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HomeMy WebLinkAbout03-24-2021 Board Meeting Complete Agenda Packet 03-19-2021 OC6SAN ORANGE COUNTY SANITATION DISTRICT ORANGE COUNTY SANITATION DISTRICT SPECIAL NOTICE REGARDING CORONAVIRUS (COVID-19� AND ATTENDANCE AT PUBLIC MEETINGS On March 4, 2020, Governor Newsom proclaimed a State of Emergency in California as a result of the threat of COVID-19. On March 12, 2020 and March 18, 2020, Governor Newsom issued Executive Order N-25-20 and Executive Order N-29-20, which temporarily suspends portions of the Brown Act which addresses the conduct of public meetings. The General Manager and the Chairman of the Board of Directors have determined that due to the size of the Orange County Sanitation District's Board of Directors (25), and the health and safety of the members, the Board of Directors will be participating in meetings of the Board telephonically and via Internet accessibility. PUBLIC PARTICIPATION Your participation is always welcome. The Board of Directors meeting will be available to the public online at: https://ocsd.legistar.com/Calendar.aspx You may submit your comments and questions in writing for the Board's consideration in advance of the meeting by using the eComment feature available via the webpage above or sending them to OCSanClerk(a-),ocsd.com with the subject line "PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)" or "PUBLIC COMMENT NON-AGENDA ITEM". Submit your written comments by 6:00 p.m. on Tuesday, March 23, 2021. You may also submit comments and questions for the Board's consideration during the meeting by using the eComment feature that will be available via the webpage above for the duration of the meeting. All public comments will be provided to the Board and may be read into the record or compiled as part of the record. Thank you. 1 Ellis Avenue Fountainuntain Valley,CA 92708 OC6SAN7.4.962.24., ORANGE COUNTY SANITATION DISTRICT www.ocsan_gov March 19, 2021 Serving: -,naheim Brea NOTICE OF REGULAR MEETING Buena Park Cypress BOARD OF DIRECTORS Fountain Valley ORANGE COUNTY SANITATION DISTRICT cullerton ,crcen Grove Wednesday, March 24, 2021 — 6:00 P.M. Huntington Beach Irvine ACCESSIBILITY FOR THE GENERAL PUBLIC La Habra Due to the spread of COVID-19, the Orange County Sanitation District La Palma will be holding all upcoming Board and Committee meetings by teleconferencing and Internet accessibility. This meeting will be Los Alamitos available to the public online at: Newport Beach Orange https://ocsd.legistar.com/Calendar.aspx Placentia The Regular Meeting of the Board of Directors of the Orange County Sanitation Santa Ana District will be held in the manner indicated above on Seal Beach Wednesday, March 24, 2021 at 6:00 p.m. Stanton Tustin Villa Park lerk 6H e Ooard County of Orange Costa Mesa Sanitary District Midway City Upcoming Meetings: Sanitary District GWRS Steering Committee - Monday, April 12, 2021 at 5:00 p.m. Irvine Ranch Special Board Meeting (Strategic Plan Wednesday, April 21, 2021 at 2:00 m. Water District p g � g� ) - Y p p• Steering Committee - Wednesday, April 28, 2021 at 5:00 p.m. Yorba Linda Board Meeting - Wednesday, April 28, 2021 at 6:00 p.m. Water District Our Mission:To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. BOARD MEETING DATES April 28, 2021 May 26, 2021 June 23, 2021 July 28, 2021 August 25, 2021 September 22, 2021 October 27, 2021 November 17, 2021 December 15, 2021 January 26, 2022 February 23, 2022 March 23, 2022 *Meeting will be held on the third Wednesday of the month ORANGE COUNTY SANITATION DISTRICT Effective 2/9/2021 BOARD OF DIRECTORS Complete Roster ALTERNATE AGENCY/CITIES ACTIVE DIRECTOR DIRECTOR Anaheim Stephen Faessel Jose Diaz Brea Glenn Parker Steven Vargas Buena Park Art Brown Connor Traut Cypress Stacy Berry Anne Hertz Fountain Valley Patrick Harper Glenn Grandis Fullerton Jesus J. Silva Nick Dunlap Garden Grove Steve Jones John O'Neill Huntington Beach Kim Carr Dan Kalmick Irvine Anthony Kuo Farrah N. Khan La Habra Rose Espinoza Jose Medrano La Palma Marshall Goodman Nitesh Patel Los Alamitos Mark A. Chirco Ron Bates Newport Beach Brad Avery Joy Brenner Orange Kim Nichols Chip Monaco Placentia Chad Wanke Ward Smith Santa Ana Johnathan Ryan Hernandez Nelida Mendoza Seal Beach Sandra Massa-Lavitt Schelly Sustarsic Stanton David Shawver Carol Warren Tustin Ryan Gallagher Austin Lumbard Villa Park Chad Zimmerman Robert Collacott Sanitary/Water Districts Costa Mesa Sanitary District Bob Ooten Art Perry Midway City Sanitary District Andrew Nguyen Sergio Contreras Irvine Ranch Water District John Withers Douglas Reinhart Yorba Linda Water District Brooke Jones Phil Hawkins County Areas Board of Supervisors Doug Chaffee Donald P. Wagner "'06SAN ORANGE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, March 24, 2021 - 6:00 PM Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 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, and on the Sanitation District's website at www.ocsd.com not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. AGENDA DESCRIPTION: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. MEETING AUDIO: An audio recording of this meeting is available within 24 hours after adjournment of the meeting. Please contact the Clerk of the Board's office at(714) 593-7433 to request the audio file. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, the item must be submitted in writing to the Clerk of the Board: Kelly A. Lore, MMC, (714) 593-7433/klore@ocsd.com at least 14 days before the meeting. FOR ANY QUESTIONS ON THE AGENDA, BOARD MEMBERS MAY CONTACT STAFF AT: General Manager: Jim Herberg,jherberg@ocsd.com/(714) 593-7300 Asst. General Manager: Lorenzo Tyner, Ityner@ocsd.com/(714)593-7550 Asst. General Manager: Rob Thompson, rhompson@ocsd.com/(714) 593-7310 Director of Human Resources: Celia Chandler, cchandler@ocsd.com/(714)593-7202 Director of Engineering: Kathy Millea, kmillea@ocsd.com/(714) 593-7365 Director of Environmental Services: Lan Wiborg, Iwiborg@ocsd.com/(714) 593-7450 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, March 24, 2021 CALL TO ORDER Board Chairman David Shawver INVOCATION AND PLEDGE OF ALLEGIANCE Director Stephen Faessel, City of Anaheim ROLL CALL AND DECLARATION OF QUORUM Clerk of the Board PUBLIC COMMENTS: Your participation is always welcome. The Board of Directors meeting will be available to the public online at: https.-Ilocsd.legistar.com/Ca/endar.aspx. You may submit your comments and questions in writing for the Board of Directors consideration in advance of the meeting by using the eComment feature available via the webpage above or sending them to OCSanClerk@ocsd.com with the subject line "PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)"or "PUBLIC COMMENT NON-AGENDA ITEM" Submit your written comments by 6:00 p.m. on March 23, 2021 at 6:00 p.m. You may also submit comments and questions for the Board of Directors consideration during the meeting by using the eComment feature that will be available via the webpage above for the duration of the meeting. All public comments will be provided to the Board of Directors and may be read into the record or compiled as part of the record. SPECIAL PRESENTATIONS: Employee Service Awards for March 2021: 30 Years: Jeff Woodward, Operations Supervisor REPORTS: The Board Chairperson and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Board of Directors, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES 2021-1476 RECOMMENDATION: Approve Minutes of the Special Meetings of the Board of Directors held February 17, 2021 and February 18, 2021; and of the Regular Meeting of the Board of Directors held February 24, 2021. Page 1 of 6 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, March 24, 2021 Originator: Kelly Lore Attachments: Agenda Report 02-17-2021 Board Strategic Planning Meeting Minutes 02-18-2021 Board Orientation Virtual Tour Meeting Minutes 02-24-2021 Board Meeting Minutes RECEIVE AND FILE: 2. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH 2O20-1329 OF FEBRUARY 2021 RECOMMENDATION: Receive and file the following: Report of the Investment Transactions for the month of February 2021. Originator: Lorenzo Tyner Attachments: Agenda Report Investment Transactions for the Month of February 2021 3. COMMITTEE MEETING MINUTES 2021-1491 RECOMMENDATION: Receive and file the following: A. Minutes of the Steering Committee Meeting held January 27, 2021 B. Minutes of the Operations Committee Meeting held February 3, 2021 C. Minutes of the Legislative and Public Affairs Committee Meeting held February 8, 2021 D. Minutes of the Administration Committee Meeting held February 10, 2021 Originator: Kelly Lore Attachments: Agenda Report 01-27-2021 Steering Committee Minutes 02-03-2021 Operations Committee Minutes 02-08-2021 LaPA Committee Minutes 02-10-2021 Administration Committee Minutes OPERATIONS COMMITTEE: 4. BIOSOLIDS HAULING SERVICE CONTRACT 2021-1523 RECOMMENDATION: A. Approve a Service Contract to Denali Water Solutions, LLC to collect and haul Orange County Sanitation District's biosolids from Reclamation Plant No. 1 and/or Treatment Plant No. 2 to the Inland Empire Regional Composting Facility and alternative sites if needed for the period beginning May 12, 2021 through December 21, 2022, for the unit price of $15.45 per ton of biosolids, plus fuel Page 2 of 6 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, March 24, 2021 surcharges, for a total amount not to exceed $600,000 per contract term, with four (4) one-year renewal options: and B. Approve a 10% unit price per ton contingency. Originator: Lan Wiborg Attachments: Agenda Report S-2020-1208BD Contract and SOW 5. HEADWORKS REHABILITATION AT PLANT NO. 1, PROJECT NO. 2021-1524 P1-105 RECOMMENDATION: A. Receive and file Bid Tabulation and Recommendation for Headworks Rehabilitation at Plant No. 1 , Project No. P1-105; B. Award a Construction Contract to Kiewit Infrastructure West Co. for Headworks Rehabilitation at Plant No. 1 for a total amount not to exceed $222,330,000; and C. Approve a contingency of $8,893,200 (4%). Originator: Kathy Millea Attachments: Agenda Report P1-105 Final Contract Agreement & Exhibit A Presentation 6. HEADWORKS REHABILITATION AT PLANT NO. 1, PROJECT NO. 2021-1525 P1-105 RECOMMENDATION: A. Approve a Professional Construction Services Agreement with Carollo Engineers, Inc. to provide construction support services for Headworks Rehabilitation at Plant No. 1 , Project No. P1-105, for an amount not to exceed $16,500,000; and B. Approve a contingency of $1,650,000 (10%). Originator: Kathy Millea Attachments: Agenda Report P1-105 PCSA Agreement Presentation Page 3 of 6 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, March 24, 2021 ADMINISTRATION COMMITTEE: 7. SETTLEMENT OF CLAIMS, COLLECTION OF DELINQUENT 2021-1541 ACCOUNTS, AND WORKERS' COMPENSATION ACTIONS RECOMMENDATION: Adopt Resolution No. OC SAN 21-05 entitled, "A Resolution of the Board of Directors of Orange County Sanitation District Adopting Procedures for Settlement of Claims Made Against the Orange County Sanitation District; Settlement of Claims Made By the Orange County Sanitation District; Collection of Delinquent Accounts Owing to the Orange County Sanitation District; Settlement of Civil or Administrative Enforcement Actions; and Settlement of Workers' Compensation Actions; and repealing Resolution No. OCSD 11-04". Originator: Lorenzo Tyner Attachments: Agenda Report Draft Resolution No. OC SAN 21-XX - Redlined Draft Resolution No. OC SAN 21-05 - Clean 8. WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2021-1542 2021 A RECOMMENDATION: Authorize the General Manager to issue new fixed rate Certificates of Participation, to be referred to as Wastewater Refunding Revenue Obligations, in (1) an amount sufficient to refund $102,200,000 of Revenue Refunding Certificate Anticipation Notes, Series 2018A maturing on August 15, 2021 and (2) an additional amount sufficient to refund, subject to market conditions, up to $61,575,000 of Wastewater Refunding Revenue Obligations, Series 2011A. Originator: Lorenzo Tyner Attachments: Agenda Report AAA General Obligation Municipal Market Data Index LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE: 9. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF FEBRUARY 2021-1539 2021 RECOMMENDATION: Receive and file the Legislative Affairs Update for the month of February 2021. Originator: Jim Herberg Page 4 of 6 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, March 24, 2021 Attachments: Agenda Report Federal Legislative Update - ENS Resources Federal Legislative Matrix - ENS Resources State Legislative Update - Towsend State Legislative Matrix - Townsend Grant Tracker 2021-2022 ENS Presentation Townsend Presentation 10. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF FEBRUARY 2021 2021-1540 RECOMMENDATION: Receive and file the Public Affairs Update for the month of February 2021. Originator: Jim Herberg Attachments: Agenda Report Outreach & Media Summary Report January-February 2021 Presentation STEERING COMMITTEE: 11. AUTHORIZATION OF CONTRIBUTION TO CASA EDUCATION 2021-1559 FOUNDATION SCHOLARSHIP FUND RECOMMENDATION: Adopt Resolution No. OC SAN 21-06, entitled "A Resolution of the Board of Directors of the Orange County Sanitation District approving a not to exceed Annual contribution amount of $2,500 to the California Association of Sanitation Agencies (CASA) Education Foundation Scholarship Fund beginning FY 2020-2021; and Repealing Resolution No. OCSD 15-22". Originator: Jim Herberg Attachments: Agenda Report Draft Resolution No. OC SAN 21-06 - CASA Education Foundation 12. CENTRAL GENERATION ENGINE OVERHAUL AT PLANT NO. 1 2021-1562 RECOMMENDATION: A. Award a Sole Source Service Contract to Cooper Machinery Services to provide a Central Generation Engine No. 1 Overhaul at Plant No. 1, per Proposal 210204-839, for a total amount not to exceed $3,705,932-1 and B. Approve a contingency of $741,186 (20%). Page 5 of 6 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, March 24, 2021 Originator: Rob Thompson Attachments: Agenda Report SSJ2412 Service Contract - Added 03/19/2021 NON-CONSENT: None. INFORMATION ITEMS: None. AB 1234 DISCLOSURE REPORTS: This item allows Board members to provide a brief oral report regarding the disclosure of outside committees, conferences, training, seminars, etc. attended at the Agency's expense, per Government Code§53232.3(d). CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Directors may request staff to place an item on a future agenda. ADJOURNMENT: Adjourn the Board meeting until the Special Meeting of the Board of Directors on April 21, 2021 at 2:00 p.m. Page 6 of 6 BOARD OF DIRECTORS Administration Building 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1476 Agenda Date: 3/24/2021 Agenda Item No: 1. FROM: James D. Herberg, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: APPROVAL OF MINUTES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve Minutes of the Special Meetings of the Board of Directors held February 17, 2021 and February 18, 2021; and of the Regular Meeting of the Board of Directors held February 24, 2021. BACKGROUND In accordance with the Board of Directors Rules of Procedure, an accurate record of each meeting will be provided to the Directors for subsequent approval at the following meeting. RELEVANT STANDARDS • Resolution No. OC SAN 21-04 ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Minutes of the Special Meeting of the Board of Directors held February 17, 2021 • Minutes of the Special Meeting of the Board of Directors held February 18, 2021 • Minutes of the Board of Directors meeting held February 24, 2021 Orange County Sanitation District Page 1 of 1 Printed on 3/16/2021 powered by LegistarTM ORANGE COUNTY SANITATION DISTRICT MINUTES SPECIAL MEETING OF THE BOARD OF DIRECTORS Strategic Planning Workshop FEBRUARY 17, 2021 SAN ORANGE COUNTY SANITATION DISTRICT Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 BOARD OF DIRECTORS Special Meeting Minutes February 17, 2021 CALL TO ORDER A special meeting of the Board of Directors of the Orange County Sanitation District was called to order by Board Chairman David Shawver on February 17, 2021 at 2:06 p.m. in the Administration Building. General Manager Jim Herberg led the Pledge of Allegiance. Chair Shawver announced that the meeting was being held telephonically and via audio/video teleconferencing in accordance with the Governor's Executive Order No. N-29-20, due to the Coronavirus Pandemic (COVID-19). ROLL CALL The Clerk of the Board declared a quorum present as follows: PRESENT: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Rose Espinoza, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Mark Murphy, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers and Chad Zimmerman ABSENT: Mark Chirco STAFF MEMBERS PRESENT: Clerk of the Board Kelly Lore and Brian Engeln were present in the Board Room. General Manager Jim Herberg, Assistant General Manager Lorenzo Tyner, Assistant General Manager Rob Thompson, Director of Engineering Kathy Millea, Director of Environmental Services Lan Wiborg, Director of Human Resources Celia Chandler, Jennifer Cabral, Mortimer Caparas, Jackie Castro, Daisy Covarrubias, John Frattali, Alfredo Garcia, Tina Knapp, Laura Maravilla, Joshua Martinez, Robert Michaels, Wally Ritchie, and Thomas Vu participated telephonically. OTHERS PRESENT: Brad Hogin (General Counsel) was in attendance telephonically. PUBLIC COMMENTS: None. NON-CONSENT: 1. STRATEGIC PLAN WORKSHOP 2021-1470 Originator: Jim Herberg Mr. Herberg provided a welcome and a brief overview of the upcoming Strategic Plan Workshops. Staff made presentations related to the following topics for Strategic Planning Purposes: Budget Control and Fiscal Discipline, Cyber Security, Property Management, Resilient Staffing, and Safety and Physical Security. ITEM WAS RECEIVED FOR: Page 1 of 2 BOARD OF DIRECTORS Special Meeting Minutes February 17, 2021 Information Only. INFORMATION ITEMS: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: At 3:04 p.m., Chair Shawver adjourned the meeting until the Special Meeting of the Board of Directors on February 18, 2021 at 3:00 p.m. Submitted by: Kelly A. Lore, MMC Clerk of the Board Page 2 of 2 ORANGE COUNTY SANITATION DISTRICT MINUTES SPECIAL MEETING OF THE BOARD OF DIRECTORS Board Orientation - Virtual Tour FEBRUARY 18, 2021 IcAN ORANGE COUNTY SANITATION DISTRICT Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 BOARD OF DIRECTORS Special Meeting Minutes February 18, 2021 CALL TO ORDER A special meeting of the Board of Directors of the Orange County Sanitation District was called to order by Board Chairman David Shawver on February 18, 2021 at 3:05 p.m. in the Administration Building. Chair Shawver announced that the meeting was being held telephonically and via audio/video teleconferencing in accordance with the Governor's Executive Order No. N-29-20, due to the Coronavirus Pandemic (COVID-19). ROLL CALL The Clerk of the Board declared the following members present: PRESENT: Stacy Berry, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Brooke Jones, Steve Jones, Anthony Kuo, Andrew Nguyen, Kim Nichols, Robert Ooten, Glenn Parker, David Shawver, Chad Wanke, John Withers, Chad Zimmerman, Glenn Grandis (Alternate), Phil Hawkins (Alternate), Anne Hertz (Alternate), Dan Kalmick (Alternate), Austin Lumbard (Alternate), Nelida Mendoza (Alternate), John O'Neill (Alternate), Art Perry (Alternate), Schelly Sustarsic (Alternate), Connor Traut (Alternate), Steven Vargas (Alternate) and Carol Warren (Alternate) ABSENT: None STAFF MEMBERS PRESENT: Brian Engeln was present in the Board Room. General Manager Jim Herberg; Assistant General Manager Lorenzo Tyner; Assistant General Manager Rob Thompson; Director of Engineering Kathy Millea; Director of Environmental Services Lan Wiborg; Director of Human Resources Celia Chandler; Clerk of the Board Kelly Lore; Jennifer Cabral; Mortimer Caparas; Jackie Castro; Tina Knapp; Rebecca Long; Joshua Martinez; and Thomas Vu participated telephonically. OTHERS PRESENT: Brad Hogin (General Counsel) participated telephonically. PUBLIC COMMENTS: None. SPECIAL PRESENTATIONS: 1. BOARD OF DIRECTORS ORIENTATION - VIRTUAL TOUR 2021-1461 Originator: Kelly Lore General Manager Jim Herberg and Assistant General Manager Rob Thompson provided the following: Page 1 of 2 BOARD OF DIRECTORS Special Meeting Minutes February 18, 2021 STAFF PRESENTATIONS: • Introduction to OC San Jim Herberg General Manager • Virtual Tour of Plant No. 1 Rob Thompson, Assistant General Manager OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: At 4:05 p.m., Board Vice Chair Withers adjourned the Special Meeting of the Board of Directors until the Regular Meeting of the Board of Directors on February 24, 2021 at 6:00 p.m. Submitted by: Kelly A. Lore, MMC Clerk of the Board Page 2 of 2 ORANGE COUNTY SANITATION DISTRICT MINUTES BOARD OF DIRECTORS FEBRUARY 24, 2021 A"h" AN ORANGE COUNTY SANITATION DISTRICT Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 BOARD OF DIRECTORS Minutes February 24, 2021 CALL TO ORDER A regular meeting of the Board of Directors of the Orange County Sanitation District was called to order by Board Chairman David Shawver on February 24, 2021 at 6:01 p.m. in the Administration Building. Director Doug Chaffee delivered the invocation and led the Pledge of Allegiance. Chair Shawver announced that the meeting was being held telephonically and via audio/video teleconferencing in accordance with the Governor's Executive Order No. N-29-20, due to the Coronavirus Pandemic (COVID-19). ROLL CALL AND DECLARATION OF QUORUM The Clerk of the Board declared a quorum present as follows: PRESENT: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers and Chad Zimmerman ABSENT: Rose Espinoza and Kim Nichols STAFF MEMBERS PRESENT: Kelly Lore, Clerk of the Board, and Mortimer Caparas were present in the Board Room. General Manager Jim Herberg, Assistant General Manager Lorenzo Tyner, Assistant General Manager Rob Thompson, Director of Engineering Kathy Millea, Director of Environmental Services Lan Wiborg, Director of Human Resources Celia Chandler, Jennifer Cabral, Raul Cuellar, Brian Engeln, Tina Knapp, Joshua Martinez, Adam Nazaroff, Valerie Ratto, Thomas Vu and Eros Yong participated telephonically. OTHERS PRESENT: Brad Hogin (General Counsel) participated telephonically. 1. APPOINTMENTS TO THE ORANGE COUNTY SANITATION DISTRICT 2021-1460 BOARD OF DIRECTORS Originator: Kelly Lore WITHOUT OBJECTION ACTION TAKEN TO: Receive and file minute excerpts of member agencies relating to appointments to the Orange County Sanitation District Board of Directors: Agency Director Alternate Director City of Orange Kim Nichols Chip Monaco Yorba Linda Water District Brooke Jones Phil Hawkins Board of Supervisors Doug Chaffee Donald P. Wagner Page 1 of 11 BOARD OF DIRECTORS Minutes February 24, 2021 PUBLIC COMMENTS: Clerk of the Board Kelly Lore read Public Comments that were received for Board Agenda Item No. 8. SPECIAL PRESENTATIONS: 2. COMMENDATIONS TO OUTGOING BOARD MEMBERS 2021-1496 Originator: Kelly Lore Chair Shawver presented a Commendation to outgoing Board Member: CITY/AGENCY DIRECTOR ALTERNATE DIRECTOR Orange Mark Murphy REPORTS: Chair Sawver informed the Board of OC San's employee newsletter, "The Pipeline," and of the forthcoming talking points regarding OC San activities. He also thanked the Board for attending the virtual tour last Thursday. General Manager Jim Herberg provided brief updates regarding COVID-19 cases at OC San and the roll-out of the new logo and web address. He also thanked the Board for attending the first Strategic Planning workshop. CONSENT CALENDAR: 3. APPROVAL OF MINUTES 2021-1408 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Board of Directors held January 27, 2021 and of the Special Board of Directors Meeting held February 4, 2021. AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke and John Withers NOES: None ABSENT: Rose Espinoza, Kim Nichols and Chad Zimmerman ABSTENTIONS: None Page 2 of 11 BOARD OF DIRECTORS Minutes February 24, 2021 RECEIVE AND FILE: 4. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH 2O20-1328 OF JANUARY 2021 Originator: Lorenzo Tyner WITHOUT OBJECTION ACTION TAKEN TO RECEIVED AND FILE THE FOLLOWING: Report of the Investment Transactions for the month of January 2021. 5. COMMITTEE MEETING MINUTES 2021-1477 Originator: Kelly Lore WITHOUT OBJECTION ACTION TAKEN TO RECEIVED AND FILE THE FOLLOWING: A. Minutes of the Legislative and Public Affairs Committee Meeting held November 9, 2020 B. Minutes of the Steering Committee Meeting held November 18, 2020 C. Minutes of the Operations Committee Meeting held December 2, 2020 D. Minutes of the Administration Committee Meeting held December 9, 2020 OPERATIONS COMMITTEE: 6. DIGESTER FERRIC CHLORIDE PIPING REPLACEMENT AT PLANT 2021-1480 NO. 1, PROJECT NO. P1-135 Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: A. Receive and file Bid Tabulation and Recommendation for Digester Ferric Chloride Piping Replacement at Plant No. 1, Project No. P1-135; B. Award a Construction Contract to Performance Plumbing & Mechanical Inc., dba PPM Contracting, for Digester Ferric Chloride Piping Replacement at Plant No. 1 for a total amount not to exceed $515,000; and C. Approve a contingency of $51,500 (10%). AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke and John Withers Page 3 of 11 BOARD OF DIRECTORS Minutes February 24, 2021 NOES: None ABSENT: Rose Espinoza, Kim Nichols and Chad Zimmerman ABSTENTIONS: None 7. TAFT BRANCH IMPROVEMENTS, PROJECT NO. 2-49 2021-1482 Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Design Services Agreement with Woodard & Curran, Inc. to provide engineering services for Taft Branch Improvements, Project No. 2 -49, for an amount not to exceed $2,200,000; and B. Approve a contingency of $220,000 (10%). AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke and John Withers NOES: None ABSENT: Rose Espinoza, Kim Nichols and Chad Zimmerman ABSTENTIONS: None 8. BAY BRIDGE PUMP STATION REPLACEMENT, PROJECT NO. 5-67 2021-1483 Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: A. Consider, receive, and certify the Environmental Impact Report for the Bay Bridge Pump Station and Force Mains Replacement Project, Project No. 5-67, dated January 2021; and B. Adopt Resolution No. OC SAN 21-03, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Certifying the Environmental Impact Report for the Bay Bridge Pump Station and Force Mains Replacement Project, Project No. 5-67; Adopting the Mitigation Monitoring Program; and Approving the Bay Bridge Pump Station and Force Mains Replacement Project, Project No. 5-67". Page 4 of 11 BOARD OF DIRECTORS Minutes February 24, 2021 AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke and John Withers NOES: None ABSENT: Rose Espinoza, Kim Nichols and Chad Zimmerman ABSTENTIONS: None 9. ENGINEERING PROGRAM CONTRACT PERFORMANCE REPORT 2021-1484 Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Engineering Program Contract Performance Report for the period ending December 31, 2020. AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke and John Withers NOES: None ABSENT: Rose Espinoza, Kim Nichols and Chad Zimmerman ABSTENTIONS: None Director Zimmerman arrived at the meeting at 6:21 p.m. ADMINISTRATION COMMITTEE: 10. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS 2021-1488 TO THE PRE-APPROVED OEM SOLE SOURCE LIST Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Page 5 of 11 BOARD OF DIRECTORS Minutes February 24, 2021 A. Receive and file Orange County Sanitation District purchases made under the General Manager's authority for the period of October 1, 2020 to December 31, 2020; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of October 1, 2020 to December 31, 2020: • FONTAINE-AQUANOX - Replacement Parts, Equipment and Service • GOOCH THERMAL SYSTEMS, INC - Spiral Heat Exchangers • HIDROSTAL, LLC - Pumps and Replacement Parts • RODNEY HUNT, INC. - Diversion Gates and Actuators • SMARTCOVER SYSTEMS - Sewer Level Monitors AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke and John Withers NOES: None ABSENT: Rose Espinoza and Kim Nichols ABSTENTIONS: Chad Zimmerman 11. MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD 2021-1489 ENDED DECEMBER 31, 2020 Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Orange County Sanitation District Mid-Year Financial Report for the period ended December 31, 2020. AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke and John Withers NOES: None ABSENT: Rose Espinoza and Kim Nichols ABSTENTIONS: Chad Zimmerman 12. BUSINESS ANALYSIS SERVICES FOR RESOURCE PROTECTION 2021-1490 DIVISION Originator: Lorenzo Tyner Page 6 of 11 BOARD OF DIRECTORS Minutes February 24, 2021 MOVED, SECONDED, AND DULY CARRIED TO: A. Award a Professional Consultant Services Agreement to EEC Environmental, Inc. for Pretreatment Program Consulting Services, for the procurement of Business Analysis services to document Resource Protection division business processes, Specification No. CS-2020-116713D, for a total amount not to exceed $385,625-1 and B. Approve a contingency in the amount of $38,563 (10%). AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke and John Withers NOES: None ABSENT: Rose Espinoza and Kim Nichols ABSTENTIONS: Chad Zimmerman LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE: 13. PUBLIC AFFAIRS STRATEGIC PLAN FOR FISCAL YEARS 2020-2022 2021-1485 MIDYEAR UPDATE Originator: Jim Herberg MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Public Affairs Strategic Plan for Fiscal Years 2020 - 2022 Midyear Update. AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers and Chad Zimmerman NOES: None ABSENT: Rose Espinoza and Kim Nichols ABSTENTIONS: None 14. PUBLIC AFFAIRS UPDATE FOR THE MONTHS OF NOVEMBER 2020 2021-1486 THROUGH JANUARY 2021 Originator: Jim Herberg MOVED, SECONDED, AND DULY CARRIED TO: Page 7 of 11 BOARD OF DIRECTORS Minutes February 24, 2021 Receive and file the Public Affairs Update for the months of November 2020 through January 2021 . AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers and Chad Zimmerman NOES: None ABSENT: Rose Espinoza and Kim Nichols ABSTENTIONS: None 15. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTHS OF 2021-1487 NOVEMBER 2020 THROUGH JANUARY 2021 Originator: Jim Herberg MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Legislative Affairs Update for the months of November 2020 through January 2021. AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers and Chad Zimmerman NOES: None ABSENT: Rose Espinoza and Kim Nichols ABSTENTIONS: None STEERING COMMITTEE: 16. UPDATE TO THE ESTABLISHED RULES OF PROCEDURE FOR THE 2021-1503 CONDUCT OF BUSINESS OF THE ORANGE COUNTY SANITATION DISTRICT Originator: Jim Herberg MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OC SAN 21-04 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District establishing Rules of Procedure for the Conduct of Business of the Orange County Sanitation District; and repealing Resolution No. OC SAN 21-01". Page 8 of 11 BOARD OF DIRECTORS Minutes February 24, 2021 AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers and Chad Zimmerman NOES: None ABSENT: Rose Espinoza and Kim Nichols ABSTENTIONS: None 17. ESTABLISH BOARD OF DIRECTORS PROTOCOLS 2021-1504 Originator: Jim Herberg MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OC SAN 21-02 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District establishing Board of Directors Protocols". AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers and Chad Zimmerman NOES: None ABSENT: Rose Espinoza and Kim Nichols ABSTENTIONS: None NON-CONSENT: None. INFORMATION ITEMS: None. AB 1234 DISCLOSURE REPORTS: Chair Shawver provided a brief update regarding the recent OCCOG meeting he attended. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.9(d)(4) & 54956.9(d)(2): The Board convened in closed session at 6:30 p.m. to discuss three items. Confidential minutes of the Closed Session have been prepared in accordance with the above Page 9 of 11 BOARD OF DIRECTORS Minutes February 24, 2021 Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. CS-1 CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED 2021-1505 LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(4) CONVENED IN CLOSED SESSION: MOVED, SECONDED AND DULY CARRIED TO: 1 . Retain an appraiser to appraise the property interests that the District needs to construct the Bay Bridge Pump Station project; and 2. Issue a Notice of Intent to Appraise to the property owner. Number of Potential Cases: 1 Potential initiation of eminent domain litigation regarding property owned by Bayside Village Marina LLC. AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Sandra Massa-Lavitt, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers and Chad Zimmerman NOES: None ABSENT: Rose Espinoza and Kim Nichols ABSTENTIONS: None CS-2 CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED 2021-1506 LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(2) CONVENED IN CLOSED SESSION: Number of Potential Cases: 1 Significant exposure to litigation: threatened CEQA litigation regarding environmental impact report for Bay Bridge Pump Station Project. CS-3 CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED 2021-1507 LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(2) CONVENED IN CLOSED SESSION: Number of Potential Cases: (1) Significant exposure to litigation: Claim of Raul Palazuelos. RECONVENED IN REGULAR SESSION. The Board reconvened in regular session at 7:26 p.m. Page 10 of 11 BOARD OF DIRECTORS Minutes February 24, 2021 CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin reported that in regard to Closed Session Item No. CS-1, the Board of Directors unanimously voted, as shown above. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: At 7:28 p.m., Chair Shawver adjourned the meeting until the Special Meeting of the Board of Directors to be held on March 17, 2021 at 2:00 p.m. Submitted by: Kelly A. Lore, MMC Clerk of the Board Page 11 of 11 BOARD OF DIRECTORS Administration Building 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2020-1329 Agenda Date: 3/24/2021 Agenda Item No: 2. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF FEBRUARY 2021 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the following: Report of the Investment Transactions for the month of February 2021. BACKGROUND The CA Government Code requires that a monthly report of investment transactions be provided to the legislative body. Attached is the monthly report of investment transactions for the month ended February 28, 2021. RELEVANT STANDARDS • CA Government Code Section 53607 PRIOR COMMITTEE/BOARD ACTIONS N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Report of the Investment Transactions for the Month of February 2021 Orange County Sanitation District Page 1 of 1 Printed on 3/16/2021 powered by LegistarTM U.S. Bank Transaction History February 2021 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss, ACQUISITIONS 02/01/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 331,875.0000 1.000000 -331,875.00 331,875.00 0.00 02/01/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 112,500.0000 1.000000 -112,500.00 112,500.00 0.00 02/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 315.4400 1.000000 -315.44 315.44 0.00 02/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 209.1200 1.000000 -209.12 209.12 0.00 02/04/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 9,000,000.0000 1.000000 -9,000,000.00 9,000,000.00 0.00 02/04/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 15,000,000.0000 1.000000 -15,000,000.00 15,000,000.00 0.00 02/05/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 62,500.0000 1.000000 -62,500.00 62,500.00 0.00 02/08/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 141,148.7500 1.000000 -141,148.75 141,148.75 0.00 02/12/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 92,512.5000 1.000000 -92,512.50 92,512.50 0.00 02/16/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 8,913,853.8100 1.000000 -8,913,853.81 8,913,853.81 0.00 02/17/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 13,125.0000 1.000000 -13,125.00 13,125.00 0.00 02/18/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,497,211.8300 1.000000 -5,497,211.83 5,497,211.83 0.00 02/19/2021 459058JL8 PURCHASED PAR VALUE OF INTL BK M T N 0.500% 10/28/25/BMO CAPITAL 5,000,000.0000 0.994160 -4,970,800.00 4,970,800.00 0.00 MARKETS CORP/BONDS/5,000,000 PAR VALUE AT 99.416% 02/19/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,500,000.0000 1.000000 -1,500,000.00 1,500,000.00 0.00 02/19/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 12,666.6700 1.000000 -12,666.67 12,666.67 0.00 02/22/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 210,167.9100 1.000000 -210,167.91 210,167.91 0.00 02/24/2021 43813GAC5 PURCHASED PAR VALUE OF HONDA AUTO 0.270% 4/21/25/J.P.MORGAN 1,605,000.0000 0.999982 -1,604,970.63 1,604,970.63 0.00 SECURITIES LLC/1,605,000 PAR VALUE AT 99.99817009% 02/24/2021 780151<71-11 PURCHASED PAR VALUE OF ROYAL BANK OF MTN 1.150% 6/10/25/BMO CAPITAL 1,000,000.0000 1.012240 -1,012,240.00 1,012,240.00 0.00 MARKETS CORP/BONDS/1,000,000 PAR VALUE AT 101.224% 02/24/2021 91282CBH3 PURCHASED PAR VALUE OF U S TREASURY NT 0.375% 1/31/26/J.P.MORGAN 14,000,000.0000 0.990156 -13,862,187.50 13,862,187.50 0.00 SECURITIES LLC/14,000,000 PAR VALUE AT 99.015625% 02/25/2021 313385KW5 PURCHASED PAR VALUE OF F H L B DISC NTS 8/25/21 /UBS SECURITIES 7,525,000.0000 0.999739 -7,523,032.66 7,523,032.66 0.00 LLC/XOTC 7,525,000 PAR VALUE AT 99.973856% 02/25/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 10,000,000.0000 1.000000 -10,000,000.00 10,000,000.00 0.00 02/25/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 39,443.9100 1.000000 -39,443.91 39,443.91 0.00 02/26/2021 912796D55 PURCHASED PAR VALUE OF U S TREASURY BILL 8/26/21 /NOMURA 4,000,000.0000 0.999711 -3,998,843.61 3,998,843.61 0.00 SECURITIES INTERNATIONA/4,000,000 PAR VALUE AT 99.97109025% 02/26/2021 912796D55 PURCHASED PAR VALUE OF U S TREASURY BILL 8/26/21 [WELLS FARGO 9,000,000.0000 0.999714 -8,997,429.80 8,997,429.80 0.00 SECURITIES,LLC/9,000,000 PAR VALUE AT 99.97144222% 02/26/2021 91282871`1 PURCHASED PAR VALUE OF U S TREASURY NT 1.750% 7/31/21 /GOLDMAN 2,000,000.0000 1.007266 -2,014,531.25 2,014,531.25 0.00 SACHS&CO.LLC/2,000,000 PAR VALUE AT 100.7265625% 02/26/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 10,068,750.0000 1.000000 -10,068,750.00 10,068,750.00 0.00 TOTAL ACQUISITIONS 105,126,279.9400 -104,980,315.39 104,980,315.39 0.00 1 of 6 U.S. Bank Transaction History February 2021 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss, DISPOSITIONS 02/04/2021 313385131-9 MATURED PAR VALUE OF F H L B DISC NTS 2/04/21 9,000,000 PAR VALUE AT -9,000,000.0000 1.000000 8,999,213.75 -8,999,213.75 0.00 100% 02/04/2021 9127963W7 MATURED PAR VALUE OF U S TREASURY BILL 2/04/21 15,000,000 PAR VALUE -15,000,000.0000 1.000000 14,998,725.00 -14,998,725.00 0.00 AT 100% 02/16/2021 3137EAEL9 MATURED PAR VALUE OF F H L M C M T N 2.375% 2/16/21 7,500,000 PAR VALUE -7,500,000.0000 1.000000 7,500,000.00 -7,484,475.00 15,525.00 AT 100% 02/16/2021 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 2.752% 1/01/28 JANUARY FHLMC -28.2600 0.000000 28.26 -27.57 0.69 DUE 2/15/21 02/16/2021 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.903% 8/15/32 -108.7000 0.000000 108.70 -108.81 -0.11 02/16/2021 43815NABO PAID DOWN PAR VALUE OF HONDA AUTO 1.900% 4/15/22 -266,494.1000 0.690134 266,494.10 -266,475.45 18.65 02/16/2021 477870AB5 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.280% 5/16/22 -381,821.5000 0.481682 381,821.50 -381,820.05 1.45 02/16/2021 47788CAC6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.660% 4/18/22 -67,488.3900 2.725159 67,488.39 -67,483.54 4.85 02/16/2021 47788EAC2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 3.080% 11/15/22 -400,302.7200 0.459444 400,302.72 -400,272.38 30.34 02/16/2021 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -184,185.2500 0.998542 184,185.25 -184,179.28 5.97 02/18/2021 3130A7CV5 MATURED PAR VALUE OF F H L B DEB 1.375% 2/18/21 5,365,000 PAR VALUE AT -5,365,000.0000 1.000000 5,365,000.00 -5,343,325.40 21,674.60 100% 02/18/2021 43814UAG4 PAID DOWN PAR VALUE OF HONDA AUTO 3.010% 5/18/22 -92,991.5600 0.000000 92,991.56 -92,989.53 2.03 02/19/2021 78012UVJ1 MATURED PAR VALUE OF ROYAL BK OF C D 1.000% 2/19/21 1,500,000 PAR VALUE -1,500,000.0000 1.000000 1,500,000.00 -1,500,000.00 0.00 AT 100% 02/19/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,978,508.3300 1.000000 4,978,508.33 -4,978,508.33 0.00 02/22/2021 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 1 1#080023 2.125%12/20/26 JANUARY GNMA -188.8000 0.000000 188.80 -191.92 -3.12 DUE 2/20/21 02/22/2021 36225CC20 PAID DOWN PAR VALUE OF G N M A 1 1#080088 2.875% 6/20/27 JANUARY GNMA -117.7800 0.000000 117.78 -120.36 -2.58 DUE 2/20/21 02/22/2021 36225CNM4 PAID DOWN PAR VALUE OF G N M A 1 1#080395 2.875% 4/20/30 JANUARY GNMA -108.0500 0.000000 108.05 -107.07 0.98 DUE 2/20/21 02/22/2021 36225CN28 PAID DOWN PAR VALUE OF G N M A 1 1#080408 2.875% 5/20/30 JANUARY GNMA -282.0300 0.000000 282.03 -279.17 2.86 DUE 2/20/21 02/22/2021 36225DCB8 PAID DOWN PAR VALUE OF G N M A 1 1#080965 2.250% 7/20/34 JANUARY GNMA -1,207.3600 0.000000 1,207.36 -1,206.61 0.75 DUE 2/20/21 02/22/2021 43815HAC1 PAID DOWN PAR VALUE OF HONDA AUTO 2.950% 8/22/22 -204,167.4100 0.000000 204,167.41 -204,139.40 28.01 02/24/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -13,865,668.1600 1.000000 13,865,668.16 -13,865,668.16 0.00 02/24/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,619,574.5200 1.000000 2,619,574.52 -2,619,574.52 0.00 02/25/2021 912796XE4 MATURED PAR VALUE OF U S TREASURY BILL 2/25/21 10,000,000 PAR VALUE -10,000,000.0000 1.000000 9,991,378.33 -9,991,378.33 0.00 AT 100% 02/25/2021 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -7,224.9900 0.000000 7,224.99 -8,182.30 -957.31 02/25/2021 31371 NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01/28 JANUARY FNMA -1,263.9800 0.000000 1,263.98 -1,336.78 -72.80 DUE 2/25/21 2 of U.S. Bank Transaction History February 2021 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 02/25/2021 31376KT22 PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9/01/35 JANUARY FNMA -800.3300 0.000000 800.33 -860.35 -60.02 DUE 2/25/21 02/25/2021 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6/01/36 JANUARY FNMA -1,274.9000 0.000000 1,274.90 -1,370.52 -95.62 DUE 2/25/21 02/25/2021 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000% 10/01/33 JANUARY FNMA -232.3600 0.000000 232.36 -249.79 -17.43 DUE 2/25/21 02/25/2021 31406PQY8 PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3/01/35 JANUARY FNMA -2,042.3600 0.000000 2,042.36 -2,195.54 -153.18 DUE 2/25/21 02/25/2021 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 2.035% 2/01/35 JANUARY FNMA -420.4000 0.000000 420.40 -417.12 3.28 DUE 2/25/21 02/25/2021 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7/01/35 JANUARY FNMA -67.6100 0.000000 67.61 -72.68 -5.07 DUE 2/25/21 02/25/2021 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7/01/36 JANUARY FNMA -2,899.4400 0.000000 2,899.44 -3,116.90 -217.46 DUE 2/25/21 02/25/2021 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01/29 JANUARY FNMA -187.0400 0.000000 187.04 -197.81 -10.77 DUE 2/25/21 02/25/2021 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29 JANUARY FNMA -263.1300 0.000000 263.13 -278.29 -15.16 DUE 2/25/21 02/25/2021 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -3,034.6400 0.000000 3,034.64 -3,033.69 0.95 02/25/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -7,523,032.6600 1.000000 7,523,032.66 -7,523,032.66 0.00 02/26/2021 3135GOJ20 MATURED PAR VALUE OF F N M A DEB 1.375% 2/26/21 10,000,000 PAR VALUE -10,000,000.0000 1.000000 10,000,000.00 -10,040,950.00 -40,950.00 AT 100% 02/26/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -15,013,318.4700 1.000000 15,013,318.47 -15,013,318.47 0.00 TOTAL DISPOSITIONS -103,984,305.2300 103,973,622.31 -103,978,882.53 -5,260.22 OTHER TRANSACTIONS 02/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 315.44 0.00 0.00 1/31/2021 INTEREST FROM 1/1/21 TO 1/31/21 02/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 209.12 0.00 0.00 1/31/2021 INTEREST FROM 1/1/21 TO 1/31/21 02/01/2021 912828576 INTEREST EARNED ON U S TREASURY NT 1.125% 7/31/21 $1 PV ON 0.0000 0.000000 241,875.00 0.00 0.00 43000000.0000 SHARES DUE 1/31/2021 02/01/2021 912828V72 INTEREST EARNED ON U S TREASURY NT 1.875% 1/31/22$1 PV ON 3000000.0000 0.0000 0.000000 28,125.00 0.00 0.00 SHARES DUE 1/31/2021 02/01/2021 912828V80 INTEREST EARNED ON U S TREASURY NT 2.250% 1/31/24$1 PV ON 7500000.0000 0.0000 0.000000 84,375.00 0.00 0.00 SHARES DUE 1/31/2021 02/01/2021 912828WY2 INTEREST EARNED ON U S TREASURY NT 2.250% 7/31/21 $1 PV ON 8000000.0000 0.0000 0.000000 90,000.00 0.00 0.00 SHARES DUE 1/31/2021 02/04/2021 313385131-9 INTEREST EARNED ON F H L B DISC NTS 2/04/21 $1 PV ON 9000000.0000 0.0000 0.000000 786.25 0.00 0.00 SHARES DUE 2/4/2021 9,000,000 PAR VALUE AT 100% 3 of 6 U.S. Bank Transaction History February 2021 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 02/04/2021 9127963W7 INTEREST EARNED ON U S TREASURY BILL 2/04/21 $1 PV ON 15000000.0000 0.0000 0.000000 1,275.00 0.00 0.00 SHARES DUE 2/4/2021 15,000,000 PAR VALUE AT 100% 02/05/2021 3135GOV34 INTEREST EARNED ON F N M A 2.500% 2/05/24$1 PV ON 5000000.0000 0.0000 0.000000 62,500.00 0.00 0.00 SHARES DUE 2/5/2021 02/08/2021 06406RAA5 INTEREST EARNED ON BANK OF NY MTN 2.600% 2/07/22$1 PV ON 2500000.0000 0.0000 0.000000 32,500.00 0.00 0.00 SHARES DUE 2/7/2021 02/08/2021 44932HAH6 INTEREST EARNED ON IBM CREDIT CORP 3.000% 2/06/23$1 PV ON 5670000.0000 0.0000 0.000000 85,050.00 0.00 0.00 SHARES DUE 2/6/2021 02/08/2021 594918BP8 INTEREST EARNED ON MICROSOFT CORP 1.550% 8/08/21 $1 PV ON 3045000.0000 0.0000 0.000000 23,598.75 0.00 0.00 SHARES DUE 2/8/2021 02/11/2021 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 5200.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 02/11/2021 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 5200.00 UNITS 0.0000 0.000000 0.00 5,200.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 02/11/2021 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 5200.0000 UNITS 5,200.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 02/11/2021 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 5200.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 02/12/2021 3137EAEPO INTEREST EARNED ON F H L M C 1.500% 2/12/25$1 PV ON 12335000.0000 0.0000 0.000000 92,512.50 0.00 0.00 SHARES DUE 2/12/2021 02/16/2021 3137EAEL9 INTEREST EARNED ON F H L M C M T N 2.375% 2/16/21 $1 PV ON 7500000.0000 0.0000 0.000000 89,062.50 0.00 0.00 SHARES DUE 2/16/2021 02/16/2021 31348SWZ3 INTEREST EARNED ON F H L M C#786064 2.752% 1/01/28$1 PV ON 3.5800 SHARES 0.0000 0.000000 3.58 0.00 0.00 DUE 2/15/2021 DECEMBER FHLMC DUE 2/15/21 02/16/2021 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.903% 8/15/32$1 PV ON 14.1800 0.0000 0.000000 14.18 0.00 0.00 SHARES DUE 2/15/2021 $0.00325/PV ON 4,360.35 PV DUE 2/15/21 02/16/2021 43815NABO INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22$1 PV ON 1715.8500 0.0000 0.000000 1,715.85 0.00 0.00 SHARES DUE 2/15/2021 $0.00158/PV ON 1,083,697.45 PV DUE 2/15/21 02/16/2021 47787NAC3 INTEREST EARNED ON JOHN DEERE OWNER 0.510%11/15/24$1 PV ON 629.0000 0.0000 0.000000 629.00 0.00 0.00 SHARES DUE 2/15/2021 $0.00042/PV ON 1,480,000.00 PV DUE 2/15/21 02/16/2021 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22$1 PV ON 798.1400 0.0000 0.000000 798.14 0.00 0.00 SHARES DUE 2/15/2021 $0.00190/PV ON 420,073.00 PV DUE 2/15/21 02/16/2021 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22$1 PV ON 224.0600 0.0000 0.000000 224.06 0.00 0.00 SHARES DUE 2/15/2021 $0.00222/PV ON 101,079.86 PV DUE 2/15/21 02/16/2021 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22$1 PV ON 4838.3400 0.0000 0.000000 4,838.34 0.00 0.00 SHARES DUE 2/15/2021 $0.00257/PV ON 1,885,065.29 PV DUE 2/15/21 02/16/2021 58770FAC6 INTEREST EARNED ON MERCEDES BENZ AUTO 1.840%12/15/22$1 PV ON 3143.3300 0.0000 0.000000 3,143.33 0.00 0.00 SHARES DUE 2/15/2021 $0.00153/PV ON 2,050,000.00 PV DUE 2/15/21 02/16/2021 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24$1 PV ON 6730.8700 0.0000 0.000000 6,730.87 0.00 0.00 SHARES DUE 2/15/2021 $0.00161/PV ON 4,185,000.00 PV DUE 2/15/21 4of6 U.S. Bank Transaction History February 2021 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 02/16/2021 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23$1 PV ON 5179.7100 0.0000 0.000000 5,179.71 0.00 0.00 SHARES DUE 2/15/2021 $0.00255/PV ON 2,031,257.80 PV DUE 2/15/21 02/16/2021 89237VAB5 INTEREST EARNED ON TOYOTA AUTO RECV 0.440%10/15/24$1 PV ON 1085.3300 0.0000 0.000000 1,085.33 0.00 0.00 SHARES DUE 2/15/2021 $0.00037/PV ON 2,960,000.00 PV DUE 2/15/21 02/17/2021 69353RFB9 INTEREST EARNED ON PNC BANK NA MTN 2.625% 2/17/22$1 PV ON 1000000.0000 0.0000 0.000000 13,125.00 0.00 0.00 SHARES DUE 2/17/2021 02/18/2021 3130A7CV5 INTEREST EARNED ON F H L B DEB 1.375% 2/18/21 $1 PV ON 5365000.0000 0.0000 0.000000 36,884.38 0.00 0.00 SHARES DUE 2/18/2021 02/18/2021 43813KAC6 INTEREST EARNED ON HONDA AUTO 0.370% 10/18/24$1 PV ON 997.4600 0.0000 0.000000 997.46 0.00 0.00 SHARES DUE 2/18/2021 $0.00031/PV ON 3,235,000.00 PV DUE 2/18/21 02/18/2021 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22$1 PV ON 1338.4300 0.0000 0.000000 1,338.43 0.00 0.00 SHARES DUE 2/18/2021 $0.00251/PV ON 533,592.97 PV DUE 2/18/21 02/19/2021 78012UVJ1 INTEREST EARNED ON ROYAL BK OF C D 1.000% 2/19/21 $1 PV ON 1500000.0000 0.0000 0.000000 12,666.67 0.00 0.00 SHARES DUE 2/19/2021 INTEREST ON 2/19/2021 MATURITY 02/19/2021 459058JL8 PAID ACCRUED INTEREST ON PURCHASE OF INTL BK M T N 0.500%10/28/25 0.0000 0.000000 -7,708.33 0.00 0.00 02/22/2021 36225CAZ9 INTEREST EARNED ON G N M A 11#080023 2.125%12/20/26$1 PV ON 19.9000 0.0000 0.000000 19.90 0.00 0.00 SHARES DUE 2/20/2021 JANUARY GNMA DUE 2/20/21 02/22/2021 36225CC20 INTEREST EARNED ON G N M A 1 1#080088 2.875% 6/20/27$1 PV ON 21.2600 0.0000 0.000000 21.26 0.00 0.00 SHARES DUE 2/20/2021 JANUARY GNMA DUE 2/20/21 02/22/2021 36225CNM4 INTEREST EARNED ON G N M A 1 1#080395 2.875% 4/20/30$1 PV ON 11.1900 0.0000 0.000000 11.19 0.00 0.00 SHARES DUE 2/20/2021 JANUARY GNMA DUE 2/20/21 02/22/2021 36225CN28 INTEREST EARNED ON G N M A 1 1#080408 2.875% 5/20/30$1 PV ON 83.0500 0.0000 0.000000 83.05 0.00 0.00 SHARES DUE 2/20/2021 JANUARY GNMA DUE 2/20/21 02/22/2021 36225DCB8 INTEREST EARNED ON G N M A 1 1#080965 2.250% 7/20/34$1 PV ON 57.9700 0.0000 0.000000 57.97 0.00 0.00 SHARES DUE 2/20/2021 JANUARY GNMA DUE 2/20/21 02/22/2021 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22$1 PV ON 3903.1100 0.0000 0.000000 3,903.11 0.00 0.00 SHARES DUE 2/21/2021 $0.00246/PV ON 1,587,706.96 PV DUE 2/21/21 02/24/2021 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4992.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 02/24/2021 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4992.00 UNITS 0.0000 0.000000 0.00 4,992.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 02/24/2021 78015K7H1 PAID ACCRUED INTEREST ON PURCHASE OF ROYAL BANK OF MTN 1.150% 6/10/25 0.0000 0.000000 -2,363.89 0.00 0.00 02/24/2021 91282CBH3 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.375% 1/31/26 0.0000 0.000000 -3,480.66 0.00 0.00 02/24/2021 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4992.0000 UNITS 4,992.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 02/24/2021 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4992.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 02/25/2021 03215PFN4 INTEREST EARNED ON AMRESCO 0.35507% 6/25/29$1 PV ON 35.2200 SHARES 0.0000 0.000000 35.22 0.00 0.00 DUE 2/25/2021 $0.00030/PV ON 119,021.64 PV DUE 2/25/21 5 of 6 U.S. Bank Transaction History February 2021 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 02/25/2021 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43$1 PV ON 3024.9500 0.0000 0.000000 3,024.95 0.00 0.00 SHARES DUE 2/25/2021 $0.00542/PV ON 558,452.51 PV DUE 2/25/21 02/25/2021 3135G05X7 INTEREST EARNED ON F N M A 0.375% 8/25/25$1 PV ON 7945000.0000 0.0000 0.000000 14,731.36 0.00 0.00 SHARES DUE 2/25/2021 02/25/2021 31371 NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01/28$1 PV ON 39.6500 SHARES 0.0000 0.000000 39.65 0.00 0.00 DUE 2/25/2021 JANUARY FNMA DUE 2/25/21 02/25/2021 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01/35$1 PV ON 318.0800 0.0000 0.000000 318.08 0.00 0.00 SHARES DUE 2/25/2021 JANUARY FNMA DUE 2/25/21 02/25/2021 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01/36$1 PV ON 288.8700 0.0000 0.000000 288.87 0.00 0.00 SHARES DUE 2/25/2021 JANUARY FNMA DUE 2/25/21 02/25/2021 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000% 10/01/33$1 PV ON 5.4700 SHARES 0.0000 0.000000 5.47 0.00 0.00 DUE 2/25/2021 JANUARY FNMA DUE 2/25/21 02/25/2021 31406PQY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 416.4700 0.0000 0.000000 416.47 0.00 0.00 SHARES DUE 2/25/2021 JANUARY FNMA DUE 2/25/21 02/25/2021 31406XWT5 INTEREST EARNED ON F N M A#823358 2.035% 2/01/35$1 PV ON 122.9500 0.0000 0.000000 122.95 0.00 0.00 SHARES DUE 2/25/2021 JANUARY FNMA DUE 2/25/21 02/25/2021 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01/35$1 PV ON 56.2200 SHARES 0.0000 0.000000 56.22 0.00 0.00 DUE 2/25/2021 JANUARY FNMA DUE 2/25/21 02/25/2021 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 537.9000 0.0000 0.000000 537.90 0.00 0.00 SHARES DUE 2/25/2021 JANUARY FNMA DUE 2/25/21 02/25/2021 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 25.4300 0.0000 0.000000 25.43 0.00 0.00 SHARES DUE 2/25/2021 JANUARY FNMA DUE 2/25/21 02/25/2021 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 41.9700 0.0000 0.000000 41.97 0.00 0.00 SHARES DUE 2/25/2021 JANUARY FNMA DUE 2/25/21 02/25/2021 31397QREO INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 88.1900 0.0000 0.000000 88.19 0.00 0.00 SHARES DUE 2/25/2021 $0.00068/PV ON 130,654.88 PV DUE 2/25/21 02/25/2021 912796XE4 INTEREST EARNED ON U S TREASURY BILL 2/25/21 $1 PV ON 10000000.0000 0.0000 0.000000 8,621.67 0.00 0.00 SHARES DUE 2/25/2021 10,000,000 PAR VALUE AT 100% 02/26/2021 3135GOJ20 INTEREST EARNED ON F N M A DEB 1.375% 2/26/21 $1 PV ON 10000000.0000 0.0000 0.000000 68,750.00 0.00 0.00 SHARES DUE 2/26/2021 02/26/2021 9128287F1 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.750% 7/31/21 0.0000 0.000000 -2,513.81 0.00 0.00 TOTAL OTHER TRANSACTIONS 10,192.0000 1,006,693.08 10,192.00 0.00 6 of 6 BOARD OF DIRECTORS Administration Building 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1491 Agenda Date: 3/24/2021 Agenda Item No: 3. FROM: James D. Herberg, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: COMMITTEE MEETING MINUTES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the following: A. Minutes of the Steering Committee Meeting held January 27, 2021 B. Minutes of the Operations Committee Meeting held February 3, 2021 C. Minutes of the Legislative and Public Affairs Committee Meeting held February 8, 2021 D. Minutes of the Administration Committee Meeting held February 10, 2021 BACKGROUND In accordance with the Board of Directors Rules of Procedure, an accurate record of each meeting will be provided to the Directors for subsequent approval at the following meeting. RELEVANT STANDARDS • Resolution No. OC SAN 21-04 ADDITIONAL INFORMATION The minutes of the Committee meetings are approved at their respective Committees and brought forth to the Board of Directors for receive and file only. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Minutes of the Monthly Committee Meetings Orange County Sanitation District Page 1 of 1 Printed on 3/16/2021 powered by LegistarTM Orange County Sanitation District Wednesday, January 27, 2021 Minutes for the 5:00 PM STEERING COMMITTEE Board Room OC,SAN Administration Building ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Board Chairman David Shawver on Wednesday, January 27, 2021 at 5:02 p.m. in the Administration Building of the Orange County Sanitation District. Clerk of the Board Kelly Lore stated that the meeting was being held telephonically and via audio/video teleconferencing in accordance with the Governor's Executive Order No. N-29-20, due to the Coronavirus Pandemic (COVID-19). ROLL CALL AND DECLARATION OF QUORUM: A quorum was declared present, as follows: PRESENT: David Shawver, John Withers, Stacy Berry, Sandra Massa-Lavitt, Glenn Parker, Jesus Silva and Chad Wanke ABSENT: None STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Kelly Lore, Clerk of the Board; and Mortimer Caparas were present in the Board Room. Assistant General Manager Lorenzo Tyner, Assistant General Manager Rob Thompson, Director of Engineering Kathy Millea, Director of Environmental Services Lan Wiborg, Director of Human Resources Celia Chandler, Jennifer Cabral, Jackie Castro, Brian Engeln, Tina Knapp, Joshua Martinez, and Thomas Vu participated telephonically. OTHERS PRESENT: Brad Hogin (General Counsel) was present in the Board Room. PUBLIC COMMENTS: Clerk of the Board Kelly Lore indicated that Late Communication was received and distributed to the Board of Directors pertaining to Item Nos. 3 and 4 on tonight's agenda. REPORTS: Chair Shawver stated that the new list of Committee appointments had been provided to the Board of Directors. He thanked those who had previously served and welcomed the new members to the Steering Committee. General Manager Herberg did not provide a report. Page 1 of 4 STEERING COMMITTEE Minutes January 27, 2021 CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2020-1369 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Steering Committee held November 18, 2020. AYES: David Shawver, John Withers, Stacy Berry, Glenn Parker and Chad Wanke NOES: None ABSENT: None ABSTENTIONS: Sandra Massa-Lavitt and Jesus Silva NON-CONSENT: 2. GENERAL MANAGER'S FISCAL YEAR 2020-2021 WORK PLAN 2021-1404 MID-YEAR UPDATE Originator: Jim Herberg Mr. Herberg provided a brief introduction to this item. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the General Manager's Fiscal Year 2020-2021 Work Plan Mid-Year Update. AYES: David Shawver, John Withers, Stacy Berry, Sandra Massa-Lavitt, Glenn Parker, Jesus Silva and Chad Wanke NOES: None ABSENT: None ABSTENTIONS: None 3. STRATEGIC PLAN DEVELOPMENT 2021-1398 Originator: Jim Herberg Mr. Herberg provided a brief introduction to this item. ITEM RECEIVED FOR: Information Only. Page 2 of 4 STEERING COMMITTEE Minutes January 27, 2021 4. UPDATE TO THE ESTABLISHED RULES OF PROCEDURE FOR THE 2020-1368 CONDUCT OF BUSINESS OF THE ORANGE COUNTY SANITATION DISTRICT Originator: Jim Herberg ITEM NO. 4B WAS PULLED FROM CONSIDERATION. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to.- A. Adopt Resolution No. OC SAN 21-XX entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District establishing Rules of Procedure for the Conduct of Business of the Orange County Sanitation District; and repealing Resolution No. OCSD 19-19"; and B. Adopt ResnlUtinn Ne OC SAN 21 XXenttitled "4 Resolution of the Board of Directors of the Orange GGLARty Sanitatlnn Ilistrirt establishing Boarrl of AYES: David Shawver, John Withers, Stacy Berry, Sandra Massa-Lavitt, Glenn Parker, Jesus Silva and Chad Wanke NOES: None ABSENT: None ABSTENTIONS: None INFORMATION ITEMS: None. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957(b)(1): The Committee convened in closed session at 5:20 p.m. to discuss one item. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Section and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. CS-1 PUBLIC EMPLOYEE PERFORMANCE EVALUATION 54957(B)(1) 2020-1389 CONVENED IN CLOSED SESSION: Page 3 of 4 STEERING COMMITTEE Minutes January 27, 2021 Public Employee Performance Evaluation Number of Employees: 1 • General Counsel RECONVENED IN REGULAR SESSION. The Committee reconvened in regular session at 5:47 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Shawver declared the meeting adjourned at 5:49 p.m. to the next Steering Committee meeting to be held on Wednesday, February 24, 2021 at 5:00 p.m. Subm ted by: (Kell A. L r , MMC Cler oft Board Page 4 of 4 Orange County Sanitation District Wednesday, February 3, 2021 Minutes for the 5:00 PM OPERATIONS COMMITTEE Board Room Oc 6 SAN Administration Building ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A regular meeting of the Operations Committee was called to order by Committee Chair Stacy Berry on Wednesday, February 3, 2021 at 5:03 p.m. in the Administration Building of the Orange County Sanitation District. Chair Berry stated that the meeting was being held telephonically and via audio/video teleconferencing in accordance with the Governor's Executive Order No. N-29-20, due to the Coronavirus Pandemic (COVID-19). Board Vice-Chair Withers led the Flag Salute. ROLL CALL AND DECLARATION OF QUORUM: Roll call was taken and a quorum was declared present, as follows: PRESENT: Stacy Berry, Brooke Jones, Doug Chaffee, Stephen Faessel, Ryan Gallagher, Johnathan Ryan Hernandez, Steve Jones, Sandra Massa-Lavitt, Robert Ooten, Jesus Silva, David Shawver, John Withers, Chad Zimmerman and Kim Nichols ABSENT: None STAFF PRESENT: Kelly Lore, Clerk of the Board, and Mortimer Caparas were present in the Board Room. Jim Herberg, General Manager; Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources; Kathy Millea, Director of Engineering; Lan Wiborg, Director of Environmental Services; Jennifer Cabral; Tanya Chong; Raul Cuellar; Tina Knapp; Richard Leon; Jeff Mohr; Adam Nazaroff; Valerie Ratto; Wally Ritchie; Thomas Vu; and Eros Yong were in attendance telephonically. OTHERS PRESENT: Brad Hogin, General Counsel was present in the Board Room. PUBLIC COMMENTS: None. REPORTS: Chair Berry reminded the Committee of the Board Orientation scheduled for February 4, 2021 at 2:00 p.m. General Manager Herberg provided information of the upcoming Virtual Plant Tour scheduled for February 18, 2021 at 3:00 p.m. Page 1 of 6 OPERATIONS COMMITTEE Minutes February 3, 2021 CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2020-1390 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Operations Committee Meeting on December 2, 2020. AYES: Stacy Berry, Brooke Jones, Doug Chaffee, Stephen Faessel, Ryan Gallagher, Johnathan Ryan Hernandez, Steve Jones, Sandra Massa-Lavitt, Robert Ooten, Jesus Silva, David Shawver, John Withers and Chad Zimmerman NOES: None ABSENT: Kim Nichols ABSTENTIONS: None 2. PLANT NO. 1 PRIMARY EFFLUENT PUMP STATION PUMP NO. 3 2021-1436 VARIABLE FREQUENCY DRIVE REPLACEMent Originator: Rob Thompson MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Purchase Order Contract for the purchase and installation of a replacement variable speed drive for Plant No. 1 Primary Effluent Pump Station Pump No. 3, using the U.S. Communities Master Agreement No. EV2370, to Graybar Electric, for an amount not to exceed $113,890, including Sales Tax and Freight (FOB Destination); and B. Approve a contingency of$11,389 (10%). AYES: Stacy Berry, Brooke Jones, Doug Chaffee, Stephen Faessel, Ryan Gallagher, Johnathan Ryan Hernandez, Steve Jones, Sandra Massa-Lavitt, Robert Ooten, Jesus Silva, David Shawver, John Withers and Chad Zimmerman NOES: None ABSENT: Kim Nichols ABSTENTIONS: None 3. DIGESTER FERRIC CHLORIDE PIPING REPLACEMENT AT PLANT 2020-1345 NO. 1, PROJECT NO. P1-135 Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 2 of 6 OPERATIONS COMMITTEE Minutes February 3, 2021 A. Receive and file Bid Tabulation and Recommendation for Digester Ferric Chloride Piping Replacement at Plant No. 1, Project No. P1-135; B. Award a Construction Contract to Performance Plumbing & Mechanical Inc., dba PPM Contracting, for Digester Ferric Chloride Piping Replacement at Plant No. 1 for a total amount not to exceed $515,000; and C. Approve a contingency of $51,500 (10%). AYES: Stacy Berry, Brooke Jones, Doug Chaffee, Stephen Faessel, Ryan Gallagher, Johnathan Ryan Hernandez, Steve Jones, Sandra Massa-Lavitt, Robert Ooten, Jesus Silva, David Shawver, John Withers and Chad Zimmerman NOES: None ABSENT: Kim Nichols ABSTENTIONS: None 4. QUARTERLY ODOR COMPLAINT REPORT 2021-1399 Originator: Rob Thompson MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Fiscal Year 2020-21 Second Quarter Odor Complaint Report. AYES: Stacy Berry, Brooke Jones, Doug Chaffee, Stephen Faessel, Ryan Gallagher, Johnathan Ryan Hernandez, Steve Jones, Sandra Massa-Lavitt, Robert Ooten, Jesus Silva, David Shawver, John Withers and Chad Zimmerman NOES: None ABSENT: Kim Nichols ABSTENTIONS: None 5. PLANT NO. 1 BUILDING 5/6 UNINTERRUPTIBLE POWER SUPPLY 2021-1440 REPLACEMENT Originator: Rob Thompson MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Purchase Order Contract for the purchase and installation of a replacement uninterruptible power supply system for Plant No. 1 Building 5/6, using the U.S. Communities Master Agreement No. EV2370, to Graybar Electric for an amount not to exceed $92,362, plus Sales Tax and Freight (FOB Destination); and B. Approve a contingency of$9,236 (10%). Page 3 of 6 OPERATIONS COMMITTEE Minutes February 3, 2021 AYES: Stacy Berry, Brooke Jones, Doug Chaffee, Stephen Faessel, Ryan Gallagher, Johnathan Ryan Hernandez, Steve Jones, Sandra Massa-Lavitt, Robert Ooten, Jesus Silva, David Shawver, John Withers and Chad Zimmerman NOES: None ABSENT: Kim Nichols ABSTENTIONS: None Director Nichols arrived at the meeting at approximately 5:15 p.m. NON-CONSENT: 6. TAFT BRANCH IMPROVEMENTS, PROJECT NO. 2-49 2020-1343 Originator: Kathy Millea Director of Engineering Kathy Millea provided a presentation on this item that included information about the project location, existing sewer, selection process, and negotiation. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Professional Design Services Agreement with Woodard & Curran, Inc. to provide engineering services for Taft Branch Improvements, Project No. 2-49, for an amount not to exceed $2,200,000; and B. Approve a contingency of $220,000 (10%). AYES: Stacy Berry, Brooke Jones, Doug Chaffee, Stephen Faessel, Ryan Gallagher, Johnathan Ryan Hernandez, Steve Jones, Sandra Massa-Lavitt, Robert Ooten, Jesus Silva, David Shawver, John Withers, Chad Zimmerman and Kim Nichols NOES: None ABSENT: None ABSTENTIONS: None 7. BAY BRIDGE PUMP STATION REPLACEMENT, PROJECT NO. 5-67 2020-1344 Originator: Kathy Millea Director of Engineering Kathy Millea provided a presentation on this item that included information about the project evaluation, CEQA process, a summary of the Draft EIR public comments, resources analyzed, impacts requiring mitigation, and next steps of the project. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 4 of 6 OPERATIONS COMMITTEE Minutes February 3, 2021 A. Consider, receive, and certify the Environmental Impact Report for the Bay Bridge Pump Station and Force Mains Replacement Project, Project No. 5-67, dated January 2021; and B. Adopt Resolution No. OC SAN 21-XX, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Certifying the Environmental Impact Report for the Bay Bridge Pump Station and Force Mains Replacement Project, Project No. 5-67; Adopting the Mitigation Monitoring Program; and Approving the Bay Bridge Pump Station and Force Mains Replacement Project, Project No. 5-67". AYES: Stacy Berry, Brooke Jones, Doug Chaffee, Stephen Faessel, Ryan Gallagher, Johnathan Ryan Hernandez, Steve Jones, Sandra Massa-Lavitt, Robert Ooten, Jesus Silva, David Shawver, John Withers, Chad Zimmerman and Kim Nichols NOES: None ABSENT: None ABSTENTIONS: None 8. ENGINEERING PROGRAM CONTRACT PERFORMANCE REPORT 2021-1407 Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Engineering Program Contract Performance Report for the period ending December 31, 2020. INFORMATION ITEMS: 9. RESERVES AND INVESTMENTS POLICIES 2021-1416 Originator: Lorenzo Tyner Assistant General Manager Lorenzo Tyner introduced Wally Ritchie, Controller, who provided an informative presentation that included an overview of OC San's seven reserve criteria, non-discretionary and discretionary criteria, investment objectives, Chandler Asset Management, an economic update, and long-term and short term portfolios including asset allocation and performance. ITEM RECEIVED AS AN: Information Item. Page 5of6 OPERATIONS COMMITTEE Minutes February 3, 2021 DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Berry declared the meeting adjourned at 5A6 p.m. to the meeting to be held on Wednesday, March 3, 2021 at 5:00 p.m. Sub itted by: & y A. re, MMC CI rk of Me Board Page 6 of 6 Orange County Sanitation District Monday, February 8, 2021 Minutes for the 4:00 PM LEGISLATIVE AND PUBLIC Board Room AFFAIRS COMMITTEE OC,SAN Administration Building ORANGE COUNTY SANITATION OISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A special meeting of the Legislative and Public Affairs Committee was called to order by Committee Chair Jesus J. Silva on Monday, February 8, 2021 at 4:04 p.m. in the Administration Building of the Orange County Sanitation District. Chair Silva stated that the meeting was being held telephonically and via audio/video teleconferencing in accordance with the Governor's Executive Order No. N-29-20, due to the Coronavirus Pandemic (COVID-19). Vice-Chair Marshall Goodman led the Flag Salute. Chair Silva announced the teleconference meeting guidelines. ROLL CALL AND DECLARATION OF QUORUM: Roll call was taken and a quorum was declared present, as follows: PRESENT: Jesus Silva, Marshall Goodman, Kim Carr, Anthony Kuo, Andrew Nguyen, David Shawver and John Withers ABSENT: None STAFF PRESENT: Kelly Lore, Clerk of the Board, and Mortimer Caparas were present in the Board Room. Jim Herberg, General Manager; Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources; Kathy Millea, Director of Engineering; Lan Wiborg, Director of Environmental Services; Jennifer Cabral, Belen Carrillo, Jackie Castro, Tanya Chong, Brian Engeln, Alfredo Garcia, Tina Knapp, Rebecca Long, Joshua Martinez, Gerry Matthews, Kelly Newell, and Thomas Vu were in attendance telephonically. OTHERS PRESENT: Brad Hogin, General Counsel was present in the Board Room. Eric Sapirstein, ENS Resources; Eric O'Donnell, Townsend Public Affairs (TPA); and Cori Takkinen, Townsend Public Affairs (TPA) were in attendance telephonically. PUBLIC COMMENTS: None. REPORTS: Chair Silva announced the dates of the Special Meetings of the Board of Directors including the Strategic Plan Workshop on February 17, 2021 at 2:00 p.m. and the Board Orientation Tour on February 18, 2021 at 3:00 p.m. Page 1 of 4 LEGISLATIVE AND PUBLIC Minutes February 8, 2021 AFFAIRS COMMITTEE CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2020-1392 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Legislative and Public Affairs Committee held November 9, 2020. AYES: Jesus Silva, Marshall Goodman, Anthony Kuo, Andrew Nguyen, David Shawver and John Withers NOES: None ABSENT: Kim Carr ABSTENTIONS: None NON-CONSENT: 2. PUBLIC AFFAIRS STRATEGIC PLAN FOR FISCAL YEARS 2020-2022 2021-1450 MIDYEAR UPDATE Originator: Jim Herberg Director Kim Carr arrived at the meeting at 4:14 p.m. Jennifer Cabral, Administration Manager, provided an informative PowerPoint presentation regarding the Public Affairs Mid-Year Update including an overview of the Strategic Plan for FY 2020-2022. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Public Affairs Strategic Plan for Fiscal Years 2020 - 2022 Midyear Update. AYES: Jesus Silva, Marshall Goodman, Kim Carr, Anthony Kuo, Andrew Nguyen, David Shawver and John Withers NOES: None ABSENT: None ABSTENTIONS: None 3. PUBLIC AFFAIRS UPDATE FOR THE MONTHS OF NOVEMBER 2020 2021-1415 THROUGH JANUARY 2021 Originator: Jim Herberg Jennifer Cabral, Administration Manager, provided a brief PowerPoint presentation recapping the Public Affairs three month update including information on new Page 2 of 4 LEGISLATIVE AND PUBLIC Minutes February 8, 2021 AFFAIRS COMMITTEE launches, virtual tours, and awards. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to.- Receive and file the Public Affairs Update for the months of November 2020 through January 2021 . AYES: Jesus Silva, Marshall Goodman, Kim Carr, Anthony Kuo, Andrew Nguyen, David Shawver and John Withers NOES: None ABSENT: None ABSTENTIONS: None 4. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTHS OF 2021-1412 NOVEMBER 2020 THROUGH JANUARY 2021 Originator: Jim Herberg Eric Sapirstein, ENS Resources, provided a PowerPoint presentation and a brief overview of the federal monthly report which included newly issued Executive Orders, Legislative Committee Assignments, and the Fiscal Year 2022 Budget. Eric O'Donnell, TPA, provided a PowerPoint presentation that included the Legislative Calendar, a brief overview of the Legislators priorities for 2021 , the Governor's January Budget, and emerging Legislation. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Legislative Affairs Update for the months of November 2020 through January 2021. AYES: Jesus Silva, Marshall Goodman, Kim Carr, Anthony Kuo, Andrew Nguyen, David Shawver and John Withers NOES: None ABSENT: None ABSTENTIONS: None 5. LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE MEETING DATES 2021-1458 FOR CALENDAR YEAR 2021 Originator: Kelly Lore Kelly Lore, Clerk of the Board, gave a brief overview of the item. It was the consensus of the committee to move the meeting time for regular meetings to 4:30 p.m. and the April and July meetings to be held at 4:00 p.m. to allow GWRS members to attend their 5:00 p.m. meeting. Page 3 of 4 LEGISLATIVE AND PUBLIC Minutes February 8, 2021 AFFAIRS COMMITTEE INFORMATION ITEMS: None. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Silva declared the meeting adjourned at 5:15 p.m. to the next Legislative and Public Affairs Committee meeting, Monday, March 8, 2021 at 4:30 p.m., pending Board of Directors approval. 4lebmitted by: J ly . Lore, MMC r f the Board Page 4 of 4 Orange County Sanitation District Wednesday, February 10, 2021 Minutes for the 5:00 PM ADMINISTRATION COMMITTEE Board Room SAN Administration Building ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A regular meeting of the Administration Committee was called to order by Committee Chair Chad Wanke on Wednesday, February 10, 2021 at 5:01 p.m. in the Administration Building of the Orange County Sanitation District. Clerk of the Board Kelly Lore led the Flag Salute. The Clerk of the Board stated that the meeting was being held telephonically and via audio/video teleconferencing in accordance with the Governor's Executive Order No. N-29-20, due to the Coronavirus Pandemic (COVID-19). ROLL CALL AND DECLARATION OF QUORUM: Roll call was taken and a quorum was declared present, as follows: PRESENT: Chad Wanke, Glenn Parker, Brad Avery, Art Brown, Kim Carr, Mark Chirco, Marshall Goodman, Patrick Harper, Andrew Nguyen, Anthony Kuo, David Shawver and John Withers ABSENT: Rose Espinoza STAFF PRESENT: Kelly Lore, Clerk of the Board, and Mortimer Caparas were present in the Board Room. Jim Herberg, General Manager; Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources; Lan Wiborg, Director of Environmental Services; Jennifer Cabral; Tina Knapp; Wally Ritchie; and Thomas Vu were in attendance telephonically. OTHERS PRESENT: Brad Hogin, General Counsel was present in the Board Room. Bill Dennehy, Chandler Asset Management was in attendance telephonically. PUBLIC COMMENTS: None. REPORTS: Chair Wanke and General Manager Herberg did not provide a report. Committee Vice-Chair Glenn Parker provided an update of today's Audit Ad Hoc Committee Meeting noting the processing of last year's audit topics and prioritization of this year's topics. The Committee will meet again in the near future with the auditor's report and their development/timeline for the three chosen topics for this year's audit: Construction Contract compliance; Sole source contracts/agreements; and General Manager's approval items. Page 1 of 5 ADMINISTRATION Minutes February 10, 2021 COMMITTEE Assistant General Manager Lorenzo Tyner provided a brief update on the approximately $4,000,000 in tracked COVID-19 related expenses and the requested reimbursements. CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2020-1391 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Administration Committee held December 9, 2020. AYES: Chad Wanke, Glenn Parker, Kim Carr, Mark Chirco, Marshall Goodman, Patrick Harper, Anthony Kuo, David Shawver and John Withers NOES: None ABSENT: Brad Avery, Art Brown, Rose Espinoza and Andrew Nguyen ABSTENTIONS: None 2. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS 2021-1456 TO THE PRE-APPROVED OEM SOLE SOURCE LIST Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Receive and file Orange County Sanitation District purchases made under the General Manager's authority for the period of October 1, 2020 to December 31, 2020; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of October 1, 2020 to December 31, 2020: • FONTAINE-AQUANOX - Replacement Parts, Equipment and Service • GOOCH THERMAL SYSTEMS, INC - Spiral Heat Exchangers • HIDROSTAL, LLC - Pumps and Replacement Parts • RODNEY HUNT, INC. - Diversion Gates and Actuators • SMARTCOVER SYSTEMS - Sewer Level Monitors AYES: Chad Wanke, Glenn Parker, Kim Carr, Mark Chirco, Marshall Goodman, Patrick Harper, Anthony Kuo, David Shawver and John Withers NOES: None ABSENT: Brad Avery, Art Brown, Rose Espinoza and Andrew Nguyen Page 2 of 5 ADMINISTRATION Minutes February 10, 2021 COMMITTEE ABSTENTIONS: None 3. MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD 2020-1326 ENDED DECEMBER 31, 2020 Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District Mid-Year Financial Report for the period ended December 31, 2020. AYES: Chad Wanke, Glenn Parker, Kim Carr, Mark Chirco, Marshall Goodman, Patrick Harper, Anthony Kuo, David Shawver and John Withers NOES: None ABSENT: Brad Avery, Art Brown, Rose Espinoza and Andrew Nguyen ABSTENTIONS: None 4. BUSINESS ANALYSIS SERVICES FOR RESOURCE PROTECTION 2020-1366 DIVISION Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Award a Professional Consultant Services Agreement to EEC Environmental, Inc. for Pretreatment Program Consulting Services, for the procurement of Business Analysis services to document Resource Protection division business processes, Specification No. CS-2020-116713D, for a total amount not to exceed $385,625-1 and B. Approve a contingency in the amount of $38,563 (10%). AYES: Chad Wanke, Glenn Parker, Kim Carr, Mark Chirco, Marshall Goodman, Patrick Harper, Anthony Kuo, David Shawver and John Withers NOES: None ABSENT: Brad Avery, Art Brown, Rose Espinoza and Andrew Nguyen ABSTENTIONS: None NON-CONSENT: 5. PURCHASE OF AN IMAGING FLOWCYTOBOT (IFCB) 2021-1437 Originator: Lan Wiborg Director of Environmental Services Lan Wiborg provided a brief overview of the item. Page 3 of 5 ADMINISTRATION Minutes February 10, 2021 COMMITTEE MOVED, SECONDED, AND DULY CARRIED TO: Approve a sole source purchase order to McLane Research Laboratories, Inc. for an Imaging FlowCytobot for an amount not to exceed $148,939 including estimated tax and shipping. AYES: Chad Wanke, Glenn Parker, Kim Carr, Mark Chirco, Marshall Goodman, Patrick Harper, Anthony Kuo, David Shawver and John Withers NOES: None ABSENT: Brad Avery, Art Brown, Rose Espinoza and Andrew Nguyen ABSTENTIONS: None 6. CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET 2021-1447 CALENDAR FOR PREPARATION OF THE FISCAL YEAR 2021-22 BUDGET UPDATE Originator: Lorenzo Tyner Mr. Tyner introduced Controller Wally Ritchie who provided a PowerPoint presentation briefly explaining the budget assumptions and budget calendar for the year. MOVED, SECONDED, AND DULY CARRIED TO: Approve the FY 2021-22 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2021-22 budget update. AYES: Chad Wanke, Glenn Parker, Kim Carr, Mark Chirco, Marshall Goodman, Patrick Harper, Anthony Kuo, David Shawver and John Withers NOES: None ABSENT: Brad Avery, Art Brown, Rose Espinoza and Andrew Nguyen ABSTENTIONS: None Directors Art Brown and Andrew Nguyen arrived at the meeting at 5:26 p.m. Director Brad Avery arrived at the meeting at 5:28 p.m. INFORMATION ITEMS: 7. INVESTMENT PERFORMANCE RESULTS 2020-1327 Originator: Lorenzo Tyner Mr. Ritchie provided a PowerPoint presentation regarding OC San Reserves and Investments including the Seven Reserve Criteria, Investment Objectives, and Portfolios. Bill Dennehy, Chandler Asset Management, provided a PowerPoint Page 4 of 5 ADMINISTRATION Minutes February 10, 2021 COMMITTEE presentation which provided: Overview of the firm; economic update, and account profile. ITEM RECEIVED AS AN: Information Item. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Wanke declared the meeting adjourned at 5:44 p.m. to the Regular meeting to be held on Wednesday, March 10, 2021 at 5:00 p.m. Sub fitted by: K ly JA. r , MM CI rkBoard Page 5 of 5 Administration Building OPERATIONS COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1523 Agenda Date: 3/24/2021 Agenda Item No: 4. FROM: James D. Herberg, General Manager Originator: Lan C. Wiborg, Director of Environmental Services SUBJECT: BIOSOLIDS HAULING SERVICE CONTRACT GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Service Contract to Denali Water Solutions, LLC to collect and haul Orange County Sanitation District's biosolids from Reclamation Plant No. 1 and/or Treatment Plant No. 2 to the Inland Empire Regional Composting Facility and alternative sites if needed for the period beginning May 12, 2021 through December 21, 2022, for the unit price of $15.45 per ton of biosolids, plus fuel surcharges, for a total amount not to exceed $600,000 per contract term, with four (4) one-year renewal options: and B. Approve a 10% unit price per ton contingency. BACKGROUND The Orange County Sanitation District (Sanitation District) released a Notice Inviting Bids on December 4, 2020 seeking bids from qualified contractors to accept delivery and haul 50 Wet Tons Per Day (WTPD) of biosolids to the Inland Empire Regional Composting Facility (IERCF) located at 12645 Sixth Street in the city of Rancho Cucamonga, and haul biosolids, if needed, to several other alternative management sites. A non-mandatory pre-bid meeting was conducted on December 16, 2020 via Microsoft Teams. Bids were due on January 12, 2021. Out of 76 prospective vendors that were notified of the invitation to bid, the Sanitation District received one (1) bid. The bid was evaluated based on pre-defined minimum qualifications and cost in accordance with the Sanitation District's Purchasing Ordinance. The incumbent contractor, Denali Water Solutions (Denali), met the minimum qualifications and offered a competitive bid with a 1% increase over their current rate. The Denali rate to haul IERCF loads in December 2020 was $15.29 plus $0.54 fuel surcharge ($15.83 total), and the new contract will be $15.45 plus the fuel surcharge based on December 2020 fuel baseline. The contract's first term will be 19 months to align the biosolids- related contracts. Orange County Sanitation District Page 1 of 3 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1523 Agenda Date: 3/24/2021 Agenda Item No: 4. RELEVANT STANDARDS • Maintain and adhere to appropriate internal planning documents (Biosolids Master Plan) • Safe, beneficial reuse of Biosolids • Comply with environmental permit requirements PROBLEM The Sanitation District's current hauling contract with Denalia to haul loads to IERCF expires on May 11, 2021. PROPOSED SOLUTION Approve a contract with Denali to haul the Sanitation District's biosolids to IERCF to maintain biosolids management diversity and sustainability. TIMING CONCERNS The current contract expires in May 2021. RAMIFICATIONS OF NOT TAKING ACTION If the current contract is not replaced, the Sanitation District will not have a way to deliver biosolids to IERCF. The Sanitation District would not be able to utilize this local biosolids management option. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The $600,000 not to exceed (NTE) value is based on the assumptions in the table below. Alternative Sites are failsafe back-ups that ensure flexibility and are used for a variety of reasons such as shutdowns at IERCF or a shortage of trucks from other contractors. Cost per Ton Annual Fuel Annual Annual Contingency Anticipated Purchase Order Tonnage NTE IERCF $15.45 $1.00 18,237 $300,000 Alternative Sites $30.00 $2.00 9,375 $300,000 (average) Total Annual Purchase Order $600,000 In 2015, the Sanitation District started sending biosolids to the Inland Empire's compost facility. In 2019, a new contract was signed for five (5) years with two (2) annual extensions. Orange County Sanitation District Page 2 of 3 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1523 Agenda Date: 3/24/2021 Agenda Item No: 4. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted (Section 5, Page 6). Project contingency funds will not be used for this contract. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Service Contract Orange County Sanitation District Page 3 of 3 Printed on 3/16/2021 powered by LegistarT" SERVICE CONTRACT Biosolids Hauling Service Specification No. S-2020-1208BD THIS CONTRACT is made and entered into as of the date fully executed below, by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708 (hereinafter referred to as "OCSD") and Denali Water Solutions, LLC with a principal place of business at 1425 Victoria Ct, Unit B2, San Bernardino, CA 92408 (hereinafter referred to as "Contractor") collectively referred to as the "Parties". WITNESSETH WHEREAS, OCSD desires to temporarily retain the services of Contractor for biosolids hauling services as described in Exhibit "A", "Services"; and WHEREAS, OCSD has chosen Contractor to conduct Services in accordance with Ordinance No. OCSD-52; and WHEREAS, on March 24, 2021 the Board of Directors of OCSD, by minute order, authorized execution of this Contract between OCSD and Contractor; and WHEREAS, Contractor is qualified by virtue of experience, training, and expertise to accomplish such Services. NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agree as follows: 1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and the Contractor. The terms and conditions herein exclusively govern the purchase of Services as described in Exhibit "A". 1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibit "A" Scope of Work Exhibit "B" Bid Exhibit "C" Determined Insurance Requirement Form Exhibit "D" OCSD Contractor Safety Standards Exhibit "E" Human Resources Policies 1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control. 1.4 The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto. 1.5 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any paragraph or provision hereof. Orange County Sanitation District 1 of 9 Specification No. S-2020-1208BD Rev. 102120 1.6 The term "days", when used in the Contract, shall mean calendar days, unless otherwise noted as business or working days. 1.7 OCSD holidays (non-working days) are as follows: New Year's Day, Lincoln's Birthday, Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.8 The term "hours", when used in this Contract, shall be as defined in Exhibit "A". 1.9 Contractor shall provide OCSD with all required premiums and/or overtime work at no charge beyond the price provided under"Compensation" below. 1.10 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Contractor as a result of work performed in anticipation of purchases of said services by OCSD. 2. Compensation Compensation to be paid by OCSD to Contractor for the Services provided under this Contract shall be at the unit price of $15.45 per ton of biosolids, plus fuel surcharges, for a total amount not to exceed Six Hundred Thousand Dollars ($600,000.00). 3. California Department of Industrial Relations(DIR) Re_pistration and Record of Wages 3.1 To the extent Contractor's employees and/or its subcontractors who will perform Work during the design and preconstruction phases of a construction contract or perform work under a maintenance contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 et seq, Contractor and its subcontractors shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to compliance monitoring and enforcement by the DIR. 3.2 The Contractor and its subcontractors shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code 1771.4(a)(3). Penalties for non- compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. 3.3 Pursuant to Labor Code Section 1776, the Contractor and its subcontractors shall furnish a copy of all certified payroll records to OCSD and/or general public upon request, provided the public request is made through OCSD, the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement of the Department of Industrial Relations. 3.4 The Contractor and its subcontractors shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 4. Payments and Invoicing 4.1 OCSD shall pay, net thirty (30) days, upon receipt and approval, by OCSD's Project Manager or designee, of itemized invoices submitted monthly for Services rendered in accordance with Exhibits "A" and "B". OCSD, at its sole discretion, shall be the determining party as to whether the Services have been satisfactorily completed. 4.2 Invoices shall be emailed by Contractor to OCSD Accounts Payable at APStaff(a)_OCSD.com and "INVOICE" with S-2020-1208BD and the Purchase Order Number shall be referenced in the subject line. Orange County Sanitation District 2 of 9 Specification No. S-2020-1208BD Rev. 102120 5. Audit Rights Contractor agrees that, during the term of this Contract and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Contract. 6. Scope of Work Subject to the terms of this Contract, Contractor shall perform the Services identified in Exhibit"A". Contractor shall perform said Services in accordance with generally accepted industry and professional standards. 7. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties. 8. Contract Term The Services provided under this Contract shall commence on May 12, 2021 and continue through December 31, 2022. 9. Renewals 9.1 OCSD may exercise the option to renew this Contract for up to four (4) one-year periods, under the terms and conditions contained herein. OCSD shall make no obligation to renew nor give reason if it elects not to renew. 9.2 This Contract may be renewed by OCSD Purchase Order. 10. Extensions The term of this Contract may be extended only by written instrument signed by both Parties. 11. Performance Time is of the essence in the performance of the provisions hereof. 12. Termination 12.1 OCSD reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD of intent to terminate. Upon receipt of a termination notice, Contractor shall immediately discontinue all work under this Contract (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Contractor for work performed (cost and fee)to the date of termination. Contractor expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and release OCSD from any further fee, cost or claim hereunder by Contractor other than for work performed to the date of termination. 12.2 OCSD reserves the right to terminate this Contract immediately upon OCSD's determination that Contractor is not complying with the Scope of Work requirements, if the level of service is inadequate, or any other default of this Contract. 12.3 OCSD may also immediately cancel for default of this Contract in whole or in part by written notice to Contractor: ■ if Contractor becomes insolvent or files a petition under the Bankruptcy Act; or ■ if Contractor sells its business; or ■ if Contractor breaches any of the terms of this Contract; or ■ if total amount of compensation exceeds the amount authorized under this Contract. 12.4 All OCSD property in the possession or control of Contractor shall be returned by Contractor to OCSD upon demand, or at the termination of this Contract, whichever occurs first. Orange County Sanitation District 3 of 9 Specification No. S-2020-1208BD Rev. 102120 13. Insurance Contractor and all subcontractors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Determined Insurance Requirement Form (attached hereto and incorporated herein as Exhibit "C"). Contractor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OCSD, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract. 14. Indemnification and Hold Harmless Provision Contractor shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or be caused by Contractor's services under this Contract, or by its subcontractor(s) or by anyone directly or indirectly employed by Contractor, and whether such damage or injury shall accrue or be discovered before or after the termination of the Contract. Except as to the sole active negligence of or willful misconduct of OCSD, Contractor shall indemnify, protect, defend and hold harmless OCSD, its elected and appointed officials, officers, agents and employees, from and against any and all claims, liabilities, damages or expenses of any nature, including attorneys' fees: (a) for injury to or death of any person or damage to property or interference with the use of property, arising out of or in connection with Contractor's performance under the Contract, and/or (b) on account of use of any copyrighted or uncopyrighted material, composition, or process, or any patented or unpatented invention, article or appliance, furnished or used under the Contract, and/or (c) on account of any goods and services provided under this Contract. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Contractor of or anyone employed by or working under Contractor. To the maximum extent permitted by law, Contractor's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meritless, or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently negligent, or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Contractor agrees to provide this defense immediately upon written notice from OCSD, and with well qualified, adequately insured, and experienced legal counsel acceptable to OCSD. 15. OCSD Contractor Safety Standards OCSD requires Contractor and its subcontractor(s) to follow and ensure their employees follow all Federal, State, and local regulations as well as OCSD Contractor Safety Standards while working at OCSD locations. If during the course of the Contract it is discovered that OCSD Contractor Safety Standards do not comply with Federal, State, or local regulations, then the Contractor is required to follow the most stringent regulatory requirement at no additional cost to OCSD. Contractor and all of its employees and subcontractors, shall adhere to all applicable OCSD Contractor Safety Standards attached hereto in Exhibit "D" and the Human Resources Policies in Exhibit "E". 16. Warranties In addition to the warranties stated in Exhibit "A", the following shall apply: 16.1 Manufacturer's standard warranty shall apply. All manufacturer warranties shall commence on the date of acceptance by the OCSD Project Manager or designee of the work as complete. 16.2 Contractor's Warranty (Guarantee): If within a one (1) year period of completion of all work as specified in Exhibit "A", OCSD informs Contractor that any portion of the Services provided fails to meet the standards required under this Contract, Contractor shall, within the time agreed to by OCSD and Contractor, take all such actions as are necessary to correct or complete the noted deficiency(ies) at Contractor's sole expense. Orange County Sanitation District 4 of 9 Specification No. S-2020-1208BD Rev. 102120 17. Force Maieure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Contract. 18. Freight (F.O.B. Destination) Contractor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract. 19. Familiarity with Work By executing this Contract, Contractor warrants that: 1) it has investigated the work to be performed; and 2) it understands the facilities, difficulties and restrictions of the work under this Contract. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except at Contractor's risk, until written instructions are received from OCSD. 20. Re_gulatory Requirements Contractor shall perform all work under this Contract in strict conformance with applicable Federal, State, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and California Water Codes Division 2. 21. Environmental Compliance Contractor shall, at its own cost and expense, comply with all Federal, State, and local environmental laws, regulations, and policies which apply to the Contractor, its subcontractors, and the Services, including, but not limited to, all applicable Federal, State, and local air pollution control laws and regulations. 22. Licenses, Permits, Ordinances and Requlations Contractor represents and warrants to OCSD that it has obtained all licenses, permits, qualifications, and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by Federal, State, County, City and/or municipal laws, codes and/or tariffs that pertain to the work performed under the terms of this Contract will be paid by Contractor. 23. Applicable Laws and Requlations Contractor shall comply with all applicable Federal, State, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OCSD as a result of Contractor's noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically referenced. 24. Contractor's Employees Compensation 24.1 Davis-Bacon Act — Contractor will pay and will require all subcontractors to pay all employees on said project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis- Bacon Act shall apply only if the Contract is in excess of two thousand dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by Federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. Orange County Sanitation District 5 of 9 Specification No. S-2020-1208BD Rev. 102120 24.2 General Prevailing Rate — OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute this Contract, and copies of same are on file in the Engineering Department. The Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each project site, which shall be made available to any interested party upon request. 24.3 Forfeiture For Violation—Contractor shall, as a penalty to OCSD, forfeit fifty dollars ($50.00) for each calendar day or portion thereof for each worker paid (either by the Contractor or any subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. 24.4 Apprentices—Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the Contractor shall comply therewith if the prime contract involves thirty thousand dollars ($30,000.00) or more or twenty(20)working days or more; or if contracts of specialty contractors not bidding for work through the general or prime Contractor are two thousand dollars ($2,000.00) or more or five (5) working days or more. 24.5 Workday—In the performance of this Contract, not more than eight(8) hours shall constitute a day's work, and the Contractor shall not require more than eight (8) hours of labor in a day from any person employed by it hereunder. Contractor shall conform to Article 3, Chapter 1, Part 7 (Section 1810 et seq.) of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of twenty-five dollars ($25.00) for each worker employed in the execution of this Contract by Contractor or any subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one (1) calendar day and forty (40) hours in any one (1) week in violation of said Article. Contractor shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by Contractor in connection with the project. 24.6 Record of Wages; Inspection — Contractor agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the project and agrees to require that each of its subcontractors do the same. All payroll records shall be certified as accurate by the applicable Contractor or subcontractor or its agent having authority over such matters. Contractor further agrees that its payroll records and those of its subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. Penalties for non-compliance with the requirements of Section 1776 may be deducted from project payments per the requirements of Section 1776. 25. South Coast Air Quality Management District's (SCAQMD) Requirements It is Contractor's responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All Contract work practices, which may have associated emissions such as Orange County Sanitation District 6 of 9 Specification No. S-2020-1208BD Rev. 102120 sandblasting, open field spray painting or demolition of asbestos containing components or structures, shall comply with the appropriate rules and regulations of the SCAQMD. 26. Governing Law This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in the County of Orange, in the event any action is brought in connection with this Contract or the performance thereof. 27. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Contract, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Contractor to which OCSD does not object shall not operate as a waiver of OCSD's rights to seek remedies available to it for any subsequent breach. 28. Remedies In addition to other remedies available in law or equity, if the Contractor fails to make delivery of the goods or Services or repudiates its obligations under this Contract, or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1) cancel the Contract; (2) recover whatever amount of the purchase price OCSD has paid, and/or (3) "cover" by purchasing, or contracting to purchase, substitute goods or Services for those due from Contractor. In the event OCSD elects to "cover" as described in (3), OCSD shall be entitled to recover from Contractor as damages the difference between the cost of the substitute goods or Services and the Contract price, together with any incidental or consequential damages. 29. Dispute Resolution 29.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process. 29.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two (2)arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 30. Attorney's Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 31. Survival The provisions of this Contract dealing with Payment, Warranty, Indemnity, and Forum for Enforcement, shall survive termination or expiration of this Contract. Orange County Sanitation District 7 of 9 Specification No. S-2020-1208BD Rev. 102120 32. Severability If any section, subsection, or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 33. Dama_ge to OCSD's Property Any of OCSD's property damaged by Contractor, any subcontractors or by the personnel of either will be subject to repair or replacement by Contractor at no cost to OCSD. 34. Disclosure Contractor agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OCSD. 35. Independent Contractor The legal relationship between the parties hereto is that of an independent contractor, and nothing herein shall be deemed to make Contractor an OCSD employee. During the performance of this Contract, Contractor and its officers, employees, and agents shall act in an independent capacity and shall not act as OCSD's officers, employees, or agents. Contractor and its officers, employees, and agents shall obtain no rights to any benefits which accrue to OCSD's employees. 36. Limitations upon Subcontractin_p and Assignment Contractor shall not delegate any duties nor assign any rights under this Contract without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void. 37. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OCSD and Contractor. 38. Non-Liability of OCSD Officers and Employees No officer or employee of OCSD shall be personally liable to Contractor, or any successor-in-interest, in the event of any default or breach by OCSD or for any amount which may become due to Contractor or to its successor, or for breach of any obligation for the terms of this Contract. 39. Read and Understood By signing this Contract, Contractor represents that he has read and understood the terms and conditions of the Contract. 40. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound. 41. Entire Contract This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. Orange County Sanitation District 8 of 9 Specification No. S-2020-1208BD Rev. 102120 42. Notices All notices under this Contract must be in writing. Written notice shall be delivered by personal service or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses: OCSD: Jackie Lagade, Principal Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Contractor: Jeff Thurber, General Manager Denali Water Solutions, LLC 1425 Victoria Ct., Unit B San Bernardino, CA 92408 Each party shall provide the other party written notice of any change in address as soon as practicable. IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: By: David John Shawver Chair, Board of Directors Dated: By: Kelly A. Lore Clerk of the Board Dated: By: Ruth Zintzun Purchasing & Contracts Manager DENALI WATER SOLUTIONS, LLC Dated: By: Print Name and Title of Officer Orange County Sanitation District 9 of 9 Specification No. S-2020-1208BD Rev. 102120 Exhibit "A" SCOPE OF WORK EXHIBIT"A" Specification No. S-2020-1208BD Exhibit "A" SCOPE OF WORK Biosolids Hauling Service SPECIFICATION NO. S-2020-1208BD 1 BACKGROUND The Orange County Sanitation District (OCSD) is a wastewater treatment agency that owns and operates two facilities, Reclamation Plant No. 1, at 10844 Ellis Avenue, Fountain Valley and Treatment Plant No. 2, at 22212 Brookhurst Street, Huntington Beach, California. Solids collected in the primary and secondary settling basins during the liquid phases of the process are pumped to anaerobic digesters for organic waste stabilization and pathogen destruction at elevated temperatures to create biosolids. The solids are dewatered to produce about 550-600 tons per day (tpd) of biosolids that are then beneficially reused via direct farmland application and composting. OCSD requires the Contractor to collect and haul approximately 50 wet tons per day (tpd) of biosolids from OCSD's Reclamation Plant No. 1 or Treatment Plant No. 2 or both to Inland Empire Regional Composting Facility (IERCF) located at 12645 Sixth Street in the City of Rancho Cucamonga. In addition, OCSD may direct the Contractor to haul and transport its biosolids to locations listed in Exhibit B, Table 2 - Alternative Sites, if needed. The Contractor shall take the necessary steps to provide this hauling service, which include, but are not limited to, compliance with federal, state, and local regulations, recordkeeping, reporting, and conformance with OCSD's Biosolids Contractor Requirements (BCR) (see Appendix C). 2 DEFINITIONS 2.1 Biosolids—treated, non-hazardous solids from the wastewater treatment process that contain organic matter, plant nutrients such as nitrogen and phosphorus, and low levels of metals and pathogenic organisms. OCSD's Biosolids are certified and comply with the 40 Code of Federal Regulations (CFR) Part 503 (Class B). OCSD biosolids are dewatered using centrifuges to about 24% at Plant No. 1 and 28% at Plant No. 2. OCSD biosolids are loaded onto Contractor's trucks at Plant No. 1 and Plant No. 2 truck loading and scale out facilities and delivered by Contractor to end use facility site for processing. Grit and screenings removed during wastewater treatment process shall not constitute biosolids. 2.2 Biosolids Contractor Requirements (BCR)—A periodically updated document that explains OCSD's requirements for Contractors as well as providing other resources. Contractor shall conform to latest published version of BCR (www.ocsd.com/bcr) as specified in Section 4 Deliverables and included as Appendix C. 2.3 Biosolids Management System (BMS)—OCSD manages our biosolids using an Internal Standard based on IS014001 and the National Biosolids Partnership standard. See the BCR in Appendix C for information related to how this system impacts Contractor as well as what is specifically required. 2.4 Contractor- shall mean the party awarded the Contract for services under this Contract. 2.5 No Guaranteed Minimum Volume: Shall mean no minimum amount of biosolids guaranteed to Contractor. 2.6 OCSD / OC SAN / OC San —shall mean the Orange County Sanitation District. EXHIBIT"A" 1 of 13 Specification No. S-2020-1208BD 2.7 OCSD Project Manager— shall mean the OCSD employee who is the main point of contact for all issues related to this Contract. 2.8 Ownership of Biosolids—shall mean once biosolids are loaded into the Contractor's truck, the responsibility and ownership of the biosolids are deemed to have transferred from OCSD to the Contractor. However, OCSD maintains strict oversight of these biosolids throughout the final use process including coordination on compliance reporting and inspections, reporting incidents during transportation, and final product distribution. 2.9 Subcontractor—shall mean the party designated by the Contractor and approved by OCSD for part of this Scope of Work. See Section 3.7 for requirements. 2.10 TPD (tpd) - shall mean to wet tons per day where a ton is a measurement by weight of 2000 pounds of dewatered biosolids. 3 DESCRIPTION OF WORK 3.1 General The Contractor shall haul, transport, and deliver OCSD's biosolids to specific permitted and approved sites in quantities determined and directed by OCSD (up to 50 tpd) as referenced in this Scope of Work. Contractor is responsible for taking all required steps to provide this service, which may include, but is not limited to meeting compliance with federal, state and local transportation regulations, and conforming to OCSD's BCR (Appendix C). OCSD's biosolids meet the following specifications: • Biosolids cake dryness — 15%-35%. • Biosolids quality— Pollutant levels below Table 1 in 40 CFR Part 503.13. • OCSD typically meets Class B pathogen reduction requirements as defined in 40 CFR Part 503.32. 3.2 Description of Inland Empire Regional Composting Facility (IERCF) 3.2.1 OCSD and Inland Empire Regional Composting Authority (IERCA) have an agreement for IERCA to accept and compost approximately 250 wet tons per week, or 50 tpd of OCSD's biosolids at the IERCF. 3.2.2 The IERCF facility is located at 12645 Sixth Street Rancho Cucamonga, CA, consisting of 445,275 square feet under roof, receiving and processing over 200,000 wet tons of biosolids and producing approximately 90,000 tons of compost a year. 3.2.3 IERCA is a Joint Powers Authority formed by and between the Inland Empire Utilities Agency (IEUA) and Los Angeles County Sanitation District of(LACSD). 3.2.4 The IERCF hours of operation of unloading are described in Section 3.4 below. No biosolids will be accepted outside the biosolids hauling schedule, unless approved by IERCA. EXHIBIT"A" 2 of 13 Specification No. S-2020-1208BD 3.3 Biosolids Allocation 3.3.1 OCSD anticipates utilizing the Contractor's services for up to two trucks (up to 50 tpd) a day to IERCF. 3.3.2 There is no guaranteed minimum tonnage to Contractor. 3.3.3 Contractor may be assigned additional loads upon hauling availability. The allocation of additional biosolids will be at the discretion of OCSD based on the biosolids volume produced at its facilities and operational requirements. 3.3.4 IERCA operational considerations including permits, shutdowns, and other customers' needs may also impact biosolids load allocations. 3.3.5 Contractor may be required to haul to locations listed in Exhibit B, Table 2 - Alternative Sites. 3.4 Hauling to Inland Empire Regional Composting Facility 3.4.1 Contractor shall transport up to approximately 250 wet tons per week, or 50 wet tons per day of Biosolids to IERCF for composting, Monday through Friday. This quantity may be subject to change. 3.4.2 IERCF site delivery hours are from 6:15AM to 3:30PM, Monday through Friday. Hours may change at the sole discretion of IERCA. 3.4.3 Contractor shall use live-bottom belt trailers to transport biosolids to the IERCF. Trailers delivering biosolids to the site shall meet the following clearance specifications to off-load material into the biosolids hoppers. All live bottom belt type trailers require a minimum clear distance of 15" between the ground surface and any trailer structure beyond or past the rear tires. This requirement does not apply to any flexible structure like a mud flap. Flexible structures may be removed or re-positioned to allow adequate clearance. 3.4.4 Contractor shall take into account traffic conditions to meet the hauling schedule, including but not limited to utilizing toll roads, if needed, at the expense of the Contractor. Any toll charges incurred as a result of truck routes to avoid traffic will be the sole responsibility of the Contractor. 3.5 Permits, Authorizations, and Records 3.5.1 Contractor shall possess and maintain all valid federal, state, and local permits, licenses, and other approved legally required documentation to haul biosolids in California. Proof of these documents must be included with your bid submittal. Contractor shall include cost for permits and any incidentals in cost to haul to all facilities listed on the Bid Price Form, Exhibit B. Use of these alternative locations will typically be on an emergency basis, so costs may be higher than routine hauls. 3.5.2 OCSD will provide Contractor with the necessary authorizations to deliver biosolids to the designated locations referred to in Exhibit B, Table 2 -Alternative Sites if needed. EXHIBIT"A" 3 of 13 Specification No. S-2020-1208BD 3.5.3 Contractor shall maintain, document, and copy OCSD on all compliance and any non-compliances with all federal, state, and local regulations. OCSD reserves the right to contact Contractor's regulators. 3.6 Cost Adjustments 3.6.1 Fuel Surcharge Adjustment Charge: 3.6.1.1 Due to the volatility of diesel fuel prices, OCSD has issued contracts for biosolids management that include fuel surcharges for the purchase of diesel. 3.6.1.2 As shown in Exhibit B, Bid Price Form, the fuel surcharge is based on a formula provided by OCSD, which requires Contractor to provide a specific "Multiplier". Among other variables, the multiplier typically considers distance and fuel efficiency of vehicles. 3.6.1.3 The Multiplier provided is multiplied by the difference in average diesel cost per gallon in the previous month in California minus $2.636, which is the base diesel fuel price per gallon in CA for December 2020 (U.S. Energy Information Administration). 3.6.1.4 The fuel surcharge Multiplier will be included in the evaluation of overall cost. 3.6.1.5 OCSD shall pay a fuel surcharge once per month based on the previous month's average pricing provided by the Department of Energy. 3.6.1.6 The fuel surcharge will only apply if the result of the calculation is greater than $0.25. 3.6.1.7 OCSD does not apply negative fuel surcharges. 3.7 Subcontractor(s) 3.7.1 Contractor may subcontract portions of this Contract. Subcontractors are subject to all requirements of this Contract. Contractor is responsible for ensuring subcontractor(s) comply with all Contract requirements. 3.7.2 Contractor shall provide a written request to OCSD for approval in order to add a Subcontractor to an approved list of substitutes. 3.7.3 Contractor shall obtain written approval from OCSD's Project Manager at least 30 days prior to the substitution of an approved Subcontractor. 3.7.4 Contractor's Subcontractor shall meet all of OCSD's requirements, responsibility, and accountability measures contained here within. 3.7.5 The Contractor is accountable and responsible to ensure that their Subcontractor meet applicable OCSD requirements including but not limited to providing suitable staff, training, equipment, resources to perform the scope of work, required insurance, and conformance with OCSD's BCR (see Appendix C). 3.7.6 The cost for Subcontractor(s) shall be included in Contractor's cost. EXHIBIT"A" 4 of 13 Specification No. S-2020-1208BD 3.8 Hauling, Scheduling, Storage, and Contingencies 3.8.1 The Contractor shall be responsible for ensuring drivers and hauling companies comply, as required, with all State of California and federal standards and requirements for Motor Carriers, including the California Vehicle Code and the Department of Transportation (DOT) Federal Motor Carrier Safety Administration standards and requirements. State of California and DOT requirements may include, but are not limited to the following: • California Vehicle Code §658.17 Weight limits • DOT §393.95 Emergency equipment on all power units • DOT §395.3 Maximum driving time for property-carrying vehicles 3.8.2 Any federal, state or local fees related to hauling, such as road use fees, toll fees, and any fines incurred by hauling operations as well as costs associated with releases, shall the responsibility of the Contractor. 3.8.3 In addition to the summary of key requirements contained in this section, the Contractor shall comply with all requirements contained in the BCR (Appendix C) including the submittal and maintenance of a "Biosolids Hauling Plan" and the submittal of the Training Checklist that ensures the Contractor's dispatcher has trained staff on OCSD requirements (see Section 5 Deliverables). The Contractor shall periodically (or upon request by OCSD) review, update, and re-submit the plan with any changes to OCSD. 3.8.4 Contractor shall haul biosolids from either of OCSD's two (2) plants to approved sites as directed by OCSD's weekly schedule. OCSD publishes a weekly hauling schedule. Contractor shall conform to this schedule or risk loss of loads. 3.8.5 The 2017 OCSD Biosolids Management Plan's Ten Tenets set a guidance to maintain 20% fail-safe hauling capacity. As much as OCSD tries to keep as steady a weekly schedule as possible, operationally the process does vary week to week. The Contractor shall maintain at least 20% additional hauling capacity over routinely scheduled loads. 3.8.6 Contractor shall bill OCSD based on OCSD's scale-based weight tickets (not weight at IERCF). Contractor shall maintain and record truckload weight tickets. 3.8.7 Current loading windows are generally limited to Monday through Friday but are subject to change based on operational needs and biosolids availability (see Appendix C). 3.8.8 OCSD will consider Contractor's needs in setting loading times and schedules; however, operational logistics and plants considerations determine the final schedule. Wait times at the plants prior to loading average about 15 to 30 minutes, but at peak times can be as much as one (1) hour. Loading times also vary, averaging about 15-30 minutes. 3.8.9 Once biosolids are loaded into the Contractor's truck, responsibility and ownership of the biosolids are deemed to have transferred from OCSD to the Contractor. However, OCSD maintains strict oversight of these biosolids throughout the final use process including coordination of reporting incidents during transportation and final product distribution. EXHIBIT"A" 5 of 13 Specification No. S-2020-1208BD 3.8.10 OCSD has limited storage capacity. Contractor shall provide facilities, hauling, equipment, and any other means necessary to ensure its ability to manage and store biosolids produced by OCSD during inclement weather. 3.9 Loading, Drivers, and Trailers 3.9.1 OCSD reserves the right to reject loads (no make-up) or write-up the driver or trailer if any contractual or BCR (Appendix C) requirements are not met. 3.9.2 The Contractor shall be responsible for all transportation equipment. OCSD reserves the right to inspect any of the Contractor's equipment to verify conformance with all requirements within these specifications and reject loads if equipment does not meet specifications. 3.9.3 Contractor shall provide adequate training to drivers, dispatchers, and other key staff on biosolids characteristics and emergency response procedures including providing simple procedures written in the appropriate language format (such as English and Spanish). 3.9.4 Contractor's drivers shall conduct themselves in a professional and courteous manner. OCSD reserves the right to ban drivers from OCSD facilities for any reason. 3.9.5 Dispatchers shall relay shutdown, operational, training, and other communications from OCSD to drivers promptly, in a format that can be easily understood by drivers, and document communications and trainings including the use of sign-in sheets. 3.9.6 Trailers are subject to inspection by OCSD prior to commencement of work. Any exceptions to requirements must be requested in writing and approved by OCSD staff. 3.9.7 Contractor shall conform to OCSD Safety Equipment Requirements and Pre- Loading Inspection Requirements (see Appendix C). 3.9.8 Contractor's drivers shall carry a copy of the OCSD's "Hauling Biosolids" laminated cards (Appendix C). Drivers shall understand and abide by all information contained in it, be familiar with Biosolids, and provide this informational booklet to onsite emergency responders if an incident occurs during transportation, especially to communicate that "Biosolids are non-hazardous". Laminated cards are available to drivers at OCSD's truck loading facilities. 3.9.9 OCSD requires the Contractor's participation in our commitment to being a good neighbor and preventing/minimizing noise and odors. 3.9.9.1 OCSD requires that Contractor's drivers travel with tarps secured to minimize odors at all times. 3.9.9.2 Contractor is responsible to provide drivers access to facilities necessary to ensure trucks are clean. OCSD will not provide a truck washing facility. 3.9.9.3 No jake-breaking or other noise nuisance between 7pm and 7am. 3.9.9.4 Contractor shall utilize staging areas and trucking route(s) with least impact to sensitive receptors within the public. The route(s), staging EXHIBIT"A" 6 of 13 Specification No. S-2020-1208BD areas, and contingency routes in case of closures shall be included in the Hauling Plan submittal. 3.9.10 Trailers shall be capable of receiving biosolids from an overhead hopper loading system (see Appendix C). 3.9.11 OCSD's loading facilities are capable of accommodating trailers that are 60 ft. in length, 8 ft. in width, and 10 ft. in height. Truck and trailer height/clearance must be less than 12 ft. Trailers must be able to load and haul a minimum of 20 tons of biosolids. 3.9.12 Trailers shall have tall sides (about eight feet high) so as to allow the driver to tarp the truck inside the loading facility, with the doors closed and without having to adjust the load since the biosolids may initially pile high in one area. 3.9.13 Trailers shall be equipped with tarping mechanism that allows the driver to tarp the truck inside the truck loading facility before the odor-control doors are opened. The tarping mechanism must be able to tarp the truck within the loading facilities' maximum clearance height of twelve (12) feet. Drivers will be allowed to exit cab to turn on the tarping mechanism once the Operator signals the all-clear after biosolids have completed loading. 3.9.14 Trailers shall be watertight. 3.9.15 Trailers shall have baffles or splashguards 18-24 inches on front, which must be completely welded or bolted and sealed. 3.9.16 Trailers shall be equipped with manual locking devices as to prevent releases from hydraulic system failures. Examples of such manual locking devices for end dumps and belt trailer would be at least two (2) turnbuckles on bottom, or two (2) on top (one on each side) and one on bottom, or two (2) on each side. 3.9.17 Trailers shall be single trailers due to OCSD's unique alignment of loading chutes at Plant No. 1 that makes unsafe to move double trailers back and forth with the odor-control doors closed. 3.9.18 Trailers shall be clearly marked with a unique ID. ID shall be visible and distinguishable. 3.9.19 Contractor shall conform with OCSD Biosolids Response & Recovery Plan (BRRP) (Appendix C). The Contractor shall notify OCSD Control Center (714-593- 7025) within 30 minutes of accidents and spills during transportation and email an incident report within 48-hours (see Section 5 Deliverables). 3.10 OCSD Scale and Biosolids Tracking Systems 3.10.1 New Driver and New Trailer Approval forms are required for each driver and trailer in order to register them in OCSD's scale software prior to arrival at OCSD. 3.10.1.1 Hauling dispatchers are required to email the form at least two business days before the drivers' or trailers' initial visit to OCSD. 3.10.1.2 Dispatchers and drivers are certifying that they understand and conform with requirements contained in the Pre-Loading Trailer Inspection Guidelines, Safety Equipment Inspection Guidelines, Biosolids Response and Recovery Procedures, OCSD Hauling Biosolids laminated cards, and BCR. EXHIBIT"A" 7 of 13 Specification No. S-2020-1208BD 3.10.2 OCSD's Biosolids Tracking System (BTS) is an online application that is used for tracking OCSD's Biosolids loads in order to ensure accurate compliance reporting (see Appendix C). 3.10.2.1 The Contractor shall validate bill of lading data for each ticket including the destination and net tons for each load shipped. 3.10.2.2 OCSD will provide the Contractor with access to the online BTS. 3.10.2.3 The BTS initiates when a bill of lading ticket is created in OCSD's truck loading scale house. 3.10.2.4 OCSD staff review and approve the tickets in the BTS as confirmed with field tickets and logs. Contractor shall access and update required fields including approval of weight tickets in the OCSD BTS at least on a bi-weekly basis. 3.10.2.5 Transaction reports can be generated by the BTS to ensure accuracy. 3.10.2.6 Invoicing shall reflect data in the BTS. Any incorrect or missing tickets will be identified during the ticket approval process. The Contractor will communicate any discrepancies as soon as possible to OCSD. 3.10.2.7 These requirements transfer to any new or equivalent systems or processes implemented in the future. 3.11 Contractor Performance 3.11.1 OCSD reserves the right to withhold loads for any reason, including but not limited to: 3.11.1.1 Contractor not meeting the Scope of Work or Contract requirements. 3.11.1.2 Contractor not adequately addressing neighbor complaints, potential onsite nuisances, or any other concern documented in an inspection. 3.11.1.3 Contractor not conforming to the BCR document (Appendix C). OCSD periodically updates and reissues this document to Contractor. 3.11.1.4 Contractor's Subcontractor(s) not meeting or conforming to any requirements, which are the responsibility of the Contractor to ensure conformance. 3.11.2 Repeated issues with performance can be grounds for termination of the Contract. 3.12 Back Charge: Contractor shall reimburse OCSD for any costs, fines, and/or corrective actions taken due to Contractor's non-performance. This may include costs incurred by OCSD due to failure of the Contractor to accept and remove the agreed upon volume of biosolids from the plants, onsite truck leaks, or due to biosolids releases (spills). OCSD reserves the right to offset any cost paid out on behalf of the Contractor from invoiced amounts payable to the Contractor. EXHIBIT"A" 8 of 13 Specification No. S-2020-1208BD 3.13 Conformance with OCSD's Biosolids BMS 3.13.1 OCSD's biosolids management system includes requirements for the Contractor, most of which are incorporated into this Scope of Work and Appendix C. Additional requirements include, but are not limited to participation in audits and corrective and preventive actions, inspections, review meetings, and potential additional reporting requirements. 3.13.2 Changes in requirements are included in updated BCRs that are posted to www.ocsd.com/bcr. 3.14 Coordination Contractor shall participate in OCSD-required conference calls or Microsoft Teams meetings to review performance, issues, upcoming projects, and generally ensure effective communications coordination between OCSD and Contractor at no cost to OCSD. (Appendix C). 4 SCHEDULE 4.1 The Contractor shall complete all necessary submittals and coordination with OCSD to be ready to start on the May 12, 2021 anticipated start date. 4.2 The Contractor shall submit deliverables as required at least 30-days in advance of this anticipated start date (see Section 5 Deliverables). 5 DELIVERABLES 5.1 The Contractor shall provide biosolids management service that requires removal or acceptance of delivery, and the transportation of biosolids from OCSD's Reclamation Plant No. 1 or Treatment Plant No.2 or both, at quantities as determined and directed by OCSD as described above. 5.2 The Contractor shall submit the following information to the OCSD Project Manager at least 30-days prior to proceeding with the work under this Contract: 5.2.1 The Contractor shall submit a Biosolids Hauling Plan as part of the submittal package to demonstrate conformance with Appendix C 5.2.2 The Contractor shall submit the Training Checklist for hauling that ensures the Contractor's dispatcher has trained staff on OCSD requirements at least 30-days prior to the commencement of work. 5.2.3 Names and emails for staff that will need access to OCSD's Biosolids Tracking System. 5.2.4 A list of driver names and trailer numbers that will be used to haul the material. 5.2.5 OCSD New Driver and New Trailer Approval forms completed and submitted by the hauling dispatcher (Appendix C). 5.3 BCR Updates: The Contractor shall meet requirements for reporting in the current version of the BCR (Appendix C), which is updated periodically. Updated versions and requirements are posted to www.ocsd.com/bcr and Contractors are notified when updated version are made available. The Contractor shall download and conform to future updates. EXHIBIT"A" 9 of 13 Specification No. S-2020-1208BD 5.4 Contractor Notifications and Incident Reports to OCSD 5.4.1 In conformance with the requirements set forth above, the Contractor shall notify OCSD of the following and provide a corresponding incident report within 48- hours. 5.4.1.1 Within 30 minutes of any traffic incident or biosolids released during transportation, Contractor shall notify OCSD's 24-hour Control Center (714-593-7025). 5.4.1.2 Within 24 hours of any: 5.4.1.2.1 Incident of non-compliance including notices of violation 5.4.1.2.2 Complaint received 5.4.1.2.3 Public or media questions received 5.4.1.2.4 Regulatory inspection 5.4.1.2.5 Verbal notification from regulator that an Area of Concern, Violation, or other notice of regulatory non-compliance may be received in the future 5.4.1.2.6 Receipt of regulatory non-compliance or Areas of Concern or any other action taken by an enforcement agency regarding non-compliance with permit provisions or general applicable regulatory standards (provide OCSD copy of regulatory document with notification) 5.4.1.2.7 Discovery of a regulatory non-compliance for which the Contractor will be notifying the regulatory agency 5.4.1.2.8 Accidents or health and safety incidents related to biosolids hauling, processing or marketing/reuse 5.4.1.2.9 Product batches that do not meet specifications 5.4.1.2.10 Regulatory-defined "Special Occurrences" on-site 5.4.1.2.11 Regulatory inspection report received 5.4.1.2.12 Critical equipment breakdowns and corrective and preventive actions 5.4.1.2.13 Significant changes (including temporary and interim changes) to processes, input, outputs, and markets. 5.4.1.3 Incident reports shall include the information regarding the incident, which regulatory requirements are impacted (if any), regulatory notifications made (if any), the Contractor's response, root cause analysis, detailed corrective and preventive actions, and pictures when appropriate. The Contractor shall take corrective and preventive actions to address root causes. 5.4.1.4 The Contractor shall notify OCSD of maintenance shutdowns by Wednesday of the preceding week in order for OCSD to properly schedule loads for the week of the shutdown. 5.4.1.5 In response to OCSD inspection findings, the Contractor shall provide OCSD within five business days a written incident report including root cause analysis and detailed corrective and preventive action plans. EXHIBIT"A" 10 of 13 Specification No. S-2020-1208BD The Contractor shall take corrective and preventive actions to address root causes of OCSD findings, especially when issues could result in nuisance complaints or compliance concerns. 5.4.1.6 Per OCSD's NPDES permit requirements, the Contractor shall notify USEPA and the Santa Ana Water Board of any non-compliance within the following time-frames: 5.4.1.6.1 Notify USEPA and the applicable Santa Ana Water Board or State agency of any non-compliance within 24 hours by phone or e-mail if the non-compliance may seriously endanger public health or the environment. 5.4.1.6.2 A written report shall also be submitted within 5 working days of knowing the non-compliance. 5.4.1.6.3 For other instances of non-compliance, notify USEPA and the Santa Ana Water Board of the non-compliance in writing within 5 working days of becoming aware of the non-compliance. 5.5 Invoices: The Contractor shall generate a separate invoice for each plant. After the end of each month, the Contractor shall submit the following documentation for each of the previous month's loads hauled from OCSD as back-up for the electronic invoice. Monthly billing invoices shall match tonnages contained in the BTS, unless an alternative method is approved by OCSD. The invoices shall be emailed to the OCSD Project Manager and OCSD Accounts Payable (APStaff@ocsd.com). 5.5.1 Date 5.5.2 Trailer identification number 5.5.3 OCSD weight ticket number 5.5.4 Wet tons contained in each trailer 5.5.5 Total daily tons hauled to facility from OCSD 5.5.6 Total monthly tons hauled to facility from OCSD 5.6 OCSD reserves the right to withhold payment if incomplete or incorrect information is provided with invoices or monthly reports. 6 SAFETY AND HAZARDOUS MATERIALS Safety is the top priority at OCSD therefore Contractor and any subcontractor shall follow all State and Federal safety standards. Failure to do so could result in removal and permanent suspension from OCSD property. OCSD reserves the right to stop work at no cost to OCSD if there is an imminent safety hazard caused by the Contractor or any of its subcontractors. If work is stopped due to imminent safety hazards caused by Contractor, no stand-by pay will be paid by OCSD. EXHIBIT"A" 11 of 13 Specification No. S-2020-1208BD The Contractor shall develop and maintain a Site-Specific Safety Program for the worksite, in accordance with OCSD Construction Safety Standards. The Plan shall include: • A description of the work to be performed, highlighting the hazard analysis for each general site condition(s) and specific work task(s) • Identification of the Contractor management, supervision, competent, and qualified persons • Identification of precautions to be implemented • Decision logic for the utilization of personal protective equipment • Site access control, including security measures • Emergency response plan • Incident reporting methodology • SDS inventory list; all Cal/OSHA recognized carcinogens or reproductive hazardous materials shall be denoted and highlighted on the inventory list. • Training and certification documentation • Communication methodology • The Drug Free Workplace program if not included in the Injury and Illness Prevention Program. • Measures to mitigate public exposure to hazards as applicable. • The Contractor shall submit its Site-Specific Safety Program to OCSD for review no later than fifteen (15) days after Notice to Proceed and prior to commencement of Work on the Project. 6.1 Contractor shall be aware of the use of bleach, hydrogen peroxide, ferric chloride, acid and caustic soda and the potential presence of hazardous gases in and around the plants. 6.2 There are various alarm systems installed to alert employees of possible hazardous conditions. The Contractor shall instruct its employees of these dangers and that they shall evacuate the area, including tunnels, immediately should an emergency situation occur. 6.3 Contractor is advised that digesters are classified as Class 1, Division 1, Hazardous Areas both inside and to a distance of five (5) feet beyond all the exterior walls and roof, and to a distance of ten (10) feet beyond all existing gas handling equipment. 6.4 Contractor shall securely block access to all digesters during the cleaning project to prevent unauthorized entry and minimize risk. 6.5 Contractor shall take all necessary safety precautions and shall furnish and install all equipment, labor, materials, appurtenances, gas detectors, explosion proof ventilation equipment, and all services required to meet all safety requirements for work in areas as designated above, at no additional cost to OCSD. 6.6 Contractor is cautioned that the tunnels with digester gas piping are Class 1, Division 2 areas. EXHIBIT"A" 12 of 13 Specification No. S-2020-1208BD 6.7 All Contractor employees shall wear hard hats, safety vests, safety toed shoes, safety glasses and appropriate protective equipment while on OCSD plant sites. 6.8 Contractor shall carry and use a 4-gas monitor at all times when on the plant site. The 4-gas monitor shall detect carbon monoxide, oxygen, hydrogen sulfide and lower explosive limits. 6.9 Contractor is responsible for every aspect of health and safety on the worksite, including the health and safety of subcontractor, suppliers, and other persons on the worksite. 6.10 Contractor shall notify OCSD Project manager of near miss, or injuries within 24 hours. Contractor shall transmit to the OCSD Project Manager written investigations of accidents and injuries encountered during cleaning within 5 business days. EXHIBIT"A" 13 of 13 Specification No. S-2020-1208BD Administration Building OPERATIONS COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1524 Agenda Date: 3/24/2021 Agenda Item No: 5. FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: HEADWORKS REHABILITATION AT PLANT NO. 1, PROJECT NO. P1-105 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Receive and file Bid Tabulation and Recommendation for Headworks Rehabilitation at Plant No. 1, Project No. P1-105; B. Award a Construction Contract to Kiewit Infrastructure West Co. for Headworks Rehabilitation at Plant No. 1 for a total amount not to exceed $222,330,000; and C. Approve a contingency of $8,893,200 (4%). BACKGROUND The headworks of a wastewater treatment plant is where all incoming sewers converge through a series of pipes, meters, flow diversions, and gates. Just as sewers cannot be readily taken out of service, neither can a headworks. The current Headworks facilities at Orange County Sanitation District's (Sanitation District) Plant No. 1 include the original facilities built and modified between the 1950s and 1960s, currently only used for emergencies, and the active facilities which entered service in 1989. The facilities are mechanically intensive, operate in a very corrosive environment, require frequent maintenance and servicing, and can generate substantial odors. RELEVANT STANDARDS • Comply with California Public Contract Code Section 20103.8, award construction contract to lowest responsible bidder • 24/7/365 treatment plant reliability • Zero odor incidents/events under normal operating conditions for Plant Nos. 1 and 2 Orange County Sanitation District Page 1 of 3 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1524 Agenda Date: 3/24/2021 Agenda Item No: 5. PROBLEM The existing headworks has been in service for more than 30 years without a significant rehabilitation effort. Mechanical equipment is at the end of its useful life. Structural and piping corrosion must be addressed to extend the useful life. Electrical equipment is deficient and obsolete. The grit removal system, which is intended to capture abrasive material that causes accelerated wear and tear on downstream equipment and accumulation of inert material in anaerobic digesters, does not perform well. Complete rehabilitation, including demolition of abandoned facilities, is needed to ensure efficient and reliable operation of this critical facility. The nature of these facilities makes the work highly complex and risky. The project must maintain wastewater flow in active portions of the headworks while rehabilitation work is performed. PROPOSED SOLUTION Award a Construction Contract for Headworks Rehabilitation at Plant No. 1, Project No. P1-105. This project will rehabilitate systems including the metering and diversion structure, the bar screen building, the bin loading building, the main sewage pump station, the grit basins, the primary influent channels, and electrical power distribution and control systems. This project will also construct new facilities including a grit pump station, grit handling building, headworks odor control and chemical facility, a drainage lift station, electrical buildings, and other support systems. The original Headworks No. 1 facilities and other unused systems will be demolished as part of this contract. For this contract, staff is proposing a lower than usual contingency for a rehabilitation project. Midway through construction, staff intends to present to the Board a review of the progress and risks encountered to date. TIMING CONCERNS Until the headworks is renovated, existing structural, electrical, and mechanical system deficiencies could require frequent and costly maintenance and could result in spills or other permit violations. RAMIFICATIONS OF NOT TAKING ACTION Without this project, the risk of a spill or other permit violation will continue to increase. ADDITIONAL INFORMATION Sanitation District staff has long been concerned about the limited number of bidders on such a large, complex, high risk, and long-duration project. Staff has posted the project for two years on its upcoming construction opportunities list and has discussed it with general contractors at certain construction outreach events. To avoid competition for bidders among its own projects, staff postponed advertisements of the $113 million A-Side Primary Clarifiers Replacement at Plant No. 2, Contract No. P2-98A, until bids closed on this project. Orange County Sanitation District Page 2 of 3 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1524 Agenda Date: 3/24/2021 Agenda Item No: 5. Although site videos, photographs, and drone-footages of virtually all facilities were provided to interested bidders, staff arranged a series of COVID-19 compliant site walks to further help bidders understand the facilities, risks, access constraints, and other factors that might affect the final bids. The Sanitation District advertised for bids on September 22, 2020 with bids scheduled to be received on December 15, 2020. In October, one potential bidder requested a one month bid delay indicating they might not submit a bid otherwise. In response, staff conducted a survey of potential bidders that identified only three bidders, including the requestor. To ensure at least three bids would be received, the extension was granted. On January 19, 2021, three sealed bids were received. A summary of the bids follows: Engineer's Estimate $292,299,000 Bidder Amount of Bid Kiewit Infrastructure West Co. $ 222,330,000 J.F.Shea Construction, Inc. $ 259,506,000 Shimmick Construction Co., Inc. $ 276,611,500 The bids were evaluated in accordance with Sanitation District policies and procedures. A notice was sent to all the bidders on February 4, 2021 informing them of the intent of the Sanitation District to recommend award of the construction contract to Kiewit Infrastructure West Co. Staff recommends awarding a Construction Contract to the lowest responsive bidder, Kiewit Infrastructure West Co., for Headworks Rehabilitation at Plant No.1, Project No. P1-105, for a total amount not to exceed $222,330,000. CEQA The project is included in the "Headworks Rehabilitation at Plant No. 1 (Project No. P1-105)" Mitigated Negative Declaration (MND), State Clearinghouse Number 2019049152. FINANCIAL CONSIDERATIONS This request complies with authority levels of Sanitation District's Purchasing Ordinance. This item has been budgeted (Adopted Budget, Fiscal Years 2020-2021 and 2021-22, Section 8, Page 54, Headworks Rehabilitation at Plant No. 1, Project No. P1-105) and the budget is sufficient for the recommended action. Staff intends to recommend a budget reduction as part of the upcoming Fiscal Year 2021-2022 Budget Update. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Construction Contract • Presentation GR:dm:gc Orange County Sanitation District Page 3 of 3 Printed on 3/16/2021 powered by LegistarTM PART A CONTRACT AGREEMENT C-CA-033020 TABLE OF CONTENTS CONTRACT AGREEMENT SECTION - 1 GENERAL CONDITIONS....................................................................1 SECTION -2 MATERIALS AND LABOR..................................................................4 SECTION - 3 PROJECT...........................................................................................4 SECTION -4 PLANS AND SPECIFICATIONS.........................................................5 SECTION -5 TIME OF COMMENCEMENT AND COMPLETION.............................5 SECTION - 6 TIME IS OF THE ESSENCE...............................................................5 SECTION - 7 EXCUSABLE DELAYS .......................................................................6 SECTION - 8 EXTRA WORK....................................................................................6 SECTION - 9 CHANGES IN PROJECT....................................................................7 SECTION - 10 LIQUIDATED DAMAGES FOR DELAY..............................................7 SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT...........................7 SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS ..............................................................................................9 SECTION - 13 COMPLETION .................................................................................10 SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION ........................10 SECTION - 15 SURETY BONDS.............................................................................12 SECTION - 16 INSURANCE....................................................................................13 SECTION - 17 RISK AND INDEMNIFICATION........................................................23 SECTION - 18 TERMINATION ................................................................................23 SECTION - 19 WARRANTY ....................................................................................24 SECTION - 20 ASSIGNMENT.................................................................................24 SECTION - 21 RESOLUTION OF DISPUTES.........................................................25 SECTION -22 SAFETY & HEALTH.........................................................................25 SECTION -23 NOTICES.........................................................................................25 C-CA-033020 CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 THIS AGREEMENT is made and entered into, to be effective, this March 24, 2021, by and between Kiewit Infrastructure West Co., hereinafter referred to as "CONTRACTOR" and the Orange County Sanitation District, hereinafter referred to as "OCSD". WITNESSETH That for and in consideration of the promises and agreements hereinafter made and exchanged, OCSD and CONTRACTOR agree as follows: SECTION — 1 GENERAL CONDITIONS CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the Work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR's investigation of all such matters and is in no way relying upon any opinions or representations of OCSD. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents are each incorporated into this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the Work covered by this Contract. A. Contract Documents Order of Precedence "Contract Documents" refers to those documents identified in the definition of"Contract Documents" in the General Conditions— Definitions. C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 1 of 27 1. In the event of a conflict between one Contract Document and any of the other Contract Documents, the provisions in the document highest in precedence shall be controlling. The order of precedence of the Contract Documents is as follows: a. Supplemental Agreements —the last in time being the first in precedence b. Addenda issued prior to the date for submittal of Bids —the last in time being the first in precedence c. Contract Agreement d. Permits and other regulatory requirements e. Special Provisions f. General Conditions (GC) g. Notice Inviting Bids and Instruction to Bidders h. Geotechnical Baseline Report (GBR), if attached as a Contract Document i. Plans and Specifications— in these documents the order of precedence shall be: i. Specifications (Divisions 01-17) ii. Plans iii. General Requirements (GR) iv. Standard Drawings and Typical Details j. CONTRACTOR's Bid 2. In the event of a conflict between terms within an individual Contract Document, the conflict shall be resolved by applying the following principles as appears applicable: a. Figured dimensions on the Contract Documents shall govern. Dimensions not specified shall be as directed by the ENGINEER. Details not shown or specified shall be the same as similar parts that are shown or specified, or as directed. Full-size details shall take precedence over scale Drawings as to C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 2 of 27 shape and details of construction. Specifications shall govern as to material and workmanship. b. The Contract Documents calling for the higher quality material or workmanship shall prevail. Materials or Work described in words, which so applied, have a well known technical or trade meaning shall be deemed to refer to such recognized standards. In the event of any discrepancy between any Drawings and the figures thereon, the figures shall be taken as correct. C. Scale Drawings, full-size details, and Specifications are intended to be fully complementary and to agree. Should any discrepancy between Contract Documents come to the CONTRACTOR's attention, or should an error occur in the efforts of others, which affect the Work, the CONTRACTOR shall notify the ENGINEER, in writing, at once. In the event any doubts or questions arise with respect to the true meaning of the Contract Documents, reference shall be made to the ENGINEER whose written decision shall be final. If the CONTRACTOR proceeds with the Work affected without written instructions from the ENGINEER, the CONTRACTOR shall be fully responsible for any resultant damage or defect. d. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to OCSD's ENGINEER, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR's own risk and expense. The decision of the ENGINEER shall be final. C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 3 of 27 In all matters relating to the acceptability of material, machinery or plant equipment; classifications of material or Work; the proper execution, progress or sequence of the Work; and quantities interpretation of the Contract Documents, the decision of the ENGINEER shall be final and binding, and shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the Board of Directors. B. Definitions Capitalized terms used in this Contract are defined in the General Conditions, Definitions. Additional terms may be defined in the Special Provisions. SECTION —2 MATERIALS AND LABOR CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by OCSD, to construct and complete the Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, OCSD may settle such claims by making demand upon the Surety to this Contract. In the event of the failure or refusal of the Surety to satisfy said claims, OCSD may settle them directly and deduct the amount of payments from the Contract Price and any amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees. SECTION — 3 PROJECT The Project is described as: PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 4 of 27 SECTION —4 PLANS AND SPECIFICATIONS The Work to be done is shown in a set of Plans and Specifications entitled: PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 Said Plans and Specifications and any revision, amendments and addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. SECTION — 5 TIME OF COMMENCEMENT AND COMPLETION CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth in the "Notice to Proceed" sent by OCSD, unless otherwise specified therein and shall diligently prosecute the Work to completion within two thousand four hundred seventy (2,470) calendar days from the date of the "Notice to Proceed" issued by OCSD, excluding delays caused or authorized by OCSD as set forth in Sections 7, 8, and 9 hereof, and applicable provisions in the General Conditions. The time for completion includes ninety (90) calendar days determined by OCSD likely to be inclement weather when CONTRACTOR will be unable to work. In addition, CONTRACTOR shall accomplish such milestones within the periods of performance set forth in Appendix A of the Special Provisions entitled "Work Completion Schedule." SECTION — 6 TIME IS OF THE ESSENCE Time is of the essence of this Contract. As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR's Work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the Work covered by this Contract with that of all other contractors, subcontractors and of OCSD, in a manner that will facilitate the efficient completion of the entire Work and accomplish the required milestone(s), if any, by the applicable deadline(s) in accordance with Section 5 herein. OCSD shall have the right to assert complete control of the premises on C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 5 of 27 which the Work is to be performed and shall have the right to decide the time or order in which the various portions of the Work shall be installed or the priority of the work of subcontractors, and, in general, all matters representing the timely and orderly conduct of the Work of CONTRACTOR on the premises. SECTION — 7 EXCUSABLE DELAYS CONTRACTOR shall only be excused for any delay in the prosecution or completion of the Project as specifically provided in General Conditions, "Extension of Time for Delay", and the General Requirements, "By CONTRACTOR or Others — Unknown Utilities during Contract Work". Extensions of time and extra compensation arising from such excusable delays will be determined in accordance with the General Conditions, "Extension of Time for Delay" and "Contract Price Adjustments and Payments", and extensions of time and extra compensation as a result of incurring undisclosed utilities will be determined in accordance with General Requirements, "By CONTRACTOR or Others — Unknown Utilities during Contract Work". OCSD's decision will be conclusive on all parties to this Contract. SECTION — 8 EXTRA WORK The Contract Price as set forth in Section 11, includes compensation for all Work performed by CONTRACTOR, unless CONTRACTOR obtains a Change Order signed by a designated representative of OCSD specifying the exact nature of the Extra Work and the amount of extra compensation to be paid all as more particularly set forth in Section 9 hereof and the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)", "OWNER Initiated Changes", and "Contract Price Adjustments and Payments". In the event a Change Order is issued by OCSD pursuant to the Contract Documents, OCSD shall extend the time fixed in Section 5 for completion of the Project by the number of days, if C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 6 of 27 any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by OCSD's ENGINEER. The decision of the ENGINEER shall be final. SECTION —9 CHANGES IN PROJECT OCSD may at any time, without notice to any Surety, by Change Order, make any changes in the Work within the general scope of the Contract Document, including but not limited to changes: 1. In the Specifications (including Drawings and designs); 2. In the time, method or manner of performance of the Work; 3. In OCSD-furnished facilities, equipment, materials, services or site; or 4. Directing acceleration in the performance of the Work. No change of period of performance or Contract Price, or any other change in the Contract Documents, shall be binding until the Contract is modified by a fully executed Change Order. All Change Orders shall be issued in accordance with the requirements set forth in the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)" and "OWNER Initiated Changes". SECTION — 10 LIQUIDATED DAMAGES FOR DELAY Liquidated Damages shall be payable in the amounts and upon the occurrence of such events or failure to meet such requirements or deadlines as provided in the Special Provisions, "Liquidated Damages and Incentives." SECTION — 11 CONTRACT PRICE AND METHOD OF PAYMENT A. OCSD agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in approved Change Orders, the sum of Two Hundred Twenty-Two Million Three Hundred Thirty Thousand Dollars ($222,330,000) as itemized on the Attached Exhibit "A". C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 7 of 27 Upon satisfaction of the conditions precedent to payment set forth in the General Requirements, Additional General Requirements and General Conditions (including but not limited to Sections entitled "Mobilization Payment Requirements" and "Payment Itemized Breakdown of Contract Lump Sum Prices"), there shall be paid to the CONTRACTOR an initial Net Progress Payment for mobilization. OCSD shall issue at the commencement of the job a schedule which shows: 1. A minimum of one payment to be made to the CONTRACTOR for each successive four (4) week period as the Work progresses, and 2. The due dates for the CONTRACTOR to submit requests for payment to meet the payment schedule. After the initial Net Progress Payment, and provided the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule, the CONTRACTOR shall be paid a Net Progress Payment on the corresponding monthly payment date set forth in the schedule. Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the ENGINEER, stating that the Work for which payment is demanded has been performed in accordance with the terms of the Contract Documents, and that the amount stated in the certificate is due under the terms of the Contract. Payment applications shall also be accompanied with all documentation, records, and releases as required by the Contract, Exhibit A, Schedule of Prices, and General Conditions, "Payment for Work— General". The Total amount of Progress Payments shall not exceed the actual value of the Work completed as certified by OCSD's ENGINEER. The processing of payments shall not be considered as an acceptance of any part of the Work. C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 8 of 27 B. As used in this Section, the following defined terms shall have the following meanings: 1. "Net Progress Payment" means a sum equal to the Progress Payment less the Retention Amount and other qualified deductions (Liquidated Damages, stop payment notices, etc.). 2. "Progress Payment" means a sum equal to: a. the value of the actual Work completed since the commencement of the Work as determined by OCSD; b. plus the value of material suitably stored at the worksite, treatment plant or approved storage yards subject to or under the control of OCSD since the commencement of the Work as determined by OCSD; C. less all previous Net Progress Payments; d. less all amounts of previously qualified deductions; e. less all amounts previously retained as Retention Amounts. 3. "Retention Amount" for each Progress Payment means the percentage of each Progress Payment to be retained by OCSD to assure satisfactory completion of the Contract. The amount to be retained from each Progress Payment shall be determined as provided in the General Conditions —"Retained Funds; Substitution of Securities." SECTION — 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS Pursuant to Public Contract Code Section 22300 et seq., the CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions— "Retained Funds; Substitution of Securities." C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 9 of 27 SECTION — 13 COMPLETION Final Completion and Final Acceptance shall occur at the time and in the manner specified in the General Conditions, "Final Acceptance and Final Completion", "Final Payment" and Exhibit A- Schedule of Prices. Upon receipt of all documentation, records, and releases as required by the Contract from the CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General Conditions. SECTION — 14 CONTRACTOR'S EMPLOYEES COMPENSATION A. Davis-Bacon Act: CONTRACTOR will pay and will require all Subcontractors to pay all employees on said Project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. B. General Prevailing Rate: OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime Work in the locality in which the Work is to be performed for each craft or type of Work needed to execute this Contract, and copies of the same are on file in the Office of the ENGINEER of OCSD. The CONTRACTOR C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 10 of 27 agrees that not less than said prevailing rates shall be paid to workers employed on this public works Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each job site, which shall be made available to any interested party upon request. C. Forfeiture for Violation: CONTRACTOR shall, as a penalty to OCSD, forfeit Two Hundred Dollars ($200.00) for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any Subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the Work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. D. Apprentices: Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the CONTRACTOR shall comply therewith if the prime contract involves Thirty Thousand Dollars ($30,000.00) or more. E. Workday: In the performance of this Contract, not more than eight (8) hours shall constitute a day's work, and the CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (B) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 et sea.) of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of Twenty-five Dollars ($25.00)for each worker employed in the execution of this Contract by CONTRACTOR or any Subcontractor for each calendar day during which any worker is C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 11 of 27 required or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in any one week in violation of said Article. CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project. F. Registration; Record of Wages; Inspection: CONTRACTOR shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring by the California Department of Industrial Relations. CONTRACTOR shall maintain accurate payroll records and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations Section 16461(e). SECTION — 15 SURETY BONDS CONTRACTOR shall, before entering upon the performance of this Contract, furnish Bonds approved by OCSD's General Counsel — one in the amount of one hundred percent (100%) of the Contract amount, to guarantee the faithful performance of the Work, and the other in the amount of one hundred percent (100%) of the Contract amount to guarantee payment of all claims for labor and materials furnished. As changes to the Contract occur via approved Change Orders, the CONTRACTOR shall assure that the amounts of the Bonds are adjusted to maintain 100% of the Contract Price. This Contract shall not become effective until such Bonds are supplied to and approved by OCSD. Bonds must be issued by a Surety authorized by the State Insurance Commissioner to do business in California. The Performance Bond shall remain in full force and effect through the warranty period, as specified in Section 19 below. All C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 12 of 27 Bonds required to be submitted relating to this Contract must comply with California Code of Civil Procedure Section 995.630. Each Bond shall be executed in the name of the Surety insurer under penalty of perjury, or the fact of execution of each Bond shall be duly acknowledged before an officer authorized to take and certify acknowledgments, and either one of the following conditions shall be satisfied: A. A copy of the transcript or record of the unrevoked appointment, power of attorney, by- laws, or other instrument, duly certified by the proper authority and attested by the seal of the insurer entitling or authorizing the person who executed the Bond to do so for and on behalf of the insurer, is on file in the Office of the County Clerk of the County of Orange; or B. A copy of a valid power of attorney is attached to the Bond. SECTION — 16 INSURANCE CONTRACTOR shall purchase and maintain, for the duration of the Contract, insurance against claims for injuries to persons, or damages to property which may arise from or in connection with the performance of the Work hereunder, and the results of that Work by CONTRACTOR, its agents, representatives, employees, or Subcontractors, in amounts equal to the requirements set forth below. CONTRACTOR shall not commence Work under this Contract until all insurance required under this Section is obtained in a form acceptable to OCSD, nor shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until all insurance required of the Subcontractor has been obtained. CONTRACTOR shall maintain all of the foregoing insurance coverages in force through the point at which the Work under this Contract is fully completed and accepted by OCSD pursuant to the provisions of the General Conditions, "Final Acceptance and Final Completion". Furthermore, CONTRACTOR shall maintain all of the foregoing insurance coverages in full force and effect throughout the warranty period, commencing on the date of Final Completion. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of OCSD by C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 13 of 27 CONTRACTOR under Section 17 of this Contract. Notwithstanding nor diminishing the obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for and maintain in full force and effect during the life of this Contract, inclusive of all changes to the Contract Documents made in accordance with the provisions of the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)" and/or "OWNER Initiated Changes", the following insurance in amounts not less than the amounts specified. OCSD reserves the right to amend the required limits of insurance commensurate with the CONTRACTOR's risk at any time during the course of the Project. No vehicles may enter OCSD premises/worksite without possessing the required insurance coverage. CONTRACTOR's insurance shall also comply with all insurance requirements prescribed by agencies from whom permits shall be obtained for the Work and any other third parties from whom third party agreements are necessary to perform the Work (collectively, the "Third Parties"), The Special Provisions may list such requirements and sample forms and requirements from such Third Parties may be included in an attachment to the General Requirements. CONTRACTOR bears the responsibility to discover and comply with all requirements of Third Parties, including meeting specific insurance requirements, that are necessary for the complete performance of the Work. To the extent there is a conflict between the Third Parties' insurance requirements and those set forth by OCSD herein, the requirement(s) providing the more protective coverage for both OSCD and the Third Parties shall control and be purchased and maintained by CONTRACTOR. Where permitted by law, CONTRACTOR hereby waives all rights of recovery by subrogation because of deductible clauses, inadequacy of limits of any insurance policy, limitations or exclusions of coverage, or any other reason against OCSD, its or their officers, agents, or employees performing Work or rendering services on behalf of OCSD in connection with the planning, development and construction of the Project. In all its insurance coverages (except for C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 14 of 27 Professional Liability/Errors and Omissions coverages, if applicable) related to the Work, CONTRACTOR shall include clauses providing that each insurer shall waive all of its rights of recovery by subrogation against OCSD, its or their officers, agents, or employees performing Work or rendering services at the Project. Where permitted by law, CONTRACTOR shall require similar written express waivers and insurance clauses from each of its Subcontractors of every tier. A waiver of subrogation shall be effective as to any individual or entity, even if such individual or entity (a) would otherwise have a duty of indemnification, contractual or otherwise, (b) did not pay the insurance premium, directly or indirectly, and (c) whether or not such individual or entity has an insurable interest in the property damaged. A. Limits of Insurance 1. General Liability: Ten Million Dollars ($10,000,000) per occurrence and a general aggregate limit of Twenty Million Dollars ($20,000,000) for bodily injury, personal injury and property damage. If aggregate limits apply separately to this Contract (as evidenced by submission of ISO form CG 25 03 or CG 25 04), then the aggregate limit may be equivalent to the per occurrence limit. Coverage shall include each of the following: a. Premises-Operations. b. Products and Completed Operations, with limits of at least Ten Million Dollars ($10,000,000) per occurrence and a general aggregate limit of Tweny Million Dollars ($20,000,000) which shall be in effect at all times during the warranty period set forth in the Warranty section herein, and as set forth in the General Conditions, "Warranty (CONTRACTOR's Guarantee)", plus any additional extension or continuation of time to said warranty period that may be required or authorized by said provisions. If aggregate limits apply separately to this C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 15 of 27 Contract (as evidenced by submission of ISO form CG 25 03 or CG 25 04), then the aggregate limit may be equivalent to the per occurrence limit. C. Broad Form Property Damage, expressly including damage arising out of explosion, collapse, or underground damage. d. Contractual Liability, expressly including the indemnity provisions assumed under this Contract. e. Separation of Insured Clause, providing that coverage applies separately to each insured, except with respect to the limits of liability. f. Independent CONTRACTOR's Liability. To the extent first dollar coverage, including defense of any claim, is not available to OCSD or any other additional insured because of any SIR, deductible, or any other form of self insurance, CONTRACTOR is obligated to assume responsibility of insurer until the deductible, SIR or other condition of insurer assuming its defense and/or indemnity has been satisfied. CONTRACTOR shall be responsible to pay any deductible or SIR. g. If a crane will be used, the General Liability insurance will be endorsed to add Riggers Liability coverage or its equivalent to cover the usage of the crane and exposures with regard to the crane operators, riggers and others involved in using the crane. h. If divers will be used, the General Liability insurance will be endorsed to cover marine liability or its equivalent to cover the usage of divers. 2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 16 of 27 Either (1) a combined single limit of Five Million Dollars ($5,000,000)for bodily injury, personal injury and property damage; Or alternatively, (2) Two Million Dollars ($2,000,000) per person for bodily injury, Four Million Dollars ($4,000,000) per accident for bodily injury, and One Million Dollars ($1,000,000) per accident for property damage. 3. Umbrella Excess Liability: The minimum limits of general liability and automobile liability insurance required, as set forth above, shall be provided for either in a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automobile liability. 4. Drone Liability Insurance: If a drone will be used, Drone Liability Insurance must be maintained by CONTRACTOR in the amount of One Million Dollars ($1,000,000) in a form acceptable to OCSD. 5. Worker's Compensation/Employer's Liability: CONTRACTOR shall provide such Worker's Compensation Insurance as required by the Labor Code of the State of California, including employer's liability with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage with regard to Jones Act claims. 6. Pollution Liability Insurance: CONTRACTOR shall purchase and maintain insurance for pollution liability covering bodily injury, property damage (including loss of use of damaged property or property that has not been physically injured or destroyed), cleanup costs, and defense costs (including costs and expenses for investigation, defense, or settlement of claims). Coverage shall carry limits of at least Ten Million C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 17 of 27 Dollars ($10,000,000) per claim and aggregate and shall apply to sudden and non- sudden pollution conditions (including sewage spills), both at the site or needed due to migration of pollutants from the site, resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials, or other irritants, contaminants or pollutants. If CONTRACTOR provides coverage written on a claims-made basis, OCSD has the right to approve or reject such coverage in its own discretion. If written on a claims- made basis, the CONTRACTOR warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this Contract, and that continuous coverage will be maintained, or an extended discovery period will be exercised, for a period of two years beginning from the time that the Project under this Contract is completed. 7. Errors and Omissions/Professional Liability Insurance: CONTRACTOR shall maintain in full force and effect, throughout the term of this Contract, standard industry form professional liability/ errors and omissions insurance coverage with coverage limits of not less than Three Million Dollars ($3,000,000) in accordance with the provisions of this Paragraph. If the policy of insurance is written on a "claims made" basis, said policy shall be continued in full force and effect at all times during the term of this Contract, and for a period of five years from the date of the completion of the Work hereunder. In the event of termination of said policy during this period, CONTRACTOR shall obtain continuing insurance coverage for the prior acts or omissions of CONTRACTOR during the course of performing Work under the terms of this Contract. Said coverage shall be evidenced by either a new policy evidencing no C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 18 of 27 gap in coverage or by separate extended "tail" coverage with the present or new carrier. In the event the present policy of insurance is written on an "occurrence" basis, said policy shall be continued in full force and effect during the term of this Contract or until completion of the Work provided for in this Contract, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts or omissions of CONTRACTOR during the course of performing Work under the terms of this Contract. CONTRACTOR shall provide to the OCSD a certificate of insurance in a form acceptable to the OCSD indicating the deductible or self-retention amounts and the expiration date of said policy and shall provide renewal certificates not less than ten days prior to the expiration of each policy term. B. Self-Insured Retentions Any self-insured retentions must be declared to and approved by OCSD. At the option of OCSD, either: the Insurer shall reduce or eliminate such self-insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD guaranteeing payment of losses and related investigations, claim administration, and defense expenses. C. Other Insurance Provisions 1. Each such policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to contain, the following provisions: a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all public agencies from whom permits will be obtained, and their Directors, officers, agents, and employees are hereby declared to be additional insureds under the terms of this policy, but only with respect to the operations of C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 19 of 27 CONTRACTOR at or from any of the sites of OCSD in connection with this Contract, or acts and omissions of the additional insured in connection with its general supervision or inspection of said operations related to this Contract. b. Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by OCSD shall be excess only and not contributing with insurance provided under this policy. 2. Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after 30days prior written notice by certified mail, return receipt requested, and that coverage shall not be cancelled for non- payment of premium except after ten days prior written notice by certified mail, return receipt requested. Should there be changes in coverage or an increase in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript endorsement from its insurer giving 30 days prior notice of such an event to OCSD, or to have its insurance broker/agent send to OCSD a certified letter describing the changes in coverage and any increase in deductible or SIR amounts. The certified letter must be sent Attention: Risk Management and shall be received not less than 20 days prior to the effective date of the change(s). The letter must be signed by a Director or Officer of the broker/agent and must be on company letterhead, and may be sent via email in pdf format. 3. Coverage shall not extend to any indemnity coverage for the active negligence of any additional insured in any case where an agreement to indemnify the additional insured would be invalid under California Civil Code Section 2782(b). 4. If required by a public agency from whom permit(s) will be obtained, each policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 20 of 27 specify by name the public agency and its legislative members, officers, agents, CONSULTANTS, and employees, to be additional insureds. D. Acceptability of Insurers Insurers must have an "A2, or better, Policyholder's Rating, and a Financial Rating of at least Class VIII, or better, in accordance with the most current A.M. Best Rating Guide. OCSD recognizes that State Compensation Insurance Fund has withdrawn from participation in the A.M. Best Rating Guide process. Nevertheless, OCSD will accept State Compensation Insurance Fund for the required policy of worker's compensation insurance, subject to OCSD's option, at any time during the term of this Contract, to require a change in insurer upon 20 days written notice. Further, OCSD will require CONTRACTOR to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within 20 days of written notice to CONTRACTOR by OCSD or its agent. E. Verification of Coverage CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements affecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by OCSD before Work commences. OCSD reserves the right to require complete, certified copies of all required insurance policies, including endorsements, affecting the coverage required by this Contract at any time. F. Subcontractors CONTRACTOR shall be responsible to establish insurance requirements for any Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations and work. OCSD and any public agency issuing permits for the Project must be named as C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 21 of 27 "Additional Insured" on any General Liability or Automobile Liability policy obtained by a Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced required documents. G. Required Forms and Endorsements 1. Required ACORD Form a. Certificate of Liability Form 25 2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are shown, they are listed in order of preference) In the event any of the following forms are cancelled by Insurance Services Office, Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied. a. Commercial General Liability Form CG-0001 10 01 b. Additional Insured Including Form CG-2010 10 01 and Products-Completed Operations Form CG-2037 10 01 C. Waiver of Transfer of Rights of Form CG-2404 11 85; or Recovery Against Others to Us/ Form CG-2404 10 93 Waiver of Subrogation 3. Required State Compensation Insurance Fund Endorsements a. Waiver of Subrogation Endorsement No. 2570 b. Cancellation Notice Endorsement No. 2065 4. Additional Required Endorsements a. Notice of Policy Termination Manuscript Endorsement 5. Pollution Liability Endorsements There shall be a Separation of Insured Clause or endorsement, providing that coverage applies separately to each insured, except with respect to the limits of C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 22 of 27 liability. There shall also be an endorsement or policy language containing a waiver of subrogation rights on the part of the insurer. OCSD, its directors, officers, agents, CONSULTANTS and employees and all public agencies from whom permits will be obtained as well as their directors, officers, agents, and employees shall be included as insureds under the policy. Any additional insured endorsement shall contain language at least as broad as the coverage language contained in ISO form CG 20 10 11 85 or alternatively in both CG 20 10 10 01 and CG 20 37 10 01 together. SECTION — 17 RISK AND INDEMNIFICATION All Work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save, indemnify, defend, and keep OCSD and others harmless as more specifically set forth in General Conditions, "General Indemnification". SECTION — 18 TERMINATION This Contract may be terminated in whole or in part in writing by OCSD in the event of substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may be terminated by OCSD for its convenience provided that such termination is effectuated in a manner and upon such conditions set forth more particularly in General Conditions, "Termination for Default" and/or"Termination for Convenience", provided that no termination may be effected unless proper notice is provided to CONTRACTOR at the time and in the manner provided in said General Conditions. If termination for default or convenience is effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be made at the time and in the manner provided in the General Conditions, "Termination for Default" and "Termination for Convenience". C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 23 of 27 SECTION — 19 WARRANTY The CONTRACTOR agrees to perform all Work under this Contract in accordance with the Contract Documents, including OCSD's designs, Drawings and Specifications. The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final Completion of the Work, pursuant to the General Conditions, "Final Acceptance and Final Completion" that the completed Work is free from all defects due to faulty materials, equipment or workmanship and that it shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs of any damage to other parts of the system resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, OCSD may do so and charge the CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any corrected deficiency until the later of (1) the remainder of the original one-year warranty period; or (2) one year after acceptance by OCSD of the corrected Work. The Performance Bond and the Payment Bond shall remain in full force and effect through the guarantee period. The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's other express or implied assurances under this Contract, including but not limited to specific manufacturer or other extended warranties specified in the Plans and Specifications, or state law and in no way diminish any other rights that OCSD may have against the CONTRACTOR for faulty materials, equipment or Work. SECTION —20 ASSIGNMENT No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be received hereunder, will be recognized by OCSD unless such assignment has had prior written approval and consent of OCSD and the Surety. C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 24 of 27 SECTION —21 RESOLUTION OF DISPUTES OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract Code Section 20104 et. seq., regarding resolution of construction claims for any Claims which arise between the CONTRACTOR and OCSD, as well as all applicable dispute and Claims provisions as set forth in the General Conditions and as otherwise required by law. SECTION —22 SAFETY & HEALTH CONTRACTOR shall comply with all applicable safety and health requirements mandated by federal, state, city and/or public agency codes, permits, ordinances, regulations, and laws, as well as these Contract Documents, including but not limited to the General Requirements, Section entitled "Safety" and Exhibit B Contractor Safety Standards. SECTION —23 NOTICES Any notice required or permitted under this Contract shall be sent by certified mail, return receipt requested, at the address set forth below. Any party whose address changes shall notify the other party in writing. TO OCSD: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Clerk of the Board Copy to: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Construction Manager Bradley R. Hogin, Esquire Woodruff, Spradlin & Smart 555 Anton Boulevard Suite 1200 Costa Mesa, California 92626 C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 25 of 27 TO CONTRACTOR: Kiewit Infrastructure West Co. 10704 Shoemaker Avenue Santa Fe Springs, CA 90670 Copy to: Terrence L. Robinson, Senior Vice President Kiewit Infrastructure West Co. 10704 Shoemaker Avenue Santa Fe Springs, CA 90670 [INTENTIONALLY LEFT BLANK. SIGNATURES FOLLOW ON NEXT PAGE.] C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 26 of 27 IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: Kiewit Infrastructure West Co. 10704 Shoemaker Avenue Santa Fe Springs, CA 90670 By Printed Name Its CONTRACTOR's State License No. 433176 (Expiration Date — 01/31/2023) OCSD: Orange County Sanitation District By David John Shawver Board Chairman By Kelly A. Lore Clerk of the Board By Ruth Zintzun Purchasing & Contracts Manager C-CA-033020 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 27 of 27 EXHIBIT A SCHEDULE OF PRICES C-EXA-080414 TABLE OF CONTENTS EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION ...........................................................................1 EXA-2 PROGRESS PAYMENTS.................................................................................1 EXA-3 RETENTION AND ESCROW ACCOUNTS.......................................................1 EXA-4 STOP PAYMENT NOTICE ...............................................................................3 EXA-5 PAYMENT TO SUBCONTRACTORS...............................................................3 EXA-6 PAYMENT OF TAXES......................................................................................3 EXA-7 FINAL PAYMENT .............................................................................................4 EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT....5 ATTACHMENT 1 - CERTIFICATION FOR REQUEST FOR PAYMENT.........................7 ATTACHMENT 2 - SCHEDULE OF PRICES..................................................................8 C-EXA-080414 EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION CONTRACTOR will be paid the Contract Price according to the Schedule of Prices, and all other applicable terms and conditions of the Contract Documents. EXA-2 PROGRESS PAYMENTS Progress payments will be made in accordance with all applicable terms and conditions of the Contract Documents, including, but not limited to: 1. Contract Agreement— Section 11 — "Contract Price and Method of Payment;" 2. General Conditions—"Payment— General"; 3. General Conditions—"Payment—Applications for Payment"; 4. General Conditions—"Payment— Mobilization Payment Requirements;" 5. General Conditions—"Payment— Itemized Breakdown of Contract Lump Sum Prices"; 6. General Conditions— "Contract Price Adjustments and Payments"; 7. General Conditions—"Suspension of Payments"; 8. General Conditions—"OCSD's Right to Withhold Certain Amounts and Make Application Thereof"; and 9. General Conditions—"Final Payment." EXA-3 RETENTION AND ESCROW ACCOUNTS A. Retention: OCSD shall retain a percentage of each progress payment to assure satisfactory completion of the Work. The amount to be retained from each progress payment shall be determined as provided in General Conditions— "Retained Funds; Substitution of Securities". In all contracts between CONTRACTOR and its Subcontractors and/or Suppliers, the retention may not exceed the percentage specified in the Contract Documents. C-EXA-080414 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 1 of 8 B. Substitution of Securities: CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." Payment of Escrow Agent: In lieu of substitution of securities as provided above, the CONTRACTOR may request and OCSD shall make payment of retention earned directly to the escrow agent at the expense of the CONTRACTOR. At the expense of the CONTRACTOR, the CONTRACTOR may direct the investment of the payments into securities consistent with Government Code §16430 and the CONTRACTOR shall receive the interest earned on the investments upon the same terms provided for in this article for securities deposited by the CONTRACTOR. Upon satisfactory completion of the Contract, the CONTRACTOR shall receive from the escrow agent all securities, interest and payments received by the escrow agent from OCSD, pursuant to the terms of this article. The CONTRACTOR shall pay to each Subcontractor, not later than twenty (20) calendar days after receipt of the payment, the respective amount of interest earned, net of costs attributed to retention withheld from each Subcontractor, on the amount of retention withheld to ensure the performance of the Subcontractor. The escrow agreement used by the escrow agent pursuant to this article shall be substantially similar to the form set forth in §22300 of the California Public Contract Code. C. Release of Retention: Upon Final Acceptance of the Work, the CONTRACTOR shall submit an invoice for release of retention in accordance with the terms of the Contract. D. Additional Deductibles: In addition to the retentions described above, OCSD may deduct from each progress payment any or all of the following: 1. Liquidated Damages that have occurred as of the date of the application for progress payment; 2. Deductions from previous progress payments already paid, due to OCSD's discovery of deficiencies in the Work or non-compliance with the Specifications or any other requirement of the Contract; 3. Sums expended by OCSD in performing any of the CONTRACTOR'S obligations under the Contract that the CONTRACTOR has failed to perform, and; 4. Other sums that OCSD is entitled to recover from the CONTRACTOR under the terms of the Contract, including without limitation insurance deductibles and assessments. C-EXA-080414 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 2 of 8 The failure of OCSD to deduct any of the above-identified sums from a progress payment shall not constitute a waiver of OCSD's right to such sums or to deduct them from a later progress payment. EXA-4 STOP PAYMENT NOTICE In addition to other amounts properly withheld under this article or under other provisions of the Contract, OCSD shall retain from progress payments otherwise due the CONTRACTOR an amount equal to one hundred twenty-five percent (125%) of the amount claimed under any stop payment notice under Civil Code §9350 et. seq. or other lien filed against the CONTRACTOR for labor, materials, supplies, equipment, and any other thing of value claimed to have been furnished to and/or incorporated into the Work; or for any other alleged contribution thereto. In addition to the foregoing and in accordance with Civil Code §9358 OCSD may also satisfy its duty to withhold funds for stop payment notices by refusing to release funds held in escrow pursuant to public receipt of a release of stop payment notice executed by a stop payment notice claimant, a stop payment notice release bond, an order of a court of competent jurisdiction, or other evidence satisfactory to OCSD that the CONTRACTOR has resolved such claim by settlement. EXA-5 PAYMENT TO SUBCONTRACTORS Requirements 1. The CONTRACTOR shall pay all Subcontractors for and on account of Work performed by such Subcontractors, not later than seven (7) days after receipt of each progress payment as required by the California Business and Professions Code §7108.5. Such payments to Subcontractors shall be based on the measurements and estimates made pursuant to article progress payments provided herein. 2. Except as specifically provided by law, the CONTRACTOR shall pay all Subcontractors any and all retention due and owing for and on account of Work performed by such Subcontractors not later than seven (7) days after CONTRACTOR'S receipt of said retention proceeds from OCSD as required by the California Public Contract Code §7107. EXA-6 PAYMENT OF TAXES Unless otherwise specifically provided in this Contract, the Contract Price includes full compensation to the CONTRACTOR for all taxes. The CONTRACTOR shall pay all federal, state, and local taxes, and duties applicable to and assessable against any Work, including but not limited to retail sales and use, transportation, export, import, business, and special taxes. The CONTRACTOR shall ascertain and pay the taxes when due. The CONTRACTOR will maintain auditable records, subject to OCSD reviews, confirming that tax payments are current at all times. C-EXA-080414 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 3 of 8 EXA-7 FINAL PAYMENT After Final Acceptance of the Work, as more particularly set forth in the General Conditions, "Final Acceptance and Final Completion", and after Resolution of the Board authorizing final payment and satisfaction of the requirements as more particularly set forth in General Conditions — "Final Payment", a final payment will be made as follows: 1. Prior to Final Acceptance, the CONTRACTOR shall prepare and submit an application for Final Payment to OCSD, including: a. The proposed total amount due the CONTRACTOR, segregated by items on the payment schedule, amendments, Change Orders, and other bases for payment; b. Deductions for prior progress payments; c. Amounts retained; d. A conditional waiver and release on final payment for each Subcontractor (per Civil Code Section 8136); e. A conditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code Section 8136); f. List of Claims the CONTRACTOR intends to file at that time or a statement that no Claims will be filed, g. List of pending unsettled claims, stating claimed amounts, and copies of any and all complaints and/or demands for arbitration received by the CONTRACTOR; and h. For each and every claim that resulted in litigation or arbitration which the CONTRACTOR has settled, a conformed copy of the Request for Dismissal with prejudice or other satisfactory evidence the arbitration is resolved. 2. The application for Final Payment shall include complete and legally effective releases or waivers of liens and stop payment notices satisfactory to OCSD, arising out of or filed in connection with the Work. Prior progress payments shall be subject to correction in OCSD's review of the application for Final Payment. Claims filed with the application for Final Payment must be otherwise timely under the Contract and applicable law. 3. Within a reasonable time, OCSD will review the CONTRACTOR'S application for Final Payment. Any recommended changes or corrections will then be forwarded to the CONTRACTOR. Within ten (10) calendar days after receipt of recommended changes from OCSD, the CONTRACTOR will make the changes, or list Claims that will be filed as a result of the changes, and shall submit the revised application for Final Payment. Upon C-EXA-080414 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 4 of 8 acceptance by OCSD, the revised application for Final Payment will become the approved application for Final Payment. 4. If no Claims have been filed with the initial or any revised application for Final Payment, and no Claims remain unsettled within thirty-five (35) calendar days after Final Acceptance of the Work by OCSD, and agreements are reached on all issues regarding the application for Final Payment, OCSD, in exchange for an executed release, satisfactory in form and substance to OCSD, will pay the entire sum found due on the approved application for Final Payment, including the amount, if any, allowed on settled Claims. 5. The release from the CONTRACTOR shall be from any and all Claims arising under the Contract, except for Claims that with the concurrence of OCSD are specifically reserved, and shall release and waive all unreserved Claims against OCSD and its officers, directors, employees and authorized representatives. The release shall be accompanied by a certification by the CONTRACTOR that: a. It has resolved all Subcontractors, Suppliers and other Claims that are related to the settled Claims included in the Final Payment; b. It has no reason to believe that any party has a valid claim against the CONTRACTOR or OCSD which has not been communicated in writing by the CONTRACTOR to OCSD as of the date of the certificate; c. All warranties are in full force and effect, and; d. The releases and the warranties shall survive Final Payment. 6. If any claims remain open, OCSD may make Final Payment subject to resolution of those claims. OCSD may withhold from the Final Payment an amount not to exceed one hundred fifty percent (150%) of the sum of the amounts of the open claims, and one hundred twenty-five percent (125%) of the amounts of open stop payment notices referred to in article entitled stop payment notices herein. 7. The CONTRACTOR shall provide an unconditional waiver and release on final payment from each Subcontractor and Supplier providing Work under the Contract (per Civil Code Section 8138) and an unconditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code Section 8138) within thirty (30) days of receipt of Final Payment. EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT Notwithstanding OCSD's acceptance of the application for Final Payment and irrespective of whether it is before or after Final Payment has been made, OCSD shall not be precluded from subsequently showing that: 1. The true and correct amount payable for the Work is different from that previously accepted; C-EXA-080414 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 5 of 8 2. The previously-accepted Work did not in fact conform to the Contract requirements, or; 3. A previous payment or portion thereof for Work was improperly made. OCSD also shall not be stopped from demanding and recovering damages from the CONTRACTOR, as appropriate, under any of the foregoing circumstances as permitted under the Contract or applicable law. C-EXA-080414 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 6 of 8 ATTACHMENT 1 — CERTIFICATION FOR REQUEST FOR PAYMENT I hereby certify under penalty of perjury as follows: That the claim for payment is in all respects true, correct; that the services mentioned herein were actually rendered and/or supplies delivered to OCSD in accordance with the Contract. I understand that it is a violation of both the federal and California False Claims Acts to knowingly present or cause to be presented to OCSD a false claim for payment or approval. A claim includes a demand or request for money. It is also a violation of the False Claims Acts to knowingly make use of a false record or statement to get a false claim paid. The term "knowingly" includes either actual knowledge of the information, deliberate ignorance of the truth or falsity of the information, or reckless disregard for the truth or falsity of the information. Proof of specific intent to defraud is not necessary under the False Claims Acts. I understand that the penalties under the Federal False Claims Act and State of California False Claims Act are non-exclusive, and are in addition to any other remedies which OCSD may have either under contract or law. I hereby further certify, to the best of my knowledge and belief, that: 1. The amounts requested are only for performance in accordance with the Specifications, terms, and conditions of the Contract; 2. Payments to Subcontractors and Suppliers have been made from previous payments received under the Contract, and timely payments will be made from the proceeds of the payment covered by this certification; 3. This request for progress payments does not include any amounts which the prime CONTRACTOR intends to withhold or retain from a Subcontractor or Supplier in accordance with the terms and conditions of the subcontract; and 4. This certification is not to be construed as Final Acceptance of a Subcontractor's performance. Name Title Date C-EXA-080414 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 7 of 8 ATTACHMENT 2 — SCHEDULE OF PRICES See next pages for Bid Submittal Forms: Kiewit Infrastructure West Co. BF-14 SCHEDULE OF PRICES, Pages 1 - 4 C-EXA-080414 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 CONFORMED Page 8 of 8 Bid Submitted By: Kiewit Infrastructure West Co. (Name of Firm) BF-14 SCHEDULE OF PRICES INSTRUCTIONS A. General For Unit Prices, it is understood that the following quantities are approximate only and are solely for the purpose of estimating the comparison of Bids, and that the actual value of Work will be computed based upon the actual quantities in the completed Work,whether they be more or less than those shown. CONTRACTOR's compensation for the Work under the Contract Documents will be computed based upon the lump sum amount of the Contract at time of award, plus any additional or deleted costs approved by OCSD via approved Change Orders, pursuant to the Contract Documents. Bidder shall separately price and accurately reflect costs associated with each line item, leaving no blanks. Any and all modifications to the Bid must be initialed by an authorized representative of the Bidder in accordance with the Instructions to Bidders, Preparation of Bid. Bidders are reminded of Instruction to Bidders, Discrepancy in Bid Items, which, in summary, provides that the total price for each item shall be based on the Unit Price listed for each item multiplied by the quantity; and the correct Total Price for each item shall be totaled to determine the Total Amount of Bid. All applicable costs including overhead and profit shall be reflected in the respective unit costs and the TOTAL AMOUNT OF BID. The Bid price shall include all costs to complete the Work, including profit overhead etc unless otherwise specified in the Contract Documents. All a licable sales taxes state and/or federal and.any others ecial taxespatent rights or royalties shall be included in the prices quoted in this Bid. B. Basis of Award AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST RESPONSIVE AND RESPONSIBLE BID. Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials, equipment and services for the construction of the Project per the Contract Documents. All Work in the Contract Documents shall be included in Base Bid Items. Bidders shall accurately reflect the cost to perform the Work. OCSD may reject unbalanced Bids. Refer to Part 2— INSTRUCTIONS TO BIDDERS. Note 2: The Schedule of Prices contains a form entitled "Equipment Pricing". The prices stated on this form shall be included in the Total Amount of Bid. This form is for informational purposes only and will not be used in the evaluation of Bids. BF-14 SCHEDULE OF PRICES C-BF-042720 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 Page 1 of 4 Bid Submitted By: Kiewit Infrastructure West Co. (Name of Firm) EXHIBIT A SCHEDULE OF PRICES BASE BID ITEMS (Refer to Note 1 in the Instructions): Item Description Unit of Approx Unit Price Extended Price No. Measurement Qty 1. Mobilization as described in Specifications Section 01155 and in Lump Sum = $ 12,000,000 conformance with the Contract Documents for the lump sum price of... 2. Sheeting, Shoring and Bracing as described in Specifications Section 01155 and in conformance with the Contract Documents for the lump sum Lump Sum = $ y00�000 price of... 3. Identified Hazardous Materials Mitigation and Controls as described in Specifications Section 01155 and in conformance with the Contract Lump Sum = $ qq3"000 Documents for the lump sum price of... 4. Additional Hazardous Materials Mitigation and Controls as described in Specifications Section 01155 and in conformance with the Contract Allowance = $ 330,000 Documents for an allowance of... 5. Repair Cracks in Existing Concrete Structures as described in Specifications Section 01155 and in conformance with the Contract Linear Feet 800 X $ 37,S0 = $ 30, 000 Documents for the unit price and total price of... 6. Additional Removal and Replacement of Damaged Plastic Liner in Existing Water-Bearing Structures as described in Specifications Section Patches 1,600 X $ 31Z.50 = $ SOO/ 000 01155 and in conformance with the Contract Documents for the unit price and total price of... 7. Additional Removal and Replacement of Damaged Concrete Surfaces in Existing Water-Bearing Structures (Method 1) as described in Locations 800 X $ Ig1.Z.s = $ 1 S3Z000 Specifications Section 01155 and in conformance with the Contract Documents for the unit price and total price of... BF-14 SCHEDULE OF PRICES C-BF-042720 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 Page 2 of 4 Bid Submitted By: Kiewit Infrastructure West Co. (Name of Firm) EXHIBIT A SCHEDULE OF PRICES (continued) Item Description Unit of Approx Unit Price Extended Price No. Measurement Qty 8. Additional Removal and Replacement of Damaged Concrete Surfaces in Existing Water-Bearing Structures (Method 2) as described in Locations 600 X $ 225.00 = $ j 3S,,Oo0 Specifications Section 01155 and in conformance with the Contract Documents for the unit price and total price of... 9. Remove and Replace Unsuitable Material Encountered in Underground Work as described in Specifications Section 01155 and in conformance Cubic Yards 250 X $268.00 = $ 67000 with the Contract Documents for the unit price and total price of... 10. Lengthen/shorten Piles prior to Fabrication as described in Specifications Section 01155 and in conformance with the Contract Documents for the Linear Feet 1,800 X $ ZS•00 = $ 95,000 unit price and total price of... 11. Bid Allowance for CONTRACTOR-furnished permits as specified in Specifications Section 01155 and in conformance with the Contract Allowance = $ 20,000 Documents for an allowance of... 12. All Other Portions of the Work, except the Work of Item Nos. 1 through 11 and 13, as described in Specifications Section 01155 and in conformance Lump Sum = $ zos"W)1� with the Contract Documents for the lump sum price of... 13. Demobilization as described in Specifications Section 01155 and in Lump Sum = $ 3,000,000 conformance with the Contract Documents for the lump sum price of... TOTAL AMOUNT OF BID (BASIS OF AWARD) $ 222i 330, OOD BF-14 SCHEDULE OF PRICES C-BF-042720 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 Page 3 of 4 Bid Submitted By: Kiewit Infrastructure West Co, (Name of Firm) This Form Must Be Submitted With The Bid Equipment Pricing EQUIPMENT Refer to Note 2 in the Instructions above. Equipment Description Specifications Section Price Grit Washer Units by Huber Technology 11324, Grit Washer Units $ z1 2 6� q0O New Mechanical Bar Screens by 11332A, New Mechanical Bar $ 31g 3pO Suez WTS Systems USA Screens i i Rehabilitated Mechanical Bar Screens by 11332B, Rehabilitated Mechanical $ Suez WTS Systems USA Bar Screens BF-14 SCHEDULE OF PRICES C-BF-042720 PROJECT NO. P1-105 HEADWORKS REHABILITATION AT PLANT 1 Page 4 of 4 1 Headworks Rehabilitation Plant • Project • Construction Contract Award Presented by. Kathy Millea Director a Engineering MEW�•• Operations � Committee March 3,2021 OC�. SAN ORANGE COUNTY SANITATION DISTRICT OC San Reclamation Plant No. 1 Headworks Facilities .�.. F.. I 0� C $a 7lift, 1 OC San Reclamation Plant No. 1 Headworks Facilities r iio, —j 1 a f � _ f Plant No. 1 Receives About 116 MGD of Influent Daily 061 Enough to fill Angel Stadium over 1.5 times every day! ® � 1 s' M- , Y ; I W a 1 Preliminary Treatment (Headworks) Protects Subse uent Treatment Process SecondaryPreliminary Primary Treatment Treatment Treatment Influent —10o- Effluent r Bar Screen Grit waste Metering and Diversion Structure ......... lei i �` n � i I , t IKII Ak voilm" loan If fa ACi cn � c 1 Headworks Facilities are Aging 1,AN p Metering & Diversion Box Requires Replacement �\ 7 } t 1 1 110 Hydraulic Gates Require Replacement M�ruMnMw ■!p;u�rn�m�ra�inr Existing Pumps Require Replacement 3/1/2021 Poor Grit Removal - • Upgrading 13 13 Electrical Power System Requires Replacement Due to Arc Flash Hazard and Poor Condition Not an OC San facility Photo 14 14 7 3/1/2021 Demolition of Unused & Replaced Facilities ® To be demolished • Headworks 1 0 Chlorine Building • Hydrogen Peroxide • Odor Control&Chemical System ® Electrical Buildings 0 Office Trailers 0 41 / 15 15 Rehabilitation of ® To be demolished • Headworks 1 Chlorine Building --�� Hydrogen Peroxide • Odor Control&Chemical System ® Electrical Buildings • Office Trailers To be rehabilitated M&D Structure • Bar Screens 0 41 Bin Loading Main Sewage PS • Grit Basins • Sunflower PS 15 16 8 3/1/2021 Construction of ® To be demolished • Headworks 1 Chlorine Building • Hydrogen Peroxide • Odor Control&Chemical System 0 Electrical Buildings • Office Trailers O [A To be rehabilitated • M&D Structure • Bar Screens 0 ® Bin Loading • Main Sewage PS Grit Basins ,• Sunflower PS {.1 New Structures ® Grit pumping&handling Odor control&chemical facilities • Electrical buildings 17 Pl-105 is •IC San's Biggest Construction Contract AM- Final Design Phase: 3.5 years Construction Duration: 6.5 years i 300 Specification i Sections 2,000 sheets of Drawings 18 9 3/1/2021 Construction Complexities • Must maintain facilities during construction I • Work must be performed in prescribed sequence Dry weather only activities(Apr 15 to Oct 15) C1� .1 • Major shutdowns&flow diversions are req u i red t • Rehab work involves unknown issues& ' unanticipated delays -- • Extensive confined space entry work 19 19 RehabilitateMust Place Ellis Ave i Headworks zo 20 10 3/1/2021 Bid Results Bidder Amount of . . Engineer's Estimate $292,299,000 $70M * Kiewit Infrastructure West Co. $222,330,000 J.F.Shea Construction,Inc. $259,506,000 Shimmick Construction Co.,Inc. $276,611,500 21 21 Construction Contingency Construction Cost $222,330,000 Contingency $8,893,200 %of Construction Cost 4% Staff will report on progress& risks midway through construction. 22 22 11 3/1/2021 Recommendation: • • Contract • Receive and file Bid Tabulation and Recommendation for Headworks Rehabilitation at Plant No. 1, Project No. P1-105; • Award a Construction Contract to Kiewit Infrastructure West Co. for Headworks Rehabilitation at Plant No. 1 for a total amount not to exceed $222,330,000; and • Approve a contingency of $8,893,200 (4%). 23 Questions 24 12 Administration Building OPERATIONS COMMITTEE 10844 Ellis Avenue Fountain Valley,CA 92708 ' AN (714)593-7433 owANGECoUN ��,TpT Agenda Report File #: 2021-1525 Agenda Date: 3/24/2021 Agenda Item No: 6. FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: HEADWORKS REHABILITATION AT PLANT NO. 1, PROJECT NO. P1-105 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Professional Construction Services Agreement with Carollo Engineers, Inc. to provide construction support services for Headworks Rehabilitation at Plant No. 1, Project No. P1-105, for an amount not to exceed $16,500,000; and B. Approve a contingency of $1,650,000 (10%). BACKGROUND Carollo Engineers, Inc. was selected as part of a competitive, qualifications-based solicitation process to design Headworks Rehabilitation at Plant No. 1, Project No. P1-105. At the time of the solicitation, the Orange County Sanitation District (Sanitation District) documented its intent to award a subsequent agreement to the design consultant for continuation of engineering services during construction. This project will rehabilitate systems including the metering and diversion structure, the bar screen building, the bin loading building, the main sewage pump station, the grit basins, the primary influent channels, and electrical power distribution and control systems. This project will also construct new facilities including a grit pump station, grit handling building, headworks odor control and chemical facility, a drainage lift station, electrical buildings, and other support systems. The original Headworks No. 1 facilities and other unused systems will be demolished as part of this contract. RELEVANT STANDARDS • Comply with California Government Code Section 4526 to engage the best qualified firm "on the basis of demonstrated competence and qualifications" and "negotiate fair and reasonable fees" • Ensure the public's money is wisely spent Orange County Sanitation District Page 1 of 3 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1525 Agenda Date: 3/24/2021 Agenda Item No: 6. PROBLEM This project requires the design consultant to provide as-needed services during construction including submittal review, responding to the Contractor's requests for information, reviewing construction change orders, participating in meetings, attending site visits, providing personnel training, preparation of standard operating procedures, providing startup assistance, and preparing record drawings. PROPOSED SOLUTION Award a Professional Construction Services Agreement with the design consultant, Carollo Engineers, Inc., to provide engineering services during construction. TIMING CONCERNS Engineering support services will be required at the start of construction. Construction is anticipated to start in May 2021. RAMIFICATIONS OF NOT TAKING ACTION The engineering support services needed to facilitate and review construction activities would not be available by the Engineer of Record, which may negatively impact the contract execution. PRIOR COMMITTEE/BOARD ACTIONS March 2019 - Approved a contingency increase of $5,083,398 (29%) to the Professional Design Services Agreement with Carollo Engineers for the Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105, for a total contingency amount of $8,939,398 (51%). April 2018 - Approved a contingency increase of $2,103,104 (12%) to the Professional Design Services Agreement with Carollo Engineers for the Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105, for a total contingency amount of $3,856,000 (22%). May 2015 - Approved a Professional Design Services Agreement with Carollo Engineers to provide engineering design services for the Headworks Rehabilitation and Expansion at Plant 1, Project No. P1-105, for an amount not to exceed $17,528,957, and approved a contingency of $1,752,896 (10%). ADDITIONAL INFORMATION Carollo Engineers, Inc. has successfully furnished engineering services for this project and their support services during construction will provide continuity through the completion of this project. Staff negotiated with Carollo Engineers, Inc. for these support services in accordance with the Sanitation District's adopted policies and procedures. A review of the proposed price was conducted using estimated quantities of requests for support, as well as level of effort for preparing record drawings. The level of effort for this project is likely to be proportionally higher than typical due to the greater complexity, risks, and longer duration. Based on this review, staff determined the negotiated fee to be fair and reasonable for these services. Orange County Sanitation District Page 2 of 3 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1525 Agenda Date: 3/24/2021 Agenda Item No: 6. The negotiated upper limit, however, is not based on the worst case scenario. Midway through construction, staff intends to present to the Board a review of the progress and risks encountered. CEQA The project is included in the "Headworks Rehabilitation at Plant No. 1 (Project No. P1-105)" Mitigated Negative Declaration (MND), State Clearinghouse Number 2019049152. FINANCIAL CONSIDERATIONS This request complies with authority levels of Sanitation District's Purchasing Ordinance. This item has been budgeted (Adopted Budget, Fiscal Years 2020-2021 and 2021-22, Section 8, Page 54, Headworks Rehabilitation at Plant No. 1, Project No. P1-105) and the budget is sufficient for the recommended action. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Professional Construction Services Agreement • Presentation Orange County Sanitation District Page 3 of 3 Printed on 3/16/2021 powered by LegistarT" PROFESSIONAL CONSTRUCTION SERVICES AGREEMENT THIS PROFESSIONAL CONSTRUCTION SERVICES AGREEMENT (Agreement) is made and entered into to be effective the 24th day of March, 2021 by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT", and CAROLLO ENGINEERS, INC., hereinafter referred to as "CONSULTANT". WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT to provide Construction Support Services for Project No. P1-105, HEADWORKS REHABILITATION AT PLANT 1; and WHEREAS, CONSULTANT is qualified to provide the necessary services for Construction Support Services in connection with these requirements; and WHEREAS, the SANITATION DISTRICT has adopted procedures in accordance with the SANITATION DISTRICT's Purchasing Ordinance Section 4.03(B) for the continuation of services and has proceeded in accordance with said procedures to perform this work; and WHEREAS, at its regular meeting on March 24, 2021 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee pursuant to the SANITATION DISTRICT's Purchasing Ordinance to approve this Agreement between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this Agreement, it is mutually agreed as follows: 1. SCOPE OF WORK CONSULTANT agrees to furnish necessary professional and technical services to accomplish those project elements outlined in the Scope of Work attached hereto as Attachment "A", and by this reference made a part of this Agreement. A. The CONSULTANT shall be responsible for the professional quality, technical accuracy, completeness, and coordination of all design, drawings, specifications, and other services furnished by the CONSULTANT under this Agreement, including the work performed by its subconsultants (Subconsultants). Where approval by the SANITATION DISTRICT is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by errors, omissions, noncompliance with industry standards, and/or negligence on the part of the CONSULTANT or its Subconsultants. B. CONSULTANT is responsible for the quality of work prepared under this Agreement and shall perform all work to the industry standards for clarity, uniformity, and completeness. PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 1 of 19 C. In the event that work is not performed to the satisfaction of the SANITATION DISTRICT and does not conform to the requirements of this Agreement or any applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its designs, drawings, specifications, or other services within the timeframe specified by the Project Engineer/Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses, and damages associated with any such corrections or revisions. D. All CADD drawings, figures, and other work shall be produced by CONSULTANT and its Subconsultants using the SANITATION DISTRICT standard software. Conversion of CADD work from any other non-standard CADD format to the SANITATION DISTRICT format shall not be acceptable in lieu of this requirement. Electronic files shall be subject to an acceptance period of 30 calendar days during which the SANITATION DISTRICT shall perform appropriate acceptance tests. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANITATION DISTRICT. E. All professional services performed by the CONSULTANT, including, but not limited to, all drafts, data, correspondence, proposals, reports, and estimates compiled or composed by the CONSULTANT, pursuant to this Agreement, are for the sole use of the SANITATION DISTRICT, its agents, and employees. Neither the documents nor their contents shall be released to any third party without the prior written consent of the SANITATION DISTRICT. This provision does not apply to information that (a) was publicly known, or otherwise known to the CONSULTANT, at the time that it was disclosed to the CONSULTANT by the SANITATION DISTRICT or (b) subsequently becomes publicly known to the CONSULTANT other than through disclosure by the SANITATION DISTRICT. 2. COMPENSATION Total compensation shall be paid to CONSULTANT for services in accordance with the following provisions: A. Total Compensation Total compensation shall be in an amount not to exceed Sixteen Million Five Hundred Thousand Dollars ($16,500,000). Total compensation to CONSULTANT including burdened labor (salaries plus benefits), overhead, profit, direct costs, and Subconsultant(s) fees and costs shall not exceed the sum set forth in Attachment "E" - Fee Proposal. B. Labor As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the burdened salaries (salaries plus benefits) actually paid by CONSULTANT PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 2 of 19 charged on an hourly-rate basis to this project and paid to the personnel of CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT shall provide the SANITATION DISTRICT with certified payroll records of all employees' work that is charged to this project. C. Overhead As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall compensate CONSULTANT and Subconsultants for overhead at the rate equal to the percentage of burdened labor as specified in Attachment "E" - Fee Proposal. D. Profit Profit for CONSULTANT and its Subconsultants shall be a percentage of consulting services fees (Burdened Labor and Overhead). When the consulting or subconsulting services amount is $250,000 or less, the maximum Profit shall be 10%. Between $250,000 and $2,500,000, the maximum Profit shall be limited by a straight declining percentage between 10% and 5%. For consulting or subconsulting services fees with a value greater than $2,500,000, the maximum Profit shall be 5%. Addenda shall be governed by the same maximum Profit percentage after adding consulting services fees. As a portion of the total compensation to be paid to CONSULTANT and its Subconsultants, the SANITATION DISTRICT shall pay profit for all services rendered by CONSULTANT and its Subconsultants for this project according to Attachment "E" - Fee Proposal. E. Subconsultants For any Subconsultant whose fees for services are greater than or equal to $100,000 (excluding out-of-pocket costs), CONSULTANT shall pay to Subconsultant total compensation in accordance with the Subconsultant amount specified in Attachment "E" - Fee Proposal. For any Subconsultant whose fees for services are less than $100,000, CONSULTANT may pay to Subconsultant total compensation on an hourly-rate basis per the attached hourly rate schedule and as specified in the Scope of Work. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs of Subconsultant fees and charges in an amount not to exceed the sum set forth in Attachment "E" - Fee Proposal. F. Direct Costs The SANITATION DISTRICT shall pay to CONSULTANT and its Subconsultants the actual costs of permits and associated fees, travel, and licenses for an amount not to exceed the sum set forth in Attachment "E" - Fee Proposal. The SANITATION DISTRICT shall also pay to CONSULTANT actual costs for equipment rentals, leases, or purchases with prior approval of the SANITATION DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 3 of 19 DISTRICT receipts and other documentary records to support CONSULTANT's request for reimbursement of these amounts, see Attachment "D" —Allowable Direct Costs. All incidental expenses shall be included in overhead pursuant to Section 2 - COMPENSATION above. G. Other Direct Costs Other Direct Costs incurred by CONSULTANT and its contractor due to modifications in the Scope of Work resulting from field investigations and field work. These items may include special equipment, test equipment and tooling, and other materials and services not previously identified. Refer to Attachment "Y Allowable Direct Costs for payment information. H. Reimbursable Direct Costs The SANITATION DISTRICT will reimburse the CONSULTANT for reasonable travel and business expenses as described in this section and further described in Attachment "Y -Allowable Direct Costs to this Agreement. The reimbursement of the above-mentioned expenses will be based on an "accountable plan" as considered by the U.S. Internal Revenue Service (IRS). The plan includes a combination of reimbursements based upon receipts and a "per diem" component approved by the IRS. The most recent schedule of the per diem rates utilized by the SANITATION DISTRICT can be found on the U.S. General Services Administration (GSA) website at http://www.gsa.gov/portal/category/104711#. The CONSULTANT shall be responsible for the most economical and practical means of management of reimbursable costs inclusive but not limited to travel, lodging, and meals arrangements. The SANITATION DISTRICT shall apply the most economic and practical method of reimbursement which may include reimbursements based upon receipts and/or"per diem" as deemed the most practical. CONSULTANT shall be responsible for returning to the SANITATION DISTRICT any excess reimbursements after the reimbursement has been paid by the SANITATION DISTRICT. Travel and travel arrangements—Any travel involving airfare, overnight stays, or multiple day attendance must be approved by the SANITATION DISTRICT in advance. Local Travel is considered travel by the CONSULTANT within the SANITATION DISTRICT general geographical area which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, and Imperial and Kern Counties. Automobile mileage is reimbursable if CONSULTANT is required to utilize personal vehicle for local travel. Lodging — Overnight stays will not be approved by the SANITATION DISTRICT for local travel. However, under certain circumstances, overnight stay may be allowed at the discretion of the SANITATION DISTRICT based on reasonableness of meeting schedules and the amount of time required for travel by the PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 4 of 19 CONSULTANT. Such determination will be made on a case-by-case basis and at the discretion of the SANITATION DISTRICT. Travel Meals— Per-diem rates as approved by the IRS shall be utilized for travel meals reimbursements. Per diem rates shall be applied to meals that are appropriate for travel times. Receipts are not required for the approved meals. Additional details related to the reimbursement of the allowable direct costs are provided in the Attachment "D" - Allowable Direct Costs of this Agreement. I. Limitation of Costs If, at any time, CONSULTANT estimates the cost of performing the services described in CONSULTANT's proposal will exceed the not-to-exceed amount of the Agreement, including approved additional compensation, CONSULTANT shall notify the SANITATION DISTRICT immediately and in writing. This written notice shall indicate the additional amount necessary to complete the services. Any cost incurred in excess of the approved not-to-exceed amount without the express written consent of the SANITATION DISTRICT's authorized representative shall be at CONSULTANT's own risk. This written notice shall be provided separately from, and in addition to, any notification requirements contained in the CONSULTANT's invoice and monthly progress report. Failure to notify the SANITATION DISTRICT that the services cannot be completed within the authorized not-to-exceed amount is a material breach of this Agreement. 3. REALLOCATION OF TOTAL COMPENSATION The SANITATION DISTRICT, by its Director of Engineering, shall have the right to approve a reallocation of the incremental amounts constituting the total compensation, provided that the total compensation is not increased. 4. PAYMENT A. Monthly Invoice: CONSULTANT shall include in its monthly invoice a detailed breakdown of costs associated with the performance of any corrections or revisions of the work for that invoicing period. CONSULTANT shall allocate costs in the same manner as it would for payment requests as described in this Section of the Agreement. CONSULTANT shall warrant and certify the accuracy of these costs and understand that submitted costs are subject to Section 11 - AUDIT PROVISIONS. B. CONSULTANT may submit monthly or periodic statements requesting payment for those items included in Section 2 - COMPENSATION hereof in the format as required by the SANITATION DISTRICT. Such requests shall be based upon the amount and value of the work and services performed by CONSULTANT under this Agreement and shall be prepared by CONSULTANT and accompanied by such supporting data, including a detailed breakdown of all costs incurred and project element work performed during the period covered by the statement, as may be required by the SANITATION DISTRICT. PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 5 of 19 Upon approval of such payment request by the SANITATION DISTRICT, payment shall be made to CONSULTANT as soon as practicable of one hundred percent (100%) of the invoiced amount on a per-project-element basis. If the SANITATION DISTRICT determines that the work under this Agreement or any specified project element hereunder is incomplete and that the amount of payment is in excess of: i. The amount considered by the SANITATION DISTRICT's Director of Engineering to be adequate for the protection of the SANITATION DISTRICT or ii. The percentage of the work accomplished for each project element he or she may, at his or her discretion, retain an amount equal to that which insures that the total amount paid to that date does not exceed the percentage of the completed work for each project element or the project in its entirety. C. CONSULTANT may submit periodic payment requests for each 30-day period of this Agreement for the profit as set forth in Section 2 - COMPENSATION above. Said profit payment request shall be proportionate to the work actually accomplished to date on a per-project-element basis. In the event the SANITATION DISTRICT's Director of Engineering determines that no satisfactory progress has been made since the prior payment or in the event of a delay in the work progress for any reason, the SANITATION DISTRICT shall have the right to withhold any scheduled proportionate profit payment. D. Upon satisfactory completion by CONSULTANT of the work called for under the terms of this Agreement and upon acceptance of such work by the SANITATION DISTRICT, CONSULTANT will be paid the unpaid balance of any money due for such work, including any retained percentages relating to this portion of the work. E. Upon satisfactory completion of the work performed hereunder and prior to final payment under this Agreement for such work, or prior settlement upon termination of this Agreement, and as a condition precedent thereto, CONSULTANT shall execute and deliver to the SANITATION DISTRICT a release of all claims against the SANITATION DISTRICT arising under or by virtue of this Agreement other than such claims, if any, as may be specifically exempted by CONSULTANT from the operation of the release in stated amounts to be set forth therein. F. Pursuant to the California False Claims Act (Government Code Sections 12650- 12655), any CONSULTANT that knowingly submits a false claim to the SANITATION DISTRICT for compensation under the terms of this Agreement may be held liable for treble damages and up to a Ten Thousand Dollars ($10,000) civil penalty for each false claim submitted. This Section shall also be binding on all Subconsultants. A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: a) knowingly presents or causes to be presented to an officer or employee of the SANITATION DISTRICT a false claim or request for payment or approval; b) knowingly makes, uses, or PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 6 of 19 causes to be made or used a false record or statement to get a false claim paid or approved by the SANITATION DISTRICT; c) conspires to defraud the SANITATION DISTRICT by getting a false claim allowed or paid by the SANITATION DISTRICT; d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to the SANITATION DISTRICT; or e) is a beneficiary of an inadvertent submission of a false claim to the SANITATION DISTRICT and fails to disclose the false claim to the SANITATION DISTRICT within a reasonable time after discovery of the false claim. 5. CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) REGISTRATION AND RECORD OF WAGES A. To the extent CONSULTANT's employees and/or Subconsultants who will perform Work during the design and preconstruction phases of a construction contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 et seq., CONSULTANT and its Subconsultants shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring and enforcement by the DIR. B. The CONSULTANT and its Subconsultants shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776 and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a) (3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. C. Pursuant to Labor Code Section 1776, the CONSULTANT and its Subconsultants shall furnish a copy of all certified payroll records to the SANITATION DISTRICT and/or general public upon request, provided the public request is made through the SANITATION DISTRICT, the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement of the Department of Industrial Relations. D. The CONSULTANT and its Subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 6. DOCUMENT OWNERSHIP — SUBSEQUENT CHANGES TO PLANS AND SPECIFICATIONS A. Ownership of Documents for the Professional Services performed. All documents, including but not limited to, original plans, studies, sketches, drawings, computer printouts and disk files, and specifications prepared in connection with or related to the Scope of Work or Professional Services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's ownership of these documents includes use of, reproduction or reuse of, and all incidental rights whether or not the work for which they were prepared has been PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 7 of 19 performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's Professional Services are terminated: a) by the completion of the Agreement or b) in accordance with other provisions of this Agreement. Notwithstanding any other provision of this paragraph or Agreement, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the plans or specifications where the subsequent changes or uses are not authorized or approved by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate cause of the damage. The SANITATION DISTRICT shall furnish the CONSULTANT available studies, reports and other data pertinent to the CONSULTANT's services; obtain or authorize the CONSULTANT to obtain or provide additional reports and data as required; furnish to the CONSULTANT services of others required for the performance of the CONSULTANT's services hereunder, and the CONSULTANT shall be entitled to use and rely upon all such information and services provided by the SANITATION DISTRICT or others in performing the CONSULTANT's services under this Agreement. 7. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept State Compensation Insurance Fund, for the required policy of Worker's Compensation Insurance subject to the SANITATION DISTRICT's option to require a change in insurer in the event the State Fund financial rating is decreased below "B". Further, the SANITATION DISTRICT will require CONSULTANT to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within 20 days of written notice to CONSULTANT by the SANITATION DISTRICT or its agent. iii. Coverage shall be in effect prior to the commencement of any work under this Agreement. B. General Liability The CONSULTANT shall maintain during the life of this Agreement, including the period of warranty, Commercial General Liability Insurance written on an occurrence basis providing the following minimum limits of liability coverage: PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 8 of 19 Five Million Dollars ($5,000,000) per occurrence with Ten Million Dollars ($10,000,000) aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, blanket contractual liability (for this Agreement), products liability/completed operations (including any product manufactured or assembled), broad form property damage, blanket contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, owners and contractors protective liability, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse and Underground) and Riggers/On Hook Liability must be included in the General Liability policy and coverage must be reflected on the submitted Certificate of Insurance. C. Umbrella Excess Liability The minimum limits of general liability and Automotive Liability Insurance required, as set forth herein, shall be provided for through either a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Umbrella excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automotive liability. D. Automotive/Vehicle Liability Insurance The CONSULTANT shall maintain a policy of Automotive Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: Combined single limit of One Million Dollars ($1,000,000) or alternatively, Five Hundred Thousand Dollars ($500,000) per person for bodily injury, One Million Dollars ($1,000,000) per accident for bodily injury, and Five Hundred Thousand Dollars ($500,000) per accident for property damage. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement. E. Drone Liability Insurance If a drone will be used, Drone Liability Insurance must be maintained by CONSULTANT in the amount of One Million Dollars ($1,000,000) in a form acceptable to the SANITATION DISTRICT. F. Worker's Compensation Insurance The CONSULTANT shall provide such Workers' Compensation Insurance as required by the Labor Code of the State of California in the amount of the statutory limit, including Employer's Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per occurrence. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of the SANITATION DISTRICT. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless the insurance carrier is State PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 9 of 19 of California Insurance Fund and the identifier "SCIF" and endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage for Jones Act claims. G. Errors and Omissions/Professional Liability CONSULTANT shall maintain in full force and effect, throughout the term of this Agreement, standard industry form professional negligence errors and omissions insurance coverage in an amount of not less than Five Million Dollars ($5,000,000) with limits in accordance with the provisions of this Paragraph. If the policy of insurance is written on a "claims made" basis, said policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of five (5) years from the date of the completion of the services hereunder. In the event of termination of said policy during this period, CONSULTANT shall obtain continuing insurance coverage for the prior acts or omissions of CONSULTANT during the course of performing services under the term of this Agreement. Said coverage shall be evidenced by either a new policy evidencing no gap in coverage or by separate extended "tail" coverage with the present or new carrier. In the event the present policy of insurance is written on an "occurrence" basis, said policy shall be continued in full force and effect during the term of this Agreement or until completion of the services provided for in this Agreement, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts of CONSULTANT during the course of performing services under the term of this Agreement. CONSULTANT shall provide to the SANITATION DISTRICT a certificate of insurance in a form acceptable to the SANITATION DISTRICT indicating the deductible or self-retention amounts and the expiration date of said policy and shall provide renewal certificates not less than ten (10) days prior to the expiration of each policy term. H. Proof of Coverage The CONSULTANT shall furnish the SANITATION DISTRICT with original certificates and amendatory endorsements effecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by the SANITATION DISTRICT before work commences. The SANITATION DISTRICT reserves the right to require complete, certified copies of all required insurance policies, including endorsements, effecting the coverage required, at any time. The following are approved forms that must be submitted as proof of coverage: PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 10 of 19 • Certificate of Insurance ACORD Form 25 (5/2010) or equivalent. • Additional Insurance (ISO Form) CG2010 11 85 or (General Liability) The combination of(ISO Forms) CG 2010 1001 and CG 2037 1001 All other Additional Insured endorsements must be submitted for approval by the SANITATION DISTRICT, and the SANITATION DISTRICT may reject alternatives that provide different or less coverage to the SANITATION DISTRICT. • Additional Insured Submit endorsement provided by carrier for the (Auto Liability) SANITATION DISTRICT approval. • Waiver of Subrogation State Compensation Insurance Fund Endorsement No. 2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No. 2065 or equivalent. I. Cancellation Notice Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days' prior written notice. The Cancellation Section of ACORD Form 25 (5/2010) shall state the required thirty (30) days' written notification. The policy shall not terminate, nor shall it be cancelled, nor the coverage reduced until thirty (30) days after written notice is given to the SANITATION DISTRICT except for nonpayment of premium, which shall require not less than ten (10) days written notice to the SANITATION DISTRICT. Should there be changes in coverage or an increase in deductible or SIR amounts, the CONSULTANT and its insurance broker/agent shall send to the SANITATION DISTRICT a certified letter which includes a description of the changes in coverage and/or any increase in deductible or SIR amounts. The certified letter must be sent to the attention of Risk Management and shall be received by the SANITATION DISTRICT not less than thirty (30) days prior to the effective date of the change(s) if the change would reduce coverage or increase deductibles or SIR amounts or otherwise reduce or limit the scope of insurance coverage provided to the SANITATION DISTRICT. J. Primary Insurance All liability policies shall contain a Primary and Non-Contributory Clause. Any other insurance maintained by the SANITATION DISTRICT shall be excess and not contributing with the insurance provided by CONSULTANT. K. Separation of Insured All liability policies shall contain a "Separation of Insureds" clause. PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 11 of 19 L. Non-Limiting (if applicable) Nothing in this document shall be construed as limiting in any way, nor shall it limit the indemnification provision contained in this Agreement, or the extent to which CONSULTANT may be held responsible for payment of damages to persons or property. M. Deductibles and Self-Insured Retentions Any deductible and/or self-insured retention must be declared to the SANITATION DISTRICT on the Certificate of Insurance. All deductibles and/or self-insured retentions require approval by the SANITATION DISTRICT. At the option of the SANITATION DISTRICT, either: the insurer shall reduce or eliminate such deductible or self-insured retention as respects the SANITATION DISTRICT; or the CONSULTANT shall provide a financial guarantee satisfactory to the SANITATION DISTRICT guaranteeing payment of losses and related investigations, claim administration and defense expenses. N. Defense Costs Liability policies shall have a provision that defense costs for all insureds and additional insureds are paid in addition to and do not deplete any policy limits. O. Subconsultants The CONSULTANT shall be responsible to establish insurance requirements for any Subconsultant hired by the CONSULTANT. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subconsultant's operations and work. P. Limits Are Minimums If the CONSULTANT maintains higher limits than any minimums shown above, then SANITATION DISTRICT requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. 8. SCOPE CHANGES In the event of a change in the Scope of Work requested by SANITATION DISTRICT, the parties hereto shall execute an amendment to this Agreement setting forth with particularity all terms of the new Agreement, including but not limited to any additional CONSULTANT's fees. 9. PROJECT TEAM AND SUBCONSULTANTS CONSULTANT shall provide to the SANITATION DISTRICT, prior to execution of this Agreement, the names and full description of all Subconsultants and CONSULTANT's project team members anticipated to be used on this project by CONSULTANT. CONSULTANT shall include a description of the scope of work to be done by each Subconsultant and each CONSULTANT's project team member. CONSULTANT shall PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 12 of 19 include the respective compensation amounts for CONSULTANT and each Subconsultant on a per-project-element basis, broken down as indicated in Section 2 - COMPENSATION. There shall be no substitution of the listed Subconsultants and CONSULTANT's project team members without prior written approval by the SANITATION DISTRICT. 10. ENGINEERING REGISTRATION The CONSULTANT's personnel are comprised of registered engineers and a staff of specialists and draftsmen in each department. The firm itself is not a registered engineer but represents and agrees that wherever in the performance of this Agreement requires the services of a registered engineer, such services hereunder will be performed under the direct supervision of registered engineers. 11. AUDIT PROVISIONS A. SANITATION DISTRICT retains the reasonable right to access, review, examine, and audit any and all books, records, documents, and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify that the CONSULTANT is in compliance with all requirements under this Agreement. The CONSULTANT shall include the SANITATION DISTRICT's right as described above in any and all of its subcontracts and shall ensure that these rights are binding upon all Subconsultants. B. SANITATION DISTRICT retains the right to examine CONSULTANT's books, records, documents, and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify all direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred, or to ensure CONSULTANT's compliance with all requirements under this Agreement during the term of this Agreement and for a period of three (3) years after its termination. C. CONSULTANT shall maintain complete and accurate records in accordance with generally accepted industry standard practices and the SANITATION DISTRICT's policy. The CONSULTANT shall make available to the SANITATION DISTRICT, for review and audit, all project related accounting records and documents and any other financial data within fifteen (15) days after receipt of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's request, the CONSULTANT shall submit exact duplicates of originals of all requested records to the SANITATION DISTRICT. If an audit is performed, CONSULTANT shall ensure that a qualified employee of the CONSULTANT will be available to assist the SANITATION DISTRICT's auditor in obtaining all project-related accounting records and documents and any other financial data. 12. LEGAL RELATIONSHIP BETWEEN PARTIES The legal relationship between the parties hereto is that of an independent contractor and nothing herein shall be deemed to make CONSULTANT an employee of the SANITATION DISTRICT. PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 13 of 19 13. NOTICES All notices hereunder and communications regarding the interpretation of the terms of this Agreement, or changes thereto, shall be effected by delivery of said notices in person or by depositing said notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid. Notices shall be mailed to the SANITATION DISTRICT at: ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Digna Olmos, Principal Contracts Administrator Copy: Giti Radvar, Project Manager Notices shall be mailed to CONSULTANT at: Carollo Engineers, Inc. 3150 Bristol Street, Suite 500 Costa Mesa, CA 92626 Attention: Douglas J. Lanning, Project Manager Copy: Walid Karam, Project Director All communication regarding the Scope of Work will be addressed to the Project Manager. Direction from other SANITATION DISTRICT's staff must be approved in writing by the SANITATION DISTRICT's Project Manager prior to action by the CONSULTANT. 14. TERMINATION The SANITATION DISTRICT may terminate this Agreement at any time, without cause, upon giving thirty (30) days written notice to CONSULTANT. In the event of such termination, CONSULTANT shall be entitled to compensation for work performed on a prorated basis through and including the effective date of termination. CONSULTANT shall be permitted to terminate this Agreement upon thirty (30) days written notice only if CONSULTANT is not compensated for billed amounts in accordance with the provisions of this Agreement when the same are due. Notice of termination shall be mailed to the SANITATION DISTRICT and/or CONSULTANT in accordance with Section 13 - NOTICES. 15. DOCUMENTS AND STUDY MATERIALS The documents and study materials for this project shall become the property of the SANITATION DISTRICT upon the termination or completion of the work. CONSULTANT agrees to furnish to the SANITATION DISTRICT copies of all memoranda, correspondence, computation, and study materials in its files pertaining to the work described in this Agreement, which is requested in writing by the SANITATION DISTRICT. PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 14 of 19 16. COMPLIANCE A. Labor CONSULTANT certifies by the execution of this Agreement that it pays employees not less than the minimum wage as defined by law and that it does not discriminate in its employment with regard to race, color, religion, sex, or national origin; that it is in compliance with all federal, state, and local directives and executive orders regarding non-discrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. B. Air Pollution CONSULTANT and its Subconsultants and subcontractors shall comply with all applicable federal, state, and local air pollution control laws and regulations. 17. AGREEMENT EXECUTION AUTHORIZATION Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual executing this Agreement by and on behalf of each party is a person duly authorized to execute agreements for that party. 18. DISPUTE RESOLUTION In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar organization or entity conducting alternate dispute resolution services. 19. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which it may be entitled. 20. PROGRESS REPORTS Monthly progress reports shall be submitted for review by the tenth day of the following month and must include as a minimum: 1) current activities, 2) future activities, 3) potential items that are not included in the Scope of Work, 4) concerns and possible delays, 5) percentage of completion, and 6) budget status. 21. WARRANTY CONSULTANT shall perform its services in accordance with generally accepted industry and professional standards. If, within the 12-month period following completion of its services, the SANITATION DISTRICT informs CONSULTANT that any part of the services fails to meet those standards, CONSULTANT shall, within the time prescribed PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 15 of 19 by the SANITATION DISTRICT, take all such actions as are necessary to correct or complete the noted deficiency(ies). 22. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT's sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's officers, directors, employees, consultants, and agents (collectively the "Indemnified Parties"), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses, judgments, fines, penalties, costs and expenses including without limitation, attorneys' fees, disbursements and court costs, and all other professional, expert or consultants fees and costs and the SANITATION DISTRICT's general and administrative expenses (individually, a "Claim", or collectively, "Claims") which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT's suppliers, consultants, subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising from: (A) the sole or active negligence or willful misconduct of the Indemnified Parties; or (B) a natural disaster or other act of God, such as an earthquake; or (C) the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, officer, agent, employee, nor CONSULTANT's supplier, consultant, subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. Exceptions (A) through (B) above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. CONSULTANT's liability for indemnification hereunder is in addition to any liability CONSULTANT may have to the SANITATION DISTRICT for a breach by CONSULTANT of any of the provisions of this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit CONSULTANT's indemnification obligation or other liability hereunder. The terms of this Agreement are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 16 of 19 23. DUTY TO DEFEND The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of CONSULTANT and shall be consistent with Civil Code Section 2782.8. Such defense obligation shall arise immediately upon presentation of a Claim by any person if, without regard to the merit of the Claim, such Claim could potentially result in an obligation to indemnify one or more Indemnified Parties, and upon written notice of such Claim being provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In the event a final judgment, arbitration, award, order, settlement, or other final resolution expressly determines that the claim did not arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent, then the SANITATION DISTRICT will reimburse CONSULTANT for the reasonable costs of defending the Indemnified Parties against such claims. CONSULTANT's indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until such time as action against the Indemnified Parties for such matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 24. CONSULTANT PERFORMANCE The CONSULTANT's performance shall be evaluated by the SANITATION DISTRICT. A copy of the evaluation shall be sent to the CONSULTANT for comment. The evaluation, together with the comments, shall be retained by the SANITATION DISTRICT and may be considered in future CONSULTANT selection processes. 25. COMPLIANCE WITH SANITATION DISTRICT POLICIES AND PROCEDURES CONSULTANT shall comply with all SANITATION DISTRICT policies and procedures including the Contractor Safety Standards, as applicable, all of which may be amended from time to time. 26. CLOSEOUT When the SANITATION DISTRICT determines that all work authorized under the Agreement is fully complete and that the SANITATION DISTRICT requires no further work from CONSULTANT or the Agreement is otherwise terminated or expires in accordance with the terms of the Agreement, the SANITATION DISTRICT shall give the Consultant written notice that the Agreement will be closed out. CONSULTANT shall submit all outstanding billings, work submittals, deliverables, reports, or similarly related documents as required under the Agreement within thirty (30) days of receipt of notice of Agreement closeout. Upon receipt of CONSULTANT's submittals, the SANITATION DISTRICT shall commence a closeout audit of the Agreement and will either: i. Give the CONSULTANT a final Agreement Acceptance, or PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 17 of 19 ii. Advise the CONSULTANT in writing of any outstanding item or items which must be furnished, completed, or corrected at the CONSULTANT's cost. CONSULTANT shall be required to provide adequate resources to fully support any administrative closeout efforts identified in this Agreement. Such support must be provided within the timeframe requested by the SANITATION DISTRICT. Notwithstanding the final Agreement Acceptance, the CONSULTANT will not be relieved of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to complete any portions of the work, the non-completion of which were not disclosed to the SANITATION DISTRICT (regardless of whether such nondisclosures were fraudulent, negligent, or otherwise); and the CONSULTANT shall remain obligated under all those provisions of the Agreement which expressly or by their nature extend beyond and survive final Agreement Acceptance. Any failure by the SANITATION DISTRICT to reject the work or to reject the CONSULTANT's request for final Agreement Acceptance as set forth above shall not be deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose nor imply acceptance of, or agreement with, the CONSULTANT's request for final Agreement Acceptance. 27. COST ESTIMATES The CONSULTANT has no control over the cost of labor, materials, equipment or services furnished by others, or over the construction contractor's methods of determining prices, or other competitive bidding or market conditions, practices or bidding strategies. CONSULTANT shall use best engineering practices along with experience and judgment, utilizing current local costs of labor, materials, equipment or services to prepare cost estimates. CONSULTANT cannot and does not guarantee that proposals, bids, actual project construction, operation and/or lifecycle costs will not vary from cost estimates prepared by CONSULTANT. 28. THIRD PARTIES This Agreement is entered into by and for the SANITATION DISTRICT and the CONSULTANT, and nothing herein is intended to establish rights or interests in individuals or entities not a party hereto. 29. ENTIRE AGREEMENT This Agreement constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 18 of 19 IN WITNESS WHEREOF, this Agreement has been executed in the name of the SANITATION DISTRICT and CONSULTANT, by their respective officers thereunto duly authorized, as of the day and year first above written. CAROLLO ENGINEERS, INC. By Date Printed Name & Title ORANGE COUNTY SANITATION DISTRICT By David John Shawver Date Board Chairman By Kelly A. Lore Date Clerk of the Board By Ruth Zintzun Date Purchasing & Contracts Manager Attachments: Attachment "A" — Scope of Work Attachment "B" — Labor Hour Matrix Attachment "C" — Not used Attachment "D" —Allowable Direct Costs Attachment "E" — Fee Proposal Attachment "F" — Not used Attachment "G" —Acknowledgement of PCSA (Not attached) Attachment "H" — Not used Attachment "I" — Cost Matrix and Summary Attachment "J" — Not used Attachment "K" — Minor Subconsultant Hourly Rate Schedule Attachment "L" — Contractor Safety Standards DO:LDR:yp PCSA PROJECT NO. P1-105 Revised 101620 HEADWORKS REHABILITATION AT PLANT 1 Page 19 of 19 2/24/2021 Headworks Rehabilitation at Plant No. 1, Project No. P1-105 Consultant Services Award I � Professional Construction Services 1 I • Carollo Engineers, Inc. selected for design of Headworks Rehabilitation at Plant No. 1. P1-105 in May 2015 in a qualifications-based w competition Continuation of services during construction referenced in agreement. 2 1 2/24/2021 Professional Construction Services to be provided as needed (time and material) • Shop drawing submittal review • Requests for Information (RFIs) • Change Order assistance • Geotechnical inspection • Startup assistance, training, operating procedures • Record drawings 3 3 Professional Construction • • • Original Proposal MISS- Toours 88,014 67,706 ee $24,141,308 $16,500,000 Percentage of 10.8% 7.4% Construction • Multiple meetings held with Consultant • Clarified assumptions • Ensured scope, estimated quantities for requests for support and record drawings are appropriate Staff will report on progress& risks midway through construction. 4 2 2/24/2021 Recommendation: • • Approve a Professional Construction Services Agreement with Carollo Engineers, Inc. to provide construction support services for Headworks Rehabilitation at Plant No. 1, Project No. P1-105, for an amount not to exceed $16,500,000; and • Approve a contingency of$1,650,000 (10%). s Questi 5 • 6 3 Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1541 Agenda Date: 3/24/2021 Agenda Item No: 7. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: SETTLEMENT OF CLAIMS, COLLECTION OF DELINQUENT ACCOUNTS, AND WORKERS' COMPENSATION ACTIONS GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Adopt Resolution No. OC SAN 21-05 entitled, "A Resolution of the Board of Directors of Orange County Sanitation District Adopting Procedures for Settlement of Claims Made Against the Orange County Sanitation District; Settlement of Claims Made By the Orange County Sanitation District; Collection of Delinquent Accounts Owing to the Orange County Sanitation District; Settlement of Civil or Administrative Enforcement Actions; and Settlement of Workers' Compensation Actions; and repealing Resolution No. OCSD 11-04". BACKGROUND Resolution No. OCSD 11-04 was adopted on March 23, 2011, updating and repealing Resolution No. OCSD 98-23 concerning settlement of claims, collection of delinquent accounts, and workers' compensation actions. Since that time, the Orange County Sanitation District (Sanitation District) has undergone organizational changes as well as operational changes that make the current Resolution outdated. The Resolution has been updated to reflect these organizational changes as well as delegation of authority changes with respect to claims made against and by the Sanitation District, collection of delinquent accounts, civil or administrative actions, and workers' compensation actions. RELEVANT STANDARDS • Sanitation District Policies and Procedures PROBLEM Since Resolution No. OCSD 11-04 was adopted, the Sanitation District has undergone organizational changes as well as operational changes that make the current resolution outdated. Orange County Sanitation District Page 1 of 2 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1541 Agenda Date: 3/24/2021 Agenda Item No: 7. PROPOSED SOLUTION The Resolution has been updated to reflect these organizational changes as well as process changes and delegation of authority changes with respect to claims made against and by the Sanitation District, collection of delinquent accounts, civil or administrative actions, and workers' compensation actions. TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION The current Resolution is outdated and may cause delays in actions regarding settlement of claims, collection of delinquent accounts, and workers' compensation issues. PRIOR COMMITTEE/BOARD ACTIONS March 2011 - Adopted Resolution No. OCSD 11-04 Adopting Procedures for Settlement of Claims Made Against the Orange County Sanitation District (OCSD); Settlement of Claims Made by OCSD; Collection of Delinquent Accounts Owing to OCSD; Settlement of Civil or Administrative Actions; and Settlement of Worker's Compensation Actions; and repealing Resolution No. OCSD 98-23. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Draft Resolution No. OC SAN 21-05 (Redlined) • Draft Resolution No. OC SAN 21-05 (Clean) Orange County Sanitation District Page 2 of 2 Printed on 3/16/2021 powered by LegistarTM RESOLUTION NO. OC SAN 21-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING PROCEDURES FOR SETTLEMENT OF CLAIMS MADE AGAINST THE ORANGE COUNTY SANITATION DISTRICT SETTLEMENT OF CLAIMS MADE BYTHE ORANGE COUNTY SANITATION DISTRICT; COLLECTION OF DELINQUENT ACCOUNTS OWING TO THE ORANGE COUNTY SANITATION DISTRICT: SETTLEMENT OF CIVIL OR ADMINISTRATIVE ENFORCEMENT ACTIONS; AND SETTLEMENT OF WORKERS' COMPENSATION ACTIONS, AND REPEALING RESOLUTION NO. OCSD 11-04 WHEREAS claims for damages alleging personal injuries, bodily injuries, including death, and damages to real and personal property, are periodically made against tie-Orange County Sanitation District (OC San); and, WHEREAS the—SanntatiOR DiStriGtOC San presently has liability insurance in force with a significant self-insured retention, having previously been self-insured; and, WHEREAS the—Sanitation DiStriGtOC San has the need for the retention of claims administration services and legal counsel who shall be vested with certain limited authority to accomplish a favorable disposition of claims made against the SaRitatiOR Distrin+OC San; and, WHEREAS claims for workers' compensation damages alleging personal injuries, including death, are periodically made against the Sanritat en DiStFiGtOC San; and, WHEREAS The SaRitatiOR DiStFiGtOC San presently has major stop loss workers' compensation insurance in force;and, WHEREAS the-Sanitat;ORDiStriGtOC San has retained a claims administration service firm and special legal counsel who shall be vested with certain limited authority to accomplish a favorable disposition of workers' compensation claims made against the Saaitataea-Distr+c�OC San as provided herein; and WHEREAS cost efficiency relating to resolution of workers' compensation claims can be greatly improved by the adoption of certain policies relating to the resolution of said claims; and OC SAN 21-XX-1 W HEREAS Government Code Section 9354 authorizes the Board of Directors to delegate by resolution the authority to an employee to settle pre-litigation claims against .;e Sanitation DiStrin+OC San up to $50,000;and WHEREAS Government Code section 9352 authorizes the Board of Directors to delegate by resolution the authority to a committee of at least three members to settle pre-litigation claims; and WHEREAS Government Code Section 949 authorizes the Board of Directors to delegate authority to an employee or its attorney to settle lawsuits; and WHEREAS :he Sanitation DiStFin+OC San has occasion to seek recovery against persons or entities who have caused loss or damage to DiStriGOC San,_who have been assessed fines, charges,or special fees relating to their use of Sanitation DiStrin+OC San facilities, or who have been the subject of civil or administrative enforcement proceedings for violation of the SaRitatinn Distrin+OC 's Wastewater Discharge Regulations Ordinance; and WHEREAS in the course of conducting the business affairs of the-SanTta DistFiGtOC San, certain accounts receivable or other obligations owing to the OC San become delinquent,and in fact, uncollectible; and WHEREAS cost efficiency relating to collection of delinquent accounts can be greatly improved by the adoption of certain policies relating to the collection of said accounts; and WHEREAS the Board of Directors desires to update, amend, and reestablish procedures for the administration of claims against and by the Sani atinn O+stric OC San. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY DETERMINE, RESOLVEAND ORDER: OC SAN 21-XX-2 ARTICLE I SETTLEMENT OF LIABILITY CLAIMS MADE AGAI NST T H E ORANGE COUNTY SANITATION DISTRICT Section 1.1: A liability reserve has been established for the payment of claims made against the SaRitati R Distric4OC San. Said reserve shall continue to be provided in each annual budget to ensure that sufficient funds are on deposit to provide for payment of those amounts incurred as a liability loss or expense. Section 1.2: Each annual budget shall provide, in addition to the reserve established by Section 1.1,for the necessary funds to provide a sufficient balance to meet projected expenses for loss and payment of claims during the ensuing fiscal year. Section 1.3: A claims administration firm is authorized to be retained, and said firm is hereby granted authorization to make payments and settlements of claims made against the SaRitatien DiStrTGtOC San in an amount not to exceed $5,000.00 per claimant. Said firm shall be retained in accordance with the terms and conditions set forth in an agreement approved by the General Counsel. Section 1 .4: A Committee comprised of the General Manager or his designee and Director of Finance and Administrative Services are authorized to review and make full settlement of any claims made against the Sanitation DiStFiGtOC San for contract or liability damages not otherwise covered by insurance by payment of a sum not to exceed $50,000.00 per claimant. In the event a claim results in litigation, which is being legally defended by other than the SaRitatiOR DistrictOC San's General Counsel, this Committee shall review and provide the approval to the SanotatiOR DiStFiG OC San's special legal counsel within the same limits. Section 1.5: All claims for damages resulting in ajudgment or a recommended settlement by negotiation in an amount exceeding $50,000.00 per claimant,shall be submitted teto, and approved by the Board of Directors of the Station D;St,TGt1OC San prior to settlement payments being made. Section 1.6: The General Counsel,with concurrence of the General Manager, is authorized to retain the services of special legal counsel for purposes of representing the-SaRitatiG f DictFiGOC San in the defense of any claim or matter of litigation , whenever it is determined that specialized expertise or experience is desirable, a conflict of interest exists or could arise with the Office of General Counsel,or that the workload of the Office of General Counsel requires the utilization of special counsel. OC SAN 21-XX-3 ARTICLE II COLLECTION OF DELINQUENT OBLIGATIONS OWING TO THE ORANGE COUNTY SANITATION DISTRICT Section 2.1: The Director of Finance and Administrative Services is authorized to write off as an uncollectible debt any delinquent obligation owing to the Sanitati„n DiStFOG OC San in excess of 90 days and not exceeding the sum of $a-0-25,000.00. Section 22: The Director of Finance and Administrative Services, in his discretion, is authorized to assign for collection to a person or firm of his choosing, any delinquent obligation owing to the Sanitation DiStFin+OC San in excess of 45 days and not exceeding the sum of $100,000.00. Ninety (90) days after assigning the obligation for collection, the Director of Finance and Administrative Services is authorized to write off as an uncollectible debt any portion of the obligation which is still outstanding. Section 2.3: The Director of Finance and Admin-istrative Services shall forward any delinquent obligation in excess of $100,000.00 to the General Counsel for the Sarffitation Distr+GtOC San, who shall submit his recommendation to the Board of Directors as to the method of collection or disposition of said account. Section 2.4: The Director of Finance and Admin-istrative Services, in his discretion, is authorized to file the necessary proceedings in the small claims court of the appropriate judicial Sanitation Ddistrict of the County of Orange, in order to collect any delinquent obligation owing to t" San apt 0on DFstriGtOC San in excess of 45 days and not exceeding the sum of $5,000.00. Upon obtaining a judgment in favor of toe Sanitation DiStFin+OC San, the Director of Finance and Admin-istrative Services and General Counsel shall take all legal measures necessary to enforce the terms of the judgment. Ninety (90) days after receiving a final judgment in favor of the Sanitation OfstriGtOC San, the Director of Finance and Administrative Services, with the concurrence of the General Counsel, is authorized to write off as an uncollectible debt, any portion of the obligation which is still outstanding. Section 2.5: Notwithstanding the authority provided in Sections 2.2 and 2.3 above, any obligation owing to the Sanitation DietFOG OC San, not exceeding the sum of $100,000.00, may be compromised by acceptance of a sum less than the full amount due or may be written off as uncollectible upon that determination being made, after investigation by a Committee comprised of the General Manager, or his designee,and the Director of Finance and Administrative Services. Section 2.6: In addition to the above authorization, the Director of Finance and Administrative Services is directed to exercise all available lawful methods to ensure prompt and full recovery of all obligations owing to the Sanitation Dic+TctOC 0C SAN 21-XX-4 San. Section 2.7: The Director of Finance and Administrative Services is authorized to offset against any sums held on deposit by the Sanitation Dic+rin+OC San on behalf of any person or entity who owes a delinquent obligation to the Sanitati,e„-D;GtrGtOC San. Section 2.8: The Director of Finance and Administrative Services is authorized to withhold the approval of any such permits otherwise to be issued by the Sanitation DiStriG OC San to any person or entity who has an outstanding debt obligation owing to the Sanitation DiStrin+OC San until such time as said debt obligation is paid in full. Section 2.9: Delinquent obligations,as used in this Resolution,shall include any invoice submitted by the Sa^Rtatsn-D;St,�GtOC. San for services rendered or for reimbursement of damages caused to SaRitatiGR DiStriGtOC San property or personnel,which has not been paid within: (a) The time prescribed by OC San Ordinance or Resolution; (b) Forty-five (45) days from the date of invoice, whichever is later. ARTICLE III COLLECTION OF FEESAND CHARGES RELATING TO INDUSTRIAL WASTE DISCHARGES Section 3.1: In the event any fees or charges, up to the amount of$100,000.00, are owed by an Industrial Waste Permittee and are delinquent or in dispute between the Permittee and Sanitation DiStrin+OC San, a Committee comprised of the Director of Finance and Administrative Services, and Director of Enninoorinn Environmental Services are authorized to negotiate and enter into, on behalf of the Sanitat an DiStFiGtOC San,a settlement agreement relating to the financial obligation owing to the San'tatinn Dic+rin+OC San. This Section shall not apply to enforcement actions which are specifically provided for in Article IV below. Said agreement shall be based upon a showing of good cause and a reasonable dispute between the Sanitation D;:tr+G OC San and the Permottee,aedPermittee and can provide for acceptance of a sum less than the full amount claimed as due by+ho Sanitation Dic+rin+OC San. This agreement may be entered into prior to or during the pendency of any litigation filed by the Sanitation DiStrin+OC San to collect the amount owed. OC SAN 21-XX-5 Section 3.2: Upon written request and establishment of good cause by an Industrial Waste Permittee, the Committee of the General Manager,or his designee, the Director of Finance and Admin—istrative Services, and Director of Engineer Environmental Services, may negotiate and enter into a deferred payment agreement with the Permittee in accordance with the guidelines established herein. Said agreement may be incorporated as part of, or separate and in addition to, any enforcement compliance agreements authorized by the provisions of the Sanitation Dostrin+OC San's Wastewater Discharge Regulations Ordinance. Section 3.2.1 : The installment payment agreement shall be for a maximum term not to exceed 24 months. The agreement shall provide for payment of interest on the principal amount owing at a rate not exceeding the higher of: (a) Ten (10%) percent per annum; or (b) Five (5%) percent per annum, plus the rate prevailing on the 25th day of the month preceding the earlier of: (i) The date of execution of the contract to make the loan or forbearance; or (ii) The date of making the loan or forbearance. (Established by the Federal Reserve Bank of San Francisco on advances to member banks under Sections 13 and 13(a) of the Federal Reserve Act (commonly referred to as the "discount" rate). The agreement shall provide for payment of all costs of preparing and administering the payment agreement, including legal and administrative costs. Section 3.2.2: The agreement shall stipulate the penalties to which the Permittee shall be subjected in the event of nonpayment of any of the payments specified in the agreement, including initiation of legal action or permit suspens-ion or revocation, as recommended by the General Counsel and the Director of Engineer Environmental Services. Section 3.3: If the delinquent obligation is greater than $100,000.00, any compromise settlement or any deferred payment agreement shall be submitted to and approved by the Board of Directors, who shall prescribe the terms and conditions. OC SAN 21-XX-6 ARTICLE IV SETTLEMENT OF CIVIL ADMINISTRATIVE ENFORCEMENT ACTIONS Section 4.1: In the event the Sanitation DiStriGtOC San initiates or intends to initiate any civil or administrative enforcement actions based upon alleged violations of the-SaRitation DiStFiGtOC San's Wastewater Discharge Regulations Ordinance, a Committee comprised of the General Manager, or his designee, the Director of Finance and Administrative Services, and Director of Engineerinn Environmental Services are authorized to negotiate and enter into, on behalf of the Sanitat an DiStFiGtOC San, a settlement agreement , which may include both payment to the Sara+tatiee—Dietr+G OC San in an amount up to $100 ,000.00, and enforcement compliance orders deemed appropriate to ensure compliance with the Wastewater Discharge Regulations Ordinance. This agreement may be entered into prior to or during the pendency of any administrative proceeding or litigation enforcement action. Section 4.2: The Committee of the General Manager, Director of Finance and Administrative Services, and Director of EngineeFOR Environmental Services may negotiate and enter into a settlement agreement which includes a schedu-le of payments over a period of time not to exceed 24 months, by the person or entity which is the subject of the enforcement action. The agreement shall provide for payment of interest on the principal amount owing at a rate not exceeding the higher of: (a) Ten (10%) percent per annum; or (b) Five (5%) percent per annum,plus the rate prevailing on the 25th day of the month preceding the earlier of: (i) The date of execution of the contract to make the loan or forbearance; or (ii) The date of making the loan or forbearance. (Established by the Federal Reserve Bank of San Francisco on advances to member banks under Sections 13 and 13(a)of the Federal Reserve Act (commonly referred to as the "discount" rate).) Section 4.3: If the proposed settlement involves the payment of an amount greater than $100 ,000.00, the settlement shall be submitted for approval by the Board of Directors of the SaRitation Dietr+G OC San. OC SAN 21-XX-7 ARTICLE V SETTLEMENT OF WORKERS'COMPENSATION CLAIMS MADE AGAI NST THE ORANGE COUNTY SANITATION DISTRICT Section 5.1: A workers' compensation liability reserve has been established for the payment of workers' compensation claims made against OC San. Said reserve shall continue to be provided in each annual budget to ensure that sufficient funds are available to provide for payment of the amounts incurred as a workers' compensation liability loss or expense. ,., A minim,,m liability reserve has boon establ isherJ in the amo�ant Gf $250 000 nn for the nayrnent of claims made against the fer on ash annual budget to-ensure that sUfficient funds are on deposit to provide for payment of those amo,ants inn,,rred as a liability loss or expense Section 5.2: Each annual budget shall provide, in addition to the reserve established by Section 5.1 ,for the sufficient funds to provide a sufficient balance to meet projected expenses for payment of claims during the ensuing fiscal year. Section 5.3: A designated claims administrator is authorized to be retained and said form administrator is hereby granted authorization to make payments and settlements of workers' compensation claims made against the Sanitation DistrictOC San in an amount not to exceed $5,000.00 per claima-rat. Said fibadministrator shall be retained in accordance with the terms and conditions set forth in an agreement approved by the General Counsel. Section 5.4: The Director of Human Resources or designee is authorized to review and make full settlement of any workers' compensation claims made against OC San by payment of an amount not to exceed $25,000.00 per claim. In ai•ditien to special legal cep Ansel selected by the Sanitation District's Workers' Gempensatien / dMinis te ,to General Ge Ansel i�u h�Lcdtoe retaiR the serviGes of speGial legal GOURsel for purposes of representing the workload requires the utilization of e,itsi`Je ce,rnsel Section 5.5: A Committee comprised of the General Manager or designee, Assistant General Manager (Director of Finance & Administrative Services) or designee, and Director of Human Resources or designee n ('ommi++ee cam nrise�of Services and the Sanitation District's Risk Manager are authorized to review and make full settlement of any workers' compensation claim made against tie OC SAN 21-XX-8 SaRitatiO , DiStri^+OC San resulting in a recommended settlement by negotiation by payment of a sum notto exceed $50,000.00per claim,in addition to the aetaaf medical expensess and associated costs to include but not limited to medical and psychological treatment, review, devices, medication, physical therapy,—and., temporary disability payments and permanent disability payments per claimpe-r Glairnant. In the event a claim results in 'higatien,w litigation, which is being legally defended by specialized counsel other than the Sanitation DiStF+Gt.00 San's General Counsel, this Committee shall review and provide the approval to tie San;tatmo , DiStri^+OC San'sspecial legal counselwithin the same limits. Section 5.6: All workers' compensation claims resulting in a recommended settlement by negotiation or stipulation in an amount exceeding $50,000.00, in addition to the actalmedical expenses and associated costs to include but not limited to medical and psychological treatment, review, devices, medication, physical therapy,-and,temporary disability payrnents,andpayments, and permanent disability payments per claimpeF ^la;man+, shall be submitted to and approved by the Board of Directors of OC San prior to settlement payments being made. Section 5.7: In addition to specialized legal counsel selected by the-D;strlp,40C San, the General Manager is authorized to retain the services of specialized legal counsel for purposes of representing th-e4 s#ir,4OC San in the defense of any workers' compensation claim, wherein the General Manager determines that specialized expertise is desirable, and the utilization of outside counsel is required. Section 6.1: This Resolution supersedes Resolution No. OCSD 1 1-0498- 2-a, which shall be repealed in its entirety as of the date this Resolution becomes effective. In the event this Resolution does not become effective, Resolution No. 98 23 OCSD 11-04shall remain in full force and effect. Section 6.2: This Resolution is effective immediately upon adoption. PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Orange County Sanitation District held March 24, 2021 Regular Meeting held March 23 2011 . David John Shawver Chairman of the Board of Directors Chao ATTEST: Kelly A. Lore, MMC Clerk of the Board OC SAN 21-XX-9 RESOLUTION NO. OC SAN 21-05 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING PROCEDURES FOR SETTLEMENT OF CLAIMS MADE AGAINST THE ORANGE COUNTY SANITATION DISTRICT SETTLEMENT OF CLAIMS MADE BY THE ORANGE COUNTY SANITATION DISTRICT; COLLECTION OF DELINQUENT ACCOUNTS OWING TO THE ORANGE COUNTY SANITATION DISTRICT: SETTLEMENT OF CIVIL OR ADMINISTRATIVE ENFORCEMENT ACTIONS; AND SETTLEMENT OF WORKERS' COMPENSATION ACTIONS, AND REPEALING RESOLUTION NO. OCSD 11-04 WHEREAS claims for damages alleging personal injuries, bodily injuries, including death, and damages to real and personal property, are periodically made against Orange County Sanitation District (OC San); and, WHEREAS OC San presently has liability insurance in force with a significant self-insured retention, having previously been self-insured; and, WHEREAS OC San has the need for the retention of claims administration services and legal counsel who shall be vested with certain limited authority to accomplish a favorable disposition of claims made against OC San; and, WHEREAS claims for workers' compensation damages alleging personal injuries, including death, are periodically made against OC San; and, WHEREAS OC San presently has major stop loss workers' compensation insurance in force;and, WHEREAS OC San has retained a claims administration service firm and special legal counsel who shall be vested with certain limited authority to accomplish a favorable disposition of workers' compensation claims made against OC San as provided herein; and WHEREAS cost efficiency relating to resolution of workers' compensation claims can be greatly improved by the adoption of certain policies relating to the resolution of said claims; and WHEREAS Government Code Section 9354 authorizes the Board of Directors to delegate by resolution the authority to an employee to settle pre-litigation claims OC SAN 21-05-1 against OC San up to $50,000;and WHEREAS Government Code section 9352 authorizes the Board of Directors to delegate by resolution the authority to a committee of at least three members to settle pre-litigation claims; and W HEREAS Government Code Section 949 authorizes the Board of Directors to delegate authority to an employee or its attorney to settle lawsuits; and W HEREAS OC San has occasion to seek recovery against persons or entities who have caused loss or damage to OC San, who have been assessed fines, charges,or special fees relating to their use of OC San facilities, or who have been the subject of civil or administrative enforcement proceedings for violation of OC San's Wastewater Discharge Regulations Ordinance; and W HEREAS in the course of conducting the business affairs of OC San, certain accounts receivable or other obligations owing to OC San become delinquent,and in fact, uncollectible; and WHEREAS cost efficiency relating to collection of delinquent accounts can be greatly improved by the adoption of certain policies relating to the collection of said accounts; and WHEREAS the Board of Directors desires to update, amend, and reestablish procedures for the administration of claims against and by OC San. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY DETERMINE, RESOLVEAND ORDER: OC SAN 21-05-2 ARTICLE I SETTLEMENT OF LIABILITY CLAIMSMADE AGAINST T H E ORANGE COUNTY SANITATION DISTRICT Section 1.1: A liability reserve has been established for the payment of claims made against OC San. Said reserve shall continue to be provided in each annual budget to ensure that sufficient funds are on deposit to provide for payment of those amounts incurred as a liability loss or expense. Section 1 .2: Each annual budget shall provide, in addition to the reserve established by Section 1.1,for the necessary funds to provide a sufficient balance to meet projected expenses for loss and payment of claims during the ensuing fiscal year. Section 1.3: A claims administration firm is authorized to be retained, and said firm is hereby granted authorization to make payments and settlements of claims made against OC San in an amount not to exceed $5,000.00 per claimant. Said firm shall be retained in accordance with the terms and conditions set forth in an agreement approved by the General Counsel. Section 1 .4: A Committee comprised of the General Manager or his designee and Director of Finance and Administrative Services are authorized to review and make full settlement of any claims made against OC San for contract or liability damages not otherwise covered by insurance by payment of a sum not to exceed $50,000.00 per claimant. In the event a claim results in litigation, which is being legally defended by other than OC San's General Counsel, this Committee shall review and provide the approval to OC San's special legal counsel within the same limits. Section 1.5: All claimsfor damages resulting inajudgment or recommended settlement by negotiation in an amount exceeding $50,000.00 per claimant,shall be submitted to, and approved by the Board of Directors of OC San prior to settlement payments being made. Section 1.6: The General Counsel,with concurrence of the General Manager, is authorized to retain the services of special legal counsel for purposes of representing OC San in the defense of any claim or matter of litigation, whenever it is determined that specialized expertise or experience is desirable, a conflict of interest exists or could arise with the Office of General Counsel,or that the workload of the Office of General Counsel requires the utilization of special counsel. OC SAN 21-05-3 ARTICLE II COLLECTION OF DELINQUENT OBLIGATIONS OWING TO THE ORANGE COUNTY SANITATION DISTRICT Section 2.1: The Director of Finance and Administrative Services is authorized to write off as an uncollectible debt any delinquent obligation owing to OC San in excess of 90 days and not exceeding the sum of $25,000.00. Section 22: The Director of Finance and Administrative Services, in his discretion, is authorized to assign for collection to a person or firm of his choosing, any delinquent obligation owing to OC San in excess of 45 days and not exceeding the sum of $100,000.00. Ninety (90)days after assigning the obligation for collection, the Director of Finance and Administrative Services is authorized to write off as an uncollectible debt any portion of the obligation which is still outstanding. Section 2.3: The Director of Finance and Administrative Services shall forward any delinquent obligation in excess of $100,000.00 to the General Counsel for OC San, who shall submit his recommendation to the Board of Directors as to the method of collection or disposition of said account. Section 2.4: The Director of Finance and Administrative Services, in his discretion, is authorized to file the necessary proceedings in the small claims court of the appropriate judicial district of the County of Orange, in order to collect any delinquent obligation owing to OC San in excess of 45 days and not exceeding the sum of $5,000.00. Upon obtaining a judgment in favor of OC San, the Director of Finance and Administrative Services and General Counsel shall take all legal measures necessary to enforce the terms of the judgment. Ninety (90) days after receiving a final judgment in favor of OC San, the Director of Finance and Administrative Services, with the concurrence of the General Counsel, is authorized to write off as an uncollectible debt, any portion of the obligation which is still outstanding. Section 2.5: Notwithstanding the authority provided in Sections 2.2 and 2.3 above, any obligation owing to OC San, not exceeding the sum of $100,000.00, may be compromised by acceptance of a sum less than the full amount due or may be written off as uncollectible upon that determination being made, after investigation by a Committee comprised of the General Manager, or his designee,and the Director of Finance and Administrative Services. Section 2.6: In addition to the above authorization, the Director of Finance and Administrative Services is directed to exercise all available lawful methods to ensure prompt and full recovery of all obligations owing to OC San. OC SAN 21-05-4 Section 2.7: The Director of Finance and Administrative Services is authorized to offset against any sums held on deposit by OC San on behalf of any person or entity who owes a delinquent obligation to OC San. Section 2.8: The Director of Finance and Administrative Services is authorized to withhold the approval of any such permits otherwise to be issued by OC San to any person or entity who has an outstanding debt obligation owing to OC San until such time as said debt obligation is paid in full. Section 2.9: Delinquent obligations,as used in this Resolution, shall include any invoice submitted by OC San for services rendered or for reimbursement of damages caused to OC San property or personnel, which has not been paid within: (a) The time prescribed by OC San Ordinance or Resolution; (b) Forty-five (45) days from the date of invoice, whichever is later. ARTICLE III COLLECTION OF FEES AND CHARGES RELATING TO INDUSTRIAL WASTE DISCHARGES Section 3.1: In the event any fees or charges, up to the amount of$100,000.00, are owed by an Industrial Waste Permittee and are delinquent or in dispute between the Permittee and OC San, a Committee comprised of the Director of Finance and Administrative Services, and Director of Environmental Services are authorzed to negotiate and enter into, on behalf of OC San,a settlement agreement relating to the financial obligation owing to OC San. This Section shall not apply to enforcement actions which are specifically provided for in Article IV below. Said agreement shall be based upon a showing of good cause and a reasonable dispute between OC San and the Permittee and can provide for acceptance of a sum less than the full amount claimed as due by OC San. This agreement may be entered into prior to or during the pendency of any litigation filed by OC San to collect the amount owed. Section 3.2: Upon written request and establishment of good cause by an Industrial Waste Permittee, the Committee of the General Manager,or his designee, the Director of Finance and Administrative Services, and Director of Environmental Services, may negotiate and enter into a deferred payment agreement with the Permittee in accordance with the guidelines established herein. Said agreement may OC SAN 21-05-5 be incorporated as part of, or separate and in addition to, any enforcement compliance agreements authorized by the provisions of OC San's Wastewater Discharge Regulations Ordinance. Section 3.2.1 : The installment payment agreement shall be for a maximum term not to exceed 24 months. The agreement shall provide for payment of interest on the principal amount owing at a rate not exceeding the higher of: (a) Ten (10%) percent per annum; or (b) Five (5%) percent per annum, plus the rate prevailing on the 25th day of the month preceding the earlier of: (i) The date of execution of the contract to make the loan or forbearance; or (ii) The date of making the loan or forbearance. (Established by the Federal Reserve Bank of San Francisco on advances to member banks under Sections 13 and 13(a) of the Federal Reserve Act (commonly referred to as the "discount" rate). The agreement shall provide for payment of all costs of preparing and administering the payment agreement, including legal and administrative costs. Section 3.2.2: The agreement shall stipulate the penalties to which the Permittee shall be subjected in the event of nonpayment of any of the payments specified in the agreement, including initiation of legal action or permit suspension or revocation, as recommended by the General Counsel and the Director of Environmental Services. Section 3.3: If the delinquent obligation is greater than $100,000.00, any compromise settlement or any deferred payment agreement shall be submitted to and approved by the Board of Directors, who shall prescribe the terms and conditions. OC SAN 21-05-6 ARTICLE IV SETTLEMENT OF CIVILADMINISTRATIVE ENFORCEMENT ACTIONS Section 4.1: In the event OC San initiates or intends to initiate any civil or administrative enforcement actions based upon alleged violations of OC San's Wastewater Discharge Regulations Ordinance, a Committee comprised of the General Manager, or his designee, the Director of Finance and Administrative Services, and Director of Environmental Services are authoreed to negotiate and enter into, on behalf of OC San,a settlement agreement, which may include both payment to OC San in an amount up to $100,000.00,and enforcement compliance orders deemed appropriate to ensure compliance with the Wastewater Discharge Regulations Ordinance. This agreement may be entered into prior to or during the pendency of any administrative proceeding or litigation enforcement action. Section 4.2: The Committee of the General Manager, Director of Finance and Administrative Services, and Director of Environmental Services may negotiate and enter into a settlement agreement which includes a schedule of payments over a period of time not to exceed 24 months, by the person or entity which is the subject of the enforcement action. The agreement shall provide for payment of interest on the principal amount owing at a rate not exceeding the higher of: (a) Ten (10%) percent per annum; or (b) Five (5%) percent per annum, plus the rate prevailing on the 25th day of the month preceding the earlier of: (i) The date of execution of the contract to make the loan or forbearance; or (ii) The date of making the loan or forbearance. (Established by the Federal Reserve Bank of San Francisco on advances to member banks under Sections 13 and 13(a)of the Federal Reserve Act (commonly referred to as the "discount" rate).) Section 4.3: If the proposed settlement involves the payment of an amount greater than $100 ,000.00, the settlement shall be submitted for approval by the Board of Directors of OC San. OC SAN 21-05-7 ARTICLE V SETTLEMENT OFWORKERS COMPENSATION CLAIMS MADEAGAINSTTHE ORANGE COUNTY SANITATION DISTRICT Section 5.1: A workers' compensation liability reserve has been established for the payment of workers' compensation claims made against OC San. Said reserve shall continue to be provided in each annual budget to ensure that sufficient funds are available to provide for payment of the amounts incurred as a workers' compensation liability loss or expense. Section 5.2: Each annual budget shall provide, in addition to the reserve established by Section 5.1 ,for the sufficient funds to provide a sufficient balance to meet projected expenses for payment of claims during the ensuing fiscal year. Section 5.3: A designated claims administrator is authorized to be retained and said administrator is hereby granted authorization to make payments and settlements of workers' compensation claims made against OC San in an amount not to exceed $5,000.00 per claim. Said administrator shall be retained in accordance with the terms and conditions set forth in an agreement approved by the General Counsel. Section 5.4: The Director of Human Resources or designee is authorized to review and make full settlement of any workers' compensation claims made against OC San by payment of an amount not to exceed $25,000.00 per claim. Section 5.5: A Committee comprised of the General Manager or designee, Assistant General Manager (Director of Finance & Administrative Services) or designee, and Director of Human Resources or designee are authorized to review and make full settlement of any workers' compensation claim made against OC San resulting in a recommended settlement by negotiation bypaymentofasum not to exceed $50,000.00per claim, in addition to the medical expenses and associated costs to include but not limited to medical and psychological treatment, review, devices, medication, physical therapy„temporary disability payments, and permanent disability payments per claim. In the event a claim results in litigation, which is being legally defended by specialized counsel other than OC San's General Counsel, this Committee shall review and provide the approval to OC San'sspecial legal counsel within the same limits. Section 5.6: All workers' compensation claims resulting in a recommended settlement by negotiation in an amount exceeding $50,000.00, in addition to the medical expenses and associated costs to include but not limited to medical and psychological treatment, review, devices, medication, physical therapy, temporary disability payments, and permanent disability payments per claim, shall be submitted to and approved by the Board of Directors of OC San prior to settlement payments OC SAN 21-05-8 being made. Section 5.7: In addition to specialized legal counsel selected by OC San, the General Manager is authorized to retain the services of specialized legal counsel for purposes of representing OC San in the defense of any workers' compensation claim, wherein the General Manager determines that specialized expertise is desirable, and the utilization of outside counsel is required. Section 6.1: This Resolution supersedes Resolution No. OCSD 1 1 -04, which shall be repealed in its entirety as of the date this Resolution becomes effective. In the event this Resolution does not become effective, Resolution No. OCSD 11-04 shall remain in full force and effect. Section 6.2: This Resolution is effective immediately upon adoption. PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Orange County Sanitation District held March 24, 2021. David John Shawver Chairman of the Board of Directors ATTEST: Kelly A. Lore, MMC Clerk of the Board OC SAN 21-05-9 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OC SAN 21-05 was passed and adopted at a regular meeting of said Board on the 241" day of March 2021, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 24t" day of March 2021. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OC SAN 21-05-10 Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1542 Agenda Date: 3/24/2021 Agenda Item No: 8. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2021A GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Authorize the General Manager to issue new fixed rate Certificates of Participation, to be referred to as Wastewater Refunding Revenue Obligations, in (1) an amount sufficient to refund $102,200,000 of Revenue Refunding Certificate Anticipation Notes, Series 2018A maturing on August 15, 2021 and (2) an additional amount sufficient to refund, subject to market conditions, up to $61,575,000 of Wastewater Refunding Revenue Obligations, Series 2011A. BACKGROUND Revenue Refunding Certificate Anticipation Notes, Series 2018A The borrowing cost on the current outstanding Revenue Refunding Certificate Anticipation Notes Series 2018A (2018A CANs) is fixed for 33.5 months and the entire $102,200,000 plus interest becomes due and payable on August 15, 2021. The Orange County Sanitation District (Sanitation District) is responsible for a total repayment, including interest due, of $104,755,000 or the Sanitation District could choose to refinance the 2018A CANs. Due to the current near historically low tax- exempt cost of fixed rate debt, staff does not recommend the use of $105 million of reserves to repay the 2018A CANs. In March 2006, the Sanitation District issued $200 million of variable rate Certificates of Participation (COP), Series 2006 (2006 COPs). Alternatively, the Sanitation District could have issued debt, at an estimated cost of 4.54%, on a fixed rate basis in 2006 ("2006 Fixed Rate"). For the initial 27 months through August 2008, the average variable rate on the 2006 COPs was 2.95% or 0.22% less than the SIFMA index (weekly market index of tax-exempt variable rate obligations). As the global financial crisis took hold of the markets in the late summer of 2008, there was a significant increase in the variable rate borrowing cost to the Sanitation District, including many other municipal variable rate borrowers, with the 2006 COPs averaging 4.29% (or 1.56% above the SIFMA index) for the period between September 2008 and December 2008. The amount of the variable rate cost increase above the SIFMA index can be attributed to the weakened financial strength of the bank, DEPFA Bank plc, that was providing liquidity support on the 2006 COPs. Even with the increase in interest rates Orange County Sanitation District Page 1 of 7 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1542 Agenda Date: 3/24/2021 Agenda Item No: 8. during this period of unprecedented stress, the 4.29% average cost was still lower than the 2006 Fixed Rate of 4.54%. In December 2008, the Sanitation District proactively refunded the 2006 COPs with the fixed rate Refunding COP Series 2008C Certificate Anticipation Notes (2008C CANs) yielding 0.98% for a one- year period to reduce its exposure to then higher and more volatile variable rate costs and to avoid relying on liquidity support from weakening banks. The issuance of the 2008C CANs allowed the Sanitation District to redeem the 2006 COPs at an all-in cost of less than 1.25% and avoid paying a bank rate of 4.75% which would have been effective starting a month later. Since the 2008C CANs issuance, the Sanitation District completed five additional one-year refinancings at progressively lower yields, followed by two 25-month refinancings starting in 2014, and with the most recent 33.5- month refinancing in 2018, as summarized below: Series Principal Amount Maturity Yield All-in Cost 2009B $ 165,865,000 1 Year 0.370% 0.559% 2010B 154,665,000 1 Year 0.360 0.525 2011 B 143,205,000 1 Year 0.225 0.399 2012C 131,700,000 1 Year 0.210 0.410 2013A 129,625,000 1 Year 0.170 0.390 2014B 120,850,000 25.0 months 0.320 0.523 2016B 1097875,000 25.5 months 0.840 1.002 i2018A 102,200,000 i33.5 months 11.940 12.134 Wastewater Refunding Revenue Obligations Series 2011A The Sanitation District's Wastewater Refunding Revenue Obligations Series 2011A (2011A Revenue Obligations) are subject to optional redemption on August 1, 2021. As interest rates are now lower than in 2011, there is the potential opportunity to refinance a portion of the outstanding 2011A Revenue Obligations to reduce interest costs for the Sanitation District. Under current market conditions, a refunding of $61,575,000 of the Series 2011A Revenue Obligations would generate more than 3% net present value savings (the minimum percentage required by the Sanitation District's debt policy). Shorter term tax-exempt interest rates were consistently low between 2011 and 2016, then these rates steadily increased until 2018. Since 2018, shorter term tax-exempt rates have been in a downward trend as shown in the history for the AAA General Obligation Municipal Market Data Index for 3-year (reflective of the average life of the potential 2011A Revenue Obligations refunding candidates) and 5-year tax-exempt maturities (reflective of the maximum maturity of the potential 2011A Revenue Obligations refunding candidates). Please see Exhibit A on the AAA General Obligation Municipal Market Data Index attachment. RELEVANT STANDARDS • Sanitation District Debt Policy - Financial Management Policy and Procedure 201-3-1; restructuring outstanding debt is desirable and refunding to achieve debt service savings Orange County Sanitation District Page 2 of 7 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1542 Agenda Date: 3/24/2021 Agenda Item No: 8. PROBLEM 2018A CANs The 2018A CANs are due and payable on August 15, 2021 in the amount of $104,755,000. The 2018A CANs were issued with a short-term 33.5-month rate with the expectation that upon maturity the issue would be refinanced. 2011A Revenue Obligations $61,575,000 of the 2011A Revenue Obligations are currently accruing interest at rates ranging from 3.25% to 5.00%, which are higher than current market yields, and will soon be available for optional redemption on August 1, 2021. PROPOSED SOLUTION 2018A CANs The issuance of long-term fixed rate debt would allow the Sanitation District to repay the 2018A CANs at a low cost (1.51% based on current market conditions as of February 24, 2021) and avoid using $105 million of reserves for such purpose. 2011A Revenue Obligations The Sanitation District could refund up to $61,575,000 of the 2011A Revenue Obligations for net present value debt service savings of approximately $7.24 million (equal to 11.8% of refunded principal), based on current market conditions as of February 24, 2021, with a matching refunding amortization structure. TIMING CONCERNS 2018A CANs The Sanitation District must complete a refinancing by no later than August 15, 2021; otherwise, $105 million of reserves will be required to repay the 2018A CANs. 2011A Revenue Obligations The Tax Cuts and Jobs Act of 2017 eliminated the ability of issuers to conduct tax-exempt advance refundings (more than 90 days prior to the optional redemption date). However, the Sanitation District can conduct a current refunding if the 2011A Revenue Obligations are redeemed no earlier than 90 days before the August 1, 2021 optional redemption date. A refunding past August 1, 2021 would result in the Sanitation District continuing to pay interest costs above current market yields. Orange County Sanitation District Page 3 of 7 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1542 Agenda Date: 3/24/2021 Agenda Item No: 8. RAMIFICATIONS OF NOT TAKING ACTION 2018A CANs Not taking action by August 15, 2021 would cause the Sanitation District to use its reserves to repay the 2018A CANs or cause an "Event of Default" due to the non-repayment to lenders. The economic ramification of an Event of Default would result in a downgrade in credit ratings, reduced access to capital and higher costs of borrowing. 2011A Revenue Obligations Not refunding the 2011A Revenue Obligations would result in the Sanitation District continuing to pay above market interest costs. PRIOR COMMITTEE/BOARD ACTIONS September 2018 - Approved Resolution No. OCSD 18-17, authorizing the execution and delivery by the Sanitation District of an Installment Purchase Agreement, a Trust Agreement and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Revenue Refunding Certificate Anticipation Notes, Series 2018A, such Notes evidencing principal in an aggregate amount of not to exceed $109,875,000, approving a Notice of Intention to Sell, authorizing the distribution of an Official Notice Inviting Bids and an Official Statement in connection with the offering and sale of such Notes and authorizing the execution of other necessary documents and related actions. December 2016 - Approved Resolution No. OCSD 16-32, authorizing the execution and delivery by the Sanitation District of an Installment Purchase Agreement, a Trust Agreement and a Continuing Disclosure Agreement in connection with the Orange County Sanitation District Wastewater Refunding Revenue Obligations, Series 2017A, authorizing the execution and delivery of such Revenue Obligations evidencing principal in an aggregate amount not to exceed $91,620,000, approving a Notice of Intention to Sell, authorizing the distribution of an Official Notice Inviting Bids and an Official Statement in connection with the offering and sale of such Revenue Obligations and authorizing the execution of necessary documents and related actions. ADDITIONAL INFORMATION 2018A CANs The issuance of long-term fixed rate debt to refund the 2018A CANs will eliminate any future market access risks (ability to issue debt to refinance maturing debt) and interest rate risk (additional costs if rates reset higher or are higher upon a future refinancing). After the issuance of fixed rate debt, the Sanitation District will no longer be exposed to changing market conditions. Most recently, tax-exempt rates have reached historic lows due to the lack of supply of tax-exempt debt coupled with more municipalities selling taxable debt. Current fixed rates are near historical low yields as shown in the history for the AAA General Obligation Municipal Market Data Index for 10- year (close to the 8.6 year average life of fixing out the 2018A CANs) and 15-year tax-exempt Orange County Sanitation District Page 4 of 7 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1542 Agenda Date: 3/24/2021 Agenda Item No: 8. maturities (reflective of the maximum maturity of fixing out the 2018A CANs). Please see Exhibit B on the AAA General Obligation Municipal Market Data Index attachment. In 2006, the Sanitation District intended to partially hedge against fluctuating investment portfolio earnings as the variable rates on the 2006 COPs were expected to move in tandem with changes in short-term interest rates. The 2006 COPs and subsequent CANs refinancings have mirrored short- term tax-exempt variable rate costs. The issuance of fixed rate debt to refund the 2018A CANS would remove the interest rate hedge originally desired by the Sanitation District. When the 2006 COPs were issued, the expectation of the Sanitation District was to not only hedge investment interest rate risk, but to also reduce the risk from rising interest rates resets by implementing an Accelerated Rate Management (ARM) program. Between 2006 and 2012 and in 2016, the ARM program used accrued savings, resulting from borrowing at rates lower than the 2006 Fixed Rate of 4.54%, to reduce the outstanding amount of debt at the time of each refinancing. With less outstanding debt, the Sanitation District likewise reduced its interest rate risk (if higher interest rates were to occur, the negative impact would be mitigated as the higher interest cost would be calculated on a smaller outstanding amount). The implementation of the ARM program since the issuance of the 2006 COPs has (1) reduced the outstanding principal by nearly $30 million compared to a 2006 fixed rate amortization and (2) decreased the interest rate risk to the Sanitation District as the break-even rate (the average future interest rate for the remaining debt which would result in no difference in cost from issuing fixed rate debt in 2006) is now over 15.6%. The original variable rate structure of the 2006 COPs and the past nine CANs refinancings have already saved the Sanitation District over $68 million compared to the alternative of the Sanitation District issuing fixed rate debt in 2006. The Sanitation District could refinance the 2018A CANs with another CANs financing as short-term interest rates are currently extremely low and future short-term interest rates may continue to stay low; however, the associated upfront costs of refinancing on a shrinking amount of outstanding principal makes every dollar of cost more impactful. A refinancing of the 2018A CANs with other variable debt products is also possible, but would also require the payment of ongoing costs, most notably the relatively high bank liquidity fees that require periodic renewals (generally every one to five years); in addition, to the risk of rising interest rates. Therefore, staff is recommending the refunding of the 2018A CANs with longer term fixed rate debt having a final maturity date of February 1, 2036 (which is no longer than the final maturity of the original 2006 COPs). The new refunding debt is expected to be structured with level debt service which based on market conditions as of February 24, 2021, is currently estimated to be approximately $7.61 million per year. 2011A Revenue Obligations The Sanitation District currently has ten series of debt issuances outstanding (including the 2018A CANs) in the par amount of $909,620,000 as shown in the table below: Outstanding Par Amount(') Series 2018A CANs $ 102,200,000 Series 2017A Refunding 65,815,000 Series 2016A Refunding 136,830,000 Orange County Sanitation District Page 5 of 7 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1542 Agenda Date: 3/24/2021 Agenda Item No: 8. Series 2015A Refunding 127,510,000 Series 2014A Refunding 56,080,000 Series 2012B Refunding 8,170,000 Series 2012A Refunding 100,645,000 Series 2011A Refunding 75,370,000 Series 2010C 157,000,000 Series 2010A 80,000,000 Total: $ 909,620,000 (1) As of February 15, 2021 Depending on market conditions, staff is proposing to refund up to $61,575,000 of the 2011A Revenue Obligations maturing in years 2023 through 2026 with annual coupon rates ranging between 3.25 to 5.00%, as shown in the table below: Maturity Principal Amount -oupon all Date 2/1/2023 $ 14,435,000 .00% 8/01/2021 2/1/2024 15,055,000 5.00% 8/01/2021 2/1/2025 15,760,000 3.25% 8/01/2021 2/1/2026 16,325,000 5.00% 8/01/2021 Total: $ 61,575,000 Timeline Assuming that staff receives approval to pursue the refinancings of the 2018A CANs and 2011A Revenue Obligations, staff will return to the Administration Committee in May 2021 with financing documents to complete the refinancings. There is the possibility that interest rates may change before May and, at the time of approval of the financing documents and based on market conditions at that time, staff may recommend different refinancing structures. The refundings of the 2018A CANs and 2011A Revenue Obligations can be combined into one financing which will minimize issuance costs and be sold on a competitive basis in order to obtain the lowest financing cost possible. Staff and consultants will be available to answer any questions at the Administration Committee meeting. Following is a chart listing the remaining steps to be completed for the debt refinancings: May: - Board approval of legal and disclosure documents - Financing Corporation approval of legal and disclosure documents June: - Request ratings from bond rating agencies - Rating agency discussions Orange County Sanitation District Page 6 of 7 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1542 Agenda Date: 3/24/2021 Agenda Item No: 8. July: - Receive ratings from rating agencies - Marketing and sale through a competitive sale process - Closing - Begin debt administration All costs involved with the refinancings, including costs for Norton Rose Fulbright, Special Counsel and Disclosure Counsel and Public Resources Advisory Group, Municipal Advisor, will be paid from the proceeds of the new refunding issue. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • AAA General Obligation Municipal Market Data Index Orange County Sanitation District Page 7 of 7 Printed on 3/16/2021 powered by LegistarTM AAA General Obligation Municipal Market Data Index Exhibit A AAA GO MMD Index (3-year and 5-year) October 3, 2011 to February 24, 2021 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% N M Ln (O f� 00 O O N O O O O O O O O O O N N N N N N N N N N O O O O O O O O O O 3-Year 5-Year Exhibit B AAA GO M M D Index (10-year and 15-year) March 8, 2006 to February 24, 2021 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% (0 h Co O O N M Ln GO I� M O CNDN CDO O CDCD CD CDO O O O O CD O O O CD O O N N N N N N N N N N N N N N N CM M M M M CM CM M M M M CM M M M O O O O O O O O O O O O O O O 10-Year 15-Year ration LEGISLATIVE AND PUBLIC AFFAIRS Ad10844t Ellis Avenuueg SAN COMMITTEE Fountain Valley, 92708 (714)593-743433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2021-1539 Agenda Date: 3/24/2021 Agenda Item No: 9. FROM: James D. Herberg, General Manager SUBJECT: LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF FEBRUARY 2021 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the Legislative Affairs Update for the month of February 2021. BACKGROUND The Orange County Sanitation District's (Sanitation District) legislative affairs program includes advocating the Sanitation District's legislative interests; sponsoring legislation (where appropriate); and seeking Local, State, and Federal funding for projects and programs. Staff will provide an update on recent legislative and grant activities. RELEVANT STANDARDS • Maintain influential legislative advocacy and a public outreach program • Build brand, trust, and support with policy makers and community leaders • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities PROBLEM Without a strong advocacy program, elected officials may not be aware of the Sanitation District's mission, programs, and projects and how they could be impacted by proposed legislation. PROPOSED SOLUTION Continue to work with Local, State, and Federal officials to advocate the Sanitation District's legislative interests. Help to create/monitor legislation and grants that would benefit the Sanitation District, the wastewater industry, and the community as a whole. To assist in our relationship building activities, we will continue to reach out to our elected officials providing facility tours, one-on-one meetings, and trips to Washington D.C. and Sacramento. Orange County Sanitation District Page 1 of 3 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1539 Agenda Date: 3/24/2021 Agenda Item No: 9. TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION If we do not work with Local, State, and Federal elected officials, legislation could be passed that negatively affects the Sanitation District and the wastewater industry as a whole. Additionally, a lack of engagement may result in missed funding opportunities. ADDITIONAL INFORMATION • At the direction of an Executive Order, Federal Emergency Management Agency (FEMA) has revised its procedure for reimbursement of expenditures related to the pandemic. Under the new policy, FEMA will consider 100% reimbursement for costs incurred related to the pandemic. This will cover already submitted costs and costs incurred through 2021. Currently, we have applied for approximately $260,000 based on FEMA eligible items. Staff will continue to actively work on this to ensure the Sanitation District submits for and receives any funding we are eligible for. • Staff is in the process of sending congratulatory letters, signed by the Board Chairman, to all City Council Members who have been recently elected or re-elected. This will also include Mayors, Mayor Pro Terns, and City Council Members. The letters will also invite them and their staff to take a virtual tour of Plant No. 1. • Staff is actively engaged with various local agencies, associations, and lobbyists monitoring current and upcoming legislation and the potential impact to the Sanitation District including, but not limited to, AB 377 (Assembly member Rivas and Senator Hertzberg) and SB 273 (Senator Hertzberg). SB 377 intends to make significant changes to the National Pollutant Discharge Elimination System permitting process which would create a new enforcement program. SB 273 authorizes wastewater agencies to voluntarily enter into agreements with stormwater management facilities in order to manage stormwater. At the writing of this report, we are currently in a "Watch" position for both bills. • The Biden Administration recently released its regulatory rulemaking which stipulated that PFOA and PFOS should be regulated in drinking water. We will continue to keep a close eye on this issue and any others that may arise and affect the wastewater treatment process. • Dr. Violet Renick, Senior Scientist for the Sanitation District, recently testified at the Assembly Environmental Safety & Toxic Materials Committee - Microplastic Hearing. Dr. Renick presented on microplastics in wastewater, what they are, and what we currently know about them. She was invited to present along with fellow agencies, associations, and peers in the industry. FINANCIAL CONSIDERATIONS N/A Orange County Sanitation District Page 2 of 3 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1539 Agenda Date: 3/24/2021 Agenda Item No: 9. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Federal Update - ENS Resources • Federal Legislative Matrix - ENS Resources • State Update - Townsend Public Affairs • State Legislative Matrix - Townsend Public Affairs • Grant Matrix • Presentations Orange County Sanitation District Page 3 of 3 Printed on 3/16/2021 powered by LegistarTM :M Ll �V RESOURCES TO: Rebecca Long FROM: Eric Sapirstein DATE: February 16, 2021 SUBJECT: Washington Update The past month saw Congress and the Administration moving forward decisively on COVID-19 relief. The Democratic Congress succeeded in using the Budget Reconciliation process to begin legislating federal assistance that would be the fifth package of relief in less than a year. This process all but guarantees enactment since it will only require simple majorities in both chambers and avoid the use of the filibuster in the Senate. Of special note, California's newest Senator,Alex Padilla,was appointed to the Senate Committee on Environment and Public Works. This means that California will have a voice at the table as the committee considers water infrastructure legislation. As Congress continued to organize for the 117th Congress, OC San's newest Members of its delegation, Representatives Michelle Steel and Young Kim were appointed to committees. Steel will sit on the all-important Committee on Transportation & Infrastructure with jurisdiction over the Clean Water Act. Kim will sit on the Committee on Science Space and Technology with jurisdiction over technology and innovation policies. The other members of the delegation will remain on the committees with one change. Representative Katie Porter relinquished her seat on the Committee on Financial Services to sit on the Committee on Natural Resources. American Rescue Plan The House and Senate approved an overall spending plan totaling$1.9 trillion in new spending to combat the health and economic impacts of the pandemic. This occurred on an almost party-line vote in the House and a party-line vote in the Senate. The House and Senate then turned it efforts to developing the legislative provisions to spend the funding approved. The House is scheduled to vote on the package of spending within the next week. The Senate is expected to follow shortly thereafter, leading to expected final passage by the end of March at the latest. 11Page As agreed to in the Houses committees, the following assistance provisions of note for local governments is provided: • Special Districts currently are not eligible to receive assistance, but efforts are being made to authorize states to use 5 percent of their allocation to support Special Districts • The state of California would receive approximately$26 billion • Orange County would receive approximately$621 million • Utility Ratepayer Assistance would be addressed as follows: o $500 million to supplement$638 million provided in December relief package to help water and wastewater utilities with arrearages (Department of Health and Human Services working to issue program guidance to states in the coming weeks.) o $19 billion in supplemental emergency rental assistance that could be used to support payment of utility services o $10 billion in mortgage assistance to support payment of utility bills and mortgage payments, property taxes and insurance and other housing needs In addition to these assistance provisions, the final package is also expected to provide increased funding of health-related needs for hospital workers and other essential workers, hazard pay, and mandatory leave credits for public agencies during the pandemic. FEMA Revise Reimbursement Policy At the direction of an Executive Order, Federal Emergency Management Agency (FEMA) has revised its reimbursement of expenditures related to the pandemic. Under the new policy, FEMA will consider 100% reimbursement for costs incurred related to the pandemic. This will cover already submitted costs and costs incurred through 2 02 1. The net impact of the action is that the federal government can pay the outstanding 25% of costs that were ineligible prior to the policy change. FEMA is currently developing guidance and it is appropriate to contact CALOES about potential reimbursements of outstanding costs. Administration Appointments The Biden White House has made a number of political appointments many of which have direct ties to California and California water issues. Randika Fox, who had worked for San Francisco Public Utilities Commission,will serve as the head of the United States Environmental Protection Agency (UEPA) Office of Water. Camille Touton, who most recently served as Professional Staff on Subcommittee on Water Resources for Chairwoman Grace Napolitano,will lead the U.S. Bureau of Reclamation. Tanya Trujillo,who worked on the Senate Energy and Natural Resources Committee as a counsel and most recently was the Executive Director of the Colorado River California Office, will be the lead for the Office of Water and Science. These officials have a deep knowledge of California water issues and specifically Southern California and should be helpful in addressing drought impacts and water quality needs of the region. The selection of North Carolina's Department of Environment leader, Michael Regan to become the USEPA Administrator is likely to boost the agency's focus on "forever" 2 1 P a g e chemicals and generally give a higher priority to enforcement. Regan sailed through his confirmation hearing, with bipartisan support, before the Senate Committee on Environment and Public Works and is expected to be confirmed shortly. Last, Vice President Harris has selected a number of individuals to serve in her office, including Ike Irby. OC San worked with Irby to advance its priorities when he was in the Senate with Harris. Infrastructure Policymaking Once Congress completes action on the fifth COVID-19 relief package, it is expected to turn attention of a national infrastructure imitative that would likely merge core infrastructure needs with climate policy priorities. Senate and House infrastructure committee leaders met with the president where he provided strong support for a bold infrastructure initiative in the coming months. The positive outlook for infrastructure is grounded in a sense that a national infrastructure funding program could reverse the COVID-19 created economic challenges and create employment opportunities. The starting point of any package appears to be the Moving Forward Act that the House passed last year. This almost$2 trillion bill placed a priority on funding the SRF program ($60 billion) as well as new programs to provide grants ($500 million) to help water agencies adopt smart water technologies that could modernize the treatment process and conveyance of water supplies. In addition, we anticipate that any broad infrastructure policy will include climate resiliency needs to help address drought, flooding, sea level increase and other impacts upon water agencies. The outlines of any infrastructure policy remain to be developed in the coming months. However congressional staff indicate that the latter part of spring could see Congress moving aggressively to pass a bill. To this end, the House Committee on Transportation & Infrastructure has signaled that it plans to conduct a hearing into the Clean Water Act SRF program and its needs later this month. The Senate Committee on Environment and Public Works Chairman Tom Carper (D-DE) has stated that he hopes to have an infrastructure package approved by his committee by late May. 3 1 P a g e nr,SAN ORANGE COUNTY SANITATION DISTRICT Federal Legislative Report - February 2021 Last Updated:February 23,2021 Bills by Issue Recently Updated Bills(0) No bills to show. Priority: None(8) Bill Number Last Action Status Position Priority HR 1015 Introduced In House 2021 02 11 In House Support None Title Bill Summary:Last edited by Sarah Sapirstein at Feb 16,2021,3:28 PM To establish a grant program for the funding of water recycling and Increases the authorization level for the Title XVI Program to$500 reuse projects,and for other purposes. million from the current$50 million and makes it a permanent program. The bill strikes requirement that projects must be in drought or disaster Primary Sponsors areas and strikes the requirement that the projects need to be Grace Napolitano designated in an appropriations legislation. Introduction Date:2021-02-11 Organizational Notes Last edited by Sarah Sapirstein at Feb 23,2021,4:57 PM H.R.1015 would increase the authorization level for the Title XVI Program to$500 million from the current$50 million,and make it a permanent program.The program is set to expire this year if Congress does not reauthorize it.The bill would also strikes the requirement that projects must be in drought or disaster area,strikes the requirement that the projects need to be designated in an appropriations legislation,and increases the limitation on the federal share of individual Title XVI projects from the current$20 million in October 1996 prices to$30 million in January 2019 prices(does not change the 25%federal cost share).H.R.1015 is a reintroduction of a bill(H.R.1162)Napolitano introduced in the 116th Congress.CASA supports.#OCSAN CASA Supports#OCS Bill Number Last Action Status Position Priority S 283 Read Twice And Referred To The Committee In Senate Monitor None On Environment And Public Works 2021 02 08 Title Bill Summary:Last edited by Sarah Sapirstein at Feb 16,2021,3:29 PM A bill to establish a National Climate Bank. Creates a national climate bank to leverage public and private funds to invest in clean energy technologies and infrastructure.Would allow for Primary Sponsors up to$884 billion in total investment over 10 years to support financing Ed Markey to eligible regional,state,and local green banks to make investments in the activities and projects that projects that reduce carbon emissions, support workers and communities negatively impacted by climate transition,and provide technical assistance for start up of new green banks. Introduction Date:2021-02-08 Organizational Notes Last edited by Sarah Sapirstein at Feb 23,2021,5:02 PM Legislation is a congressional response to Biden Administration's Executive Order on Tackling the Climate Crisis at Home and Abroad that directs" [federal]investments...be made toward a goal that 40 percent of the overall benefits flow to disadvantaged communities."Executive Order included in Associations/File folder.#OCSAN#CASA Last edited by Sarah Sapirstein at Feb 16,2021,3:29 PM S.283 creates a national climate bank to leverage public and private funds to invest in clean energy technologies and infrastructure.By leveraging $100 billion in public funds,it will allow for up to$884 billion in total investment over 10 years to support financing to eligible regional,state,and local green banks to make investments in the following types of activities:-projects that reduce carbon emissions-projects that support workers and communities negatively impacted by climate transition-projects that provide technical assistance for start up of new green banks-projects that address climate resiliency measures-projects that address water and energy efficiency,including residential,commercial and industrial efficiency measures Requires that 40%of all investments be directed to disadvantaged communities facing climate impacts.#OCSAN Bill Number Last Action Status Position Priority HR 644 Introduced In House 2021 02 01 In House None None Title Bill Summary:Last edited by Sarah Sapirstein at Feb 16,2021,3:29 PM REBUILD Act Would allow a State to enter into a Memorandum of Understanding with the designated federal agency with environmental review responsibility Primary Sponsors under NEPA to assume review responsibilities of that agency. Ken Calvert Introduction Date:2021-02-01 Organizational Notes Last edited by Sarah Sapirstein at Feb 16,2021,2:07 PM H.R.644 aims to reduce the cost and increase the speed of NEPA permitting reviews of infrastructure projects.Specifically,the bill would allow a State to enter into a Memorandum of Understanding with the designated federal agency with environmental review responsibilities under NEPA to assume review responsibilities of that agency.This would allow the State to integrate NEPA compliance into its own project approval process and streamline the process overall.#OCSAN Bill Number Last Action Status Position Priority HR 616 Referred To The Committee On Energy And In House None None Commerce And In Addition To The Committee On Education And Labor For A Period To Be Subsequently Determined By The Speaker In Each Case For Consideration Of Such Provisions As Fall Within The Jurisdiction Of The Committee Concerned 2021 01 28 Title Bill Summary:Last edited by Sarah Sapirstein at Feb 16,2021,3:30 PM Emergency Water is a Human Right Act Prohibits water shutoffs and ensure water affordability protections for low-income households during COVID-19 national emergency.Provides Primary Sponsors affordability protections for households with incomes up to 150%of the Rashida Tlaib federal poverty guidelines through authorizing$1.5 billion in grants to assist such households pay for drinking water and wastewater services. Introduction Date:2021-01-28 Organizational Notes Last edited by Sarah Sapirstein at Feb 16,2021,3:31 PM H.R.616 would prohibit water shutoffs and ensure water affordability protections for low-income households during COVID-19 national emergency.The bill provides affordability protections for households with incomes up to 150%of the federal poverty guidelines through authorizing$1.5 billion in grants to assist such households pay drinking water and wastewater services,and use LIHEAP to administer assistance. It also directs States that receive assistance grants to enter into agreements with POTWs,municipalities,and nonprofits to identify low-income households,and require service providers to reconnect water services if disconnected.#OCSAN Bill Number Last Action Status Position Priority HR 516 Introduced In House 2021 01 28 In House None None Title Bill Summary:Last edited by Sarah Sapirstein at Feb 23,2021,7:40 PM Environmental Justice Mapping and Data Collection Act of 2021 Directs interagency collaboration with EJ stakeholders to create and authorize funding for a system that comprehensively identifies Primary Sponsors demographic factors,environmental burdens,socioeconomic conditions Cori Bush and public health concerns.The data collected would be used to build layered maps that depict what communities experience environmental injustices.The bill supports the initiative from the Biden Administration to direct 40%of federal investments towards EJ communities. Introduction Date:2021-01-28 Organizational Notes Last edited by Sarah Sapirstein at Feb 23,2021,7:40 PM Directs interagency collaboration with EJ stakeholders to create and authorize funding for a system that comprehensively identifies demographic factors,environmental burdens,socioeconomic conditions and public health concerns.The data collected would be used to build layered maps that depict what communities experience environmental injustices.The bill supports the initiative from the Biden Administration to direct 40%of federal investments towards EJ communities.#OCSAN Bill Number Last Action Status Position Priority S 101 Introduced In Senate 2021 01 28 In Senate None None Title Bill Summary:Last edited by Sarah Sapirstein at Feb 23,2021,6:22 PM Environmental Justice Mapping and Data Collection Act of 2021 Creates and authorizes funding for a system that comprehensively identifies demographic factors,environmental burdens,socioeconomic Primary Sponsors conditions and public health concerns.Data collected would be used to Ed Markey build layered maps that depict what communities experience environmental injustices. Introduction Date:2021-01-28 Organizational Notes Last edited by Sarah Sapirstein at Feb 23,2021,7:38 PM S.101 would direct interagency collaboration with EJ stakeholders to create and authorize funding for a system that comprehensively identifies demographic factors,environmental burdens,socioeconomic conditions and public health concerns.The data collected would be used to build layered maps that depict what communities experience environmental injustices.The bill supports the initiative from the Biden Administration to direct 40%of federal investments towards EJ communities.#OCSAN Bill Number Last Action Status Position Priority SRES 17 Introduced In Senate 2021 01 27 In Senate None None Title Introduction Date:2021-01-27 A resolution expressing the sense of the Senate that clean water is a national priority and that the April 21,2020,Navigable Waters Protection Rule should not be withdrawn or vacated. Primary Sponsors Joni Ernst Bill Number Last Action Status Position Priority S 29 Read Twice And Referred To The Committee In Senate None None On Environment And Public Works 2021 01 22 Title Bill Summary:Last edited by Sarah Sapirstein at Feb 16,2021,3:35 PM Local Water Protection Act Reauthorizes U.S.Environmental Protection Agency(USEPA)grant program that provides funding to states to develop and implement Primary Sponsors programs that manage nonpoint source pollution or pollution diffusing Amy Klobuchar from runoffs from farms,managed forests and urban areas.The legislation would reauthorize USEPA's grant program at$200 million annually. Introduction Date:2021-01-22 Organizational Notes Last edited by Sarah Sapirstein at Feb 16,2021,3:35 PM S.29 reauthorizes U.S.Environmental Protection Agency(USEPA)grant program that provides funding to states to develop and implement programs that manage nonpoint source pollution or pollution diffusing from runoffs from farms,managed forests and urban areas.The legislation would reauthorize USEPA's grant program at$200 million annually and give local and state governments flexibility to make conservation improvements that decrease water pollutants through partnerships with impacted communities.#OCSAN Powered by FiscalNote T 0 W N S E N D TPA MEMORANDUM To: Orange County Sanitation District From: Townsend Public Affairs Date: February 16, 2021 Subject: Monthly Legislative Report State Legislative Update In February, attention in Sacramento has been solely focused on introducing legislation before the deadline on February 19. Since the Legislature was sworn in on December 7, there have been approximately 1,200 bills introduced. Several hundred of these bills are empty budget trailer bills or spot bills that do not have substantive language in them. It is expected that the number of bills introduced will increase to approximately 2,700 before the bill introduction deadline on February 19. Once bills have been introduced, they must sit for 30 days before they can be acted on. The Legislature will move in the next few months to hold policy committee hearings on legislative proposals as well as budget subcommittees to consider the Newsom Administration's January Budget. Below are the upcoming relevant dates for the Legislature: February 19— Bill introduction deadline March 25 — Spring Recess begins upon adjournment Governor's COVID-19 Action Summary Below is a summary of the major COVID-19 actions taken by the State Administration in January: • February 3 — Community Vaccination Sites: Governor Newsom announced a pilot project partnership with the Biden Administration to open mass vaccination sites at the Oakland-Alameda Coliseum and California State University, Los Angeles. The site will be co-run by FEMA and CalOES. These two locations were chosen because of their proximity to diverse and socioeconomically challenges communities. • January 27— Executive Order: Governor Newsom signed an executive order (N-02-21) that will attempt to bolster the State's efforts to vaccinate as many Californians as possible as quickly as possible. The executive order reconfirms laws that grant health professionals and providers legal liability when responding to state and local emergencies, which is expected to increase the number of individuals administering vaccines. • January 25 — Improvements to Vaccine Plan: Governor Newsom announced a series of improvements to the State's vaccination plan. The new steps in the plan will make it easier for people to know when they are eligible for vaccination and how to make an appointment, accelerate the administration of vaccines on hand and improve the State's ability to track vaccination data. • January 21 — Executive Order: Governor Newsom signed an executive order in response to the COVID-19 pandemic, extending the validity of medical cannabis identification cards that would otherwise have expired. Priority Legislation Although the legislative session just began, there are a few bills already introduced that TPA has preliminarily identified as priority bills for the District: AB 59 (Gabriel) - Mitigation Fee Act: fees: notice and timelines AB 59 would repeal Section 66022 of the Government Code, which establishes the 120-day statute of limitations for legal challenges to new or increased connection fees or capacity charges. Under current law, any legal challenges for water and sewer connection fee or capacity charge must be commenced within 120 days after a water or sewer agencies adopts or amends a fee. This bill would change the statute of limitations to begin once the agency actually charges the fee to the ratepayer. AB 59 would also require local agencies that collect fees in excess of the amount needed to provide their specific services to reimburse the ratepayer for that amount as opposed to re- investing that excess into reducing rates. AB 59 has been double referred to the Assembly Local Government Committee and the Assembly Housing and Community Development Committee. AB 377 (Rivas) — Water quality: impaired waters AB 377 would require that by 2050, all surface waters in California be suitable for drinking, swimming, and fishing. Would change enforcement protocols at the SWRCB to make NPDES permits more stringent and would prevent the SWRCB from authorizing NPDES permits that are weaker than previous permits, or that would provide for an exceedance of water quality standards. AB 377 also provides additional enforcement requirements for NPDES permit holders and regional board compliance. AB 377 does not include a funding source for the excess requirements and lacks clarity for definitions of enforcement. AB 377 has been referred to the Assembly Environmental Safety and Toxic Materials Committee and has not yet been assigned a hearing date. SB 45 (Portantino) — Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood Protection Bond Act of 2022 SB 45 would establish a $5.5 billion general obligation bond that would appear on the November 2022 ballot. SB 45 would provide funding for a wide variety of natural resources and climate resilient projects including: wildfire prevention, safe drinking water and water quality, protecting fish, wildlife, and agriculture from Climate risks, and protecting coastal resources. 2 SIB 45 is a re-introduction of SIB 45 (Allen, 2018). This proposal and conversations around a climate focused bond were put on hold largely due to the COVID-19 pandemic. It is important to note that Governor Newsom's January budget request did not include a climate/natural resources bond. 3 OC San State Bills of Interest 131 SD WITION Proposed Legislation 2021-2022 High Priority AB 59 Gabriel [D] This bill would increase, for fees and service charges and for fees for Referred to the Watch Legislative and Regulatory ACC-OC - NYC specified public facilities, the time for mailing the notice of the time and Assembly Local Policies: Special Districts - LOCC - NYC place of the meeting to at least 45 days before the meeting. This bill Government Committee Oppose further state CASA- NYC would also require that all fees collected in excess of the cost of the and the Assembly regulations that adversely CSDA- NYC service provided be refunded to the ratepayer. This bill would also Housing and Community impact special district ACWA- NYC change the statute of limitations for protests filed for disputes of rates, Development financing, operations, and potentially allowing rate disputes to be filed months or years after Committee administration. adoption. AB 339 Lee [D] Current law requires all meetings, as defined, of a house of the Introduced Watch Legislative and Regulatory ACC-OC - NYC Legislature or a committee thereof to be open and public, and requires Policies: Special Districts - LOCC - NYC all persons to be permitted to attend the meetings, except as specified. Oppose further state CASA- NYC This bill would require all meetings, including gatherings using regulations that adversely CSDA- NYC teleconference technology, to include an opportunity for all persons to impact special district ACWA- NYC attend via a call-in option or an internet-based service option that financing, operations, and provides closed captioning services and requires both a call-in and an administration. internet-based service option to be provided to the public. Would also require additional translation services for written material and public comment if the language is spoken by 5% of the jurisdiction's population. AB 361 Rivas [D] Would authorize a local agency to use teleconferencing without Referred to the Watch Legislative and Regulatory ACC-OC - NYC complying with the teleconferencing requirements imposed by the Ralph Assembly Local Policies: Special Districts - LOCC - NYC M. Brown Act when a legislative body of a local agency holds a meeting Government Committee Oppose further state CASA- NYC for the purpose of declaring or ratifying a local emergency, during a regulations that adversely CSDA-Sponsor declared state or local emergency, as those terms are defined, when impact special district ACWA- NYC state or local health officials have imposed or recommended measures financing, operations, and to promote social distancing, and during a declared local emergency administration. provided the legislative body makes certain determinations by majority vote. AB 377 Rivas [D] Would require all California surface waters to be fishable, swimmable, Referred to the Watch Guiding Principles: Oppose ACC-OC- NYC and drinkable by January 1, 2050, as prescribed. The bill would prohibit Assembly redundant regulatory and LOCC - NYC the state board and regional boards from authorizing an NPDES Environmental Safety legislative requirements that CASA- Oppose discharge, waste discharge requirement, or waiver of a waste discharge and Toxic Materials cause undue constraints on CSDA- NYC requirement that causes or contributes to an exceedance of a water Committee efficient operations ACWA- Concerns quality standard, or from authorizing a best management practice permit term to authorize a discharge that causes or contributes to an exceedance of a water quality standard in receiving waters. The bill would prohibit, on or after January 1, 2030, a regional water quality control plan from including a schedule for implementation for achieving a water quality standard that was adopted as of January 1, 2021, and would prohibit a regional water quality control plan from including a schedule for implementation of a water quality standard that is adopted after January 1, 2021, unless specified conditions are met. OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OCSD OTHER L ad • . . POSITIONS AB 818 Bloom [D] Would require, except as provided, certain premoistened nonwoven Introduced Watch Legislative and Regulatory ACC-OC- NYC disposable wipes manufactured on or after July 1, 2022, to be labeled Policies: Source Control - LOCC - NYC clearly and conspicuously with the phrase "Do Not Flush" and a related Support legislation that CASA- Sponsor symbol, as specified. The bill would prohibit a covered entity, as defined, regulates the disposal of CSDA- NYC from making a representation about the flushable attributes, benefits, flushable wipes. ACWA- NYC performance, or efficacy of those premoistened nonwoven disposable wipes, as provided. The bill would establish enforcement provisions, including authorizing a civil penalty not to exceed $2,500 per day, up to a maximum of$100,000 per violation, to be imposed on a covered entity who violates those provisions. SB 45 Portantino [D] Would enact the Wildfire Prevention, Safe Drinking Water, Drought Referred to the Senate Watch Guiding Principles: Seek ACC-OC - NYC Preparation, and Flood Protection Bond Act of 2022, which, if approved Natural Resources and funds for OCSD projects LOCC - NYC by the voters, would authorize the issuance of bonds in the amount of Water Committee and through grants, CASA- NYC $5,510,000,000 pursuant to the State General Obligation Bond Law to the Senate Governance appropriations, or other CSDA- NYC finance projects for a wildfire prevention, safe drinking water, drought and Finance Committee means ACWA- NYC preparation, and flood protection program. Includes $100 million. SB 230 Portantino [D] Would require the State Water Resources Control Board to establish, Referred to the Senate Watch State Priorities: Monitor ACC-OC- NYC maintain, and direct an ongoing, dedicated program called the Environmental Quality state legislation as well as LOCC - NYC Constituents of Emerging Concern Program to assess the state of Committee State Water Resources CASA- NYC information and recommend areas for further study on, among other Control Board (SWRCB) CSDA- NYC things, the occurrence of constituents of emerging concern (CEC) in regulatory activity related to ACWA- NYC drinking water sources and treated drinking water. The bill would require PFAS. the state board to convene, by an unspecified date, the Science Advisory Panel to review and provide recommendations to the state board on CEC for further action, among other duties. The bill would require the state board to provide an annual report to the Legislature on the ongoing work conducted by the panel. SB 273 Hertzberg [D] SB 273 would authorize municipal wastewater agencies to enter into Referred to the Senate Watch Legislative and Regulatory ACC-OC- NYC voluntary agreements with entities responsible for stormwater Governance and Policies: Special Districts - LOCC - NYC management— including municipal, industrial, and commercial Finance Committee Oppose further state CASA- Co- stormwater dischargers—to more effectively manage stormwater and dry regulations that adversely sponsor weather runoff. impact special district CSDA-Watch financing, operations, and ACWA- Favor administration. OC San State Bills of Interest • • SB 274 Wieckowski [D] The Ralph M. Brown Act, requires meetings of the legislative body of a Referred to the Senate Watch Legislative and Regulatory ACC-OC- NYC local agency to be open and public and also requires regular and special Governance and Policies: Special Districts - LOCC - NYC meetings of the legislative body to be held within the boundaries of the Finance Committee Oppose further state CASA- NYC territory over which the local agency exercises jurisdiction, with specified regulations that adversely CSDA- NYC exceptions. Current law authorizes a person to request that a copy of an impact special district ACWA- NYC agenda, or a copy of all the documents constituting the agenda packet, financing, operations, and of any meeting of a legislative body be mailed to that person. This bill administration. would require a local agency with an internet website, or its designee, to email a copy of, or website link to, the agenda or a copy of all the documents constituting the agenda packet if the person requests that the items be delivered by email. If a local agency determines it to be technologically infeasible to send a copy of the documents or a link to a website that contains the documents by mail or by other electronic means, the bill would require the legislative body or its designee to send by mail a copy of the agenda or a website link to the agenda and to mail a copy of all other documents constituting the agenda packet, as s ecified. Legend: ACC-OC -Association of California Cities, Orange County LOCC - League of California Cities NYC- Not Yet Considered CASA- California Association of Sanitation Agencies ACWA-Association of California Water Agencies CSDA- California Special Districts Association OCSD's Grant and Loan Funding Tracker 2021-2022 Name of Grant/Loan Synopsis of Grant/Loan Amount of Grant/Loan Amount Applying Y/N Project/Pro ram Reason Match Deadline Category Rcvd Grant/ Applying for t g g rY Financing YIN STATE The Organics Grant Program is part of California Climate Investments,a statewide program that puts billions of cap-and-trade dollars to work reducing greenhouse gas emissions,strengthening the economy,and improving public health and the Food-Waste Co-Digestion facility environment-particularly in disadvantaged and/or low-income communities. The Cap- at Plant No.2 in Huntington We will review the possible funding Organics Grant Program and-Trade program also creates a financial incentive for industries to invest in clean Application materials for FY 2020-21 will TBD Yes Beach to accept up to 150 wet opportunity to determine if it is a fit for TBD TBD Energy/Recycling No technologies and develop innovative ways to reduce pollution. California Climate tentatively be available summer 2020. tons per day(wtpd)of pre- the Sanitation District. Investments projects include affordable housing,renewable energy,public processed source separated transportation,zero-emission vehicles,environmental restoration,more sustainable organics. agriculture,recycling,and much more. At least 35 percent of these investments are made in disadvantaged and low-income communities. The purpose of the Community Power Resiliency Allocation to Special Districts CalOES Grant-Community Power Program is to support California special districts with additional preparedness We did not meet the requirements of Resiliency Allocation to Special measures in response to power outage events.Of the$50 million overall appropriation $300,000 $300,000 No Portable Generators the grant. NA 10/30/2020 Renewable energy No Districts Program for Community Power Resiliency funding,$20 million has been reserved for special district needs. The Proposition 1 IRWM Grant Program,administered by DWR,provides funding for TPA and OCSD are monitoring the projects that help meet the long term water needs of the state,including: grant program development from the Santa Ana Watershed Project Authority Integrated Regional Water TBD NA No NA (SAWPA).Currently,Round 2 has yet 50% NA.Will return in 2021 Water No Management(IRWM)Grant Program Assisting water infrastructure systems adapt to climate change; for Round 2 Providing incentives throughout each watershed to collaborate in managing the to be announced.TPA and OCSD will region's water resources and setting regional priorities for water infrastructure continue to watch this and other matches. FEDERAL FE The Title XVI Water Reclamation and Reuse Projects funding opportunity allows for sponsors of water reclamation and reuse projects that are congressionally authorized Reclamation is making up to$20 million The Sanitation District developed a $20mm or 25%of The Water Infrastructure Improvements or are eligible under section 4009(c)of the WIIN Act to request cost-shared funding for Final Expansion of GWRS available for those projects authorized under the $20 million Pending FOA proposal for last year that could be project costs 6/28/2019 Water/Infrastructure Pending FOA Act(WIIN) planning,design and/or construction of those Projects.Water reclamation and reuse Headworks(P2-122) projects provide improved efficiency,flexibility during water shortages and diversifies WIIN Act. used as a basis for a new submittal. whichever is less. the water supply. The President's Memo changed the federal reimbursement amount for previously approved projects from the beginning of the disaster to January 20,2021. It did not change the eligibility. All work eligible under FEMA's existing COVID-19 policies, $260,000(at this We are working with the local agency FEMA Funding including increasing medical capacity,non-congregate sheltering,and emergency TBD time) Yes COVID-19 Funding CAL OES on the funding eligibility. N/A TBD Infrastructure TBD feeding distribution will be reimbursed at 100 percent federal share.For projects that have already been approved,FEMA will amend the existing awards to adjust the federal funding amounts.No action will be required by the applicants. Updated 2/18/2021 OCSD's Grant and Loan Funding Tracker 2021-2022 Name of Grant/Loan Synopsis of Grant/Loan Amount of Grant/Loan Amount Applying Y/N Project/Pro ram Reason Match Deadline Category Rcvd Grant/ Applying for t g g rY Financing YIN Purpose:To support projects that conserve and use water more efficiently;mitigate Cost-Share:60%or WaterSMART Grants:Small-Scale Project Request Planning Study They not fund studies within the Water Efficiency Projects conflict risk in areas at a high risk of future water conflict;and accomplish other Total Funding Available:$3 million NA No-not qualified plant and Reclaimed Water parameters ers of the grant. more of total project 3/15/2021 Water/Infrastructure No benefits that contribute to water supply reliability in the western United States. costs. USEPA published allocation formula with deadline for Stormwater and CSO Grant Program In addition,the President's directive allows FEMA to expand the activities eligible for Funding cost-share is not identified in the law TBD TBD.We will monitor for possible TBD FY 2020-$28 million Yes Anticipate by July 2020 Water/Infrastructure public comments reimbursement for work conducted after Jan.21,2021 and until Sept.30,2021. funding opportunities/A 9/3/2020.Expect formal allocation to State within next two months. Project Funding Opportunity: Energy production to reduce Through the WaterSmart program,USBR will costs of recycled water through ssue solicitations for innovative approaches to innovative technologies. We will review the possible funding The Department of Energy(DOE), The DOE's Office of Energy Efficiency is likely to continue to be funded by Congress to TBD.We will monitor for possible Innovative water monitoring USBR and USEPA support such efforts as bio as,biosolids and green ener managing water and water treatment through TBD fundingopportunities technology that can produce opportunity to determine if it is a fit for N/A TBD Energy/Water/Infrastructure TBD pp 9 9 gy' technology and processes for FY 2020-$60 pp 9y p the Sanitation District. million efficient real time monitoring and data analysis,Biogas Management and Use Improvements. Anticipate that USEPA will issue We will review the possible funding USEPA Climate Resiliency TBD TBD TBD FOA's to promote studies and opportunity to determine if it is a fit for Unclear TBD Climate TBD plans to address resiliency the Sanitation District. needs and strategies Other The primary focus of the Community Partnering Program(CPP)is sponsorship of water conservation and water-use efficiency programs and activities.Applications must be submitted 30 days prior to the start date of the event or program. Community Partnering Program Grant Metropolitan Water District Requests for a maximum$2,000 award will be $2,000 Yes For Plant No.1 Signage Applied Match ongoing Education Yes reviewed year-round and funds are awarded throughout the year.Funds are limited, however,and may be depleted prior to the ending of this fiscal year(June 30). The California Government Operations Agency (GovOps)will award$500,000 in grants as part of the statewide California Mass Timber Building Competition.Grants will be awarded to selected proponent teams presenting viable and Mass Timber Competition CalGovOps repeatable mass timber solutions for $40,000 Yes Headquarters Building Applied No 03/18/19 Environment Yes commercial and multi-family projects in California.The competition is being hosted by GovOps and administered by WoodWorks— Wood Products Council. Updated 2/18/2021 3/2/2021 SAN ORANGE COUNTY SANITATION DISTRICT LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE FEDERAL UPDATE March 8, 2021 Page 1 1 THEISSUES ➢ COVID Relief ➢ Infrastructure - - ➢ Appropriations ➢ Earmarks Page 2 2 1 3/2/2021 COVID RELIEF ➢ Pending in Senate ➢ Key Local Agency Provisions ✓ Ratepayer Assistance ✓ Services — Shutoff ✓ Mandatory Leave Credits ✓ Revenue Assistance Page 3 go 3 WATER INFRASTRUCTURE ➢ House Hearing Held ➢ Strong Support for the State Revolving Fund $40 Billion ➢ Commitment to ✓ Environmental Justice Funding Needs ✓ Buy American ➢ Senate Action in March/April Page 4 99 4 2 3/2/2021 FISCAL YEAR 2022 BUDGET ➢ Administration Budget March/April ➢ Economic Recovery x �t Package Carries Spending ` bills ➢ Community Projects- Earmarks Return with Conditions Page 5 5 Questions Page 6 99 6 3 1 TOWNS END PUBLIC AFFAIRS EST TPA 1998 WWW.TOWNSENDPA.COM • , SACRAMENTO•WASHINGTON,DC NORTHERN CALIFORNIA•CENTRAL CALIFORNIA•SOUTHERN CALIFORNIA Agenda Legislative Calendar Department of Finance Update Specific Legislation Slide 2 3/2/2021 Legislative • . • Bill introduction deadline— February 19, 2021 — Almost 2,400 bills introduced (Roughly 800 are intent or"spot" bills) — Bills introduced in 2020: 2,203 — Bills introduced in 2019: 2,576 • COVID-19 restrictions— rule waivers • Limited Committee rooms • Policy Committees will start meeting frequently in March nn 3 Department of Finance Economic Update • February 2021 economic statistics: o Total of over $10 billion general fund receipts above Governor's Budget o Over $7 billion cash receipts in January above Governor's Budget • Majority of the surplus attributed to personal income tax California Department of finance February 2021 Z Finance Bulletin 4 f 4 2 3/2/2021 CaliforniaBudget• Late January— Early May: Budget Subcommittees hold hearings on elements of Governor's January Budget Proposal • Mid-May: Governor releases May Revise • Late-May— Early-June: Budget Subcommittees meet to consider May Revise proposals and incorporate legislative priorities • Early-June: Governor and Legislative Leaders finalize budget • June 15th: Deadline for Legislature to approve final budget • July 1st: Beginning of 2021-22 Fiscal Year 5 A. • • Details: o Changes the statute of limitations for legal challenges for new or increased connection or capacity fees o Could result in legal challenges years after fees schedules are implemented o Would require that fees collected in excess of the amount needed to provide the service be refunded back to the ratepayers o Establishes that data cannot be used to defend the protest that was not made available to the public • Status o Referred to the Assembly Local Government Committee and the Assembly Housing and Community Development Committee o Has not yet been assigned a hearing date 6 3 3/2/2021 AB 377 (Rivas + • - • • Details: o Would require all California surface waters to be fishable, swimmable, and drinkable by January 1, 2050 o Would enhance and develop strict enforcement protocols at the SWRCB that subvert current NPDES and contaminant practices o Prohibits certain permits from being less stringent than previous permits o Does not include adequate funding to implement, or sufficient definitions and clarification to enforce • Status o Referred to the Assembly Environmental Safety and Toxic Materials Committee o Has not yet been assigned a hearing o Significant opposition already 7 AB 622 • • Details: o Would require, on or before January 1, 2024, that all washing machines sold as new in California contain a microfiber filtration system with a mesh size of 100 microns or smaller. o Additional amendments are expected • Status o Referred to the Assembly Environmental Safety and Toxic Materials Committee o Has not yet been assigned a hearing 8 4 3/2/2021 • - • • Details: o Authorizes municipal wastewater agencies to enter into agreements with entities responsible for stormwater management for the purpose of managing stormwater and dry weather runoff, to acquire, construct, expand, operate, maintain, and provide facilities for specified purposes relating to managing stormwater and dry weather runoff o Includes the authority to levy taxes, fees, and charges consistent with the municipal wastewater agency's existing authority in order to fund projects undertaken pursuant to the bill • Status o Referred to the Senate Governance and Finance Committee o Has not yet been assigned a hearing o Reintroduction of SB 1052 from last year EM i 818 (Bloom) . • - • - • Reintroduction of AB 1672 (Bloom)from last year • "DO NOT FLUSH" labeling and a universal moniker required in accordance with widely accepted voluntary guidelines established by the Association of the Nonwoven Fabrics Industry's code of practice Q • Last year, negotiations included refining the scope of covered products, and a — manufacturer driven comprehensive statewide consumer education and outreach campaign -� • Adds enforcement provisions including civil penalties and fines 10 5 3/2/2021 - • •n: Public Meetings • Increase of bills in 2021 addressing public meeting transparency, accessibility, and technology • Specific Bills o AB 339 (Lee) o Significant amendments expected o AB 361 (Rivas): CSDA Sponsored o AB 703 (Rubio): Three-Valley's Water District Sponsored o SB 274 (Wieckowski) imm OC6SAN T (I D" WNSEND ORANGE COUNTY SANITATION DISTRICT TPA Thank You Cori Takkinen Eric O'Donnell Southern California Senior Director Senior Associate CWilliams@townsendpa.com EODonnell@townsendpa.com www.townsendpa.com www.townsendpa.com 12 6 ration LEGISLATIVE AND PUBLIC AFFAIRS Ad10844t Ellis Avenuueg SAN COMMITTEE Fountain Valley, 92708 (714)593-743433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2021-1540 Agenda Date: 3/24/2021 Agenda Item No: 10. FROM: James D. Herberg, General Manager SUBJECT: PUBLIC AFFAIRS UPDATE FOR THE MONTH OF FEBRUARY 2021 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the Public Affairs Update for the month of February 2021. BACKGROUND Staff will provide an update on recent public affairs activities. RELEVANT STANDARDS • Maintain influential legislative advocacy and a public outreach program • Build brand, trust, and support with policy makers and community leaders • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities • Listen to and seriously consider community input on environmental concerns PROBLEM The Orange County Sanitation District (Sanitation District) is well-recognized within the water/wastewater industry; however, as a regional provider without direct access to our customers there is opportunity to always expand knowledge or awareness within our service area of the important work we do to protect public health and the environment and the part they can have to protect our sewer lines, our treatment plants, and the quality of water we supply for the Groundwater Replenishment System. PROPOSED SOLUTION By providing tours, community outreach, education, and general communication via the Sanitation District's website, social media outlets, and direct mailings, we have the ability to educate the community, local agencies, and businesses on our messaging such as the What2Flush program, energy production, water recycling, biosolids, and our source control program. This, in turn, helps improve the quality of wastewater that is recycled or released to the ocean. Orange County Sanitation District Page 1 of 2 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1540 Agenda Date: 3/24/2021 Agenda Item No: 10. RAMIFICATIONS OF NOT TAKING ACTION If we do not actively communicate with the community, local agencies, and area businesses about the Sanitation District, we may not have the support necessary to deliver our mission. ADDITIONAL INFORMATION Activities for the month of February 2021: Virtual Tours Due to the COVID-19 pandemic, our in-person Plant tours are temporarily suspended. To continue engaging with the community and our stakeholders, staff conducts virtual tours of the Plant which has allowed participants an opportunity to remotely visit the Sanitation District and learn how we protect public health and the environment. For this reporting period, we held 5 virtual tours reaching approximately 130 people. Presentations The State College Sewer Construction project team participated in a virtual community meeting for the City of Anaheim to provide a project update. Additionally, staff presented on media relations at the Association of California Cities of Orange County's Public Policy Academy with a general overview of the Sanitation District and the various career options at a virtual career day. Board Orientation Staff prepared a virtual Board Orientation and tour to welcome the new Sanitation District Directors and Alternate Directors. Awards The Santa Ana River Basin Section, the local section of the California Water Environment Association, recognized those who are making waves in the wastewater industry. The Sanitation District received the following awards: • Michael Huls, Lead Plant Operator, was awarded the Plant Operator of the Year • Steve Grande, Lead Mechanic, was awarded the Collections System Person of the Year • Collection System of the Year- 200-500 miles • Gimmicks and Gadgets- Alkaline Enhanced Iron Odor Control ATTACHMENTS The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Outreach and Media Summary Report January - February 2021 • Presentation Orange County Sanitation District Page 2 of 2 Printed on 3/16/2021 powered by LegistarTM Outreach and Media Summary OC j6 SAh ORANGE COUNTY SANITATION DISTRICT January - February 2021 OCSAN Public Affairs Office Table of Contents OUTREACH REPORT..................................................................PAGE 1 FACEBOOK POSTINGS ..................................................................PAGE 2 TWITTER POSTINGS ..................................................................PAGE 7 INSTAGRAM POSTINGS...............................................................PAGE 9 Outreach Report February 2021 Date Tours Attendees Tour Guide 2/8/2021 Oak Park High School Virtual Tour 32 Mike Zedek 2/10/2021 Oak Park High School Virtual Tour 33 Mike Zedek 2/16/2021 El Modena High School Virtual Tour 21 Sam Choi 2/18/2021 New Board Member Virtual Tour 40 EMT 2/25/22021 CSUF Nursing Class Virtual Tour 15* Cortney Light Date Speaking Engagements Attendees Presenter 2/2/2021 Career Fair Presentation 173 Kevin Escobar 2/12/2021 ACC- OC Presentation 20 Rebecca Long 2/24/2021 Anaheim District 5 Presentation 30* Daisy Covarrubias *These events have not occurred at time of this report,therefore#of attendees is estimated. Project Area Construction Outreach Notifications #of People Website Posts and Reached Text Alerts Anaheim 3 notifications 8300 3 website posts/ 3 text alerts Westminster 1 notification 260 2 website posts/ 1 text alerts External #of People Communications Distribution Reached Board Member One 25 Talking Points Member One 25 Outreach Tool kit Website Posts 2 posts 17 views Facebook 27 posts 2.8k people Twitter 21 tweets 11.4k people Instagram 24 posts 1k people 1 Facebook Posts Jan-Feb 2021 Results from Jan 19,2021-Feb 15,2021 Note:Does not include today's data Insights activity is reported in the Pacific time zone.Ads activity is reported in the organic 0 Paid time zone of your ad account. Actions on Page If Page Views I Page Previews If January 19-February 15 January 19-February 15 January 19-February 15 1 121 tim& Total Actions on Page v67% Total Page Views A21% ■��� sons We have insufficient data to show for the selected time period. Page Likes Post Reach Story Reach January "rsi,r ar, January 19-February 15 January 19-February 15 3 901 Get Story Insights See stats on how your Page's recent Page Likes A 0% People Reached.47% stories have performed. I III I I I III, P\,-, Recommendations Post Engagement Videos uary 15 January 19-Febr, 5 January 19-February 15 357 385 ■��� Post Engagement A 146% 3-Second Video Views A 41% wage We have insufficient data to show for the selected time period. Page Followers JariUaf, 1�-1-abr�2r, 1� 3 Page Followers.0% L--U All Posts Published E Reach Organic)'Paid ® Post Clicks f Reactions.Comments 8 Published Post Type Targeting Reach Engagement 02i1512021 Construction Alert for ,, 39 1 @city_of anaheim . Both D"+Y and 1 02i1512021 The OC San Adman effaces will he 107 1 closed today in observance of 1 02i140-021 We LOVEEEEEEEEEEEE when - - 5 82 someone tells us these 4 sweet 6 02i1212021 This is the#YearOfTheOx.The Ox 126 2 I --1".1has traits of strength reliability, 170- 5 02i11/2021 #'NomenlnScience are everyday but ID ,� �81 21 4' = 11 today we want to give you all an 34 02;l10-021 * REMINDER""Our Admin offices 0 r N �1 I Miami" will be closed tomorrow in - 02i1012021 We will be having a Special Board of �, ,� 59 2 I - a_ ' Directors Meeting on Vdednesday. '� 1 02/0912021 INOOTi IVOOT!OC San received 4 5 Santa Ana River Basin Section 10 t 187 10 � 02/072021 We wait for Super Bowl Sunday as �� �+1 132 4 � o a�n =� much as everyone else. Our 7 02;0612021 Reminder!Construction Alert for ID V4 31 1 @city_of anaheim. Northbound 1 02i0512021 " Street is now open.thank you for S4 VA 50 — 1 I - your patience 0 I 0210512021 Construction Alert in City of — 2 Anaheim-Municipal Government �� 44 2 02/040-021 Construction Alert for ID 144 88 2 -- - - @cityofanaheim Northbound State 0 02i0312021 If you've gone to ocsd.comljobs and 85 _ 7 = haven t seen the posting for the job 2 02i0312021 ■ Make sure to join us next week on �, � 33 - 1 Wednesday. Feb. 10 at 5 p.m Click J 0 I 02/0212021 ■ Join us for the Legislative and Public 65 0 1t� ' '�_�' Affairs Committee on Monday,onday. Feb j 0 3 0 2/0 212 0 2 1 ■ Join us for the Legislative and Public .14 65 0 1:35 PM Affairs Committee on Monday, Feb 0 02/0212021 aRemember, #Nationalgreenweek is here. 0 AV every item has its place 91 0 0128/2021 In this weather you have to stay r .44 116 1 _--=Y toasty even when you're inside 6 � 012812021 ■ The Operations Committee Meeting �, 59 2 — GY is happening on Wednesday. Feb 3 ` 1 012412021 ® Just an inside look at some of the 14 r ,� �23 vievrs you see inside a Wastewater 18 � 01232021 S Construction Alert in Cityof Fullerton. 64 — 2 1209 PN Starting Monday crews will begin 2 01i2212021 Always Safe.Always There.The OC �� 160 22 San Team ensures that work gets 11 01212021 Join us in congratulating the near 48 — OC San Environmental Laboratory fp ` 28 29 012012021 ■ The Steering Committee Meeting 15 f, 0 6� 2 F"' p.m l and Board of Directors `� 0 01,-2012021 There are many types of gasses but 5 do you know what biogas is? fp 102 4 ' 01i172021 'Nord searches on a Sunday 1 � morning sounds like a dream to us RE] 121 2 4 Graphs of Page Likes, Post Reach and Total Views for January-February 2021 Total Page Likes: 974 Total Page Likes Page Likes The number of organic Page likes. paid Page likes and unlikes. Unlikes Organic Likes Paid Likes i i 5 Total Views By Section Total Views 12 a __ = Jan 21 Jan 25 _an 2 Jan 31 Feb 4 Feb 7 Feb 1,5 Feb 14 Feb 17 Post Reach The number of people who saw any of your posts at least once This metric is estimated. Organic Paid 150 100 i 50 0, 19 21 23 25 27 29 31 02 04 06 08 10 12 14 16 18 JAN FEB 6 Twitter Posts Jan-Feb 2021 Account • �151 � Orange County Sanitation District'•-.lsaroEtra eupiat-Caalp 28 day summary-:hchange over prev*usperiw. Te&-M TAee':Irp sEr n" Ft711e till% - 15 t 8,655 to 236 t1 h 9 4 - 1.702 Feb 2021•17 days so far_ Tvp-r H am--- s Top Tweet earned 3,811 impressions Top mention earred'a ergagements Get your Tweets in front of Construction Alert for @cityofanaheim Los Angeles County Sanitation more people Districts Promote]-„es;s s-:canter;open Northbound State College Blvd.will be 'j _ _ �� closed at Westport Dr on Saturday Please - eo reach on Twiner to more people use alternate routes to reach your (gOC San District Sewer treatment plants destination Visit ocsan.gowstatecollege for are the real MVPs today!#flushbowl #what2flush details #OCSanConstruction @City_of_Anaheim • =E82021 SURAM RY pic IwittercomigA4XMr_?.9= se, -. TAM Ta OnpiesAtm `�i xna care�e 13 7,072 ;a /r CLOSED at ` / 1lwstttr Dr. Top media Tweet -�a;-= PMME pep,�,pa We wait for Super Bowl Sunday as much as 11119� ar5rertlrs everyone else.But for us its the Flush Bowl OC sr Cnatrrom wens Y t•ariros »noo because it is 1 of our peak floe:days 'When .,e„p�g �""�°'N01� SAN you hit the restroom during the commercial 8 breaks,make sure you keep in mind to only t'` V_ flush pee poop.and paper Nothing vrewTweet adivity Jew all Tweet a vmy more.#what2flsuh#flushbowl pic twitter com�5lHldjyXVgSB Top Follower fcllowed cy IC13 seople ' � 15 RL A O He FOR THE FLUSH BOWL OURIOG © TUC ciincn onilii SoCaI Water Coalition 01 95 View Tweet activity :r ^:.,:artisan putlr�c educatrn - - _ Informing Sounem Ca forraas a-_:andourslate'swate�resources. 7 Jan 2021-31 days TWEET HIGHLIGHTS JAN 2021 SUMMARY Top Tweet earned 324 impressions Top media Tweet earned 313 impressions Tweets Tweet impressions You should only flush the 3 P's:Pee,Poop, Happy New Year!We're ready to flow into 7 4,300 and Toilet Paper.This is the Way.#3Ps 2021,we hope you are too! Profile visits Mentions #What2Flush#thisistheway pic.twitter.comlvg3J542L02 pic.twitter.com/JKplNl0LnnU 180 1 New followers Aft, or, -1 ._ tit •1 View Tweet activity View all Tweet activity View Tweet activity View all Tweet activity Top Follower followed by 2,058 people �Edft Hannah Fry G @Hannahnfry Fouowsvou Orange County reporter @latimes-Southern California native.Formerly @TheDailyPilot @ocregister Tips? hannah fry@latimes.com View profile 8 Instagram Posts Jan-Feb 2021 Ocsandistf ct -- Q OC� 333 pis ;161 ruNt trs '21 p—" a Si.Yra•m.Q®la Try OC Smr�rnn Dae 1 Pry,waCo.aOv rtlluOon rtc�[rtunt aY iucnln:to .sx.�._.e...eon Propo o ctm-�s norm aa.gc r,",rc, gcm2rilefKipmY�lOepnlm\rce�/'rt1�MpV.3A.iX'1.Xocvdmanut22F... FREE PRIVATE uPMAYEd VIRTUAL pAY&NIOH TOURS] OURS �........m..,..� rJ#lEN'T FIUSNAtIE ���� t� E LINCOLN'S LINCOLN'S Lc FRIOAY,FE;.12 iR10AY.FE6.12 Saturday Road Closure SARBSAwar• Oc SRn 15 REROH FOR , THE FLUSH BOWL t � Own THE SUPER BOWL �sA rto.mawm s=s coley. Saturday Road Closure MOST REGUESTED cla«a•c C.n Sc. �wtnn•.u. nos••. Vlee•e w Lincoln A— ••tY.n• t. oMo Suu coll•p• .SAN .......w-•Y..... ISA 9 I ■ T 5 E 6 1 D GLA A E B T L DICYE _ M A M I A N WA< F I K A L G PIPE F - Y A Es H U GGS W E T 5 A W 7 G P N W D V 1 1 H S D F I T E T E S N V O V D Y P 10 3/2/2021 Public Affairs Update 1 6 What We Did 1 drge cant f.N d-ow ke ... .w,w- •e nNWMmmrre wwtwWK vo.u.n • 5 Virtual Tours Mn!N.4n f11l.NlN!•i.n10 horn M.A+socW ron of NebWMn WYN/pmtles 4 nn revcn..av o.ur Wa • Board Member Orientation and Tour • Anaheim Neighborhood Presentation • ACC-OC Presentation ,,}e • Toolkit for member agencies • Continue logo rollout Social Media j O Tours Twitter: 21 tweets/11.4k impressions 5 tours / 100 guests Facebook: 3 speaking engagements 27 posts/2.8k reach Instagram: 24 posts/ 1 k reach 2 1 3/2/2021 What We Are Doing • Participating in the YES Conference • Plant No. 1 Neighborhood Newsletter • Construction Outreach • Orange County Science and Engineering Fair���L� • Celebrating Retirees i1 19-23,2021 Youth Environmental Summit r — Page 3 3 SARBS: The Santa Ana River Basin Section, the local section of the California Water Environment Pap. Ri t, Association, recognized OC San with the F following awards: z u� • Michael Huls, Lead Plant Operator S Plant Operator of the Year ECTioa • Steve Grande, Lead Mechanic Collections System Person of the Year CWEA • Collection System of the Year 200-500 miles • Gimmicks and Gadgets Alkaline Enhanced Iron Odor Control 4 2 Administration Building STEERING COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1559 Agenda Date: 3/24/2021 Agenda Item No: 11. FROM: James D. Herberg, General Manager SUBJECT: AUTHORIZATION OF CONTRIBUTION TO CASA EDUCATION FOUNDATION SCHOLARSHIP FUND GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Adopt Resolution No. OC SAN 21-06, entitled "A Resolution of the Board of Directors of the Orange County Sanitation District approving a not to exceed Annual contribution amount of $2,500 to the California Association of Sanitation Agencies (CASA) Education Foundation Scholarship Fund beginning FY 2020-2021; and Repealing Resolution No. OCSD 15-22". BACKGROUND CASA represents the interests of local clean water agencies in California that treat wastewater and produce renewable resources such as recycled water, clean energy, and soil enhancements (biosolids). Recognizing the need to recruit new professionals into the industry, CASA members encouraged the association to establish the CASA Education Foundation, a non-profit 501(c)(3) organization committed to raising money and offering competitive scholarships to support undergraduate students seeking degrees connected to working at a local public wastewater facility. Founded in 2013, the CASA Education Foundation (Foundation) was established to provide scholarships that contribute to a student's academic development and career potential in the wastewater field. The Foundation's goals are to expose students to careers in the clean water community and increase the visibility of California's publicly owned wastewater agencies with the public, civic leaders, and the academic community. Each year, the Foundation awards competitive scholarships to students pursuing higher education in engineering, environmental science, public administration, or other related fields, and who show an interest in serving the wastewater (clean water) industry. The Foundation awarded five $5,000 scholarships in 2020. Scholarship funds are obtained through fundraising events, individual contributions, and organizational contributions. The Foundation is reaching out to CASA member agencies for contributions as a means to generate a sustainable stream of income to support and possibly expand the scholarship program. Orange County Sanitation District Page 1 of 3 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1559 Agenda Date: 3/24/2021 Agenda Item No: 11. RELEVANT STANDARDS • Comply with OC San Policy (Resolution No. OCSD 15-22) • Ensure the public's money is wisely spent • Cultivate a highly qualified, well-trained, and diverse workforce PROBLEM Resolution No. OCSD 15-22 requires the Orange County Sanitation District (Sanitation District) to budget and contribute $5,000 per year to the Foundation. The existing Resolution doesn't provide flexibility to allow a contribution of less than $5,000. PROPOSED SOLUTION Adopt a Resolution stating the Sanitation District's support for the Foundation and authorizing the General Manager to approve an annual contribution up to $2,500 per year. TIMING CONCERNS The Sanitation District is currently updating the annual budget for approval by the Board of Directors in June 2021. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District is required by Resolution to continue to budget and contribute $5,000 annually, and that amount would therefore be included in the 2021-22 budget. PRIOR COMMITTEE/BOARD ACTIONS October 2015 - Adopted Resolution No. OCSD 15-22 entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District approving an annual contribution of $5,000 to the California Association of Sanitation Agencies (CASA) Education Foundation Scholarship Fund beginning FY 2015-2016". ADDITIONAL INFORMATION The focus of the Foundation is undergraduate education. Eligible applicants are California residents attending or incoming freshmen to an accredited college or university located in California. Each spring, applications are solicited from students pursuing degrees in engineering, environmental science, natural/water resources, public administration, or other degrees which would prepare a student for a career in a clean water agency. Clean water agencies are encouraged to publicize the scholarship opportunity and provide application materials to community members. Applicants must submit an application, statement of purpose, a coursework plan for the funded period, academic transcripts, and two letters of recommendation to be considered. The applications Orange County Sanitation District Page 2 of 3 Printed on 3/16/2021 powered by LegistarTM File #: 2021-1559 Agenda Date: 3/24/2021 Agenda Item No: 11. are screened by members of the Foundation Board of Directors who make a final determination of awardees based on three criteria: • Commitment to the clean water industry. Students must demonstrate a sincere desire to pursue a career in the clean water industry. The relationship of a student's academic and career goals to the water environment community are considered in making scholarship selections. • Academic achievement. While there is no minimum grade point average to qualify for a scholarship, academic performance plays a role in deciding which students are awarded scholarships. • Extracurricular pursuits. Student applicants need to be aware of issues that face the wastewater industry and how they can contribute to enhancing the future of California's clean water community. This may be demonstrated by work experience, volunteer activity, participation in school or extracurricular projects, internships, or membership in civic, professional, or student chapter organizations. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Draft Resolution No. OC SAN 21-06 Orange County Sanitation District Page 3 of 3 Printed on 3/16/2021 powered by LegistarTM RESOLUTION NO. OC SAN 21-06 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING A NOT TO EXCEED ANNUAL CONTRIBUTION AMOUNT OF $2,500 TO THE CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) EDUCATION FOUNDATION SCHOLARSHIP FUND BEGINNING FY 2020- 2021; AND REPEALING RESOLUTION NO. OCSD 15-22 WHEREAS, the CASA Education Foundation administers a scholarship fund whose goal is to enhance the future of California's clean water industry by attracting new professionals into the industry. WHEREAS, the purpose of the scholarships is to help students in California pursuing undergraduate degrees in engineering, environmental science, public administration, wastewater operations, or other related fields, and showing an interest in serving the clean water industry. WHEREAS, the scholarships are awarded on a competitive basis to an undergraduate student enrolled in an accredited California college or university, as determined by the applicant's academic achievement, community involvement, and commitment to a career in a clean water agency. WHEREAS, the goal of the CASA Education Foundation is to annually issue three or more scholarships in the amount of $5,000 each. WHEREAS, the Education Foundation is seeking financial contributions from CASA member agencies to support the scholarship fund and provide funding for future scholarships. WHEREAS, the mission of the CASA Education Foundation supports the Sanitation District's goals of 1) supporting environmental education and career opportunities for students, 2) developing and recruiting the talent necessary to design, operate and maintain our wastewater infrastructure, and 3) preparing the next generation of professionals to serve the clean water industry. NOW, THEREFORE the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE, AND ORDER: 1) The Board of Directors supports the efforts of the CASA Education Foundation to attract new professionals into the clean water industry and hereby approves a not to exceed annual contribution of $2,500 to the CASA Education OC SAN 21-06 Foundation Scholarship Fund for the purpose of funding scholarships to California students. 2) The Board of Directors hereby authorizes and directs the General Manager to allocate the not to exceed amount of $2,500 in the annual budget, beginning FY 2020- 21, for the CASA Education Foundation Scholarship Fund. 3) Resolution No. OCSD 15-22 is hereby repealed. PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Orange County Sanitation District, at a regular meeting held on March 24, 2021. David John Shawver Board Chair Kelly A. Lore, MMC Clerk of the Board OC SAN 21-06 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OC SAN 21-06 was passed and adopted at a regular meeting of said Board on the 24th day of March 2021 , by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 24t" March 2021. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OC SAN 21-06 Administration Building STEERING COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1562 Agenda Date: 3/24/2021 Agenda Item No: 12. FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: CENTRAL GENERATION ENGINE OVERHAUL AT PLANT NO. 1 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Award a Sole Source Service Contract to Cooper Machinery Services to provide a Central Generation Engine No. 1 Overhaul at Plant No. 1, per Proposal 210204-839, for a total amount not to exceed $3,705,932-1 and B. Approve a contingency of $741,186 (20%). BACKGROUND The Orange County Sanitation District (Sanitation District) operates eight Central Generation (Cen Gen) engines manufactured by Cooper Bessemer. The Cen Gen facilities began service in 1993 to improve air emissions by using clean burn engine technology to convert biogas into electricity and process heat. The Cen Gen facilities supply approximately 60% of the electricity for our treatment plants. Heat recovered from the engines is used in the digestion process and for absorption chillers at Plant No. 1 providing cooling for the Administration Building, Laboratory Building, Central Generation Building, and Operations Building. The Cen Gen plants have been providing reliable service for more than 25 years and the engines are now in need of scheduled major overhauls. In October 2019, a service contract was awarded to UPS Midstream Services, Inc. to overhaul the first two of the eight engines. UPS Midstream Services was selected using a competitive proposal solicitation process. Original Equipment Manufacturer (OEM) service and parts have been supplied through General Electric. Recently, General Electric spun off Cooper Machinery Services to provide these OEM parts and services. RELEVANT STANDARDS • Protect OC San assets • Maintain a proactive asset management program • Use all practical and effective means for resource recovery Orange County Sanitation District Page 1 of 3 Printed on 3/19/2021 powered by LegistarTM File #: 2021-1562 Agenda Date: 3/24/2021 Agenda Item No: 12. • 24/7/365 treatment plant reliability PROBLEM UPS Midstream Services has been unable to complete the necessary overhaul under the October 2019 Service Contract. The first engine rebuilt under the contract has catastrophically failed twice. A third-party engineer was hired to inspect the parts and services supplied by UPS Midstream Services. This third-party engineer and Sanitation District staff agree that the parts and services supplied by the vendor do not meet the requirements of the Service Contract. Therefore, the Sanitation District terminated the Service Contract and is seeking reimbursement from UPS Midstream Services and through Sanitation District insurance providers. The Sanitation District has a South Coast Air Quality Management District (SCAQMD) permit to operate Cen Gen Engine No.1 at Plant No. 1. That permit requires annual testing of emissions. The Sanitation District has received a very specific permit variance that requires that the engines must be operable and tested by April 2022 with a set of schedule milestones along the way. PROPOSED SOLUTION Staff recommends awarding a Service Contract to Cooper Machinery Services to provide parts and services to overhaul Cen Gen Engine No. 1 located at Plant No. 1. TIMING CONCERNS The Sanitation District has a SCAQMD air quality permit obligation to get the engine rebuilt and tested on a strict timeline. This timeline does not allow for a normal competitive solicitation process or the performance risks associated with the process. RAMIFICATIONS OF NOT TAKING ACTION Failure to take action on this repair in a timely fashion risks the loss of the SCAQMD permit to operate the engine. In addition, without Engine No. 1 there is not standby capacity for energy conversion. This situation reduces overall reliability and has the potential annual cost impact of approximately $1,400,000 to offset energy purchases and incurred demand charges. PRIOR COMMITTEE/BOARD ACTIONS October 2019 - Board of Directors awarded a service contract to UPS Midstream Services, Inc. to provide Central Generation Engine Overhauls at Plant Nos. 1 and 2 (for a total of two engines), Specification No. S-2019-1074BD, for a total amount not to exceed $5,636,335. ADDITIONAL INFORMATION The original Service Contract with UPS Midstream Services included two engines, one at Plant No. 1 and one at Plant No. 2. This request is only for Engine No. 1 at Plant No. 1 due to the urgency of the permitting conditions and the need for a standby unit at Plant No. 1. The second engine at Plant No. 2 is being moved to an upcoming project scoped to rebuild the balance of the engines at both plants. Orange County Sanitation District Page 2 of 3 Printed on 3/19/2021 powered by LegistarTM File #: 2021-1562 Agenda Date: 3/24/2021 Agenda Item No: 12. Staff believe the best opportunity to meet the timeline requirements of the SCAQMD permit variance is to retain the OEM parts and services supplier. It is also an opportunity to verify the newly created spin-off company is capable of supporting the machinery. On a parallel path, staff are pursuing an engineering study to better estimate the short, medium, and long-term viability of the current engine generators. The current direction is to rebuild the current engine generators to extend the life of the existing units, as well as the electric, gas, and process heat infrastructure for 25 years. When the next round of 125,000 hour engine rebuilds come due, it is probable that new, more efficient energy conversion technologies will be cost effective to pursue. A 20% contingency is requested in the event of unforeseen damages or delays due to the catastrophic failures the engine had incurred and delays in fabricating additional long lead time parts beyond those anticipated. The terms and conditions of the service contract are currently being reviewed. Staff anticipates a final contract for publication no later than close of business on Friday, March 19, 2021 . CEQA N/A FINANCIAL CONSIDERATIONS This request complies with the authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted in the FY20-21 & FY 21-22 Budget, Capital Treatment System Improvement Projects, Line Item J-135 (Section 8, Pg. 44). Date of Approval Contract Amount Contingency 03/24/2021 $3,705,932 $741,186 (20%) ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Service Contract - added 03/19/2021 KS:Ic:gc Orange County Sanitation District Page 3 of 3 Printed on 3/19/2021 powered by LegistarTM SOLE SOURCE SERVICE CONTRACT Specification No. SSJ2412 Central Generation Engine Overhaul at Plant 1 THIS CONTRACT is made and entered into as of the date fully executed below, by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708 (hereinafter referred to as "OC SAN")and Cooper Machinery Services LLC with a principal place of business at 16250 Port Northwest Drive, Houston, Texas 77041 (hereinafter referred to as "Contractor") collectively referred to as the"Parties". WITNESSETH WHEREAS, OC SAN desires to temporarily retain the services of Contractor for Central Generation Engine Overhaul at Plant 1 "Services" as described in Exhibit "A"; and WHEREAS, OC SAN has chosen Contractor to conduct Services in accordance with Ordinance No. OCSD-52; and WHEREAS, on March 24, 2021 the Board of Directors of OC SAN, by minute order,authorized execution of this Contract between OC SAN and Contractor; and WHEREAS, Contractor is qualified by virtue of experience, training, and expertise to accomplish such Services, NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agree as follows: 1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract") is made by OC SAN and the Contractor. The terms and conditions herein exclusively govern the purchase of Services as described in Exhibit "A". 1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibit "A" Scope of Work Exhibit "B" Proposal Exhibit "C" Acknowledgement of Insurance Requirements Exhibit "D" Contractor Safety Standards Exhibit "E" Human Resources Policies Exhibit "F" Not Used 1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control. 1.4 The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto. 1.5 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any paragraph or provision hereof. Orange County Sanitation District 1 of 11 Specification No. SSJ2412 1.6 The term "days", when used in the Contract, shall mean calendar days, unless otherwise noted as business days. 1.7 OC SAN holidays (non-working days) are as follows: New Year's Day, Lincoln's Birthday, Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.8 The term "hours", when used in this Contract, shall be as defined in Exhibit"A". 1.9 Contractor shall provide OC SAN with all required premiums and/or overtime work, as specified in this Contract, at no charge beyond the price provided under "Compensation" below. 1.10 Except as expressly provided otherwise, OC SAN accepts no liability for any expenses, losses, or action incurred or undertaken by Contractor as a result of work performed in anticipation of purchases of said services by OC SAN. 2. Compensation Compensation to be paid by OC SAN to Contractor for the Services provided under this Contract shall be a total amount not exceed Three Million Seven Hundred Five Thousand Nine Hundred Thirty Two Dollars ($3,705,932.00) 3. California Department of Industrial Relations(DIR Registration and Record of Wages 3.1 To the extent Contractor's employees and/or its subcontractors who will perform work during the design and preconstruction phases of a construction contract or perform work under a maintenance contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 et seq, Contractor and its subcontractors shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to compliance monitoring and enforcement by the DIR. 3.2 The Contractor and its subcontractors shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code 1771.4(a)(3). Penalties for non- compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. 3.3 Pursuant to Labor Code Section 1776, the Contractor and its subcontractors shall furnish a copy of all certified payroll records to OC SAN and/or general public upon request, provided the public request is made through OC SAN, the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement of the Department of Industrial Relations. 3.4 The Contractor and its subcontractors shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 4. Payments and Invoicing 4.1 OC SAN shall pay, net 30 days, upon receipt, by OC SAN's Project Manageror designee, of itemized invoices submitted for Milestones completed in accordance with Exhibit "A". OC SAN shall approve or reject invoices within 14 days of receipt. Any invoice not rejected in writing within 14 days of receipt shall be deemed approved by OC SAN. OC SAN, at its sole discretion, shall be the determining party as to whether theServices have been satisfactorily completed. In the event OC SAN disputes an invoice or has a reasonable basis for determining Services have not been satisfactorily completed, OC SAN agrees to pay the Orange County Sanitation District 2 of 11 Specification No. SSJ2412 undisputed portion of any invoice in a timely manner while both parties agree to discuss in good faith to resolve the disputed portions of an invoice. If OC SAN fails to pay an undisputed invoice after receiving 30 days written notice of non-payment, Contractor shall have the right to suspend performance and Contract Term shall be extended for a time equal to the suspension for non-payment. Should suspension for non-payment last 30 days, Contractor shall have the right to terminate and OC SAN agrees to pay termination fees in accordance with Section 12.1. 4.2 Invoices shall be emailed by Contractor to OC SAN Accounts Payable at APStaff(a_OCSD.com and "INVOICE" with the Purchase Order Number and Specification No. SSJ2412 shall be referenced in the subject line. 5. Audit Rights Contractor agrees that, during the term of this Contract and for a period of three years after its termination, OC SAN shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Contract. OC SAN agrees all audits are subject to confidentiality and non-disclosure provisions and are limited to the purpose of OC SAN verification of payment and invoicing records, except to the extent required by a government agency. 6. Scope of Work Subject to the terms of this Contract, Contractor shall perform the Services identified in Exhibit "A". Contractor shall perform said Services in accordance with generally accepted industry and professional standards. 7. Modifications to Scope of Work Requests for modifications to the Scope of Work or due to delays solely attributable to OC SAN hereunder can be made by either party at any time. All modifications must be made in writing, approved and signed by both Parties before any Work on the modification shall begin. In theevent of a modification, time of performance and payment for work shall be altered accordingly. 8. Contract Term The Services provided under this Contract shall be completed within 200 calendar days from the effective date of the Notice to Proceed. 9. Renewals Not Used 10. Extensions The term of this Contract may be extended only by written instrument signed by both Parties. 11. Performance Time is of the essence in the performance of the provisions hereof. 12. Termination 12.1 OC SAN reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OC SAN of intent to terminate. OC San also reserves the right to terminate this Contract for default in accordance with section 12.2 and 12.3. Upon receipt of a termination notice for convenience or terminate notice under 12.3, Contractor shall immediately discontinue all work underthis Contract (unless the notice directs otherwise). In all cases of termination whether for convenience or default, OC SAN shall thereafter, within thirty 30days, pay Contractor for work performed (cost and fee) to the date of termination, including any reasonable costs and expenses incurred by Contractor as a direct result of such termination for any goods or services in progress prior to the effective date of termination. Contractor expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and payment to Contractor for work Orange County Sanitation District 3 of 11 Specification No. SSJ2412 performed and any applicable costs/expenses to the date of termination shall release OC SAN from any further fee, cost or claim relating to the terminated portion of the Contract, hereunder by Contractor. 12.2 OC SAN reserves the right to terminate this Contract upon determination that Contractor has materially breached any of the terms of this Contract and failed to commence to cure within 10 days with continual diligent efforts following receipt of written notice of such breach.. In the event of termination under this section, Contractor total liability shall not exceed the actual and reasonable documented costs and expenses to complete the terminated Scope of Work. 12.3 OC SAN may also immediately cancel for default of this Contract in whole or in part by written notice to Contractor: ■ if Contractor becomes insolvent or files a petition under the Bankruptcy Act; or 12.4 All OC SAN property in the possession or control of Contractor shall be returned by Contractor to OC SAN upon demand, or at the termination of this Contract, whichever occurs first. 13. Insurance Contractor and all subcontractors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements (attached hereto and incorporated herein as Exhibit "C"). Contractor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OC SAN, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract. Any requirements for additional insured, waiver of rights of subrogation or recognition of Contractor's insurance as primary shall apply only to the extent of the legally-binding indemnities agreed to by Contractor in the Contract. 14. Bonds Not Used 15. Indemnification and Hold Harmless Provision Contractor shall assume responsibility for direct damages to property and/or injuries to persons, including accidental death, to the extent such damages arise out of or are caused by the negligence of Contractor under this Contract, or by the negligence of its subcontractor(s) or by anyone directly or indirectly employed by Contractor, and whether such damage or injury shall accrue or be discovered before or after the termination of the Contract. Contractor shall indemnify, protect, defend and hold harmless OC SAN, its elected and appointed officials, officers, agents and employees, from and against any and all claims, liabilities, damages or expenses of any nature, including attorneys' fees: (a) for injury to or death of any person or damage to property , to the extent arising out of or in connection with Contractor's negligent performance under the Contract, and/or (b) to the extent on account of use of any copyrighted or uncopyrighted material, composition, or process, or any patented or unpatented invention, article or appliance, furnished or used directly by Contractor or its subcontractor(s) under the Contract. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Contractor of or anyone employed by or working under Contractor. Notwithstanding the foregoing, Contractor has no responsibility to and will not indemnify OC SAN, or its elected and appointed officials, officers, agents and employees, for claims, liabilities, expenses, or damages of any nature to the extent arising from, caused by or in connection with OC SAN's negligence (sole, joint, or concurrent), gross negligence, willful misconduct Orange County Sanitation District 4 of 11 Specification No. SSJ2412 or any other fault on the part of OC SAN. 16. Contractor Safety Standards OC SAN requires Contractor and its subcontractor(s) to follow and ensure their employees follow all Federal, State, and local regulations as well as the Contractor Safety Standards while working at OC SAN locations. If during the course of the Contract it is discovered that the Contractor Safety Standards do not comply with Federal, State, or local regulations, then the Contractor is required to follow the most stringent regulatory requirement at no additional cost to OC SAN. Contractor and all of its employees and subcontractors, shall adhere to all applicable Contractor Safety Standards attached hereto in Exhibit "D" and the Human Resources Policies (Exhibit "E"). 17. Warranties In addition to the warranties stated in Exhibit "A", the following shall apply: 17.1 Where applicable, Contractor supplier's standard warranty shall apply. To the extent possible, Contractor shall transfer its supplier's warranties to OC SAN for the work as complete. Contractor's Warranty (Guarantee): Contractor warrants that any goods, parts, repairs, or upgrades supplied by Contractor under this Contract shall (i) be free from any materials and workmanship for the specified warranty period, (ii) conform to the specifications mutually agreed in Exhibit "A" (herein incorporated by reference), and (iii) all Services will be performed in a competent and diligent manner in accordance with generally accepted standards for such services. If within a one-year period of completion of all work as specified in Exhibit"A", OC SAN informs Contractor in writing that any portion of the Services provided fails to meet the standards required under this section 17 of the Contract, Contractor shall, within the time agreed to by OC SAN and Contractor, repair, replace, or re-perform the noted non-conforming deficiency(ies) in goods or Services at Contractor's sole option and expense. If the good or Service cannot be made to conform to the warranty in this section by repair, replace, or re-performance, Contractor's responsibility shall be to refund the portion of the purchase price allocated to the non-conforming goods or Services. The remedies set forth in this section constitute the sole and exclusive remedies for all claims arising out of or related to any defect or non-conformity in the products, parts, goods, or services regardless when the defect or non-conformity arises. Contractor shall have no responsibility to repair or replace defective equipment or component parts resulting from the use of repair or replacement parts not of Contractor's manufacture or approved by Contractor or from OC SAN's failure to store, install, maintain, and operate the equipment according to Contractor's written instructions and drawings and standard industry practice. Deterioration and wear occasioned by chemical and abrasive action or excessive heat shall not constitute defects. Transportation of products to and from Contractor's service facility shall be borne to OC SAN when a repair is not covered by warranty. Warranty work provided under this Contract does not assure uninterrupted operation of the products. Equipment and accessories furnished by third parties which are not incorporated in the equipment manufactured by Contractor are warranted only to the extent of the original manufacturer's warranty to Contractor. THE WARRANTIES SET FORTH IN THIS SECTION 17 ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, CONDITIONS, AND GUARANTEES, WHETHER WRITTEN OR ORAL. NO IMPLED WARRANTY OR CONDITION, INCLUDING MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE SHALL APPLY. 18. Damages Contractor's total responsibility for any claims, damages, losses or liabilities arising out of or related to its performance of this Contract or the products and Services covered hereunder shall not exceed two times the Contract price. EXCLUDING CLAIMS RESULTING FROM GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, IN NO EVENT SHALL CONTRACTOR OR OC SAN BE LIABLE FOR PUNITIVE, INDIRECT, Orange County Sanitation District 5 of 11 Specification No. SSJ2412 INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES OF ANY KIND AS DEFINED BY THE LAW GOVERNING THIS CONTRACT RESULTING FROM OR ARISING OUT OF THIS CONTRACT, INCLUDING WITHOUT LIMITATION, LOSS OF PROFIT, REVENUE, PRODUCTION OR USE HOWSOEVER SAME MAY BE CAUSED. 19. Force fteure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Contract. 20. Freight (F.O.B. Destination) Contractor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract. 21. Familiarity with Work By executing this Contract, Contractor warrants that: 1) it has investigated the work to be performed; 2) it has investigated the site of the work and is aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the work under this Contract. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OC SAN, it shall immediately inform OC SAN of this and shall not proceed, except at Contractor's risk, until written instructions are received from OC SAN. 22. Regulatory Requirements Contractor shall perform all work under this Contract in strict conformance with applicable Federal, State, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and California Water Codes Division 2. 23. Environmental Com lia ance Contractor shall, at its own cost and expense, comply with all Federal, State, and local environmental laws, regulations, and policies which apply to the Contractor, its subcontractors, and the Services, including, but not limited to, all applicable Federal, State, and local air pollution control laws and regulations. 24. Licenses. Permits. Ordinances and Regulations Contractor represents and warrants to OC SAN that it has obtained all licenses, permits, qualifications, and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by Federal, State, County, City and/or municipal laws, codes and/or tariffs that pertain to the work performed under the terms of this Contract will be paid by Contractor. 25. Aaalicable Laws and Regulations Contractor shall comply with all applicable Federal, State, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OC SAN as a result of Contractor's noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically referenced. 26. Contractor's Employees Com&2ensation 26.1 Davis-Bacon Act — Contractor will pay and will require all subcontractors to pay all employees on said project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis- Bacon Act shall apply only if the Contract is in excess of$2,000.00 and when 25% or more of the Contract is funded by Federal assistance. If the aforesaid conditions are met, a copy Orange County Sanitation District 6 of 11 Specification No. SSJ2412 of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. 26.2 General Prevailing Rate — OC SAN has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute this Contract, and copies of same are on file in the Engineering Department. The Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OC SAN will have on file copies of the prevailing rate of per diem wages at its principal office and at each project site,which shall be made available to any interested party upon request. 26.3 Forfeiture For Violation — Contractor shall, as a penalty to OC SAN, forfeit $50.00 for each calendar day or portion thereof for each worker paid (either by the Contractor or any subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. 26.4 Apprentices—Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the Contractor shall comply therewith if the prime contract involves $30,000.00 or more or 20 working days or more; or if contracts of specialty contractors not bidding for work through the general or prime Contractor are $2,000.00 or more or five working days or more. 26.5 Workday— In the performance of this Contract, not more than eight hours shall constitute a day's work, and the Contractor shall not require more than eight hours of labor in a day from any person employed by it hereunder. Contractor shall conform to Article 3, Chapter 1, Part 7 (Section 1810 et seq.) of the Labor Code of the State of California and shall forfeit to OC SAN as a penalty, the sum of $25.00 for each worker employed in the execution of this Contract by Contractor or any subcontractor for each calendar day during which any worker is required or permitted to labor more than eight hours in any one calendar day and 40 hours in any one week in violation of said Article. Contractor shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by Contractor in connection with the project. Record of Wages; Inspection — Contractor agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the project and agrees to require that each of its subcontractors do the same. All payroll records shall be certified as accurate by the applicable Contractor or subcontractor or its agent having authority over such matters. Subject to the audit provisions herein, Contractor further agrees that its payroll records and those of its subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. Penalties for non-compliance with the requirements of Section 1776 charged to OC SAN may be deducted from project payments per the requirements of Section 1776. 27. South Coast Air Quality Management District's (SCAQMD) Reguirements It is Contractor's responsibility that all equipment furnished and installed be in accordance with Orange County Sanitation District 7 of 11 Specification No. SSJ2412 the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All Contract work practices, which may have associated emissions such as sandblasting, open field spray painting or demolition of asbestos containing components or structures, shall comply with the appropriate rules and regulations of the SCAQMD. 28. Governing Law This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in the County of Orange, in the event any action is brought in connection with this Contract or the performance thereof. 29. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Contract, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Contractor to which OC SAN does not object shall not operate as a waiver of OC SAN's rights to seek remedies available to it for any subsequent breach. 30. Remedies With respect to that subject matter and/or circumstances or events for which specific remedies are set forth in this Contract, including, without limitation, those remedies with respect to the Services performed by Contractor hereunder, then such remedies shall be the exclusive remedies of the parties. If no such specific remedy is provided, then the parties shall have available to them any remedy available under applicable law or in equity. 31. Dispute Resolution 31.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process. 31.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 32. Attornev's Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 33. SurvivaI The provisions of this Contract dealing with Payment, Warranty, Indemnity, and Forum for Enforcement, shall survive termination or expiration of this Contract. Orange County Sanitation District 8 of 11 Specification No. SSJ2412 34. Severability If any section, subsection, or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 35. Damage to OC SAN's Property To the extent any of OC SAN's property is damaged by the negligence of Contractor, any subcontractors or by the personnel of either will be subject to repair or replacement by Contractor at no cost to OC SAN, except for that portion, if any, OC SAN's actions contributed to the damage. 36. Disclosure Contractor agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OC SAN. OC SAN agrees not to disclose, to any third party, Contractor data or information related this project without the prior written consent from Contractor, except to the extent required by a government agency. 37. Independent Contractor The legal relationship between the parties hereto is that of an independent contractor, and nothing herein shall be deemed to make Contractor an OC SAN employee. During the performance of this Contract, Contractor and its officers,employees, and agents shall act in an independent capacity and shall not act as OC SAN'sofficers, employees, or agents. Contractor and its officers, employees, and agents shall obtain no rights to any benefits which accrue to OC SAN's employees. 38. Limitations upon Subcontracting and Assignment Contractor shall not delegate any duties nor assign any rights under this Contract without the prior written consent of OC SAN. Any such attempted delegation or assignment shall be void. 39. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OC SAN and Contractor. 40. Non-Liability of OC SAN Officers and Emlloyees No officer or employee of OC SAN shall be personally liable to Contractor, or any successor-in-interest, in the event of any default or breach by OC SAN or for any amount which may become due to Contractor or to its successor, or for breach of any obligation for the terms of this Contract. 41. Read and Understood By signing this Contract, Contractor represents that he has read and understood the terms and conditions of the Contract. 42. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound. 43. Entire Contract This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. 44. Notices All notices under this Contract must be in writing. Written notice shall be delivered by personal service or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept Orange County Sanitation District 9 of 11 Specification No. SSJ2412 or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses: OC SAN: Jackie Lagade Principal Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Contractor: John B. Sargent Chief Executive Officer Cooper Machinery Services LLC 16250 Porth Northwest Drive Houston, Texas 77041 Each party shall provide the other party written notice of any change in address as soon as practicable. Orange County Sanitation District 10 of 11 Specification No. SSJ2412 IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: By: David John Shawver Chair, Board of Directors Dated: By: Kelly A. Lore Clerk of the Board Dated: By: Ruth Zintzun Purchasing and Contracts Manager COOPER MACHINERY SERVICES LLC Dated: By: Print Name and Title of Officer Orange County Sanitation District 11 of 11 Specification No. SSJ2412 ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS ACWA Association of California LOS Level Of Service RFP Request For Proposal Water Agencies APWA American Public Works MGD Million Gallons Per Day RWQCB Regional Water Quality Association Control Board AQMD Air Quality Management MOU Memorandum of SARFPA Santa Ana River Flood District Understanding Protection Agency ASCE American Society of Civil NACWA National Association of Clean SARI Santa Ana River Engineers Water Agencies Interceptor BOD Biochemical Oxygen Demand NEPA National Environmental Policy SARWQCB Santa Ana Regional Water Act Quality Control Board California Air Resources Non-Governmental Santa Ana Watershed CARB Board NGOs Organizations SAWPA Project Authority CASA California Association of NPDES National Pollutant Discharge SCADA Supervisory Control And Sanitation Agencies Elimination System Data Acquisition National Water Research Southern California CCTV Closed Circuit Television NWRI Institute SCAP Alliance of Publicly Owned Treatment Works CEQA California Environmental O& M Operations&Maintenance SCAQMD South Coast Air Quality Quality Act Management District Capital Improvement Orange County Council of SOCWA South Orange County CIP Program OCCOG Governments Wastewater Authority CRWQCB California Regional Water OCHCA Orange County Health Care SRF Clean Water State Quality Control Board Agency Revolving Fund CWA Clean Water Act OCSD Orange County Sanitation SSMP Sewer System District Management Plan CWEA California Water Environment OCWD Orange County Water District SSO Sanitary Sewer Overflow Association EIR Environmental Impact Report OOBS Ocean Outfall Booster Station SWRCB State Water Resources Control Board EMT Executive Management Team OSHA Occupational Safety and TDS Total Dissolved Solids Health Administration US Environmental Protection Professional EPA Agency PCSA Consultant/Construction TMDL Total Maximum Daily Load Services Agreement FOG Fats, Oils, and Grease PDSA Professional Design Services TSS Total Suspended Solids Agreement Per-and Polyfluoroalkyl Waste Discharge gpd gallons per day PFAS Substances WDR Requirements GWRS Groundwater Replenishment PFOA Perfluorooctanoic Acid WEF Water Environment System Federation Water Environment& ICS Incident Command System PFOS Perfluorooctanesulfonic Acid WERF Reuse Foundation IERP Integrated Emergency POTW Publicly Owned Treatment WIFIA Water Infrastructure Response Plan Works Finance and Innovation Act Water Infrastructure JPA Joint Powers Authority ppm parts per million WIIN Improvements for the Nation Act Local Agency Formation PSA Professional Services WRDA Water Resources LAFCO Commission I Agreement I Development Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS—A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS —The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD) — The amount of oxygen used when organic matter undergoes decomposition by microorganisms.Testing for BOD is done to assess the amount of organic matter in water. BIOGAS—A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS—Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. COLIFORM BACTERIA—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. COLLECTIONS SYSTEM — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP)—A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (D/T) —The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG) — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). GROUNDWATER REPLENISHMENT SYSTEM(GWRS)—Ajoint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and OCSD provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE (LOS)—Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) — A N-nitrosamine suspected cancer-causing agent. It has been found in the GWRS process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. NATIONAL BIOSOLIDS PARTNERSHIP(NBP)—An alliance of the NACWA and WEF,with advisory support from the EPA. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. PER-AND POLYFLUOROALKYL SUBSTANCES (PFAS) — A large group (over 6,000) of human-made compounds that are resistant to heat,water,and oil and used for a variety of applications including firefighting foam,stain and water-resistant clothing, cosmetics, and food packaging. Two PFAS compounds, perfluorooctanesulfonic acid (PFOS)and perfluorooctanoic acid (PFOA) have been the focus of increasing regulatory scrutiny in drinking water and may result in adverse health effects including developmental effects to fetuses during pregnancy, cancer, liver damage, immunosuppression,thyroid effects, and other effects. PERFLUOROOCTANOIC ACID (PFOA) — An ingredient for several industrial applications including carpeting, upholstery, apparel, floor wax, textiles, sealants,food packaging, and cookware(Teflon). PERFLUOROOCTANESULFONIC ACID (PFOS)—A key ingredient in Scotchgard, a fabric protector made by 3M, and used in numerous stain repellents. PLUME—A visible or measurable concentration of discharge from a stationary source or fixed facility. PUBLICLY OWNED TREATMENT WORKS (POTW)—A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR (SARI) LINE—A regional brine line designed to convey 30 million gallons per day of non- reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal,after treatment. SANITARY SEWER—Separate sewer systems specifically for the carrying of domestic and industrial wastewater. SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. SECONDARY TREATMENT — Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. SLUDGE—Untreated solid material created by the treatment of wastewater. TOTAL SUSPENDED SOLIDS(TSS)—The amount of solids floating and in suspension in wastewater. ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS TRICKLING FILTER—A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. URBAN RUNOFF—Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. WASTEWATER—Any water that enters the sanitary sewer. WATERSHED—A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.