract to AECOM. TABLE 1 PROPOSAL EVALUATION Consultant AECOM Carollo Brown and Engineers Caldwell Evaluator Reviewer A 81% 60% 59% Reviewer B 85% 80% 81% Reviewer C 79% 84% 69% Reviewer D 80% 95% 67% Reviewer E 90% 76% 58% Overall Score 83% 79% 67% Ranking 1 2 3 Proposal Fee $489,948 $496,165 $498,934 Negotiated $478,548* Proposed Fee *NOTE: The Sanitation District staff met with AECOM to clarify the requirements of the scope of work and negotiate the final proposal fee. During the negotiations, fees for different tasks were discussed, reallocated, and the total fees reduced by $11,400. CEQA The recommended action is categorically exempt pursuant to CEQA Guidelines Sections 15301 because it consists of the operation, repair, maintenance, permitting, and/or minor alteration of existing public structures, facilities, and/or mechanical equipment, involving no expansion of use beyond that currently existing. A Notice of Exemption was filed with the County of Orange on August 3, 2010. DW-102 Board AR, Rev 10/04/10 Page 2 of 3 BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted and the budget is sufficient for the recommended action. (Line item: Section 8, Page 9). Date of Approval Contract Amount Continaencv 02/23/2011 $478,548 $47,855 (10%) JH:UM:el DW-102 Board AR, Rev 10/04/10 Page 3 of 3 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 02/02/11 02/23/11 AGENDA REPORT Item Number Item Number 7 15 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering CIP Project Manager: Dean Fisher SUBJECT: FALL PROTECTION IMPROVEMENTS AT PLANT NOS. 1 AND 2, PROJECT NO. J-123 GENERAL MANAGER'S RECOMMENDATION Establish a budget for Fall Protection Improvements at Plant Nos. 1 and 2, Project No. J-123, in the amount of$2,974,000. SUMMARY This project will install handrail, gates, and other fall protection devices in several areas around both treatment facilities including around primary clarifier facilities, central generation facilities, Steve Anderson Lift Station, and other areas. This project will consolidate several smaller Facilities Engineering (FE) projects that have been designed to improve handrail and fall protection items in various areas. This will allow for improved efficiency in managing this work as one project instead of several smaller projects. This combined project will be too large to effectively manage as an FE project and the FE project budgets will be closed. The construction cost of Project No. J-123 is estimated at $2,250,000. The design of this project was completed by staff under the Primary Basin Handrails, Project No. FE08-09. Project No. FE08-09 was originally bid in February 2010 and all bids were rejected. This project was re-evaluated and several elements were added resulting from work practice safety concerns. In addition, handrail gates are being added at ladders due to recent changes to Occupational Safety and Health Administration (OSHA) guidelines. PRIOR COMMITTEE/BOARD ACTIONS None ADDITIONAL INFORMATION Facilities Engineering (FE) vs. Capital Improvement Program (CIP) The Engineering Department has two designations for engineering projects. The CIP designation is intended for major or complex projects, while the FE designation includes DW-102 Board AR, Rev 10/04/10 Page 1 of 2 ADDITIONAL INFORMATION (cont'd) smaller projects with shorter schedules. Many of the policies and procedures are different in order to allow the smaller projects to have a shorter schedule. In addition the Delegation of Authority relating to the procurement of design services is different between the two groups and the design size of the FE projects is limited. The budgets are more defined for the larger CIP projects with unique project level budget line items. Project History There are currently several Facilities Engineering projects that include fall protection elements including, Project No. FE08-09, Handrail at Plant 1 Primary Clarifiers; Project No. FE09-10, Plant 1 Co-Generation Facility Roof Railing; Project No. FE10-07, Check Valve Access at Steve Anderson Lift Station; Project No. FE10-01, Plant 2 Scum Box Hand Railing; Project No. FE 10-03 SALS Roof Railing; Project No. FE 10-09 and FE10-10, Plant 1 and Plant 2 Ladders in Process areas. All of these projects include elements that are very similar in scope and in equipment to be installed. Project No. FE 08-09 was the first of these projects that completed design and was bid, but all bids were rejected due to inconsistencies with the bidding as well as elements that were not included properly in the original design. The project was re-evaluated and elements were added based on fall protection needs. It became clear that there are advantages to combining all of the smaller handrail and fall protection safety related projects together to simplify installation, as well as administration of the work. Additional elements based on recent OSHA guideline changes were added to complete the project. The design of the project is complete, but the overall combined project is too large to effectively manage within the Facilities Engineering parameters and would be better managed and administered as a CIP project. This item establishes a CIP budget and project to complete this work. All of the smaller FE projects that are incorporated into Project No. J-123 will be cancelled and the work will be combined into this new project. CEQA A Notice of Exemption was filed for this project on January 5, 2011. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has not been budgeted. Funding for this project will come from offset reductions within the CIP Budget. JH:DF:el:gc DW-102 Board AR, Rev 10/04/10 Page 2 of 2 MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, December 8, 2010, at 5:30 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was held on December 8, 2010, at 5:30 p.m., in the Sanitation District's Administration Building. Following the Pledge of Allegiance, a quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Phil Luebben, Chair Jim Ruth, General Manager John Anderson Bob Ghirelli, Assistant General Manager Jon Dumitru Lorenzo Tyner, Director of Finance Cathy Green & Administrative Services Janet Nguyen Jim Herberg, Director of Engineering John Nielsen Lilia Kovac, Committee Secretary Brad Reese Jeff Reed, Human Resources Manager Christina Shea Mike White, Controller Sal Tinajero Wes Bauer Mark Waldman Bob Bell Larry Crandall, Board Chair Rich Castillon Troy Edgar, Board Vice Chair Norbert Gaia Laurie Klinger COMMITTEE MEMBERS ABSENT: Juanita Skillman John Withers, Vice Chair Rich Spencer OTHERS PRESENT: PUBLIC COMMENTS: There were no public comments. REPORT OF COMMITTEE CHAIR: The Committee Chair did not give a report. REPORT OF GENERAL MANAGER: The General Manager did not give a report. Minutes of the Administration Committee December 8, 2010 Page 2 of 4 REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services, Lorenzo Tyner, reported that staff had delayed the issuance of $157M in Build America Bonds due to unfavorable market conditions, however, the sale was completed on this date. Mr. Tyner also provided a brief overview of workers' compensation open claims to date. It was recommended that future compensation updates include benchmarking data with other agencies or national averages for context. CONSENT CALENDAR: MOVED, SECONDED AND DULY CARRIED, Recommend to the Board of Directors to: 1. Approve Minutes of the October 13, 2010, Administration Committee meeting. ACTION ITEMS: MOVED, SECONDED AND DULY CARRIED, Recommend to the Board of Directors to: 2. A. Authorize the General Manager to permanently establish Motorola radio system equipment as the Orange County Sanitation District's (OCSD) standard for the licensed, privately operated, mobile radio system, and; B. Authorize use of Resolution No. OCSD 07-04, Section 3.08: Cooperative Procurement, for purchases of equipment and services of Motorola radio systems, for a total amount not to exceed $250,000, to include all tax and freight. 3. After a brief discussion and clarification of the contingency amount, the motion was amended. The motion was then, MOVED, SECONDED AND DULY CARRIED, Recommend to the Board of Directors to: A. Reject bids submitted by Intratek Computer, Inc., and Psomas in accordance with specification requirements, Specification No.CS-2010-470BD, for Facilities Records Group Staffing Support; B. Approve a Professional Services Agreement with Project Partners, Inc., the lowest responsive and responsible bidder, for Facilities Records Group staffing support and related services, Specification No. CS-2010-470BD, for a total amount not to exceed $163,200 for one six-month period; C. Approve an option of one additional six-month renewal for a total amount not to exceed $163,200; and, D. Approve a $16,320 contingency (10%). Minutes of the Administration Committee December 8, 2010 Page 3 of 4 ACTION ITEMS: (cont'd) MOVED, SECONDED AND DULY CARRIED, Recommend to the Board of Directors to: 4. Authorize the General Manager to add or delete qualified firms as necessary to Purchase Order Agreement No. CS-2009-000OB for Safety Training Services (Specification No. CS-2009-402BD and Specification No. CS-2009-402BD(a)) to meet work requirements as identified by the Risk Management Division. MOVED, SECONDED AND DULY CARRIED: 5. A. At the recommendation of the Audit Ad Hoc Committee, approve an additional one-year renewal period to the Purchase Order Contract with Lance, Soll & Lunghard, Certified Public Accountants for internal auditing services for the period of March 1 , 2011 through February 29, 2012, in an amount not to exceed $58,670; and, B. Direct Lance, Soll & Lunghard to perform specific internal auditing assignments as the Administration Committee deems necessary. INFORMATIONAL ITEMS: 6. Succession Management Program. Human Resources Specialist, Laurie Klinger, presented an overview of the Succession Management Program, outlining the highlights of the program designed to fill key positions vacated through attrition. The program includes workforce planning analysis, continuity of leadership, and career planning for staff. CLOSED SESSION: CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) The Administration Committee convened in closed session at 6:08 p.m. to discuss one matter. Confidential Minutes of the Closed Session have been prepared in accordance with Government Code Section 54956.9(a) 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 Administration Committee reconvened at 6:34 p.m. Minutes of the Administration Committee December 8, 2010 Page 4 of 4 CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: None OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None ADJOURNMENT: The Chair declared the meeting adjourned at 6:35 p.m. Submitted by: Lilia Kovac Associate Clerk of the Board ADMINISTRATION COMMITTEE Meeting Date To Bd.of Dir. 02/09/11 02/23/11 AGENDA REPORT Item Number Item Number 2 17 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance & Administrative Services SUBJECT: Consideration of Budget Assumptions and Budget Calendar for Preparation of the FY 2011-12 Budget Update. GENERAL MANAGER'S RECOMMENDATION Approve the FY 2011-12 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2011-12 budget update. SUMMARY For the budget update process, the Administration Committee establishes the Budget Assumptions and approves the Budget Calendar. Staff will make a brief presentation at the Committee meeting. PRIOR COMMITTEE/BOARD ACTIONS None. ADDITIONAL INFORMATION Currently, there are no proposed changes to the District Fiscal Policy. The Fiscal Policy is published in the FY 2010-11 and 2011-12 Budget document (Section 3, Pages 1-8), and is available on the Sanitation District's website. CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS 1. Preliminary Budget Assumptions Highlights (Pages 2-6) 2. Budget Update Calendar (Pages 7-9) JR:LT:MW:jf Page 1 of 9 FY 2011-12 Preliminary Budget Assumptions Economic Assumptions • Inflation for Orange County in FY 2011-12 is projected to be 2.0 percent based on the 2011 projected percentage change in consumer price index obtained from the December 2010 Economic and Business Review report prepared by Chapman University. This approximates the 1.7 percent inflation factor that was used in the FY 2011-12 budget. Revenue Assumptions • Year 4 of the five-year Sewer Service Fee Rate Schedule has been ratified by the Board. • The district-wide rate for a single-family residence (SFR) will increase 9.4% to $267.00 in FY 2011-12, followed by a 10.1% increase to $294.00 in FY 2012-13. • Note that each $1 increase in the SFR rate generates approximately $900,000 per year. • Notification of a rate increase is not required as the rate increase will not exceed 9.4%, the maximum amount possible for the fourth year of the five-year schedule that was included in the last notification. • The capital facilities capacity charge (CFCC) fee captures only those infrastructure costs that relate to additional capacity. Other infrastructure costs such as improved treatment, rehabilitation, refurbishment, and replacement, will be supported through user fees. Given the new Facilities Master Plan adopted in December 2009, a new rate study was completed in April 2010 to ensure that the CFCC fee methodology remains equitable and to confirm that an appropriate share of system costs would be recovered from new development. Revenues will be budgeted to reflect a decline in Equivalent Dwelling Unit (EDU) connections that have averaged 4,000 EDU's over the past ten years. • Permit user rates for flow, Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS) will follow the most recent Rate Study. • Annexation fees capture both the net current assets and the equivalent property tax allocations totaling $4,235 per acre. • Annexable property in the District's service area sphere is minimal; consequently, no FY 2011-12 income from annexation fees is anticipated. • Property tax revenues of $60,259,000 in FY 2011-12 are proposed to remain unchanged from FY 2010-11. An annual increase in Assessed Value of 2% or CPI, whichever is less, is authorized by the state constitution and is included in the increases noted above. An offsetting decrease is incorporated, however, due to anticipated reductions in Assessed Value to reflect recent market trends. • Earnings on the investment of the District's operating cash and reserves will be budgeted at 2.0% of the average cash and investment balance projected for the fiscal year. • A $50 million Certificates of Participation (COP) debt issuance is scheduled for FY 2011-12 in order to assist in the funding of the $119.9 million CIP outlay scheduled for FY 2011-12. Page 2 of 9 FY 2011-12 Preliminary Budget Assumptions Operating Assumptions • Dry weather urban run off up to 4 mgd will continue to be treated at no charge. Above this threshold, there is a charge of$1,440.42 per mgd up to a maximum of 10 mgd permitted. • Secondary treatment facilities will be operated and maintained in accordance with the Levels of Service and the Operational Plan —January 2009 Update. • Interim short-term disinfection facilities will continue to be operated and maintained with estimated decreased costs of 30% at P2 due to new trickling filters coming on-line. • Operating expenses are expected to approximate the adopted FY 2011-12 budget of $156,434,870. • Average daily flow for FY 2011-12 is projected to be 214 mgd. This projection reflects an expected increase of 2% per year based on increased economic activity and the potential for moderate rainfall. The FY 2011-12 flow projection is 17 mgd above the actual for the first 5 months of the current year. The final actual flow for FY 2009-10 was 207 mgd. Employee/Staffing Assumptions • Staffing level is expected to remain flat. The total FY 2011-12 authorization level is 638.0 FTEs. • Vacant positions as of 12/31/09 have been projected and expensed at step 3 for FY 2011- 12. New positions for FY 2010-11 have been projected at 100% of step 2 for FY 2011-12. • A 3% vacancy factor has been budgeted for FY 2011-12 for authorized positions to account for time spent for recruitment and turnover. The actual vacancy factor for 2009-10 was 7.65% (measured at year-end during hiring freeze.) • The Memorandum of Understanding (MOU) for the Supervisor and Professional (SPMT) group was completed in FY 2010-11 and will be considered in the FY 2011-12 budget update. An adjustment will be made to reflect the 0.5% range adjustment that will be effective for all employees in this bargaining group as of the first pay period beginning in July. • The MOUs for both OCEA and Local 501 will expire June 30, 2011. Pending the completion of the negotiation process, no salary adjustments will be included in the budget (neither for COLA nor for step increases) for periods beyond expiration of current MOUs. • The Employer required Orange County Employees Retirement System (OCERS) contribution is estimated at 29.2%. (28.6% was included for FY 2011-12 in the adopted FY 2010-12 budget) This $18,495,000 includes the OCSD pickup of 3.5% of the employee's required contribution (current level of benefit). The benefit has been discontinued for new Supervisors and Professional bargaining unit members. • Medical and dental insurances will be budgeted at $6,973,100 and $682,000 for increases of 12% and 5.5% respectively based on insurance industry trends. Vision, life, and disability insurances will be budgeted with a 6% increase for FY 2011-12. Page 3 of 9 FY 2011-12 Preliminary Budget Assumptions Materials, Supplies, & Services Assumptions • The proposed operating budget will continue to reflect an emphasis on safety, technical, and management training. The FY 2011-12 budget will include a budget for training that is equal to 1.5% of regular salaries and wages. • An amount equal to half of one percent of the Operating materials and supplies budget will be a contingency for prior year re-appropriations. Since the current year's budget lapses on June 30, a contingency is needed in the succeeding budget year for goods or services ordered at the end of one budget year but not delivered until the following year. • An amount equal to one half of one percent of the Operating materials and supplies budget will be the General Manager's contingency budget. These funds will be allocated to appropriate line items during the year after requests and justifications for unanticipated needs are approved by the General Manager. Use of monies from the General Manager's contingency budget requires an approved Operating Budget Transfer Form. • Resource needs for strategic initiatives will be included in the budget. Capital Improvement Program Assumptions • The FY 2011-12 cash flow budget is based on the Validated Capital Improvement Program (CIP) is the target. • The baseline CIP cash flow for FY 2011-12 is $119.9 million. • The FY 2011-12 CIP budget will only increase for critical projects which were not previously identified in the Strategic Plan Update. • It is anticipated that 85% of the FY 2010-11 CIP budget will be expended by June 30, 2010. Debt Financing • The District will issue new debt in the form of COPs as needed to fund the CIP and to maintain reserves. • A $50 million COP debt issuance is scheduled for FY 2011-12 in order to assist in the funding of the $119.9 million CIP outlay scheduled for FY 2011-12. • Debt will only be used for CIP and capital expenses, not for operating expenses. • Capital financing plans which include fewer future borrowings after FY 2011-12 will be considered. • Borrowing is proposed only for facilities which do not add capacity and that are funded by all users for replacement, rehabilitation, and improved treatment. Page 4 of 9 FY 2011-12 Preliminary Budget Assumptions Reserve Assumptions • The current reserve policy was reviewed by Public Resources Advisory Group and the Board during FY 2003-04. No changes were proposed and direction was given to continue to maintain reserve levels at a level that is adequate to offset exposure to variable rate COPs due to interest rate increases. • The current reserve policy is summarized as follows: ► A cash flow reserve will be established to fund operations, maintenance and certificates of participation expenses for the first half of the fiscal year, prior to receipt of the first installment of the property tax allocation and sewer service user fees which are collected as a separate line item on the property tax bill. The level of this reserve will be established as the sum of an amount equal to six months operations and maintenance expenses and the total of the annual debt (COP) service payments due in August each year. ► An operating contingency reserve will be established to provide for non-recurring expenditures that were not anticipated when the annual budget and sewer service fees were considered and adopted. The level of this reserve will be established at an amount equal to ten percent of the annual operating budget. ► A capital improvement reserve will be maintained to fund annual increments of the capital improvement program. The long-term target is for one half of the capital improvement program to be funded from borrowing and for one half to be funded from current revenues and reserves. With this program in mind, the target level of this reserve has been established at one half of the average annual capital improvement program through the year 2020. ► Catastrophic loss, or self-insurance, reserves will be maintained for property damage including fire, flood and earthquake, for general liability and for workers' compensation. These reserves are intended to work with purchased insurance policies, FEMA disaster reimbursements and State disaster reimbursements. The potential infrastructure loss from a major earthquake has been estimated at $1.3 billion. The level of this reserve has been set to fund the District's non-reimbursed costs, estimated to be $57 million. ► Accumulated capital funds will be set aside for certain specific, short-term capital improvements as the need and availability arise. ► A capital replacement/renewal reserve policy has been established to provide thirty percent of the funding to replace or refurbish the current collection, treatment and disposal facilities at the end of their useful economic lives. The current replacement value of these facilities as of 2009 is estimated to be $3.46 billion for the collection facilities and $3.45 billion for the treatment and disposal facilities. The initial reserve level has been established at $50 million, which will be augmented by interest earnings and a small portion of the annual sewer user fee, in order to meet projected needs through the year 2030. Page 5 of 9 FY 2011-12 Preliminary Budget Assumptions ► Provisions of the various certificate of participation (COP) issues require debt service reserves to be under the control of the Trustee for that issue. These reserve funds are not available for the general needs of the District and must be maintained at specified levels. The current level of required COP service reserves is projected to be $246.1 million. ► Accumulated funds exceeding the levels specified by District policy will be maintained in a rate stabilization fund. These funds will be applied to future years' needs in order to maintain rates or to moderate annual fluctuations. There is no established target for this reserve. Page 6 of 9 FY 2011-12 Budget Update Calendar Tasks Responsibility Event/Due Date PHASE I— BUDGET PREPARATION CIP — Call for Projects Issued Engineering 10/06/10 CIP — Project Description/Justification and CLR Forms CIP Budget 10/28/10 Submitted to Engineering Planning Coordinators CIP — Training for FY 2011-12 CIP Business Case Jim Burror Week of 11/01/10 Preparation as needed CIP — Business Cases Submitted to Engineering CIP Budget 11/18/10 Planning Coordinators CIP — New Project Presentations to Managers CIP Budget 12/06/10 Coordinators CIP — New Project Recommendations to EMT Managers 12/16/10 CIP — Database, Forms & Instruction Manual Developed CIP Process Team 01/10/11 CIP — New Project Presentations to EMT CIP Budget 01/10/11 Coordinators CIP — CIP Database Opened for Input Financial Planning 01/17/11 CIP - Budget Preparation Training (CIP Database) Financial Planning As needed CIP — New Project "Go/No Go" Decisions EMT 01/20/11 Preliminary Budget Assumptions Identified Financial Planning 01/17/11 Preliminary Budget Assumptions Presented to EMT Financial Planning 01/24/11 Draft Budget Calendar Presented to EMT Financial Planning 01/24/11 Preparation for Budget Kickoff/ Training Session: Financial Planning 01/21/11 • Develop line item worksheets with adopted FY11/12 budget revised to reflect Beyond 2012 reorganization • Prepare/update budget instruction manual Budget Kickoff/ Training Session: Financial Planning 01/25/11 • Distribute budget manual update • Conduct budget training session • Describe budget worksheet data required for each division Budget Assumptions Presented to Admin Committee Admin Services Dept. 02/09/11 Mid-Year Financial Report to Admin Committee Admin Services Dept. 02/09/11 Operating Divisional Budgets: New Position/Additional Divisional Budget 02/10/11 Employee Decision Packages Due to Financial Planning Coordinators (Edith Smith, Ext. 7568) Operating Divisional Budgets: Equity Adjustment & Divisional Budget 02/10/11 Position Reclassification Decision Packages Due to Coordinators Human Resources (Ann Sullivan, Ext. 7143) Page 7 of 9 FY 2011-12 Budget Update Calendar Tasks Responsibility Event/Due Date Capital Equipment Budget: Vehicle Capital Equipment Divisional Budget 02/10/11 Decision Packages Due to Fleet Services (Chuck Coordinators Forman, Ext. 7647) Computer Equipment Decision Packages Due to Divisional Budget 02/10/11 Information Technology (Rich Castillon, Ext. 7283) Coordinators Division Budget Update Packages Due to Finance: Divisional Budget 02/18/11 • Update 2010-11 projected costs Coordinators • Proposed operating costs for 2011-12 • Operating Budget Expense Detail • Preliminary Contractual Material & Services Form • Capital equipment decision Packages (other than computer and vehicle decision packages which were due on 02/10/11) • New program decision packages (Financial Planning will compile this information into packages for use during the budget review process.) Mid-Year Financial Report to Board Administrative Svcs. 02/23/11 Complete the Compilation of the Preliminary Division Financial Planning 02/23/11 Budget Update Packages CIP — Project Request with Project Information Entered CIP Budget 02/25/11 in CIP Database Completed Coordinators CIP — New Project Numbers Assigned Eng. Planning Division 03/04/11 CIP — Completed CIP Budget Delivered to Finance CIP Budget 03/11/11 Coordinators • Department Budgets— Update the department text Department Budget 03/11/11 from the Executive Summary: Coordinator o General Manager, pages 20—21 o Administrative Services, pages 22-23 o Facilities Support Services, new o Engineering, pages 26-27 o O&M, pages 28-30 PHASE II -BUDGET REVIEW CIP - Review Workshop Financial Planning & 01/14/11 Department Heads CIP - Resource Availability Review Engineering & O&M 01/31/11 Divisional Budgets - Distribution of Preliminary Line Item Financial Planning 03/02/11 Requested Budget Updates to Department Heads and Managers along with Analysis/Questions for Review Page 8 of 9 FY 2011-12 Budget Update Calendar TASKS Responsibility Event/Due Date CIP — Committee Review Operations Committee 03/02/11 Operating Budget - Budget Review Meetings with Financial Planning & 03/03/11-03/09/11 Finance and Department Representatives Department Representatives Operating Budget— Information on Position Upgrades & Human Resources 03/11/11 Reclassifications Submitted to the General Manager Operating Budget— Recommendations to General Financial Planning 03/14/11 Manager Final Operating Budget— General Manager Review of Financial Planning, GM, 03/17/11-03/23/11 Budget Update Recommendations & Department Heads CIP — General Manager and Designee(s) Approval General Manager 03/24/11 CIP Schedules Through 2020 Completed Financial Planning 04/07/11 PHASE III - BUDGET PRESENTATION Operating Budget— Presentation of Preliminary Budget Financial Planning 04/11/11 Update by Division/Department to EMT CIP —Operations Committee Review of FY 2011-12 Engineering 04/06/11 Budget Operating Budget Update— Overview to Administration Financial Planning 04/13/11 Committee CIP - Final CIP Budget Document Preparation and Financial Planning 04/18/11 Incorporation into Final Budget Document Initial - Proposed Budget Update Finalized Financial Planning 04/25/11 Initial — Proposed 2011-12 Budget Update Presented to CIP— Engineering Ops —05/04/11 Committees Operating — Finance Admin — 05/11/11 General Manager's Budget Message Completed GM / Financial Planning 05/04/11 Approval of General Manager's Budget Message General Manager 05/09/11 Final - Proposed Budget Update to Printer Financial Planning 05/11/11 PHASE IV-BUDGET DELIBERATIONS Final Draft - Proposed 2011-12 Budget Update Financial Planning Ops —06/01/11 Presented to Committees Admin — 06/08/11 Public Hearing & Board Adoption Board of Directors 06/22/11 PHASE V—DISTRIBUTION OF BUDGET Final line item budget and equipment budgets posted in Financial Planning 07/08/11 H:\ntglobal Page 9 of 9 MINUTES GROUNDWATER REPLENISHMENT SYSTEM STEERING COMMITTEE STEERING COMMITTEE Monday, January 10, 2011, 5:00 p.m. ROLL CALL Committee Members Larry Crandall OCSD Director, Chairman......................Present Philip L. Anthony OCWD Director, Vice Chairman .............Present Kathryn Barr OCWD Director .......................................Present Jim Ferryman OCSD Director .......................................Present Roger Yoh OCWD Director....................................... Present Mark Waldman OCSD Director .......................................Present Alternates ..... OCWD Director (No. 1)............................Present Sharon Quirk-Silva OCSD Director(No. 1)..................... Not Present Denis Bilodeau OCWD Director(No. 2)........................... Present Tom Beamish OCSD Director (No. 2)..................... Not Present Don Bankhead OCWD Director (No. 3)........................... Present Connie Underhill OCSD Director(No. 3)............................Present Other Directors Present Claudia Alvarez OCWD ....................................................Present Shawn Dewane OCWD ....................................................Present Cathy Green OCWD ....................................................Present Iry Pickler OCWD ....................................................Present Staff/Consultants Present Mike Markus, OCWD Jim Ruth, OCSD Bill Hunt, OCWD Jim Herberg, OCSD William Dunivin, OCWD Debbie Burris, DDB Eleanor Torres, OCWD John Collins, City of Fountain Valley LARRY REORGANIZATION OF COMMITTEE ANTHOCRANDALL,CHAIR ANTHONY— MOTION FERRYMAN— SECOND PHIL ANTHONY,VICE CHAIR APPROVED BANKHEAD-MOTION YOH — SECOND 1. MINUTES OF PREVIOUS MEETING RECOMMENDATION: Approve Minutes of the July 12, ANTHONY— MOTION,AYE APPROVED 2010 Groundwater Replenishment System Steering WALDMAN— SECOND,AYE Committee Meeting as mailed CRANDALL— AYE BARR — AYE FERRYMAN— AYE YOH— AYE - 1 - MATTER FOR CONSIDERATION 2. JOINT PROJECT TO INCREASE NIGHTTIME FLOW TO GWRS AND REDIRECT MICROFILTRATION ANTHONY- MOTION,AYE APPROVED BACKWASH FLOWS TO OCSD PLANT NO.1 WALDMAN- SECOND,AYE CRANDALL- AYE RECOMMENDATION: BARR - AYE FERRYMAN- AYE Agendize for January 19 OCWD Board meeting and YOH- AYE January 29 OCSD Board meeting: Approve and Authorize budget of$2,122,000 for the design and construction of project that provides GWRS with additional nighttime flow and redirect microfiltration backwash waste flows at OCSD Plant No.1 with cost sharing between both agencies INFORMATIONAL ITEMS 3. GWR SYSTEM MONTHLY OPERATIONS UPDATE INFORMATIONAL 4. STATUS REPORT INFORMATIONAL • Grants and Loans Update • Public information and education update GENERAL MANAGERS' REPORTS ADJOURNMENT 5:40 PM - 2 - BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 02/23/11 AGENDA REPORT Item Number Item Number 19 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Assistant General Manager Project Manager: Jim Colston, Environmental Compliance Manager SUBJECT: Amendment No. 2 to the Biosolids Management Agreement with EnerTech GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 2 to the Biosolids Management Agreement with EnerTech Environmental California, LLC, in a form approved by General Counsel. SUMMARY At the Board's direction, staff and general counsel have been negotiating an amendment to the agreement with EnerTech Environmental California, LLC, (EnerTech) and their bondholders covering management of Orange County Sanitation District's (OCSD) biosolids. The proposed amendment will repay OCSD over time for the difference in cost for diverting biosolids to Arizona versus processing at the Rialto, California facility, and it temporarily reduces the biosolids management fee for diverted biosolids. PRIOR COMMITTEE/BOARD ACTIONS November 2006 — Adopted Amendment No. 1 to Agreement with EnerTech Environmental California, LLC, increasing the amount of Biosolids from 200 tons to 225 tons, and increasing the contract period from 10 to 25 years, with one additional five- year period, and to increase cost from $69.40 to $72.40 per ton. July 2005 — Adopted 10-year agreement with EnerTech Environmental California, LLC with four five-year options at an initial cost of$69.40 per ton of biosolids managed. ADDITIONAL INFORMATION Background Since the late 1990s, the long-term sustainability of biosolids land application significantly diminished in California. Several Counties including Kings, Kern, and Riverside have approved ordinances that severely restrict or ban the land application of biosolids. As a result, OCSD studied various alternatives to land application including, among others, technologies which convert biosolids to a renewable fuel. OCSD issued requests for proposals for five different biosolids management options and 12 proposals Page 1 of 4 ADDITIONAL INFORMATION (cont'd) were received and evaluated. Ultimately, in May 2006, OCSD contracted with EnerTech, which utilizes a drying technology known as SlurryCarb, as a sustainable local alternative to land application. In addition to OCSD, EnerTech also contracted with the Cities of San Bernardino, Rialto, and Riverside, and the County Sanitation Districts of Los Angeles to convert their biosolids to fuel at a new facility in Rialto, California. EnerTech's Rialto facility was developed with private funding at a cost of approximately $120 million. Under the basic terms of OCSD's agreement with EnerTech, OCSD sends 225 tons per day of biosolids to EnerTech for a fee of $77.93 per wet ton. EnerTech is required to convert these biosolids into a renewable fuel at the Rialto facility. A limited diversion of biosolids from the Rialto facility is permissible and adjustments to the tonnage fee are allowed based on fuel costs and the annual consumer price index. The $77.93 (total per year of $6.93 million) per wet ton management fee is $30.59 per ton higher than the $47.34 (total per year of $3.89 million) per wet ton cost of land application of biosolids in Arizona. Although the cost is higher than the present cost for land application, the EnerTech contract provides OCSD with a sustainable and reliable long-term alternative to land application, and is one of the lowest cost energy options available today. While low-cost land application in Arizona is available in the near term, over the long term, there is no guarantee that the practice will be allowed beyond the next five to ten years. The benefit to OCSD from the EnerTech contract is sustainability, closer location, and diversity of management technology. Current Status In October 2008, EnerTech began to commission its biosolids to energy facility. To date, EnerTech has not been able to complete full commissioning of the facility, limiting the throughput of the facility to approximately 40% of the design capacity. This failure has been attributed to numerous startup issues related to technical problems with their SlurryCarb process and related equipment. In May 2010, EnerTech met with OCSD staff to explain the startup problems. EnerTech also presented an Interim Technical Plan designed to address the deficiencies. By fall of 2010, EnerTech provided a project timeline of March 2, 2012 to complete the technical plan sufficient to process all of OCSD's contracted biosolids through the facility. Since November 2008, EnerTech has been diverting approximately two-thirds (2/3) of OCSD's biosolids to Arizona for land application at the current management fee of $77.93 per wet ton. EnerTech currently pays $47.32 per wet ton for land application of OCSD's biosolids that it receives but does not process at the Rialto facility. The Page 2 of 4 ADDITIONAL INFORMATION (cont'd) quantity of biosolids diverted to Arizona exceeds the contract limitation of 30 days in a calendar year or 14 consecutive days. OCSD has waived compliance to date for the additional amount of material diverted away from the facility in anticipation of completion of the project. Since June 2010, OCSD's General Counsel and staff have been negotiating with EnerTech and their bondholders over the failure to successfully complete commissioning of the facility and the disparity between the existing contract management cost and the cost of land application. In addition, OCSD has also been working with the other project partners including the County Sanitation Districts of Los Angeles, the City of Riverside, and the City of San Bernardino Municipal Water Department. Going forward, there are some key considerations that OCSD must weigh. One consideration is the continued need for a long-term alternative to land application, which has become uncertain. Another consideration is the risk that the technical plan will not succeed. With any investment in new technology there are risks. In this case, staff believes that the benefit of a long-term alternative to land application is worth the risk because the benefit is so important. Fortunately, OCSD has no direct investment in the technology. OCSD's biosolids have been managed in accordance with the contract that minimizes the risk by providing no capital outlay-only contract terms with guaranteed tons, price, and length of time. Another consideration is that OCSD's decision will affect the other participants including the County Sanitation Districts of Los Angeles, the City of Riverside, and the City of San Bernardino Municipal Water Department. If OCSD was to cease participation in the EnerTech biosolids to energy project, it is likely that the project would fail and all of the participating agencies would need to pursue other biosolids options. Key Terms of Proposed Amendment No. 2 ■ EnerTech will implement the Interim Technical Plan by March 2, 2012; ■ Between now and March 2, 2012, OCSD will refrain from declaring a default under the Agreement based on EnerTech's diversion of OCSD's biosolids to land application sites in excess of the permitted amount, unless the Rialto facility shuts down entirely for more than 30 consecutive days; ■ From February 15, 2011 until March 2, 2012, EnerTech will reduce their contract management fee for OCSD biosolids diverted to Arizona from $77.93 per wet ton to $62.63 per wet ton. If 50% of the contracted biosolids are diverted to Arizona during this time period, this will result in a savings of about $1.3 million. Biosolids managed at the facility will remain at the current contract price; and Page 3 of 4 ADDITIONAL INFORMATION (cont'd) ■ EnerTech will reimburse OCSD, in equal installments over 10 years commencing three years after March 2, 2012, for the difference between the contract management fee of $77.93 and the estimated average cost of land application in Arizona of $47.34 per wet ton for all biosolids diverted to Arizona between July 1, 2010 and February 15, 2011 (estimated at $1.1 M). ■ EnerTech will also reimburse OCSD for all biosolids diverted to Arizona from February 15, 2011 to March 2, 2012 for the difference between the reduced management fee of $62.63 per wet ton and the land application cost of $47.34 per wet ton. If 50% of the contracted biosolids are diverted to Arizona during this time period, this will result in a savings of about $1.3 million. The repayment would occur as discussed above, or sooner, if monies are available. The proposed reduced biosolids management fee of$62.63 per wet ton of diverted biosolids compares favorably to our current average biosolids management cost of $65 per wet ton. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This item has been budgeted (FY 2010-11 Budget, Line Item 53010) Date of Approval Contract Amount Contingency 07/20/05 $69.40 per ton + costs N/A 11/15/06 $72.40 per ton + costs N/A JC:jb:gc Page 4 of 4 SECOND AMENDMENT TO AGREEMENT FOR THE MANAGEMENT OF BIOSOLIDS This Amendment to Agreement for the Management of Biosolids ("Amendment") is entered into between the Orange County Sanitation District, a County Sanitation District organized pursuant to California Health& Safety Code Section 4700 et seq. (the "District"), and EnerTech Environmental California, LLC, a California limited liability company("EnerTech"). The District and EnerTech are sometimes individually referred to herein as each"Party," and collectively referred to herein as the "Parties." This Amendment is effective as of February 28, 2011 (the "Effective Date"). RECITALS A. On May 22, 2006,the Parties entered into an Agreement entitled "Agreement for the Management of Biosolids" ("2006 Agreement"). The Parties amended the 2006 Agreement pursuant to that certain "Amendment No. 1 to Agreement" dated February 13, 2007. The 2006 Agreement as amended prior to the date hereof shall be referred to herein as the "Agreement." In the Agreement,the District agreed, inter alia,to deliver a specified amount of biosolids to EnerTech for management and processing, and to pay a Management Fee. EnerTech agreed, inter alia,to accept the biosolids and process them into an energy fuel using EnerTech's S1urryCarb process at a facility to be constructed in Rialto, California(the "Facility"). In 2006 EnerTech entered into similar contracts with other wastewater agencies. Collectively,EnerTech is obligated to accept approximately 658 wet tons per day("WTPD") of biosolids from wastewater agencies. B. The Facility was scheduled to commence full operations in February 2009. Due to various malfunctions and disruptions,however,the Facility was unable to commence full operations, and remains unable to commence full operations today. C. EnerTech has prepared an Interim Technical Plan designed to correct the Facility's malfunctions. The Interim Technical Plan is designed to, inter alia,enable the Facility to successfully operate at a maximum capacity of 700 WTPD and an average daily capacity of 600. The Interim Technical Plan describes capital improvements that EnerTech plans to make at the Facility, and sets forth a schedule with milestones for completion of permitting, final design, procurement of equipment and materials,construction, and start-up. D. Since November of 2008,EnerTech has accepted roughly 608 WTPD of biosolids from wastewater agencies, including an average of roughly 225 WTPD from the District. Because the Facility has been unable to commence full operations,however, EnerTech has diverted most of the biosolids to sites in Arizona for land application. From November of 2008 to March of 2009, EnerTech diverted 130 WTPD of the District's biosolids to Arizona. Since March of 2009, EnerTech has been processing roughly 200 WTPD of biosolids at the Facility mostly through its dryer with limited SlurryCarb operations. Since then, EnerTech has diverted the balance of biosolids delivered,roughly 483 WTPD,to Arizona for land application. The Agreement allows EnerTech to divert the District's biosolids from the Facility to specified alternative reuse sites for land application,but for no more than 30 days in any given calendar year, and not to exceed 14 consecutive days. EnerTech has continuously exceeded the permitted 1 LA1:1204067.8 limits for diversion of the District's biosolids to alternative sites since the Facility began limited operations in the fall of 2008. AGREEMENT The Parties agree as follows: 1. Defined Terms. All terms in Initial Capitals herein, which are not otherwise defined herein, shall have the meanings set forth in the Agreement. 2. Implementation of the Interim Technical Plan,• Completion Date. EnerTech shall implement the Interim Technical Plan to completion no later than March 13, 2012. The Interim Technical Plan shall be deemed complete when the Facility achieves an average daily processing rate of at least 600 WTPD over thirty(30) consecutive days, with a minimum of 319 WTPD undergoing the SlurryCarb process, and the Facility otherwise satisfies the requirements for completion of the "Milestones" as set forth in the Third Amendment (as defined below) ("Completion Date"). 3. Funding of the Interim Technical Plan. EnerTech represents and warrants that the implementation of the Interim Technical Plan will cost approximately $20 million. EnerTech further represents and warrants as follows: (a) on November 19, 2010, EnerTech entered into an agreement entitled "Third Supplemental Indenture and Amendment to Loan Agreement" ("Third Amendment")with the authority that issued the bonds to finance the Facility (the "Bonds") and the Bond trustee, and EnerTech intends to enter into an agreement entitled "Fourth Supplemental Indenture and Amendment to Loan Agreement" ("Fourth Amendment") with the authority that issued the Bonds and the Bond trustee; (b)the Third Amendment and Fourth Amendment, collectively,permit the trustee to release monies from various reserve funds and accounts established in connection with the issuance of the Bonds (the "Reserve Funds") for the sole purpose of funding implementation of the Interim Technical Plan, according to a process set forth therein; and (c)the holders of the Bonds unanimously consented to the execution of the Third Amendment and the Fourth Amendment. EnerTech further agrees that it will use the reserve funds disbursed under the Third Amendment and Fourth Amendment to implement the Interim Technical Plan as specified in the Third Amendment and Fourth Amendment. 4. Reduced Fee. Notwithstanding Section 2.3 of the Agreement, during the period from February 16, 2011 until March 13, 2012 (the "Reduced Fee Period"), for each wet ton of biosolids delivered to EnerTech by the District and diverted to alternative sites ("Diverted Biosolids"),the District shall pay, instead of the Management Fee with respect to such Diverted Biosolids, a fee equal to the sum of(a) EnerTech's actual cost of disposal of such wet ton of Diverted Biosolids,plus (b) fifty percent(50%) of the difference between the Management Fee (as would otherwise be calculated under Section 2.3 of the Agreement) and such actual cost of disposal. During the Reduced Fee Period,the District shall continue to pay the Management Fee required under Section 2.3 of the Agreement with respect to each wet ton of biosolids delivered to EnerTech by the District and not diverted to alternative sites. A sample calculation for the determination of the Reduced Fee, for demonstration purposes only, is included as Exhibit"A" to this Amendment. Because this Section 4 will not become effective until the execution of this Amendment, which will occur after the beginning of the Reduced Fee Period, EnerTech shall 2 LA 1:1204067.8 reimburse the District in one lump sum within ten(10) calendar days of the execution of this Amendment for the difference between(x) the Management Fee paid by the District with respect to Diverted Biosolids between the start of the Reduced Fee Period and the execution of this Amendment and (y) the reduced fee that the District was entitled to have paid during such time. 5. Partial Reimbursement of Past Mana ement Fees for Diverted Biosolids. EnerTech shall reimburse the District one million, forty-seven thousand, five hundred and one dollars and 55 cents ($1,047,501.55) (the "Partial Reimbursement"). This amount represents reimbursement for: (a) the difference between (i)the Management Fee as calculated under Section 2.3 of the Agreement(which is the Management Fee the District has paid for each wet ton of biosolids delivered to EnerTech by the District and diverted to alternative sites between July 1, 2010 and February 15, 2011) and (ii) forty-seven dollars and thirty-four cents ($47.34), multiplied by(b) the number of wet tons of biosolids delivered to EnerTech by the District and diverted to alternative sites between July 1, 2010 and February 15, 2011. Commencing three years after the Completion Date, or no later than March 13, 2015 (the earlier of such dates, the "Reimbursement Commencement Date") EnerTech shall pay the District, in equal quarterly installments over a ten(10) year period, an amount equal to the sum of(w) the Partial Reimbursement plus (x) interest on the Partial Reimbursement, accrued at a rate of two-and-a- half percent(2.5%)per year, for the period between the Completion Date (or no later than March 13, 2012)and the Reimbursement Commencement Date. The sum of the amounts set forth in clauses (w) and(x) above is referred to herein as the"Base Reimbursement Amount," and the portion of such amount remaining unpaid at any given time, the "Remaining Reimbursement Amount"). In addition, commencing on the date that is three months after the Reimbursement Commencement Date (the "Interest Commencement Date") and continuing until three months after the Base Reimbursement Amount is repaid to the District in full, EnerTech shall pay the District interest on the Remaining Reimbursement Amount quarterly, in arrears, at a rate of two- and-a-half percent(2.5%)per year. Exhibit`B"to this Amendment shows an example of how the Partial Reimbursement of Past Management Fees for Diverted Biosolids would be calculated, for demonstration purposes only. 6. Partial Rebate of Future Management Fees for Diverted Biosolids. Following the Completion Date, EnerTech shall pay a rebate to the District in an amount equal to the total of all payments made by the District under clause (b) of Section 4 above during the Reduced Fee Period. EnerTech shall pay the required rebate: (i) within thirty (30) days after the Completion Date, if the Interim Technical Plan is completed on time and on budget, as reasonably determined by the holders of the Bonds, or(ii) in equal quarterly installments over a ten(10) year period, commencing on the Reimbursement Commencement Date, if the Interim Technical Plan is not completed on time and on budget, as reasonably determined by the holders of the Bonds. A sample calculation for the determination of the Partial Rebate of Future Management Fees for Diverted Biosolids, for demonstration purposes only, is found in Exhibit "C"to this Amendment. 7. Cash Grants. Until the Reimbursement Commencement Date, the District,in its sole and absolute discretion, may accept cash grant(s) in connection with the Facility or its operations from any Governmental Authority, which shall be in lieu of cash payments to satisfy, in whole or in part, EnerTech's reimbursement obligations set forth in Section 5 above. Any cash grants accepted by the District under this Section 7 will reduce, dollar-for-dollar, the amount 3 LA 1:1204067.8 EnerTech shall be required to reimburse the District under Section 5 above, and interest shall cease to accrue on any amounts paid to the District under this Section 7 as of the date the District receives payment of such amounts. 8. Consent and Limited Waiver. Until the Completion Date or no later than March 13, 2012,provided that EnerTech proceeds expeditiously to implement the Interim Technical Plan and EnerTech does not materially default under the Agreement, as amended by this Amendment(other than with respect to the diversion of the District's biosolids, as described in this Amendment),the District(a) consents to EnerTech's continued diversion of the District's biosolids to approved alternative reuse sites, (b) waives the requirement set forth in Section 2.6 of the Agreement that EnerTech refrain from diverting the District's biosolids to alternative reuse sites for more than 30 days per calendar year or more than 14 consecutive days, and(c) shall forbear from declaring a default under the Agreement. The District's consent, waiver and forbearance under this Section 8 shall cease and be of no further legal effect if, at any time between the Effective Date and March 13, 2012,the Facility ceases processing of biosolids for a period of thirty (30) consecutive days. Other than as specifically stated in this Amendment,the District is not waiving any rights or remedies under the Agreement, or releasing or discharging EnerTech from any claim relating to the Agreement. 9. Monthly Cash Flow Analysis. EnerTech shall provide to the District,no later than ten (10) days after the last day of each month for the period from the Effective Date through March 13, 2012 for(a) such month and(b)the period from the Effective Date through the last day of such month, a cash flow analysis in the form attached hereto as Exhibit"D"that includes total cash receipts (including any new bond proceeds), total cash disbursements (working capital and capital outflows and costs),the total amount drawn by EnerTech from the Reserve Funds, and the cumulative permitted amount remaining to be drawn from the Reserve Funds. 10. Late Payments. Neither party shall be in default under this Amendment or the Agreement for failure to pay any amount owing to the other party under this Amendment unless such amount has not been paid by the third calendar day following the date such amount became due and payable under this Amendment. 11. Committed Biosolids Amount(CBA). The District shall continue to provide biosolids to EnerTech as provided under the Agreement. 12. Agreement in Full Force and Effect. Except as expressly amended above,the Agreement shall remain in full force and effect. 13. Duplicate Originals. This Amendment will be executed as duplicate originals, each of which will be deemed an original. [remainder of page intentionally left blank] 4 LA 1:1204067.8 Xecuted this Agreement CT and ENERTECH e . T�DI5TR1 E�OF B55I b°-ve wri tten• ,�y11TN f'ixsthereina CT the day �'d year AN1Tp,TION DISTRI RANGE CONY S O B fDlrectors Chair,B° • Clerk of the B°mod By A, a a r 0 ow-(a AS TO FOR Counsel APPROVED ° in,General Bradley R•1� g By CAL1F0 IAA LLC• MENT �I EN ENER�� 1 y • f G°ul esdent hf LA1'.1204061.8 EXHIBIT A Reduced Fee - Sample Calculation Reduced Fee =Actual Cost+ (50% x (Management Fee—Actual Cost)) Where: Actual Cost*=EnerTech's actual cost per wet ton(wt) for land application of diverted biosolids Management Fee = Management fee per wet ton (wt) paid by district to EnerTech as calculated under Section 7 of the Agreement Sample Calculation (for illustrative purposes only numbers are purely examples Actual Cost = $50/wt, Management Fee = $80/wt. Reduced Fee = $50 + (50% * ($80- $50)) = $65/wt Each month, EnerTech to provide proof of Actual Costs with monthly invoice. LA1:1204067.8 EXHIBIT B Partial Reimbursement of Past Management Fees - Sample Calculation Partial Reimbursement= (Management Feet - $47.34) x Biosolids Diverted Where: Biosolids Diverted = biosolids diverted (wet tons) to land application sites between July 1, 2010 and February 15, 2011 Interest Rate=2.5% (or 0.025) Base Reimbursement Amount=(Partial Reimbursement) * (1+0.025)3 Quarterly Interest Payments=(Remaining Reimbursement Amount) * (0.025 /4) tManagement Fee = actual management fee per wet ton (wt) paid by District to EnerTech for biosolids diverted, as calculated under Section 7 of the Agreement Calculation Partial Reimbursement = $1,047,501.55 Base Reimbursement Amount = $1,047,501.55 * ((1+0.025)3) = $1,128,044.60 Base Reimbursement Amount Quarterly Installment = $1,128,044.60/(10*4) = 28,201.12 Additional Interest Due on Interest Commencement Date = ($1,128,044.60 -28,201.12) * (0.025/4) = $6,874.02 LA1:1204067.8 EXHIBIT C Partial Rebate of Future Management Fees - Sample Calculation Partial Rebate=(50%x (Management Fee-Actual Cost))x Biosolids Diverted Where: Actual Cost* =EnerTech's actual cost per wet ton (wt) for land application of diverted biosolids Management Fee = Management fee per wet ton (wt) paid by District to EnerTech as calculated under Section 7 of the Agreement Biosolids Diverted=Biosolids diverted (wet tons) to land application sites between March 1, 2011 and March 13, 2012 Sample Calculation (for illustrative purposes only numbers are purely examples) Actual Cost = $50/wt, Management Fee = $80/wt Biosolids Diverted= 2,000 wt(during the Reduced Fee Period) Partial Rebate = (50%x ($80- $50))x 2,000 = $30,000 Each month, EnerTech to provide proof of Actual Costs with monthly invoice. LA 1:1204067.8 EXHIBIT D Form of Monthly Cash Flow Analysis LA1:1204067.8 EnerTech Environmental California,LLC Rialto Cash Flow Report mm/dd/yyyy Month Ending Cumulative mm/dd/yyyy 2/28/11 -mm/dd Beginning Cash Balance Available to Project: $ _ $ _ Cash Receipts Disbursements Working Capital . Capital— �— Total Disbursements Ending Cash Available to Project Reserve Funds Position Total Permitted Draw on Reserve Funds $ - Cumulative Draw on Reserve Funds Remaining Reserve Funds Available $ - 1of1 3/10/2011 EnerTech Environmental California,LLC February 2011 Variance Analysis