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04-28-2021 Board Meeting Complete Agenda Packet 04-21-2021
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, April 27, 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 April 21, 2021 serving: -,naheim Brea NOTICE OF REGULAR MEETING Buena Park Cypress BOARD OF DIRECTORS Fountain Valley ORANGE COUNTY SANITATION DISTRICT cullerton ,crcen Grove Wednesday, April 28, 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, April 28, 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 Steering Committee - Wednesday, May 26, 2021 at 5:00 p.m. Irvine Ranch Board Meeting - Wednesday, May 26, 2021 at 6:00 p.m. Water District Yorba Linda Water District Our Mission:To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. BOARD MEETING DATES 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 April 27, 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, April 28, 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, April 28, 2021 CALL TO ORDER Board Chairman David Shawver INVOCATION AND PLEDGE OF ALLEGIANCE Director Glenn Parker, City of Brea 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 April27, 2021. 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 April 2021: 30 Years: Quynh Nguyen, Engineering Associate Dean Fisher, Engineering Manager 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 2021-1564 RECOMMENDATION: Approve Minutes of the Special Meeting of the Board of Directors held March 17, 2021 and of the Regular Meeting of the Board of Directors held March 24, 2021. Originator: Kelly Lore Page 1 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, April 28, 2021 Attachments: Agenda Report 03-17-2021 Board Strategic Planning Meeting Minutes 03-24-2021 Board Meeting Minutes RECEIVE AND FILE: 2. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH 2O20-1330 OF MARCH 2O21 RECOMMENDATION: Receive and file the following: Report of the Investment Transactions for the month of March 2021. Originator: Lorenzo Tyner Attachments: Agenda Report Investment Transactions for the Month of March 2021 3. COMMITTEE MEETING MINUTES 2021-1543 RECOMMENDATION: Receive and file the following: A. Minutes of the GWRS Steering Committee Meeting held January 11, 2021 B. Minutes of the Steering Committee Meeting held February 24, 2021 C. Minutes of the Operations Committee Meeting held March 3, 2021 D. Minutes of the Legislative and Public Affairs Committee Meeting held March 8, 2021 E. Minutes of the Administration Committee Meeting held March 10, 2021 Originator: Kelly Lore Attachments: Agenda Report 01-11-2021 GWRS Steering Committee Meeting Minutes 02-24-2021 Steering Committee Minutes 03-03-2021 Operations Committee Minutes 03-08-2021 LaPA Committee Minutes 03-10-2021 Administration Committee Minutes OPERATIONS COMMITTEE: 4. FLEET PURCHASE OF REPLACEMENT VEHICLES LT. DUTY 2021-1585 TRUCKS, MED. DUTY TRUCKS, SEDANS/SUVs FOR FY20/21 RECOMMENDATION: A. Approve a Purchase Order to National Auto Fleet Group for the purchase of one new Ford Transit Cargo Van, four new Ford Escape Hybrid compact SUVs, four new Ford F250 Utility Body trucks, one new Ford F350 Crew truck, and two new F550 Mechanic Utility trucks using Sourcewell Cooperative Contract No. 120716-NAF for a total amount of $631,418 plus freight; and Page 2 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, April 28, 2021 B. Approve a contingency of $31,571 (5%). Originator: Rob Thompson Attachments: Agenda Report 5. 24-MONTH / 12,000-HOUR SERVICE ON THREE THICKENING 2021-1586 CENTRIFUGES AT PLANT NO. 1 RECOMMENDATION: A. Approve a Sole Source Purchase Order Contract to GEA Mechanical Equipment US Inc. to perform Original Equipment Manufacturer recommended 24-month/12,000-hour service on three Thickening Centrifuges at Plant No. 1, for a total amount not to exceed $723,158; and B. Approve a contingency of $72,316 (10%). Originator: Rob Thompson Attachments: Agenda Report 6. PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2, PROJECT NO. 2021-1587 FE18-15 RECOMMENDATION: A. Receive and file Bid Tabulation and Recommendation for Plant Boiler System Relief at Plant No. 2, Project No. FE18-15; B. Award a Construction Contract to Mehta Mechanical Company, Inc., dba MMC, Inc. for a total amount not to exceed $230,000; and C. Approve a contingency of $34,500 (15%). Originator: Kathy Millea Attachments: Agenda Report FE18-15 Contract Agreement & Exhibit A 7. ASSIGNMENT, WELL TRANSFER, AND OPERATORSHIP 2021-1588 AGREEMENT WITH CHEVRON U.S.A. INC. RECOMMENDATION: Approve the Assignment, Well Transfer, and Operatorship Agreement between the Orange County Sanitation District and Chevron U.S.A. Inc. to accept the assignment of the NC-79 well located at Plant No. 2, API # 05921580, along with the related rights and obligations. Page 3 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, April 28, 2021 Originator: Kathy Millea Attachments: Agenda Report Assignment and Well Transfer Agreement 8. TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN 2021-1589 RELOCATION AT PLANT NO. 2, PROJECT NO. FR2-0013 RECOMMENDATION: A. Receive and file Bid Tabulation and Recommendation for Trickling Filter Sludge Pump Room Exhaust Fan Relocation at Plant No. 2, Project No. FR2-013; B. Reject low bid from MLC Constructors, Inc. as non-responsive; C. Award a Construction Contract to Mehta Mechanical Co., Inc. DBA MMC, Inc. for Trickling Filter Sludge Pump Room Exhaust Fan Relocation at Plant No. 2, Project No. FR2-0013, for a total amount not to exceed $184,000; and D. Approve a contingency of $36,800 (20%). Originator: Kathy Millea Attachments: Agenda Report FR2-0013 Contract Agreement Package 9. HEADQUARTERS COMPLEX AT PLANT NO. 1, PROJECT NO. 2021-1590 P1-128A RECOMMENDATION: A. Approve a Professional Services Agreement with AECOM Technical Services, Inc. to provide construction management, testing, and inspection services for Headquarters Complex at Plant No. 1, Project No. P1-128A, for an amount not to exceed $6,750,000; and B. Approve a contingency of $675,000 (10%). Originator: Kathy Millea Attachments: Agenda Report P1-128A Professional Service Agreement Scope of Work Presentation - P1-128A PSA Const Mgmt Page 4 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, April 28, 2021 10. NEWHOPE-PLACENTIA TRUNK SEWER REPLACEMENT, PROJECT 2021-1591 NO. 2-72B RECOMMENDATION: Approve a contingency increase of $2,038,470 (3.5%) to the construction contract with Group OHL USA, Inc. for Newhope-Placentia Trunk Sewer Replacement, Project Nos. 2-72B and 2-72C, for a total construction contingency of $5,824,200 (10%). Originator: Kathy Millea Attachments: Agenda Report Presentation - 2-72B 2-72C Contingency ADMINISTRATION COMMITTEE: None. LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE: 11. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF MARCH 2O21 2021-1596 RECOMMENDATION: Receive and file the Legislative Affairs Update for the month of March 2021. Originator: Jim Herberg Attachments: Agenda Report ENS Legislative Update Federal Legislative Matrix - ENS Resources TPA Legislative Update State Legislative Matrix - TPA Grant Matrix ENS Presentation ENS OC San Infrastructure Bill Summary TPA Presentation 12. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF MARCH 2O21 2021-1597 RECOMMENDATION: Receive and file the Public Affairs Update for the month of March 2021 . Originator: Jim Herberg Attachments: Agenda Report Outreach & Media Summary Report March 2021 Presentation Page 5 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, April 28, 2021 STEERING COMMITTEE: 13. PROPOSED ANNEXATION NO. OC SAN-66 - MASS ANNEXATION OF 2021-1610 FIVE AREAS IN ANAHEIM, VILLA PARK, AND YORBA LINDA RECOMMENDATION: A. Authorize Staff to annex five Areas to Orange County Sanitation District within the Cities of Yorba Linda, Anaheim, and Villa Park; B. Authorize the General Manager to execute associated Annexation documents in a form approved by General Counsel; C. Adopt Resolution No. OC SAN 21-07 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District authorizing initiation of proceedings and requesting the Orange County Local Agency Formation Commission to take proceedings for the Annexation to the Orange County Sanitation District, of territory in the Cities of Yorba Linda, Anaheim, and Villa Park (Annexation No. OC SAN-66 - Mass Annexation of Five Areas in Anaheim, Villa Park, and Yorba Linda)"; and D. Forego past Annexation, Capital Facility Capacity Charges, and Annual User Fees for the parcels to be annexed which are currently discharging sewer flows to the Orange County Sanitation District. Originator: Lorenzo Tyner Attachments: Agenda Report OC SAN 21-07 - Resolution Mass Annexation Exhibit to Resolution OC SAN 21-07 NON-CONSENT: 14. PROPOSED ADOPTION OF ORDINANCE NO. OC SAN-55 UPDATING 2021-1603 ELECTRONIC REQUIREMENTS FOR THE PRESENTATION OF CLAIMS OR DEMANDS FOR PAYMENT RECOMMENDATION: A. Introduce Ordinance No. OC SAN-55, entitled: "An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Requirements for the Presentation of Claims or Demands for Payment; and Repealing Ordinance No. OCSD-17"; B. Motion to read Ordinance No. OC SAN-55 by title only and waive reading of said entire Ordinance on April 28, 2021; C. Set May 26, 2021 , as the date for the second reading and adoption of Ordinance No. OC SAN-55; and Page 6 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, April 28, 2021 D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. Originator: Lorenzo Tyner Attachments: Agenda Report Ordinance No. OC SAN-55 Claims for Demand and Payment Redline Ordinance No. OC SAN-55 Claims for Demand and Payment Clean 15. PROPOSED ADOPTION OF ORDINANCE NO. OC SAN-56 UPDATING 2021-1604 THE PURCHASING ORDINANCE RECOMMENDATION: A. Introduce Ordinance No. OC SAN-56, entitled: "An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects; and Repealing Ordinance No. OCSD-52"; B. Motion to read Ordinance No. OC SAN-56 by title only and waive reading of said entire Ordinance on April 28, 2021; C. Set May 26, 2021, as the date for the second reading and adoption of Ordinance No. OC SAN-56; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. Originator: Lorenzo Tyner Attachments: Agenda Report OC SAN-56 Purchasing Ordinance - Redline OC SAN-56 Purchasing Ordinance - Clean 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: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, Page 7 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, April 28, 2021 pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. CS-1 CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - 2021-1613 GOVERNMENT CODE SECTION 54956.9(d)(1) RECOMMENDATION: Convene in Closed Session: Number of Cases: 1 Bayside Village Marina, LLC v. Orange County Sanitation District; Orange County Sanitation District Board of Directors; and Does 1-25, Inclusive, Superior Court of the State of California for the County of Orange - Central Justice Center Case No. 30-2021-01194238-CU-W M-CXC. Attachments: Agenda Report CS-1 Board Memo CS-2 CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - 2021-1614 GOVERNMENT CODE SECTION 54956.9(d)(1) RECOMMENDATION: Convene in Closed Session: Number of Cases: 1 Klean Waters, Inc. v. Orange County Sanitation District, United States District Court, Central District of California, Southern Division, Case No. 8:15-cv-00627. Attachments: Agenda Report CS-2 Board Memo RECONVENE IN REGULAR SESSION. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Directors may request staff to place an item on a future agenda. Page 8 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, April 28, 2021 ADJOURNMENT: Adjourn the Board meeting until the Regular Meeting of the Board of Directors on May 26, 2021 at 6:00 p.m. Page 9 of 9 BOARD OF DIRECTORS Administration Building 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1564 Agenda Date: 4/28/2021 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 Meeting of the Board of Directors held March 17, 2021 and of the Regular Meeting of the Board of Directors held March 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 March 17, 2021 • Minutes of the Board of Directors meeting held March 24, 2021 Orange County Sanitation District Page 1 of 1 Printed on 4/20/2021 powered by LegistarTM ORANGE COUNTY SANITATION DISTRICT MINUTES SPECIAL MEETING OF THE BOARD OF DIRECTORS Strategic Planning Workshop MARCH 17, 2021 hLI ORANGE COUNTY SANITATION DISTRICT Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 BOARD OF DIRECTORS Special Meeting Minutes March 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 March 17, 2021 at 2:01 p.m. 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, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Sandra Massa-Lavitt, Andrew Nguyen, Kim Nichols, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers and Chad Zimmerman ABSENT: Doug Chaffee, Rose Espinoza, Steve Jones and Anthony Kuo STAFF MEMBERS PRESENT: Kelly Lore, Clerk of the Board; and Joshua Martinez 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; Mortimer Caparas; Jackie Castro; Daisy Covarrubias; Brian Engeln; Tina Knapp; Gerry Matthews; Rob Michaels; and Thomas Vu participated telephonically. OTHERS PRESENT: Brad Hogin (General Counsel) was participated telephonically. Directors Patrick Harper and Jesus Silva arrived at the meeting after roll call. PUBLIC COMMENTS: None. NON-CONSENT: 1. STRATEGIC PLAN WORKSHOP 2021-1520 Originator: Jim Herberg General Manager Herberg and Board Vice Chairman Withers provided a welcome and brief overview of the upcoming Strategic Plan Workshops. Staff provided PowerPoint presentations related to the following topics for Strategic Planning Purposes: Asset Management, Energy Independence, Climate and Catastrophic Event Resilience, Water Reuse, and Chemical Sustainability. Page 1 of 2 BOARD OF DIRECTORS Special Meeting Minutes March 17, 2021 ITEM WAS RECEIVED FOR: Information Only. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: At 3:59 p.m., Chair Shawver adjourned the meeting until the Regular Meeting of the Board of Directors to be held on March 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 MARCH 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 March 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 March 24, 2021 at 6:01 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). Director Stephen Faessel delivered the invocation and led the Pledge of Allegiance. ROLL CALL AND DECLARATION OF QUORUM Roll call was taken and a quorum was declared present, as follows: PRESENT: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Rose Espinoza, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Johnathan Ryan Hernandez, Brooke Jones, Steve Jones, Anthony Kuo, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers, Chad Zimmerman and Schelly Sustarsic (Alternate) ABSENT: Kim Nichols STAFF MEMBERS PRESENT: Kelly Lore, Clerk of the Board and Joshua Martinez were present in the Board Room. Jim Herberg, General Manager; Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Kathy Millea, Director of Engineering; Lan Wiborg, Director of Environmental Services; Laura Maravilla, HR & Risk Manager; Jennifer Cabral; Mortimer Caparas; Brian Engeln; Tina Knapp-,Thomas Vu and Ruth Zintzun were in attendance telephonically. OTHERS PRESENT: Brad Hogin, General Counsel was in attendance telephonically. PUBLIC COMMENTS: None. SPECIAL PRESENTATIONS: Chair Shawver recognized Jeff Woodward, Operations Supervisor for his 30-years of service to OC San. REPORTS: Chair Shawver announced that as part of OC San's legislative outreach program, he and the Vice-Chairman will participate in virtual meetings with the Orange County Congressional Delegation beginning March 29 - April 7 to discuss current legislation, regulatory affairs, infrastructure, and funding opportunities. Chair Shawver thanked the Board for attending the second Strategic Plan workshop and announced that the third and final workshop is scheduled for April 21 at 2pm. The four topics to be presented are: Constituents of Emerging Concern, Biosolids Management, Environmental Water Quality, Stormwater Management and Urban Runoff, and Food Waste Treatment. Page 1 of 8 BOARD OF DIRECTORS Minutes March 24, 2021 Chair Shawver also announced that the Board Members would be receiving talking points tomorrow regarding OC San activities to assist in reporting out to their councils, boards, and community groups. General Manager Jim Herberg provided a COVID-19 update. He reported that two employees tested positive for COVID-19 this week, and that of the 61 employees who have tested positive since May, all but two have been medically cleared and returned to work. Mr. Herberg also reported that OC San worked with the County of Orange Health Care Agency, along with the Water Emergency Response Organization of Orange County (WEROC), to ensure that Water and Wastewater was considered in the top tier for vaccine distribution. He stated that on March 12, OC San received notification that the State updated the eligibility for Tier 1 B to include water and wastewater workers. OC San employees were notified and immediately began receiving vaccinations. Mr. Herberg provided information and a timeline regarding the upcoming budget update process for Fiscal Year 2021-22. A series of monthly presentations on various aspects of the budget are currently underway with Board adoption scheduled for June 2021. Director Hernandez appeared to have departed the meeting prior to the vote on Item No. 1. CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2021-1476 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: 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. AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Brooke Jones, Steve Jones, Anthony Kuo, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers and Chad Zimmerman NOES: None ABSENT: Johnathan Ryan Hernandez and Kim Nichols ABSTENTIONS: Rose Espinoza and Schelly Sustarsic (Alternate) RECEIVE AND FILE: 2. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH 2O20-1329 OF FEBRUARY 2021 Page 2 of 8 BOARD OF DIRECTORS Minutes March 24, 2021 Originator: Lorenzo Tyner WITHOUT OBJECTION ACTION TAKEN TO RECEIVE AND FILE THE FOLLOWING: Report of the Investment Transactions for the month of February 2021. 3. COMMITTEE MEETING MINUTES 2021-1491 Originator: Kelly Lore WITHOUT OBJECTION ACTION TAKEN TO 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 OPERATIONS COMMITTEE: 4. BIOSOLIDS HAULING SERVICE CONTRACT 2021-1523 Originator: Lan Wiborg MOVED, SECONDED, AND DULY CARRIED TO: 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. AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Rose Espinoza, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Brooke Jones, Steve Jones, Anthony Kuo, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers, Chad Zimmerman and Schelly Sustarsic (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Kim Nichols ABSTENTIONS: None 5. HEADWORKS REHABILITATION AT PLANT NO. 1, PROJECT NO. 2021-1524 P1-105 Page 3 of 8 BOARD OF DIRECTORS Minutes March 24, 2021 Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: 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 $222,330,000-1 and C. Approve a contingency of $8,893,200 (4%). AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Rose Espinoza, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Brooke Jones, Steve Jones, Anthony Kuo, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers, Chad Zimmerman and Schelly Sustarsic (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Kim Nichols ABSTENTIONS: None 6. HEADWORKS REHABILITATION AT PLANT NO. 1, PROJECT NO. 2021-1525 P1-105 Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: 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%). AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Rose Espinoza, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Brooke Jones, Steve Jones, Anthony Kuo, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers, Chad Zimmerman and Schelly Sustarsic (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Kim Nichols ABSTENTIONS: None Page 4 of 8 BOARD OF DIRECTORS Minutes March 24, 2021 ADMINISTRATION COMMITTEE: 7. SETTLEMENT OF CLAIMS, COLLECTION OF DELINQUENT 2021-1541 ACCOUNTS, AND WORKERS' COMPENSATION ACTIONS Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: 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". AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Brooke Jones, Steve Jones, Anthony Kuo, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers, Chad Zimmerman and Schelly Sustarsic (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Kim Nichols ABSTENTIONS: Rose Espinoza 8. WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2021-1542 2021 A Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: 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. AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Brooke Jones, Steve Jones, Anthony Kuo, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers, Chad Zimmerman and Schelly Sustarsic (Alternate) NOES: None Page 5 of 8 BOARD OF DIRECTORS Minutes March 24, 2021 ABSENT: Johnathan Ryan Hernandez and Kim Nichols ABSTENTIONS: Rose Espinoza LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE: 9. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF FEBRUARY 2021-1539 2021 Originator: Jim Herberg MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Legislative Affairs Update for the month of February 2021. AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Rose Espinoza, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Brooke Jones, Steve Jones, Anthony Kuo, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers, Chad Zimmerman and Schelly Sustarsic (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Kim Nichols ABSTENTIONS: None 10. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF FEBRUARY 2021 2021-1540 Originator: Jim Herberg MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Public Affairs Update for the month of February 2021. AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Rose Espinoza, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Brooke Jones, Steve Jones, Anthony Kuo, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers, Chad Zimmerman and Schelly Sustarsic (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Kim Nichols ABSTENTIONS: None STEERING COMMITTEE: 11. AUTHORIZATION OF CONTRIBUTION TO CASA EDUCATION 2021-1559 FOUNDATION SCHOLARSHIP FUND Originator: Jim Herberg Page 6 of 8 BOARD OF DIRECTORS Minutes March 24, 2021 MOVED, SECONDED, AND DULY CARRIED TO: 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". AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Rose Espinoza, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Brooke Jones, Steve Jones, Anthony Kuo, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers, Chad Zimmerman and Schelly Sustarsic (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Kim Nichols ABSTENTIONS: None 12. CENTRAL GENERATION ENGINE OVERHAUL AT PLANT NO. 1 2021-1562 Originator: Rob Thompson In response to a request from Director Avery, Assistant General Manager Rob Thompson provided information regarding the item's urgency and showed a brief video clip depicting the rebuilt engine's failure. MOVED, SECONDED, AND DULY CARRIED TO: 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; and B. Approve a contingency of $741,186 (20%). AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee, Mark Chirco, Rose Espinoza, Stephen Faessel, Ryan Gallagher, Marshall Goodman, Patrick Harper, Brooke Jones, Steve Jones, Anthony Kuo, Andrew Nguyen, Robert Ooten, Glenn Parker, David Shawver, Jesus Silva, Chad Wanke, John Withers, Chad Zimmerman and Schelly Sustarsic (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Kim Nichols ABSTENTIONS: None NON-CONSENT: None. Page 7 of 8 BOARD OF DIRECTORS Minutes March 24, 2021 INFORMATION ITEMS: None. AB 1234 DISCLOSURE REPORTS: Director Kim Carr provided an update of her attendance on March 9th at the NWRI Meeting where the updated financial report was discussed and the NWRI Director reported on various other topics. Director Stephen Faessel provided an update on his recent attendance on March 2nd at the ISDOC meeting. The next scheduled meeting is April 29. 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: Prior to adjournment, Chair Shawver provided information regarding former board member Bill Dalton who represented the City of Garden Grove and recently passed away. At 6:31 p.m., Chair Shawver adjourned the meeting until the Regular Meeting of the Board of Directors to be held on April 21, 2021 at 2:00 p.m. in memory of former Board member Bill Dalton. Submitted by: Kelly A. Lore, MMC Clerk of the Board Page 8 of 8 BOARD OF DIRECTORS Administration Building 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2020-1330 Agenda Date: 4/28/2021 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 MARCH 2O21 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the following: Report of the Investment Transactions for the month of March 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 March 31, 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 March 2021 Orange County Sanitation District Page 1 of 1 Printed on 4/20/2021 powered by LegistarTM U.S. Bank Transaction History March 2021 Entry Date CUSIP ld Explanation Units Price Net Cash Amt Cost Gain/Loss ACQUISITIONS 03/01/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 8,400.0000 1.000000 -8,400.00 8,400.00 0.00 03/01/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,432,031.2500 1.000000 -1,432,031.25 1,432,031.25 0.00 03/01/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,198,909.4800 1.000000 -3,198,909.48 3,198,909.48 0.00 03/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 375.6600 1.000000 -375.66 375.66 0.00 03/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,113,389.9800 1.000000 -3,113,389.98 3,113,389.98 0.00 03/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 631.9200 1.000000 -631.92 631.92 0.00 03/05/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 118,481.2500 1.000000 -118,481.25 118,481.25 0.00 03/08/2021 06051GHY8 PURCHASED PAR VALUE OF BANK OF AMERICAN MTN 2.015% 2/13/26/BOFA 2,500,000.0000 1.033380 -2,583,450.00 2,583,450.00 0.00 SECURITIES, INC./FXD INC/2,500,000 PAR VALUE AT 103.338% 03/10/2021 47788UAC6 PURCHASED PAR VALUE OF JOHN DEERE OWNER 0.360% 9/15/25/CITIGROUP 2,300,000.0000 0.999808 -2,299,557.94 2,299,557.94 0.00 GLOBAL MARKETS INC./2,300,000 PAR VALUE AT 99.98078% 03/15/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,466,292.7700 1.000000 -2,466,292.77 2,466,292.77 0.00 03/15/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,571,842.9700 1.000000 -3,571,842.97 3,571,842.97 0.00 03/16/2021 46647PBH8 PURCHASED PAR VALUE OF JPMORGAN CHASE CO 2.005% 3/13/26/MITSUBISHI 2,500,000.0000 1.028830 -2,572,075.00 2,572,075.00 0.00 UFJ SECURITIES USA/2,500,000 PAR VALUE AT 102.883% 03/18/2021 808513BN4 PURCHASED PAR VALUE OF SCHWAB CHARLES 0.750% 3/18/24/CREDIT SUISSE 2,785,000.0000 0.999500 -2,783,607.50 2,783,607.50 0.00 SECURITIES(USA)/2,785,000 PAR VALUE AT 99.95% 03/19/2021 89236TBJ3 PURCHASED PAR VALUE OF TOYOTA MOTOR MTN 2.750% 5/17/21 /MARKETAXESS 500,000.0000 1.004110 -502,055.00 502,055.00 0.00 CORP/500,000 PAR VALUE AT 100.411 % 03/22/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,815.0700 1.000000 -1,815.07 1,815.07 0.00 03/22/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 178,959.0700 1.000000 -178,959.07 178,959.07 0.00 03/23/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 14,202.9200 1.000000 -14,202.92 14,202.92 0.00 03/25/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 23,476.8200 1.000000 -23,476.82 23,476.82 0.00 03/26/2021 91282CBH3 PURCHASED PAR VALUE OF U S TREASURY NT 0.375% 1/31/26/J.P. MORGAN 4,000,000.0000 0.979922 -3,919,687.50 3,919,687.50 0.00 SECURITIES LLC/4,000,000 PAR VALUE AT 97.9921875% 03/26/2021 91282CBC4 PURCHASED PAR VALUE OF U S TREASURY NT 0.375% 12/31/25/CITIGROUP 3,000,000.0000 0.981289 -2,943,867.19 2,943,867.19 0.00 GLOBAL MARKETS INC./3,000,000 PAR VALUE AT 98.12890633% 03/29/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,982,974.9600 1.000000 -5,982,974.96 5,982,974.96 0.00 03/30/2021 91282CBG5 PURCHASED PAR VALUE OF U S TREASURY NT 0.125% 1/31/23/J.P. MORGAN 10,000,000.0000 0.999805 -9,998,046.88 9,998,046.88 0.00 SECURITIES LLC/10,000,000 PAR VALUE AT 99.9804688% 03/31/2021 91282CBT7 PURCHASED PAR VALUE OF U S TREASURY NT 0.750% 3/31/26/GOLDMAN SACHS 7,000,000.0000 0.992461 -6,947,226.56 6,947,226.56 0.00 &CO.LLC/7,000,000 PAR VALUE AT 99.24609371 % 03/31/2021 912828RC6 PURCHASED PAR VALUE OF U S TREASURY NT 2.125% 8/15/21 /J.P. MORGAN 5,000,000.0000 1.007891 -5,039,453.13 5,039,453.13 0.00 SECURITIES LLC/5,000,000 PAR VALUE AT 100.7890626% TOTAL ACQUISITIONS 59,696,784.1200 -59,700,810.82 59,700,810.82 0.00 1 of 7 U.S. Bank Transaction History March 2021 Entry Date CUSIP ld Explanation Units Price Net Cash Amt Cost Gain/Loss DISPOSITIONS 03/01/2021 30231GAV4 MATURED PAR VALUE OF EXXON MOBIL 2.222% 3/01/21 3,000,000 PAR VALUE -3,000,000.0000 1.000000 3,000,000.00 -3,016,097.40 -16,097.40 AT 100% 03/01/2021 494368BF9 MATURED PAR VALUE OF KIMBERLY CLARK CORP 3.875% 3/01/21 750,000 PAR -750,000.0000 1.000000 750,000.00 -768,877.50 -18,877.50 VALUE AT 100% 03/01/2021 69371RN93 MATURED PAR VALUE OF PACCAR FINANCIAL MTN 2.800% 3/01/21 600,000 PAR -600,000.0000 1.000000 600,000.00 -607,086.00 -7,086.00 VALUE AT 100% 03/01/2021 83162CLJO MATURED PAR VALUE OF S B A GTD DEV PART 6.340% 3/01/21 2,984.86 PAR VALUE -2,984.8600 1.000000 2,984.86 -2,984.86 0.00 AT 100% 03/02/2021 95000U2B8 PURCHASE OFFER PAR VALUE OF WELLS FARGO MTN 2.625% 7/22/22 -3,000,000.0000 1.034880 3,104,640.00 -2,954,520.00 150,120.00 /TENDER/PURCHASE OFFER/ 03/08/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,418,198.2600 1.000000 2,418,198.26 -2,418,198.26 0.00 03/10/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,299,557.9400 1.000000 2,299,557.94 -2,299,557.94 0.00 03/15/2021 4581XOCS5 MATURED PAR VALUE OF INTER AMER BK M T N 1.875% 3/15/21 1,500,000 PAR -1,500,000.0000 1.000000 1,500,000.00 -1,469,205.00 30,795.00 VALUE AT 100% 03/15/2021 4581XOCS5 MATURED PAR VALUE OF INTER AMER BK M T N 1.875% 3/15/21 3,500,000 PAR -3,500,000.0000 1.000000 3,500,000.00 -3,590,405.00 -90,405.00 VALUE AT 100% 03/15/2021 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 2.262% 1/01/28 FEBRUARY FHLMC -11.9900 0.000000 11.99 -11.70 0.29 DUE 3/15/21 03/15/2021 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.873% 8/15/32 -78.6500 0.000000 78.65 -78.73 -0.08 03/15/2021 43815NABO PAID DOWN PAR VALUE OF HONDA AUTO 1.900% 4/15/22 -239,156.8600 0.000000 239,156.86 -239,140.12 16.74 03/15/2021 477870AB5 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.280% 5/16/22 CMO FINAL -38,251.5000 0.000000 38,251.50 -38,251.35 0.15 PAYDOWN 03/15/2021 47788CAC6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.660% 4/18/22 CMO FINAL -33,591.4700 0.000000 33,591.47 -33,589.05 2.42 PAYDOWN 03/15/2021 47788EAC2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 3.080% 11/15/22 -225,337.9300 0.000000 225,337.93 -225,320.85 17.08 03/15/2021 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -157,030.8500 0.000000 157,030.85 -157,025.76 5.09 03/16/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,572,492.7100 1.000000 2,572,492.71 -2,572,492.71 0.00 03/18/2021 43814UAG4 PAID DOWN PAR VALUE OF HONDA AUTO 3.010% 5/18/22 -86,326.2400 0.000000 86,326.24 -86,324.36 1.88 03/18/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,677,678.6300 1.000000 2,677,678.63 -2,677,678.63 0.00 03/19/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -506,714.7200 1.000000 506,714.72 -506,714.72 0.00 03/22/2021 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 1 1#080023 2.125% 12/20/26 FEBRUARY GNMA -171.6500 0.000000 171.65 -174.49 -2.84 DUE 3/20/21 03/22/2021 36225CC20 PAID DOWN PAR VALUE OF G N M A 1 1#080088 2.875% 6/20/27 FEBRUARY GNMA -118.1500 0.000000 118.15 -120.73 -2.58 DUE 3/20/21 03/22/2021 36225CNM4 PAID DOWN PAR VALUE OF G N M A 1 1#080395 2.875% 4/20/30 FEBRUARY GNMA -250.2400 0.000000 250.24 -247.97 2.27 DUE 3/20/21 2 of 7 U.S. Bank Transaction History March 2021 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 03/22/2021 36225CN28 PAID DOWN PAR VALUE OF G N M A 1 1#080408 2.875% 5/20/30 FEBRUARY GNMA -277.1300 0.000000 277.13 -274.32 2.81 DUE 3/20/21 03/22/2021 36225DCB8 PAID DOWN PAR VALUE OF G N M A 1 1#080965 2.250% 7/20/34 FEBRUARY GNMA -808.3400 0.000000 808.34 -807.84 0.50 DUE 3/20/21 03/22/2021 43815HAC1 PAID DOWN PAR VALUE OF HONDA AUTO 2.950% 8/22/22 -175,232.8600 0.000000 175,232.86 -175,208.82 24.04 03/25/2021 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -6,338.0900 0.000000 6,338.09 -7,177.89 -839.80 03/25/2021 31371 NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01/28 FEBRUARY FNMA -112.0700 0.000000 112.07 -118.53 -6.46 DUE 3/25/21 03/25/2021 31376KT22 PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9/01/35 FEBRUARY FNMA -1,403.2100 0.000000 1,403.21 -1,508.45 -105.24 DUE 3/25/21 03/25/2021 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6/01/36 FEBRUARY FNMA -1,218.9900 0.000000 1,218.99 -1,310.41 -91.42 DUE 3/25/21 03/25/2021 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000% 10/01/33 FEBRUARY FNMA -5.1000 0.000000 5.10 -5.48 -0.38 DUE 3/25/21 03/25/2021 31406PQY8 PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3/01/35 FEBRUARY FNMA -1,881.5400 0.000000 1,881.54 -2,022.66 -141.12 DUE 3/25/21 03/25/2021 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 2.035% 2/01/35 FEBRUARY FNMA -616.2800 0.000000 616.28 -611.47 4.81 DUE 3/25/21 03/25/2021 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7/01/35 FEBRUARY FNMA -171.7100 0.000000 171.71 -184.59 -12.88 DUE 3/25/21 03/25/2021 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7/01/36 FEBRUARY FNMA -2,731.6300 0.000000 2,731.63 -2,936.50 -204.87 DUE 3/25/21 03/25/2021 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01/29 FEBRUARY FNMA -193.4700 0.000000 193.47 -204.61 -11.14 DUE 3/25/21 03/25/2021 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29 FEBRUARY FNMA -220.1600 0.000000 220.16 -232.84 -12.68 DUE 3/25/21 03/25/2021 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -3,526.1300 0.000000 3,526.13 -3,525.03 1.10 03/26/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -6,868,433.8300 1.000000 6,868,433.83 -6,868,433.83 0.00 03/29/2021 44932HAH6 FULL CALL-105.1031739 PAR VALUE OF IBM CREDIT CORP 3.000% 2/06/23/CALLS/ -5,670,000.0000 1.051032 5,959,349.96 -5,603,264.40 356,085.56 03/30/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,000,049.6400 1.000000 10,000,049.64 -10,000,049.64 0.00 03/31/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -5,052,367.4900 1.000000 5,052,367.49 -5,052,367.49 0.00 03/31/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -6,485,976.5600 1.000000 6,485,976.56 -6,485,976.56 0.00 TOTAL DISPOSITIONS -57,879,516.8800 58,273,506.84 -57,870,324.49 403,182.35 OTHER TRANSACTIONS 03/01/2021 30231GAV4 INTEREST EARNED ON EXXON MOBIL 2.222% 3/01/21 $1 PV ON 3000000.0000 0.0000 0.000000 33,330.00 0.00 0.00 SHARES DUE 3/1/2021 03/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 375.66 0.00 0.00 2/28/2021 INTEREST FROM 2/1/21 TO 2/28/21 3 of 7 U.S. Bank Transaction History March 2021 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 03/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 631.92 0.00 0.00 2/28/2021 INTEREST FROM 2/1/21 TO 2/28/21 03/01/2021 494368BF9 INTEREST EARNED ON KIMBERLY CLARK CORP 3.875% 3/01/21 $1 PV ON 0.0000 0.000000 14,531.25 0.00 0.00 750000.0000 SHARES DUE 3/1/2021 03/01/2021 69371 RN93 INTEREST EARNED ON PACCAR FINANCIAL MTN 2.800% 3/01/21 $1 PV ON 0.0000 0.000000 8,400.00 0.00 0.00 600000.0000 SHARES DUE 3/1/2021 INTEREST ON 3/1/2021 MATURITY 03/01/2021 83162CLJO INTEREST EARNED ON S B A GTD DEV PART 6.340% 3/01/21 $1 PV ON 94.6200 0.0000 0.000000 94.62 0.00 0.00 SHARES DUE 3/1/2021 $0.03170/PV ON 2,984.86 PV DUE 3/1/21 03/01/2021 912828YC8 INTEREST EARNED ON U S TREASURY NT 1.500% 8/31/21 $1 PV ON 9000000.0000 0.0000 0.000000 67,500.00 0.00 0.00 SHARES DUE 2/28/2021 03/01/2021 9128281-24 INTEREST EARNED ON U S TREASURY NT 1.875% 8/31/22$1 PV ON 6000000.0000 0.0000 0.000000 56,250.00 0.00 0.00 SHARES DUE 2/28/2021 03/01/2021 912828W48 INTEREST EARNED ON U S TREASURY NT 2.125% 2/29/24$1 PV ON 10000000.0000 0.0000 0.000000 106,250.00 0.00 0.00 SHARES DUE 2/28/2021 03/02/2021 95000U2B8 INTEREST EARNED ON WELLS FARGO MTN 2.625% 7/22/22$1 PV ON 0.0000 0.000000 8,749.98 0.00 0.00 3000000.0000 SHARES DUE 2/11/2021 $2.91666 PER$1000 ACCD INT(40 DAYS) 03/05/2021 06051GHF9 INTEREST EARNED ON BANK OF AMERICA 3.550% 3/05/24$1 PV ON 6675000.0000 0.0000 0.000000 118,481.25 0.00 0.00 SHARES DUE 3/5/2021 03/08/2021 313383YJ4 INTEREST EARNED ON F H L B DEB 3.375% 9/08/23$1 PV ON 10000000.0000 0.0000 0.000000 168,750.00 0.00 0.00 SHARES DUE 3/8/2021 03/08/2021 06051GHY8 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF AMERICAN MTN 2.015% 0.0000 0.000000 -3,498.26 0.00 0.00 2/13/26 03/11/2021 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 22256.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 03/11/2021 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 22256.00 UNITS 0.0000 0.000000 0.00 22,256.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 03/11/2021 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 22256.0000 UNITS 22,256.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 03/11/2021 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 22256.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 03/15/2021 00440EAS6 INTEREST EARNED ON ACE INA HOLDING 3.150% 3/15/25$1 PV ON 2000000.0000 0.0000 0.000000 31,500.00 0.00 0.00 SHARES DUE 3/15/2021 03/15/2021 00440EAP2 INTEREST EARNED ON ACE INA HOLDINGS 2.700% 3/13/23$1 PV ON 2000000.0000 0.0000 0.000000 27,000.00 0.00 0.00 SHARES DUE 3/13/2021 03/15/2021 084670BR8 INTEREST EARNED ON BERKSHIRE HATHAWAY 2.750% 3/15/23$1 PV ON 0.0000 0.000000 34,375.00 0.00 0.00 2500000.0000 SHARES DUE 3/15/2021 03/15/2021 3130A4CH3 INTEREST EARNED ON F H L B DEB 2.375% 3/14/25$1 PV ON 5225000.0000 0.0000 0.000000 62,046.88 0.00 0.00 SHARES DUE 3/14/2021 03/15/2021 3130A2UW4 INTEREST EARNED ON F H L B DEB 2.875% 9/13/24$1 PV ON 2500000.0000 0.0000 0.000000 35,937.50 0.00 0.00 SHARES DUE 3/13/2021 4 of 7 U.S. Bank Transaction History March 2021 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 03/15/2021 31348SWZ3 INTEREST EARNED ON F H L M C#786064 2.262% 1/01/28$1 PV ON 2.8900 SHARES 0.0000 0.000000 2.89 0.00 0.00 DUE 3/15/2021 JANUARY FHLMC DUE 3/15/21 03/15/2021 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.873% 8/15/32$1 PV ON 13.7200 0.0000 0.000000 13.72 0.00 0.00 SHARES DUE 3/15/2021 $0.00323/PV ON 4,251.65 PV DUE 3/15/21 03/15/2021 43815NABO INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22$1 PV ON 1293.9000 0.0000 0.000000 1,293.90 0.00 0.00 SHARES DUE 3/15/2021 $0.00158/PV ON 817,203.35 PV DUE 3/15/21 03/15/2021 4581XOCS5 INTEREST EARNED ON INTER AMER BK M T N 1.875% 3/15/21 $1 PV ON 0.0000 0.000000 46,875.00 0.00 0.00 5000000.0000 SHARES DUE 3/15/2021 03/15/2021 4581XOCZ9 INTEREST EARNED ON INTER AMER DEV BK 1.750% 9/14/22$1 PV ON 6500000.0000 0.0000 0.000000 56,875.00 0.00 0.00 SHARES DUE 3/14/2021 03/15/2021 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 3/15/2021 $0.00042/PV ON 1,480,000.00 PV DUE 3/15/21 03/15/2021 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22$1 PV ON 72.6800 0.0000 0.000000 72.68 0.00 0.00 SHARES DUE 3/15/2021 $0.00190/PV ON 38,251.50 PV DUE 3/15/21 03/15/2021 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22$1 PV ON 74.4600 0.0000 0.000000 74.46 0.00 0.00 SHARES DUE 3/15/2021 $0.00222/PV ON 33,591.47 PV DUE 3/15/21 03/15/2021 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22$1 PV ON 3810.8900 0.0000 0.000000 3,810.89 0.00 0.00 SHARES DUE 3/15/2021 $0.00257/PV ON 1,484,762.57 PV DUE 3/15/21 03/15/2021 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 3/15/2021 $0.00153/PV ON 2,050,000.00 PV DUE 3/15/21 03/15/2021 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 3/15/2021 $0.00161/PV ON 4,185,000.00 PV DUE 3/15/21 03/15/2021 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23$1 PV ON 4710.0400 0.0000 0.000000 4,710.04 0.00 0.00 SHARES DUE 3/15/2021 $0.00255/PV ON 1,847,072.55 PV DUE 3/15/21 03/15/2021 68389XBKO INTEREST EARNED ON ORACLE CORP 1.900% 9/15/21 $1 PV ON 3000000.0000 0.0000 0.000000 28,500.00 0.00 0.00 SHARES DUE 3/15/2021 03/15/2021 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 3/15/2021 $0.00037/PV ON 2,960,000.00 PV DUE 3/15/21 03/16/2021 46647PBH8 PAID ACCRUED INTEREST ON PURCHASE OF JPMORGAN CHASE CO 2.005% 0.0000 0.000000 -417.71 0.00 0.00 3/13/26 03/18/2021 09247XAL5 INTEREST EARNED ON BLACKROCK INC 3.500% 3/18/24$1 PV ON 1000000.0000 0.0000 0.000000 17,500.00 0.00 0.00 SHARES DUE 3/18/2021 03/18/2021 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 3/18/2021 $0.00031/PV ON 3,235,000.00 PV DUE 3/18/21 03/18/2021 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22$1 PV ON 1105.1700 0.0000 0.000000 1,105.17 0.00 0.00 SHARES DUE 3/18/2021 $0.00251/PV ON 440,601.41 PV DUE 3/18/21 03/19/2021 89236TBJ3 PAID ACCRUED INTEREST ON PURCHASE OF TOYOTA MOTOR MTN 2.750% 0.0000 0.000000 -4,659.72 0.00 0.00 5/17/21 03/22/2021 36225CAZ9 INTEREST EARNED ON G N M A 1 1#080023 2.125% 12/20/26$1 PV ON 19.5600 0.0000 0.000000 19.56 0.00 0.00 SHARES DUE 3/20/2021 FEBRUARY GNMA DUE 3/20/21 5 of 7 U.S. Bank Transaction History March 2021 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 03/22/2021 36225CC20 INTEREST EARNED ON G N M A 1 1#080088 2.875% 6/20/27$1 PV ON 20.9800 SHARES 0.0000 0.000000 20.98 0.00 0.00 DUE 3/20/2021 FEBRUARY GNMA DUE 3/20/21 03/22/2021 36225CNM4 INTEREST EARNED ON G N M A 1 1#080395 2.875% 4/20/30$1 PV ON 10.9300 SHARES 0.0000 0.000000 10.93 0.00 0.00 DUE 3/20/2021 FEBRUARY GNMA DUE 3/20/21 03/22/2021 36225CN28 INTEREST EARNED ON G N M A 1 1#080408 2.875% 5/20/30$1 PV ON 82.3800 SHARES 0.0000 0.000000 82.38 0.00 0.00 DUE 3/20/2021 FEBRUARY GNMA DUE 3/20/21 03/22/2021 36225DCB8 INTEREST EARNED ON G N M A 1 1#080965 2.250% 7/20/34$1 PV ON 55.7100 SHARES 0.0000 0.000000 55.71 0.00 0.00 DUE 3/20/2021 FEBRUARY GNMA DUE 3/20/21 03/22/2021 43813GAC5 INTEREST EARNED ON HONDA AUTO 0.270% 4/21/25$1 PV ON 325.0100 0.0000 0.000000 325.01 0.00 0.00 SHARES DUE 3/21/2021 $0.00020/PV ON 1,605,000.00 PV DUE 3/21/21 03/22/2021 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22$1 PV ON 3401.2000 0.0000 0.000000 3,401.20 0.00 0.00 SHARES DUE 3/21/2021 $0.00246/PV ON 1,383,539.55 PV DUE 3/21/21 03/23/2021 3137EAEX3 INTEREST EARNED ON F H L M C M T N 0.375% 9/23/25$1 PV ON 7660000.0000 0.0000 0.000000 14,202.92 0.00 0.00 SHARES DUE 3/23/2021 03/25/2021 03215PFN4 INTEREST EARNED ON AMRESCO 1.7383% 6/25/29$1 PV ON 172.4100 0.0000 0.000000 172.41 0.00 0.00 SHARES DUE 3/25/2021 $0.00145/PV ON 119,021.64 PV DUE 3/25/21 03/25/2021 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43$1 PV ON 2985.8100 0.0000 0.000000 2,985.81 0.00 0.00 SHARES DUE 3/25/2021 $0.00542/PV ON 551,227.52 PV DUE 3/25/21 03/25/2021 31371 NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01/28$1 PV ON 34.9100 SHARES 0.0000 0.000000 34.91 0.00 0.00 DUE 3/25/2021 FEBRUARY FNMA DUE 3/25/21 03/25/2021 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01/35$1 PV ON 314.7500 0.0000 0.000000 314.75 0.00 0.00 SHARES DUE 3/25/2021 FEBRUARY FNMA DUE 3/25/21 03/25/2021 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01/36$1 PV ON 283.5600 0.0000 0.000000 283.56 0.00 0.00 SHARES DUE 3/25/2021 FEBRUARY FNMA DUE 3/25/21 03/25/2021 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000%10/01/33$1 PV ON 4.5000 SHARES 0.0000 0.000000 4.50 0.00 0.00 DUE 3/25/2021 FEBRUARY FNMA DUE 3/25/21 03/25/2021 31406PQY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 407.9600 0.0000 0.000000 407.96 0.00 0.00 SHARES DUE 3/25/2021 FEBRUARY FNMA DUE 3/25/21 03/25/2021 31406XWT5 INTEREST EARNED ON F N M A#823358 2.035% 2/01/35$1 PV ON 122.2400 0.0000 0.000000 122.24 0.00 0.00 SHARES DUE 3/25/2021 FEBRUARY FNMA DUE 3/25/21 03/25/2021 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01/35$1 PV ON 55.9400 SHARES 0.0000 0.000000 55.94 0.00 0.00 DUE 3/25/2021 FEBRUARY FNMA DUE 3/25/21 03/25/2021 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 525.8100 0.0000 0.000000 525.81 0.00 0.00 SHARES DUE 3/25/2021 FEBRUARY FNMA DUE 3/25/21 03/25/2021 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 24.7300 SHARES 0.0000 0.000000 24.73 0.00 0.00 DUE 3/25/2021 FEBRUARY FNMA DUE 3/25/21 03/25/2021 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 40.9900 0.0000 0.000000 40.99 0.00 0.00 SHARES DUE 3/25/2021 FEBRUARY FNMA DUE 3/25/21 03/25/2021 31397QREO INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 84.8300 0.0000 0.000000 84.83 0.00 0.00 SHARES DUE 3/25/2021 $0.00066/PV ON 127,620.24 PV DUE 3/25/21 6 of 7 U.S. Bank Transaction History March 2021 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 03/26/2021 91282CBH3 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.375% 1/31/26 0.0000 0.000000 -2,237.57 0.00 0.00 03/26/2021 91282CBC4 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.375% 12/31/25 0.0000 0.000000 -2,641.57 0.00 0.00 03/29/2021 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 25064.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 03/29/2021 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 25064.00 UNITS 0.0000 0.000000 0.00 25,064.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 03/29/2021 44932HAH6 INTEREST EARNED ON IBM CREDIT CORP 3.000% 2/06/23$1 PV ON 5670000.0000 0.0000 0.000000 23,625.00 0.00 0.00 SHARES DUE 3/26/2021 ACCRUED INTEREST ON 3/26/2021 FULL CALL 03/29/2021 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 25064.0000 UNITS 25,064.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 03/29/2021 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 25064.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 03/30/2021 91282CBG5 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.125% 1/31/23 0.0000 0.000000 -2,002.76 0.00 0.00 03/31/2021 91282CAM3 INTEREST EARNED ON U S TREASURY NT 0.250% 9/30/25$1 PV ON 6500000.0000 0.0000 0.000000 8,125.00 0.00 0.00 SHARES DUE 3/31/2021 03/31/2021 912828T34 INTEREST EARNED ON U S TREASURY NT 1.125% 9/30/21 $1 PV ON 7000000.0000 0.0000 0.000000 39,375.00 0.00 0.00 SHARES DUE 3/31/2021 03/31/2021 912828YH7 INTEREST EARNED ON U S TREASURY NT 1.500% 9/30/24$1 PV ON 14000000.0000 0.0000 0.000000 105,000.00 0.00 0.00 SHARES DUE 3/31/2021 03/31/2021 912828,176 INTEREST EARNED ON U S TREASURY NT 1.750% 3/31/22$1 PV ON 5000000.0000 0.0000 0.000000 43,750.00 0.00 0.00 SHARES DUE 3/31/2021 03/31/2021 9128281-57 INTEREST EARNED ON U S TREASURY NT 1.750% 9/30/22$1 PV ON 16000000.0000 0.0000 0.000000 140,000.00 0.00 0.00 SHARES DUE 3/31/2021 03/31/2021 9128284D9 INTEREST EARNED ON U S TREASURY NT 2.500% 3/31/23$1 PV ON 10000000.0000 0.0000 0.000000 125,000.00 0.00 0.00 SHARES DUE 3/31/2021 03/31/2021 912828RC6 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.125% 8/15/21 0.0000 0.000000 -12,914.36 0.00 0.00 TOTAL OTHER TRANSACTIONS 47,320.0000 1,427,303.98 47,320.00 0.00 7 of 7 BOARD OF DIRECTORS Administration Building 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1543 Agenda Date: 4/28/2021 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 GWRS Steering Committee Meeting held January 11, 2021 B. Minutes of the Steering Committee Meeting held February 24, 2021 C. Minutes of the Operations Committee Meeting held March 3, 2021 D. Minutes of the Legislative and Public Affairs Committee Meeting held March 8, 2021 E. Minutes of the Administration Committee Meeting held March 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 4/21/2021 powered by LegistarTM MINUTES OF THE MEETING GROUNDWATER REPLENISHMENT SYSTEM STEERING COMMITTEE Monday, January 11, 2021 OCWD Director Yoh called the Groundwater Replenishment System Steering Committee meeting to order via Zoom webinar. Following the Pledge of Allegiance to the flag, the Secretary called the roll and reported a quorum. Committee Members David Shawver Roger Yoh Cathy Green Jesus Silva Tri Ta Alternates Dina Nguyen (absent) Steve Sheldon (absent) OCWD Directors Bilodeau, Brandman and Rowe were in attendance. OCWD Staff OC SAN Staff Mike Markus, Mehul Patel, Sandy Scott- Jim Herberg, Jennifer Cabral Roberts, Gina Ayala, Christina Fuller, Assistant District Secretary ® Annual Reorganization of GWRS Steering Committee Officers GWRS Steering Committee member Roger Yoh stated the Steering Committee reorganizes on an annual basis. It was a consensus of the Committee members present to approve the following nominations: ® 2021 GWRS Steering Committee Chair—OC SAN Director David Shawver ® 2021 GWRS Steering Committee Vice Chair—OCWD Director Roger Yoh OC SAN Director David Shawver assumed the Chair and conducted the remainder of the meeting. CONSENT CALENDAR The Consent Calendar was approved upon motion by Director Yoh, seconded by Director Ta and carried [5-0] as follows. Yes—Shawver, Yoh, Green, Silva, Ta 1. Minutes of Previous Meeting The minutes of the GWRS Steering Committee meeting held October 12, 2020 are approved as presented. INFORMATIONAL ITEMS 2. GWRS Operations Update Executive Director of Operations/GWRS Mehul Patel reported that the average daily production for the quarter, October through December, was 90 mgd. He reported that as of December 31, 2020, the GWRS Fiscal Year 2020-2021 production total is 49,749 of which is 2,175 of below the target fiscal year production of 51,924 af. He advised that this shortfall was mainly due to limited production caused by planned outages for the GWRS Final Expansion construction project. Mr. Patel stated that in addition, OC San had maintenance work at Plant Number 1 in December that limited production from that facility. He advised that in October, OCWD replaced a total of 3,150 RO membranes in three of twenty-one RO units as well as a total of 2,052 MF membranes in three of thirty-six MF cells. He stated that these membrane replacement activities should improve GWRS efficiency, but also resulted in some short-term production decreases. 3. Update on GWRS Final Expansion GWRS Program Manager Sandy Scott-Roberts recalled that the OC San Headworks Modification Project was awarded to Shimmick Construction Co., Inc. in January 2020 and the Notice to Proceed was issued in March 2020. She stated that the project is scheduled to be complete on March 8, 2023. She advised that current construction activities include potholing existing utilities, drilling/commissioning of dewatering wells, and preparatory measurements for new gates to isolate the headworks. Ms. Scott-Roberts provided an update on construction activities, a status of project elements and reviewed the project budget. 4. Quarterly Outreach Report [October— December 20201 Director of Public Affairs Gina Ayala provided a review of 2020 public outreach highlights and reported on upcoming outreach planning. She noted that the next webinar in OCWD's monthly series held in January will discuss Reverse Osmosis Integrity. ADJOURNMENT There being no further business to come before the Committee, the meeting was adjourned at 5:55 p.m. V 3/,)� ris�tfinaFuller, Assistant District Secretary 2 Orange County Sanitation District Wednesday, February 24, 2021 Minutes for the 5:00 PM STEERING 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 Steering Committee of the Orange County Sanitation District was called to order by Board Chairman David Shawver on Wednesday, February 24, 2021 at 5:01 p.m. in the Administration Building of the Orange County Sanitation District. Chair Shawver 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: 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, Andrew Brown, Raul Cuellar, Brian Engeln, Tina Knapp, Joshua Martinez, Valerie Ratto, Thomas Vu and Eros Yong participated telephonically. OTHERS PRESENT: Brad Hogin (General Counsel) participated telephonically. PUBLIC COMMENTS: None. REPORTS: None. CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2021-1413 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Page 1 of 4 STEERING COMMITTEE Minutes February 24, 2021 Approve Minutes of the Regular Meeting of the Steering Committee held January 27, 2021. AYES: David Shawver, John Withers, Stacy Berry, Sandra Massa-Lavitt, Glenn Parker, Jesus Silva and Chad Wanke NOES: None ABSENT: None ABSTENTIONS: None 2. UPDATE TO THE ESTABLISHED RULES OF PROCEDURE FOR THE 2021-1471 CONDUCT OF BUSINESS OF THE ORANGE COUNTY SANITATION DISTRICT Originator: Jim Herberg MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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. OC SAN 21-01". AYES: David Shawver, John Withers, Stacy Berry, Sandra Massa-Lavitt, Glenn Parker, Jesus Silva and Chad Wanke NOES: None ABSENT: None ABSTENTIONS: None NON-CONSENT: 3. ESTABLISH BOARD OF DIRECTORS PROTOCOLS 2021-1462 Originator: Jim Herberg MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors 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: David Shawver, John Withers, Stacy Berry, Sandra Massa-Lavitt, Glenn Parker, Jesus Silva and Chad Wanke NOES: None ABSENT: None ABSTENTIONS: None Page 2 of 4 STEERING COMMITTEE Minutes February 24, 2021 INFORMATION ITEMS: None. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.9(d)(4) & 54956.9(d)(2): The Committee convened in closed session at 5:20 p.m. to discuss three items. Confidential minutes of the Closed Sessions have been prepared in accordance with the above 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 2021-1492 LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(4) CONVENED IN CLOSED SESSION: Number of Potential Cases: 1 Potential initiation of eminent domain litigation regarding property owned by Bayside Village Marina LLC. CS-2 CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED 2021-1494 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 2021-1493 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 Committee reconvened in regular session at 5:49 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. Page 3 of 4 STEERING COMMITTEE Minutes February 24, 2021 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 5:50 p.m. to the next Steering Committee meeting to be held on March 24, 2021 at 5:00 p.m. Sub itted by: Ke re MM e Board Page 4 of 4 Orange County Sanitation District Wednesday, March 3, 2021 Minutes for the 5:00 PM OPERATIONS 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 Operations Committee was called to order by Committee Chair Stacy Berry on Wednesday, March 3, 2021 at 5.02 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). Committee Vice-Chair Brooke Jones 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, Stephen Faessel, Ryan Gallagher, Johnathan Ryan Hernandez, Steve Jones, Sandra Massa-Lavitt, Kim Nichols, Robert Ooten, Jesus Silva, David Shawver, John Withers and Chad Zimmerman ABSENT: Doug Chaffee 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; Raul Cuellar; Brian Engeln; Tina Knapp; Joshua Martinez; Jeff Mohr; Giti Radvar; and Thomas Vu were in attendance telephonically. OTHERS PRESENT: Brad Hogin, General Counsel was in attendance telephonically. PUBLIC COMMENTS: None. REPORTS: Chair Berry and General Manager Herberg did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2021-1495 Originator: Kelly Lore Page 1 of 5 OPERATIONS COMMITTEE Minutes March 3, 2021 MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Operations Committee Meeting on February 3, 2021. AYES: Stacy Berry, Brooke Jones, Stephen Faessel, Ryan Gallagher, Johnathan Ryan Hernandez, Steve Jones, Sandra Massa-Lavitt, Kim Nichols, Robert Ooten, Jesus Silva, David Shawver, John Withers and Chad Zimmerman NOES: None ABSENT: Doug Chaffee ABSTENTIONS: None 2. PURCHASE OF INVENTORY REPLACEMENT PUMPS FOR PLANT 2021-1457 NO. 1 DIGESTER HIGH-RATE PUMPS Originator: Rob Thompson MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Sole Source Purchase Order to Flo-Systems for the purchase of two Hidrostal 116K-SS pumps for Plant No. 1 Digesters, for a total amount not to exceed $158,728, including taxes and freight; and B. Approve a contingency of $15,873 (10%). AYES: Stacy Berry, Brooke Jones, Stephen Faessel, Ryan Gallagher, Johnathan Ryan Hernandez, Steve Jones, Sandra Massa-Lavitt, Kim Nichols, Robert Ooten, Jesus Silva, David Shawver, John Withers and Chad Zimmerman NOES: None ABSENT: Doug Chaffee ABSTENTIONS: None 3. BIOSOLIDS HAULING SERVICE CONTRACT 2021-1467 Originator: Lan Wiborg MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 2 of 5 OPERATIONS COMMITTEE Minutes March 3, 2021 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. AYES: Stacy Berry, Brooke Jones, Stephen Faessel, Ryan Gallagher, Johnathan Ryan Hernandez, Steve Jones, Sandra Massa-Lavitt, Kim Nichols, Robert Ooten, Jesus Silva, David Shawver, John Withers and Chad Zimmerman NOES: None ABSENT: Doug Chaffee ABSTENTIONS: None NON-CONSENT: Directors Johnathan Hernandez and Steve Jones appeared to be away during the vote for Item Nos. 4 and 5. 4. HEADWORKS REHABILITATION AT PLANT NO. 1, PROJECT NO. 2020-1379 P1-105 Originator: Kathy Millea Director of Engineering Kathy Millea presented an informative PowerPoint Presentation describing the complex construction necessary to rehabilitate the Headworks. Ms. Millea and Assistant General Manager Lorenzo Tyner responded to concerns from the Committee regarding the low number of bidders, the $70 million difference between the bid and the Engineers estimate, and the low contingency requested. Mr. Tyner stated that over 200 people viewed the plans and specifications, but only three bids were received. Ms. Millea stated that due to the complexity of the construction and possible unknown factors, the contingency was set at 4%, and staff will report back to the Board on progress and risks midway through construction. The Committee suggested the development of a risk register and possible construction partnering. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 3 of 5 OPERATIONS COMMITTEE Minutes March 3, 2021 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%). AYES: Stacy Berry, Brooke Jones, Stephen Faessel, Ryan Gallagher, Sandra Massa-Lavitt, Kim Nichols, Robert Ooten, Jesus Silva, David Shawver, John Withers and Chad Zimmerman NOES: None ABSENT: Doug Chaffee, Johnathan Ryan Hernandez and Steve Jones ABSTENTIONS: None 5. HEADWORKS REHABILITATION AT PLANT NO. 1, PROJECT NO. 2020-1380 P1-105 Originator: Kathy Millea Ms. Millea provided a PowerPoint presentation describing the necessary professional construction services required for this project. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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%). AYES: Stacy Berry, Brooke Jones, Stephen Faessel, Ryan Gallagher, Sandra Massa-Lavitt, Kim Nichols, Robert Ooten, Jesus Silva, David Shawver, John Withers and Chad Zimmerman NOES: None ABSENT: Doug Chaffee, Johnathan Ryan Hernandez and Steve Jones ABSTENTIONS: None INFORMATION ITEMS: 6. OPERATIONS & MAINTENANCE: WASTEWATER 101 2021-1417 Originator: Rob Thompson Assistant General Manager Rob Thompson provided a PowerPoint presentation regarding the Water Reclamation Process including: metering and diversion structure, Page 4 of 5 OPERATIONS COMMITTEE Minutes March 3, 2021 primary and secondary treatment, effectiveness of water treatment, solids recovery process, dewatering operation, truck loading, central generation engines, and annual operating costs. 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 Berry declared the meeting adjourned at 6:20 p.m. to the meeting to be held on Wednesday, April 7, 2021 at 5:00 p.m. Submi ed by: Kelly A. Lo , MM Cie oft e oard Page 5 of 5 Orange County Sanitation District Monday, March 8, 2021 Minutes for the 4:30 PM LEGISLATIVE AND PUBLIC Board Room AFFAIRS COMMITTEE 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 Legislative and Public Affairs Committee was called to order by Committee Chair Jesus J. Silva on Monday, March 8, 2021 at 4:37 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. 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 Brian Engeln 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; Mortimer Caparas; Daisy Covarrubias; Lisa Frigo; Mark Kawamoto; Tina Knapp; Rebecca Long; Joshua Martinez; Kelly Newell; and Roya Sohanaki 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: Public comment was received after the announcement of public comment was made. The comments were read after Item No. 2 was heard. REPORTS: None. Page 1 of 4 LEGISLATIVE AND PUBLIC Minutes March 8, 2021 AFFAIRS COMMITTEE CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2021-1513 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Special Meeting of the Legislative and Public Affairs Committee held February 8, 2021. AYES: Jesus Silva, Marshall Goodman, Kim Carr, Anthony Kuo, Andrew Nguyen and David Shawver NOES: None ABSENT: John Withers ABSTENTIONS: None NON-CONSENT: 2. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF FEBRUARY 2021-1502 2021 Originator: Jim Herberg Eric Sapirstein, ENS Resources, provided a PowerPoint presentation and a brief overview of the federal monthly report which included Covid Relief, Water Infrastructure Senate action, and the Fiscal Year 2022 Budget. Eric O'Donnell, TPA, provided a PowerPoint presentation that included the Legislative Calendar; Department of Finance economic update; California's budget timeline; and emerging Legislation including AB 59 (Gabriel), AB 377 (Rivas & Hertzberg), AB 622 (Friedman), SB 273 (Hertzberg), AB 818 (Bloom), and several bills focused on addressing public meeting transparency, accessibility, and technology. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Legislative Affairs Update for the month of February 2021. AYES: Jesus Silva, Marshall Goodman, Kim Carr, Anthony Kuo, Andrew Nguyen, David Shawver and John Withers NOES: None ABSENT: None ABSTENTIONS: None Page 2 of 4 LEGISLATIVE AND PUBLIC Minutes March 8, 2021 AFFAIRS COMMITTEE Public Comment was received from Judith Marquez regarding Item No. 2 and read into the record. At the request of staff, Item No. 4 was heard out of order. Board Chair Shawver appeared to be away during the vote for Item No. 4. 4. LETTER OF SUPPORT FOR THE SOLID WASTE: PREMOISTENED 2021-1515 NONWOVEN DISPOSABLE WIPES BILL AB 1818 Originator: Jim Herberg Administration Manager Jennifer Cabral provided a brief introduction to this item. MOVED, SECONDED, AND DULY CARRIED TO: Approve the Letter of Support for the solid waste: premoistened nonwoven disposable wipes Bill AB 818. AYES: Jesus Silva, Marshall Goodman, Kim Carr, Anthony Kuo, Andrew Nguyen and John Withers NOES: None ABSENT: David Shawver ABSTENTIONS: None Public Comment was received from Judith Marquez and read into the record regarding to Item No. 3 3. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF FEBRUARY 2021 2021-1508 Originator: Jim Herberg Principal Public Affairs Specialist Daisy Covarrubias provided a brief PowerPoint presentation recapping the Public Affairs monthly update including information on Board Orientation, neighborhood outreach efforts, logo rollout, 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 month of February 2021. AYES: Jesus Silva, Marshall Goodman, Kim Carr, Anthony Kuo, Andrew Nguyen, David Shawver and John Withers NOES: None ABSENT: None ABSTENTIONS: None Page 3 of 4 LEGISLATIVE AND PUBLIC Minutes March 8, 2021 AFFAIRS COMMITTEE 5. LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE MEETING DATES 2021-1522 FOR CALENDAR YEAR 2021 Originator: Kelly Lore Clerk of the Board Kelly Lore provided an overview of the item. After a brief discussion it was the consensus of the Committee to continue the meeting times for regular meetings at 4:30 p.m. and the April and July meetings at 4:00 p.m. No Action Taken. INFORMATION ITEMS: None. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Board Chair Shawver announced a congratulatory message to Haley Herberg on her recent Pac-12 Women's Cross Country Championship. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Silva declared the meeting adjourned at 5:44 p.m. to the meeting to be held on Monday, April 12, 2021 at 4:00 p.m. Submi ted by: K IyA. L r , MM CI rk of t Board Page 4 of 4 Orange County Sanitation District Wednesday, March 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, March 10, 2021 at 5:01 p.m. in the Administration Building of the Orange County Sanitation District. Director Andrew Nguyen led the flag salute. 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). The Clerk of the Board announced the teleconference meeting guidelines. 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, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, Anthony Kuo, David Shawver and John Withers ABSENT: None STAFF PRESENT: Kelly Lore, Clerk of the Board, and Joshua Martinez 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; Mortimer Caparas; Brian Engeln; John Frattali; Tina Knapp; Wally Ritchie; and Thomas Vu were in attendance telephonically. OTHERS PRESENT: Brad Hogin, General Counsel, and Ed Soong, Public Resource Advisory Group, were in attendance telephonically. PUBLIC COMMENTS: None. REPORTS: None. CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2021-1512 Originator: Kelly Lore Page 1 of 5 ADMINISTRATION Minutes March 10, 2021 COMMITTEE MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Administration Committee held February 10, 2021. AYES: Chad Wanke, Glenn Parker, Art Brown, Kim Carr, Mark Chirco, Marshall Goodman, Patrick Harper, Andrew Nguyen, Anthony Kuo, David Shawver and John Withers NOES: None ABSENT: Brad Avery and Rose Espinoza ABSTENTIONS: None 2. RECORDS MANAGEMENT IMPLEMENTATION - TRUSTED SYSTEM 2021-1401 Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Consultant Services Agreement with ECS Imaging, Inc. to provide implementation services for a Records Management System, Specification No. CS-2020-119913D, for an amount not to exceed $150,949; B. Approve a contingency of $ 22,642 (15%); and C. Approve four (4) optional one-year maintenance renewals of $14,164 per year. AYES: Chad Wanke, Glenn Parker, Art Brown, Kim Carr, Mark Chirco, Marshall Goodman, Patrick Harper, Andrew Nguyen, Anthony Kuo, David Shawver and John Withers NOES: None ABSENT: Brad Avery and Rose Espinoza ABSTENTIONS: None NON-CONSENT: Director Rose Espinoza joined the meeting prior to the vote taken for Item No. 3. Board Chair Shawver appeared to be away during the vote taken for Item No. 3. 3. SETTLEMENT OF CLAIMS, COLLECTION OF DELINQUENT 2021-1468 ACCOUNTS, AND WORKERS' COMPENSATION ACTIONS Originator: Lorenzo Tyner Assistant General Manager Lorenzo Tyner introduced Controller Wally Ritchie who provided a brief introduction to the item and explained the cleanup of language due to organizational and operational changes that have occurred over the last 10 years. Mr. Page 2 of 5 ADMINISTRATION Minutes March 10, 2021 COMMITTEE Tyner and Mr. Ritchie explained the request to change the approval threshold from $1 OK to $25K for claims approval. A request was made to establish an annual detailed report with a summary of claims settled under staff's authority. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OC SAN 21-XX 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". AYES: Chad Wanke, Glenn Parker, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, Anthony Kuo, David Shawver and John Withers NOES: None ABSENT: Brad Avery ABSTENTIONS: None 4. WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2021-1469 2021 A Originator: Lorenzo Tyner Mr. Tyner provided a brief introduction to the item and Mr. Ritchie explained the details of the obligations and the refunding opportunities. Mr. Ed Soong, Public Resource Advisory Group, provided the cost to refund at approximately $750K. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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. AYES: Chad Wanke, Glenn Parker, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, Anthony Kuo, David Shawver and John Withers NOES: None ABSENT: Brad Avery ABSTENTIONS: None Page 3 of 5 ADMINISTRATION Minutes March 10, 2021 COMMITTEE INFORMATION ITEMS: 5. OVERVIEW OF PROPERTY - LIABILITY INSURANCE 2021-1511 Originator: Lorenzo Tyner Mr. Ritchie provided a PowerPoint presentation which included the coverage, policy limits, and retentions of Excess General Liability, Workers' Compensation, Property Insurance, Earthquake, and Marine Vessel. Our Broker is currently working on our renewal quotations and will provide the information at a future meeting. In response to a question regarding a backup policy for Workers' compensation, Mr. Tyner and Mr. Ritchie stated that there are reserves in place for claims, and additional coverage may be found under other policies. ITEM RECEIVED AS AN: Information Item. Director Brad Avery joined the meeting at approximately 5:28 p.m. during the presentation of Item No. 5. 6. FY 2021-22 ORANGE COUNTY SANITATION DISTRICT BUDGET 2021-1501 UPDATE REVENUE OVERVIEW Originator: Lorenzo Tyner Mr. Ritchie provided a PowerPoint presentation that explained the four major and largest revenue categories, fees and charges, general user fees, top 10 industrial users, property taxes and interest, other interagency fees, debt proceeds to support the CIP program, Reserve Policy summary, seven reserve criteria, and discretionary reserve criteria. ITEM RECEIVED AS AN: Information Item. 7. OPERATIONS & MAINTENANCE: WASTEWATER 101 2021-1519 Originator: Rob Thompson Assistant General Manager Rob Thompson provided a PowerPoint presentation regarding the Water Reclamation Process including: Metering and Diversion structure, Primary and Secondary treatment, effectiveness of water treatment, solids recovery process, dewatering operation, truck loading, central generation engines, and annual operating costs. ITEM RECEIVED AS AN: Information Item. Page 4 of 5 ADMINISTRATION Minutes March 10, 2021 COMMITTEE 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: Board Chair Shawver requested a report of energy cost savings costs due to the processes implemented at OC San. ADJOURNMENT: Chair Wanke declared the meeting adjourned at 6:13 p.m. to the Regular meeting to be held on Wednesday, April 14, 2021 at 5:00 p.m. Sub itted by: Ke ly A. re, M M C C rk o t e Board 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 #: 2021-1585 Agenda Date: 4/28/2021 Agenda Item No: 4. FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: FLEET PURCHASE OF REPLACEMENT VEHICLES LT. DUTY TRUCKS, MED. DUTY TRUCKS, SEDANS/SUVs FOR FY20/21 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Purchase Order to National Auto Fleet Group for the purchase of one new Ford Transit Cargo Van, four new Ford Escape Hybrid compact SUVs, four new Ford F250 Utility Body trucks, one new Ford F350 Crew truck, and two new F550 Mechanic Utility trucks using Sourcewell Cooperative Contract No. 120716-NAF for a total amount of$631,418 plus freight; and B. Approve a contingency of $31,571 (5%). BACKGROUND As part of an overall fleet right-sizing and modernization strategy, the Orange County Sanitation District (OC San) Fleet Services Division systematically replaces its vehicles. The replacement is based on the ability of current vehicles to meet the needs of the assigned group, vehicle age, maintenance cost, condition, and mileage. OC San maintains a fleet of vehicles necessary to meet its business needs. The fleet is comprised of 27 heavy-duty equipment trucks, 92 light-duty trucks, 35 sedans, 12 SUVs, and 10 vans, for a total of 176 vehicles. Replacement of older vehicles improves safety by ensuring the vehicles are equipped with airbags, anti-lock brakes, and traction control. Light-duty trucks compose the largest segment of the fleet and support equipment needs of the Engineering, Operations, Collection Facilities, and Maintenance staff. Replacement vehicles also offer new capabilities such as integrated davits or cranes to improve lifting and ergonomic safety or cargo vans that provide secure, temperature-controlled sample storage. Approximately 25% of OC San's vehicles are "Green" or Flex-fuel vehicles. The replacement vehicles are evaluated for "Green" (electric, hybrid, or CNG) vehicles. Orange County Sanitation District Page 1 of 3 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1585 Agenda Date: 4/28/2021 Agenda Item No: 4. RELEVANT STANDARDS • Participate in local, state, and national cooperative purchasing programs • Maintain a proactive asset management program • Ensure the public's money is wisely spent PROBLEM The vehicles below are identified for replacement as they are no longer economical to maintain and are exhibiting deteriorating physical condition. Type Year Make Model Mileage Replacement Identifier Lt. Truck 2002 Chevrolet 2500 Heavy Duty 51,297 Lt. Truck 2002 Chevrolet 2500 Heavy Duty 52,928 Lt. Truck 2002 Chevrolet 500 Heavy Duty 41,375 Lt. Truck 2006 Ford F250 40,105 D Lt. Truck 2007 Ford F150 63,263 Lt. Truck 2004 Ford F350 44,233 11.11 Md. Truck 1997 Ford F350 32,719 E Md. Truck 1998 Chevrolet 500 Heavy Duty 44,078 E Sedan/Suv 2000 Ford Explorer 73,233 B Sedan/Suv 2006 Ford Escape 50,531 B Sedan/Suv 1999 Ford Taurus 35,571 B Sedan/Suv 2000 Ford Taurus 39,449 B PROPOSED SOLUTION Staff recommends replacing the above vehicles with the following vehicles. Unit Quantities & Vehicle Description Total Amount Includes Replacement options, taxes, and tire Identifier fees. One 2021 Ford T250 Transit Cargo Van $37,938 A Four 2021 Ford Escape Hybrid SUV $125,260 B Four 2022 Ford F250 XL Utility trucks $184,961 C One 2022 Ford F350 Crew truck $40,895 D Two 2022 Ford F550 XL Mechanical $242,364 E trucks with crane The cargo van, replacement identifier A, will provide evidentiary control for laboratory samples collected by the Source Control staff and also provide a secure workspace while working in the field. Source Control staff perform sampling-related tasks outdoors, exposing them and laboratory samples to the elements such as sun, heat, rain, and cold, which can negatively impact sampling standards. Orange County Sanitation District Page 2 of 3 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1585 Agenda Date: 4/28/2021 Agenda Item No: 4. The small SUV with light bar, replacement identifier B, provides a more efficient, safer, and visible platform for supervision, engineering, and inspection staff. The light duty trucks, replacement identifiers C and D, are in-kind replacements. Two medium-duty mechanic trucks with small cranes, replacement identifier E, are used by fleet and collection staff and will replace existing medium-duty trucks. TIMING CONCERNS A 5% contingency is recommended should there be a pricing change between the date of approval and the date of purchase due to tariffs and uncontrolled market conditions. RAMIFICATIONS OF NOT TAKING ACTION The vehicles selected for replacement are becoming unreliable, deteriorating, and are no longer economical to maintain. Additionally, these vehicles are not equipped with the modern safety features currently required for fleet vehicles. ADDITIONAL INFORMATION OC San has provisions to purchase materials, services, and equipment from cooperative agreements. These cooperative agreements tend to produce lower unit prices. OC San utilizes a Cooperative Agreement through Sourcewell (formerly National Joint Powers Alliance), Cooperative Contract No. 120716-NAF with National Auto Fleet Group, in accordance with Ordinance No. OCSD-52, Section 2.03(B), Cooperative Purchases. This Cooperative Agreement was awarded using a competitive bid process like OC San's and has been vetted by OC San's Purchasing Division. The amount of savings under this Cooperative Agreement is $63,542 versus list pricing. FINANCIAL CONSIDERATIONS The request complies with authority levels of OC San's Purchasing Ordinance. The budgeted item is in the FY 2020-21 Budget, Line items: 4, 5, 6 Section 8, Page 98, Fleet Services. Date of Approval Contract Amount Contingency 04/28/2021 $631,418 $31,571 (5%) ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: N/A DS:sr-ac Orange County Sanitation District Page 3 of 3 Printed on 4/20/2021 powered by LegistarTM Administration Building OPERATIONS COMMITTEE 10844 Ellis Avenue Fountain Valley,CA 92708 ' AN (714)593-7433 owANGECoUN ��,TpT Agenda Report File #: 2021-1586 Agenda Date: 4/28/2021 Agenda Item No: 5. FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: 24-MONTH / 12,000-HOUR SERVICE ON THREE THICKENING CENTRIFUGES AT PLANT NO. 1 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Sole Source Purchase Order Contract to GEA Mechanical Equipment US Inc. to perform Original Equipment Manufacturer recommended 24-month/12,000-hour service on three Thickening Centrifuges at Plant No. 1, for a total amount not to exceed $723,158; and B. Approve a contingency of $72,316 (10%). BACKGROUND The Plant No. 1 Thickening and Dewatering facility consists of three GEA-Westfalia (GEA) Separator Thickening Centrifuges and three GEA Dewatering Centrifuges. Thickening Centrifuges thicken the sludge feed from the primary and secondary treatment units before being fed to the anaerobic digestion process. By removing water from the solids feed stream to the digester complex, Orange County Sanitation District (OC San) has been able to increase its solids conversion capacity without building more land and energy intensive digestion structures and supporting mechanical systems. RELEVANT STANDARDS • 24/7/365 treatment plant reliability • Maintain a proactive asset management program • Comply with environmental permit requirements PROBLEM The Original Equipment Manufacturer (OEM), GEA, recommends a major maintenance cycle at the 24-month/12,000-hour run-time milestone to ensure the equipment's reliability and useful life expectancy. The three Thickening Centrifuges are at, or near, the 24-month/12,000-hour threshold for major service. This service is designed to prevent premature or unexpected failure of major components by replacement of major wear/tear parts with OEM parts and services. Orange County Sanitation District Page 1 of 3 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1586 Agenda Date: 4/28/2021 Agenda Item No: 5. PROPOSED SOLUTION Approve 24-month/12,000-hour service Purchase Order Contract with GEA Mechanical Equipment US Inc., the OEM supplier, which includes parts, labor, and travel for the three Thickening Centrifuges. TIMING CONCERNS OC San's Thickening Centrifuges are at, or near, the recommended 12,000-hour run-time level which increases the risk of more expensive major component failure. RAMIFICATIONS OF NOT TAKING ACTION Failure to maintain and service the equipment will result in higher lifecycle costs and could result in extended equipment downtime affecting operational permits and/or equipment failure. ADDITIONAL INFORMATION GEA Mechanical Equipment US Inc. is the only authorized distributor for GEA within OC San's geographical region. GEA is a Board-approved sole source manufacturer for centrifuge parts and service. CEQA Equipment maintenance is categorically exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations Section 15301. Section 15301 (Class 1) exempts from CEQA "the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use," including "(b) Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services". FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San's Purchasing Ordinance. This recommendation will be funded under the Repair and Maintenance line item for Plant No. 1 Maintenance Department (Budget Fiscal Year 2021-22, Section 6, Page 92). The available funding is sufficient for this action. A 10% contingency is requested in the event of pricing changes due to tariffs, delays in placing the order beyond the quote availability, or other unforeseeable changes. Date of Approval Contract Amount Contingency 04/28/2021 $723,158 $72,316 (10%) Orange County Sanitation District Page 2 of 3 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1586 Agenda Date: 4/28/2021 Agenda Item No: 5. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: N/A RM:iq:no:ab:gc Orange County Sanitation District Page 3 of 3 Printed on 4/20/2021 powered by LegistarTM Administration Building OPERATIONS COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1587 Agenda Date: 4/28/2021 Agenda Item No: 6. FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2, PROJECT NO. FE18-15 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Receive and file Bid Tabulation and Recommendation for Plant Boiler System Relief at Plant No. 2, Project No. FE18-15; B. Award a Construction Contract to Mehta Mechanical Company, Inc., dba MMC, Inc. for a total amount not to exceed $230,000-1 and C. Approve a contingency of $34,500 (15%). BACKGROUND The anaerobic digesters at Plant No. 2 are used to biologically stabilize and reduce the solids produced by treating wastewater. Under normal circumstances, the heat required to maintain biological process in the anaerobic digesters is recovered from the Central Generation engines. When the engines or the heat recovery system are unavailable, two auxiliary steam boilers are used instead. These two boilers have an operating permit from the South Coast Air Quality Management District that requires emissions testing every six months whether the boilers are used or not. RELEVANT STANDARDS • Comply with environmental permit requirements • Commitment to safety & reducing risk in all operations • Comply with California Public Contract Code Section 20103.8, award Construction Contract to lowest responsive, responsible bidder PROBLEM Mandatory emissions testing for the auxiliary steam boilers requires the boilers to produce more steam than can be used, which requires the release of steam to the atmosphere. There is, however, no provision for the safe release of steam. To conduct the testing, staff opens a manual valve in the steam line in the tunnels. This creates a safety issue for the person opening and closing the valve Orange County Sanitation District Page 1 of 3 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1587 Agenda Date: 4/28/2021 Agenda Item No: 6. and releases a large amount of hot steam and high-pitched noise in the area. PROPOSED SOLUTION Award a construction contract for Plant Boiler System Relief at Plant No. 2, Project No. FE18-15. This project will install a new steam line to a steam separator on the roof of the boiler building where steam can be safely released into the atmosphere. The steam separator will also attenuate the noise of the released steam. TIMING CONCERNS Safety risks associated with the steam release to conduct the boiler emissions testing will continue until the work can be completed. RAMIFICATIONS OF NOT TAKING ACTION Safety risks associated with the steam release to conduct the boiler emissions testing will continue. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Orange County Sanitation District (OC San) advertised Project No. FE18-15 for bids on January 4, 2021 and two sealed bids were received on February 16, 2021. A summary of the bid opening follows: Engineer's Estimate $ 120,000 Bidder Amount of Bid Mehta Mechanical Company, Inc., dba $ 230,000 MMC, Inc. ACCO Engineered Systems, Inc. $ 236,773 Only two bids were received, and they were nearly double the engineer's estimate. Given that OC San has received many bids on some recent small contracts, the reason that only two contractors submitted bids is not clear. The estimate had assumed a more favorable bid environment, both for construction and for materials. The project involves a significant amount of stainless steel piping, which may be subject to high price volatility given recent supply chain uncertainties. The closeness of the two bids suggests that the price represents the fair market value. Given the safety driver for this project, staff believes the project is still warranted even with the higher bid price. The bids were evaluated in accordance with OC San policies and procedures. A notice was sent to all bidders on March 16, 2021 informing them of the intent of OC San staff to recommend award of the Construction Contract to Mehta Mechanical Company, Inc., dba MMC, Inc. Orange County Sanitation District Page 2 of 3 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1587 Agenda Date: 4/28/2021 Agenda Item No: 6. Staff recommends awarding a Construction Contract to the lowest responsive bidder, Mehta Mechanical Company, Inc., dba MMC, Inc., for a total amount not to exceed $230,000. CEQA This project is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations Section 15301 because the project involves repairs, replacement, and or minor alteration of existing facilities involving no expansion of use or capacity. A Notice of Exemption was filed with the OC Clerk-Recorder on July 28, 2020. FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San's Purchasing Ordinance. This item has been budgeted (Adopted Budget, Fiscal Years 2020-2021 and 2021-22, Section 8, Page 48, Small Construction Projects Program, Project No. M-FE) 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: • Construction Contract JM:DR:dm Orange County Sanitation District Page 3 of 3 Printed on 4/20/2021 powered by LegistarTM PART A CONTRACT AGREEMENT C-CA-103020 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......................................................21 SECTION - 18 TERMINATION...............................................................................21 SECTION - 19 WARRANTY...................................................................................22 SECTION - 20 ASSIGNMENT................................................................................23 SECTION - 21 RESOLUTION OF DISPUTES........................................................23 SECTION - 22 SAFETY & HEALTH.......................................................................23 SECTION - 23 NOTICES .......................................................................................23 C-CA-103020 CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 THIS AGREEMENT is made and entered into, to be effective, this April 28, 2021, by and between Mehta Mechanical Co. Inc. dba MMC Inc., hereinafter referred to as "CONTRACTOR" and the Orange County Sanitation District, hereinafter referred to as "OCSD". WITNESSETH That for and in consideration of the promises and agreements hereinafter made and exchanged, OCSD and CONTRACTOR agree as follows: SECTION — 1 GENERAL CONDITIONS CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the Work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR's investigation of all such matters and is in no way relying upon any opinions or representations of OCSD. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents are each incorporated into this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the Work covered by this Contract. A. Contract Documents Order of Precedence "Contract Documents" refers to those documents identified in the definition of"Contract Documents" in the General Conditions — Definitions. C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 1 of 25 1. In the event of a conflict between one Contract Document and any of the other Contract Documents, the provisions in the document highest in precedence shall be controlling. The order of precedence of the Contract Documents is as follows: a. Supplemental Agreements —the last in time being the first in precedence b. Addenda issued prior to 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-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 CONFORMED Page 2 of 25 shape and details of construction. Specifications shall govern as to material and workmanship. b. The Contract Documents calling for the higher quality material or workmanship shall prevail. Materials or Work described in words, which so applied, have a well known technical or trade meaning shall be deemed to refer to such recognized standards. In the event of any discrepancy between any Drawings and the figures thereon, the figures shall be taken as correct. C. Scale Drawings, full-size details, and Specifications are intended to be fully complementary and to agree. Should any discrepancy between Contract Documents come to the CONTRACTOR's attention, or should an error occur in the efforts of others, which affect the Work, the CONTRACTOR shall notify the ENGINEER, in writing, at once. In the event any doubts or questions arise with respect to the true meaning of the Contract Documents, reference shall be made to the ENGINEER whose written decision shall be final. If the CONTRACTOR proceeds with the Work affected without written instructions from the ENGINEER, the CONTRACTOR shall be fully responsible for any resultant damage or defect. d. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to OCSD's ENGINEER, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR's own risk and expense. The decision of the ENGINEER shall be final. C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 3 of 25 In all matters relating to the acceptability of material, machinery or plant equipment; classifications of material or Work; the proper execution, progress or sequence of the Work; and quantities interpretation of the Contract Documents, the decision of the ENGINEER shall be final and binding, and shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the Board of Directors. B. Definitions Capitalized terms used in this Contract are defined in the General Conditions, Definitions. Additional terms may be defined in the Special Provisions. SECTION —2 MATERIALS AND LABOR CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by OCSD, to construct and complete the Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, OCSD may settle such claims by making demand upon the Surety to this Contract. In the event of the failure or refusal of the Surety to satisfy said claims, OCSD may settle them directly and deduct the amount of payments from the Contract Price and any amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees. SECTION — 3 PROJECT The Project is described as: PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 4 of 25 SECTION —4 PLANS AND SPECIFICATIONS The Work to be done is shown in a set of Plans and Specifications entitled: PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 Said Plans and Specifications and any revision, amendments and addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. SECTION — 5 TIME OF COMMENCEMENT AND COMPLETION CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth in the "Notice to Proceed" sent by OCSD, unless otherwise specified therein and shall diligently prosecute the Work to completion within one hundred eighty (180) 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 zero (0) calendar days determined by OCSD likely to be inclement weather when CONTRACTOR will be unable to work. 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 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, C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 5 of 25 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 any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by OCSD's ENGINEER. The decision of the ENGINEER shall be final. C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 6 of 25 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 Thirty Thousand Dollars ($230,000) as itemized on the Attached Exhibit "A". Upon satisfaction of the conditions precedent to payment set forth in the General Requirements, Additional General Requirements and General Conditions (including but C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 7 of 25 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-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 8 of 25 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-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 CONFORMED Page 9 of 25 SECTION — 13 COMPLETION Final Completion and Final Acceptance shall occur at the time and in the manner specified in the General Conditions, "Final Acceptance and Final Completion", "Final Payment" and Exhibit A- Schedule of Prices. Upon receipt of all documentation, records, and releases as required by the Contract from the CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General Conditions. SECTION — 14 CONTRACTOR'S EMPLOYEES COMPENSATION A. Davis-Bacon Act: CONTRACTOR will pay and will require all Subcontractors to pay all employees on said Project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. B. General Prevailing Rate: OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime Work in the locality in which the Work is to be 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-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 10 of 25 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 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 C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 CONFORMED Page 11 of 25 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-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 12 of 25 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 Acceptance. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of OCSD by C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 13 of 25 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. If CONTRACTOR maintains higher limits than the minimums shown in this Section, OCSD requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. 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 C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 14 of 25 exclusions of coverage, or any other reason against OCSD, its or their officers, agents, or employees, and any other contractor or subcontractor performing Work or rendering services on behalf of OCSD in connection with the planning, development and construction of the Project. In all its insurance coverages (except for 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, or any other contractor or subcontractor performing Work or rendering services at the Project. Where permitted by law, CONTRACTOR shall require similar written express waivers and insurance clauses from each of its Subcontractors of every tier. A waiver of subrogation shall be effective as to any individual or entity, even if such individual or entity (a) would otherwise have a duty of indemnification, contractual or otherwise, (b) did not pay the insurance premium, directly or indirectly, and (c)whether or not such individual or entity has an insurable interest in the property damaged. A. Limits of Insurance 1. General Liability: Two Million Dollars ($2,000,000) per occurrence and a general aggregate limit of Four Million Dollars ($4,000,000) 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 Two Million Dollars ($2,000,000) per occurrence and a general aggregate limit of Four Million Dollars ($4,000,000) 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 C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 CONFORMED Page 15 of 25 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 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. C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 CONFORMED Page 16 of 25 2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: Either (1) a combined single limit of One Million Dollars ($1,000,000) for bodily injury, personal injury and property damage; Or alternatively, (2) 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. 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. C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 CONFORMED Page 17 of 25 B. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by OCSD. At the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self- insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD guaranteeing payment of losses and related investigations, claim administration, and defense expenses. C. Other Insurance Provisions 1. Each such policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to contain, the following provisions: a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all public agencies from whom permits will be obtained, and their Directors, officers, agents, and employees are hereby declared to be additional insureds under the terms of this policy, but only with respect to the operations of CONTRACTOR at or from any of the sites of OCSD in connection with this Contract, or acts and omissions of the additional insured in connection with its general supervision or inspection of said operations related to this Contract. b. Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by OCSD shall be excess only and not contributing with insurance provided under this policy. 2. Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, and that coverage shall not be cancelled for non-payment of premium except after ten (10) days prior written notice by certified mail, return receipt requested. Should there be changes in coverage or an increase C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 CONFORMED Page 18 of 25 in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript endorsement from its insurer giving 30 days prior notice of such an event to OCSD, or to have its insurance broker/agent send to OCSD a certified letter describing the changes in coverage and any increase in deductible or SIR amounts. The certified letter must be sent Attention: Risk Management and shall be received not less than twenty (20) days prior to the effective date of the change(s). The letter must be signed by a Director or Officer of the broker/agent and must be on company letterhead, and may be sent via e-mail in pdf format. 3. Coverage shall not extend to any indemnity coverage for the active negligence of any additional insured in any case where an agreement to indemnify the additional insured would be invalid under California Civil Code Section 2782(b). 4. If required by a public agency from whom permit(s) will be obtained, each policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to specify by name the public agency and its legislative members, officers, agents, CONSULTANTS, and employees, to be additional insureds. D. Acceptability of Insurers Insurers must have an "A-", or better, Policyholder's Rating, and a Financial Rating of at least Class 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 twenty (20) days written notice. Further, OCSD will require CONTRACTOR to substitute any insurer whose rating drops below the levels C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 19 of 25 herein specified. Said substitution shall occur within twenty (20) days of written notice to CONTRACTOR by OCSD or its agent. E. Verification of Coverage CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements affecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by OCSD before Work commences. OCSD reserves the right to require complete, certified copies of all required insurance policies, including endorsements, affecting the coverage required by these Specifications at any time. F. Subcontractors CONTRACTOR shall be responsible to establish insurance requirements for any Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations and work. OCSD and any public agency issuing permits for the Project must be named as "Additional Insured" on any General Liability or Automobile Liability policy obtained by a Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced required documents. 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) C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 20 of 25 In the event any of the following forms are cancelled by Insurance Services Office, Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied. a. Commercial General Liability Form CG-0001 10 01 b. Additional Insured Including Form CG-2010 10 01 and Products-Completed Operations Form CG-2037 10 01 C. Waiver of Transfer of Rights of Form CG-2404 11 85; or Recovery Against Others to Us/ Form CG-2404 10 93 Waiver of Subrogation 3. Required State Compensation Insurance Fund Endorsements a. Waiver of Subrogation Endorsement No. 2570 b. Cancellation Notice Endorsement No. 2065 4. Additional Required Endorsements a. Notice of Policy Termination Manuscript Endorsement SECTION — 17 RISK AND INDEMNIFICATION All Work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save, indemnify, defend, and keep OCSD and others harmless as more specifically set forth in General Conditions, "General Indemnification". 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 C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 CONFORMED Page 21 of 25 effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be made at the time and in the manner provided in the General Conditions, "Termination for Default" and "Termination for Convenience". SECTION — 19 WARRANTY The CONTRACTOR agrees to perform all Work under this Contract in accordance with the Contract Documents, including OCSD's designs, Drawings and Specifications. The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final Completion" that the completed Work is free from all defects due to faulty materials, equipment or workmanship and that it shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs of any damage to other parts of the system resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, OCSD may do so and charge the CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any corrected deficiency until the later of (1) the remainder of the original one-year warranty period; 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. C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 22 of 25 SECTION —20 ASSIGNMENT No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be received hereunder, will be recognized by OCSD unless such assignment has had prior written approval and consent of OCSD and the Surety. SECTION —21 RESOLUTION OF DISPUTES OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract Code Section 20104 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 C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 CONFORMED Page 23 of 25 Bradley R. Hogin, Esquire Woodruff, Spradlin & Smart 555 Anton Boulevard Suite 1200 Costa Mesa, California 92626 TO CONTRACTOR: Mehta Mechanical Co. Inc. dba MMC Inc. 5901 Fresca Dr. La Palma, CA 90623 Copy to: Jagat S. Mehta, President Mehta Mechanical Co. Inc. dba MMC Inc. 5901 Fresca Dr. La Palma, CA 90623 C-CA-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 CONFORMED Page 24 of 25 IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: Mehta Mechanical Co. Inc. dba MMC Inc. 5901 Fresca Dr. La Palma, CA 90623 By Printed Name Its CONTRACTOR's State License No. 573635 (Expiration Date— 07/31/2022) 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-103020 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO. 2 CONFORMED Page 25 of 25 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. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 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. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 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. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 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. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 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. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 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. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 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. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 CONFORMED Page 7 of 8 ATTACHMENT 2 — SCHEDULE OF PRICES See next pages for Bid Submittal Forms: Mehta Mechanical Co. Inc. dba MMC Inc. BF-14 SCHEDULE OF PRICES, Pages 1 - 2 C-EXA-080414 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 CONFORMED Page 8 of 8 Bid Submitted By: MMC Inc. (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 applicable sales taxes, state and/or federal and any other special taxes patent rights or royalties shall be included in the prices quoted in this Bid B. Basis of Award AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST RESPONSIVE AND RESPONSIBLE BID. Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials, equipment and services for the construction of the Project per the Contract Documents. BF-14 SCHEDULE OF PRICES C-BF-042720 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 Page 1 of 2 Bid Submitted By: MMC Inc. (Name of Firm) EXHIBIT A SCHEDULE OF PRICES BASE BID ITEMS(Refer to Note 1 in the Instructions): Item Unit of No. Description Extended Price Measurement 1. Mobilization: The amount for this Bid Item shall not exceed$6,000 of the Total Amount of Bid and shall be in conformance with the Contract Documents.All Lump Sum $ 6,000 amounts included in this Bid Item greater than the allowable maximum payment of$6,000 of the Total Amount of Bid shall be paid under Bid Item 2. 2. All other portions of the Work set forth in the Contract Documents except for the Work performed in Bid Item 1: Work under this item shall include all labor, equipment, materials, and Lump Sum $ Z 2 4�DOt7 services necessary for all other Work not specified in Bid Item 1. TOTAL AMOUNT OF BID (BASIS OF AWARD) $ 2Q BF-14 SCHEDULE OF PRICES C-BF-042720 PROJECT NO. FE18-15 PLANT BOILER SYSTEM RELIEF AT PLANT NO.2 Page 2 of 2 Administration Building OPERATIONS COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1588 Agenda Date: 4/28/2021 Agenda Item No: 7. FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: ASSIGNMENT, WELL TRANSFER, AND OPERATORSHIP AGREEMENT WITH CHEVRON U.S.A. INC. GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve the Assignment, Well Transfer, and Operatorship Agreement between the Orange County Sanitation District and Chevron U.S.A. Inc. to accept the assignment of the NC-79 well located at Plant No. 2, API # 05921580, along with the related rights and obligations. BACKGROUND In the past, the current site of Plant No. 2 in the city of Huntington Beach was used for oil wells. A- Side Primary Clarifiers Replacement at Plant No. 2, Project No. P2-98A, will be constructed on top of an old oil well. In order to properly abandon the oil well and build a new structure above it, the Orange County Sanitation District (OC San) must be registered as both the owner and operator. RELEVANT STANDARDS • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities • Protect OC San assets PROBLEM Records indicate that an oil well, designated as NC-79, is located under the Project P2-98A construction site. Per state records, Chevron U.S.A. Inc. has operatorship rights of NC-79, even though OC San owns this oil well. The state will not issue OC San a permit until it is registered as both the owner and operator of the well. PROPOSED SOLUTION Approve the Assignment, Well Transfer, and Operatorship agreement with Chevron U.S.A. Inc. along with the related rights and obligations. This agreement requires no payment by either party. Orange County Sanitation District Page 1 of 2 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1588 Agenda Date: 4/28/2021 Agenda Item No: 7. TIMING CONCERNS A-Side Primary Clarifiers Replacement at Plant No. 2, Project No. P2-98A construction is anticipated to begin in June 2021. Construction of the clarifiers could be delayed if an oil well abandonment permit is not obtained. RAMIFICATIONS OF NOT TAKING ACTION Without approval of this agreement, the required permit cannot be obtained, and one of the clarifiers would not be constructed. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION A-Side Primary Clarifiers Replacement at Plant No. 2, Project No. P2-98A, will construct four new primary clarifiers, a new odor control and chemical facility, a new electrical distribution center building, and ancillary facilities and utilities, as well as demolish four existing primary clarifiers, a power building, and an air treatment facility. The construction contract documents include abandonment of oil well NC-79. The estimated construction cost of the entire project is $129 million, and construction will last approximately five years. CEQA This project is exempt from CEQA under the Class 2 categorical exemptions set forth in California Code of Regulations sections 15302 because the project involves replacement or reconstruction of existing structures and facilities where the new structure replaced will have substantially the same purpose and capacity as the structure replaced. A Notice of Exemption was filed with the Orange County Clerk-Recorder on April 26, 2018. 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: • Assignment, Well Transfer, and Operatorship Agreement SN:dm Orange County Sanitation District Page 2 of 2 Printed on 4/20/2021 powered by LegistarTM ASSIGNMENT,WELL TRANSFER,AND OPERATORSHIP AGREEMENT This ASSIGNMENT,WELL TRANSFER,AND OPERATORSHIP AGREEMENT("Agreement") dated as of 1 March 2021 ("Effective Date"), is made by and between CHEVRON U.S.A. INC., a Pennsylvania corporation,with a mailing address at 9525 Camino Media,Bakersfield, California 93311 ("Assignor") and ORANGE COUNTY SANITATION DISTRICT,with a mailing address at 10844 Ellis Ave,Fountain Valley,CA 92708 ("Assignee"). RECITALS A. Assignor wishes to assign and transfer to Assignee the NC-79 well, API #05921580 as further described in Exhibit A("Assigned Wells"),along with the related rights and obligations,including rights to own, operate, access, excavate, monitor, abandon and/or re-abandon, and modify the Assigned Wells as set forth in this Agreement. B. Assignee wishes to accept from Assignor the assignment of the Assigned Wells and related rights and obligations, including rights to own, operate, access, excavate, monitor, abandon and/or re- abandon, and modify the Assigned Wells as set forth in this Agreement. AGREEMENT 1. DEFINITIONS,INTERPRETATION AND EXHIBITS 1.1 Definitions. As used in this Agreement, these words or expressions have the following meanings: "Abandonment Obligations" means abandoning, decommissioning, removing or making safe the Assigned Wells as and to the extent required by CALGEM, applicable statutes, regulations, and guidelines, and contractual obligations for the Assigned Wells. Abandonment Obligations include all of the following: (A) The plugging, abandonment, and re-abandonment of the Assigned Wells. (B) The clearance, restoration, and remediation of the lands affected by the Assigned Wells. (C) The removal, remediation, and abatement of any petroleum material, any contamination or pollution (including spilling, leaking, pumping, pouring, emitting, emptying, discharging, leaching, dumping, disposing or other release of any chemical substance, pollutant, contaminant, toxic substance, radioactive material,hazardous substance,NORM,waste,saltwater,cuttings,muds,crude oil, or petroleum product) of surface soils and water, subsurface soils, air, groundwater, or any vessel, piping, equipment, tubing, or subsurface structure or strata associated with the Assigned Wells. "Affiliate"of a Party shall mean any Person that,directly or indirectly,through one or more intermediaries, controls or is controlled by or is under common control with such Party. For purposes of this definition,"control"means ownership of fifty percent(50%)or greater of the voting interest(stock or otherwise)of such entity. "Agreement"has the meaning given in the introductory paragraph of this Agreement. 1 1552341.1 "Assignee"has the meaning given in the introductory paragraph of this Agreement. "Assigned Wells"has the meaning given in the recitals of this Agreement. "Assignor"has the meaning given in the introductory paragraph of this Agreement. "Assignor Group" means Assignor, Assignor's Affiliates, and their Affiliates, and the directors,officers, and employees of all of them. "CALGEM"means the California Geologic Energy Management Division or its successor agency or agencies with regulatory authority over the matters that are the subject of this Agreement. "Claim" means any claim, liability, penalty, fine, loss, demand, damages, Lien, cause of action of any kind,obligation, costs,judgment, interest, and award(including recoverable legal counsel fees and costs of litigation of the Person asserting the Claim),whether arising by law,contract,tort,voluntary settlement,or otherwise. "Effective Date"has the meaning given in the introductory paragraph of this Agreement. "Indemnitee(s)"means each Person who is a member of Assignor Group. "Laws"has the meaning set forth in Section 7. "Lien"means charge, encumbrance or similar right available to creditors at law to secure debts owed to them. "NORM"means the presence of naturally occurring radioactive materials. "Party"means Assignee or Assignor and"Parties"mean both of them. "Person" means an individual, corporation, company, state, statutory corporation, government entity or any other legal entity. 1.2 Interpretation.Unless the context expressly requires otherwise,all of the following apply to the interpretation of this Agreement: (A) The plural and singular words each include the other. (B) The masculine, feminine,and neutral genders each include the others. (C) The word"or"is not exclusive. (D) The word"includes"and"including"are not limiting but are terms of enlargement so other items or components are includable although not specifically expressed. (E) References to matters "arising" (or which "arise" or "arises") "out of this Agreement"include matters which arise in connection with this Agreement or have a causal connection with or which flow from this Agreement or which would not have arisen or occurred but for the entering into this Agreement or the performance of or failure to perform obligations under this Agreement. 2 1552341.1 (F) The headings in this Agreement are included for convenience and do not affect the construction or interpretation of any provision of, or the rights or obligations of a Party under,this Agreement. 1.3 Exhibits. (A) Exhibit A attached to the body of this Agreement are integral parts of this Agreement and are incorporated by reference into this Agreement. (B) If a conflict exists between the body of this Agreement and Exhibit A, the body prevails to the extent of the conflict. 2. CONVEYANCE 2.1 Assignment.Assignor assigns to Assignee, and Assignee accepts from Assignor,without warranty of any kind, either express or implied and in accordance with all terms and conditions of this Agreement, all of Assignor's right, title, and interest in and to the Assigned Wells, except as limited by Section 2.3 below. 2.2 Well Transfer. Assignor and Assignee shall complete and execute all agreements, documents, notifications, and materials necessary to assign and transfer the Assigned Wells. Assignee shall deliver to CALGEM the Notification of Well and/or Facility Disposition form within 10 business days after the Effective Date and send Assignor a copy of the approved form as received from CALGEM,within ten days of such receipt. 2.3 Operating Rights.Assignor assigns and grants Assignee the right to operate the Assigned Wells, only as is necessary and/or desirable to complete any work on the Assigned Wells in connection with Assignee's development project (i.e., lowering the well and any associated testing, repair, maintenance, etc. associated therewith), as well as any repair, maintenance, abandonment, re-abandonment, or remediation work which is required or desired now or in the future. For the purposes of this Agreement, Assignee's right to operate the Assigned Well is consistent with the definition set forth in California Public Resources Code, Division 3, Chapter 1, Section 3009, and includes the corresponding rights and responsibilities associated with the right to operate the Assigned Well in accordance with all terms and conditions of this Agreement and the California Public Resources Code, Division 3, Chapter 1, including indemnity bonding requirements. Assignor does not assign or grant Assignee any right to production of any oil, gas,water, or minerals, or any right to inject or dispose of any substance into the Assigned Wells. 3. NO WARRANTY OR REPRESENTATION BY ASSIGNOR 3.1 This Agreement is made on an "AS IS,WHERE IS"basis, "WITH ALL FAULTS," and WITHOUT WARRANTIES WHATSOEVER WITH RESPECT TO THE ASSIGNED WELLS TRANSFERRED, EITHER EXPRESS OR IMPLIED it being expressly agreed by Assignor and Assignee that ASSIGNOR MAKES NO WARRANTIES OR REPRESENTATIONS WITH RESPECT TO ORIGIN, QUANTITY, QUALITY, CONDITION, MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, SAFETY OF EQUIPMENT, COMPLIANCE WITH GOVERNMENTAL REGULATIONS, OR CONDITION OF THE ASSIGNED WELL. 3 1552341.1 3.2 All descriptions set forth in this Agreement and any information furnished to Assignee by Assignor before or after the Effective Date concerning the Assigned Well, have been and will be furnished solely for Assignee's convenience and have not constituted and will not constitute a representation or warranty of any kind by Assignor, and any reliance on same by Assignee will be at Assignee's sole risk and liability. 4. ASSUMPTION OF OBLIGATIONS 4.1 Assumed Obligations. Assignee shall perform the Abandonment Obligations for the Assigned Wells. 4.2 Other Risks. Assignee acknowledges that Assignor assigns the Assigned Wells without representation or warranty of any kind,and Assignee expressly assumes sole responsibility for all liabilities and Claims in any way arising out of or related to the Assigned Wells arising on or after the Effective Date. 4.3 INDEMNITY 4.4 General Indemnity.UNLESS OTHERWISE SPECIFICALLY PROVIDED IN THIS AGREEMENT, ASSIGNEE RELEASES, DISCHARGES, INDEMNIFIES, AND SHALL DEFEND AND HOLD HARMLESS INDEMNITEES AGAINST ALL CLAIMS IN ANY WAY ARISING OUT OF OR RELATING TO THE ASSIGNED WELL OR THIS AGREEMENT ARISING ON OR AFTER THE EFFECTIVE DATE. 4.5 Defense of Claims. 4.6 Whenever Assignee is obligated hereunder to indemnify Indemnitees against Claims, Assignee shall defend and hold Indemnitees harmless against those Claims and against all reasonable costs, expenses, and fees of any kind (including attorneys' fees) incurred by Indemnitees in defending those Claims. 4.7 Assignor has the right to reasonably object to counsel selected by Assignee, following written notice Assignor to Assignee objecting to such counsel, and select alternative counsel at the cost of Assignee. 5. CONFLICT OF INTEREST No director, employee, or agent of either Party will give or receive any commission, fee, rebate, gift,or entertainment of significant cost or value in connection with this Agreement.For five years after the Effective Date, any representatives authorized by either Party may audit the applicable records of the other Party solely for the purpose of determining whether there has been compliance with this provision. The provisions of this Section 6 will survive termination of this Agreement. 6. GOVERNING LAW This Agreement is governed by and interpreted under the laws of the State of California, without regard to its choice of law rules. 4 1552341.1 7. NOTICES All notices required or permitted under this Agreement must be in writing and delivered by mail (postage prepaid), by overnight courier, or by hand delivery to the address of the Party receiving the notice set out in the signature page to this Agreement. A notice shall be effective upon actual receipt by the Party to whom it is addressed.Notices sent by email are ineffective. 8. PUBLIC ANNOUNCEMENTS Except as otherwise expressly required by law,a Party shall not issue any public announcement or statement concerning this Agreement or its subject matter without obtaining the other Party's prior written consent,which consent shall not be unreasonably withheld or delayed. 9. THIRD PARTY RIGHTS Except as otherwise expressly stated herein, a Person who is not a party to this Agreement has no rights under this Agreement and may not enforce any provision of this Agreement. 10. ASSIGNMENT The rights and obligations of either Party may be assigned in whole or in part;provided,however, any such assignment by Assignee will not relieve it of its obligations under this Agreement unless the Parties and the Person to whom Assignee intends to make such assignment,execute a novation. The requirement for a novation shall apply to subsequent assignments by Assignee. The terms of this Agreement will be binding upon and inure to the benefit of the Parties and their heirs, successors and assigns, and the obligations and responsibilities of Assignee to Assignor under this Agreement will run with the Assigned Wells. 11. GENERAL PROVISIONS 11.1 Prior Agreements. This Agreement comprises the complete and exclusive agreement between the Parties regarding the subject matter of this Agreement,and supersedes all oral and written communications,negotiations,representations,or agreements in relation to that subject matter made or entered into before the Effective Date. 11.2 Amendment. This Agreement may not be amended orally or by performance. No amendment to this Agreement is effective unless made in writing and signed by authorized representatives of both Parties. 11.3 Waiver.Assignor's or Assignee's failure to pursue remedies for breach of this Agreement, or for Assignor or Assignee to take or not take other actions hereunder,does not constitute a waiver by Assignor or Assignee, respectively, of any breach of this Agreement by Assignee or Assignor or raise any defense against Claims against Assignee or Assignor for breach of this Agreement.The waiver or failure to require the performance of any covenant or obligation contained in this Agreement or pursue remedies for breach of this Agreement does not waive a later breach of that covenant or obligation. 11.4 Severability. Each provision of this Agreement is severable and if any provision is determined to be invalid, unenforceable or illegal under any existing or future law by a court, arbitrator of competent jurisdiction or by operation of any applicable law, this invalidity, unenforceability or illegality does not impair the operation of or affect those portions of this Agreement that are valid, enforceable and legal unless the deletion of such 5 1552341.1 provision or provisions would result in such a material change so as to cause completion of the transactions contemplated herein to be unreasonable. 11.5 Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed an original of this Agreement, and which together will constitute one and the same instrument. 11.6 Topical Headings.The topical headings used in this Agreement are for convenience only and will not be construed as having any substantive significance or as indicating that all of the provisions of this Agreement relating to any topic are to be found in any particular section. 11.7 Survival. Except as set forth in Section 11 above, all provisions in this Agreement, including those containing representations, warranties, releases and indemnities, and governing law, survive indefinitely until, by their respective terms, they are no longer operative or are otherwise limited by an applicable statute of limitations. 11.8 Authorized Representatives.Each Party represents and warrants that the Agreement has been duly executed and delivered by its authorized officer or other representative and constitutes its legal,valid,and binding obligation enforceable in accordance with its terms, upon delivery of the fully executed document, and no further consent or approval of any other Person is required in connection with its execution, delivery, and performance of the Agreement. 11.9 Further Assurances.The Parties shall at their own cost and expense execute and deliver such further documents and instruments and shall take such other actions as may be reasonably required or appropriate to evidence or carry out the intent and purposes of this Agreement or to show the ability to carry out the intent and purposes of this Agreement. The provisions of this Section 12.9 will survive termination of this Agreement. The remainder of this page left intentionally blank. 6 1552341.1 IMPORTANT NOTICE: THIS AGREEMENT CONTAINS PROVISIONS REGARDING INDEMNITIES AND WARRANTIES THAT EXPRESS THE AGREEMENT OF THE PARTIES CONCERNING CLAIMS ARISING OUT OF THIS AGREEMENT. The Parties have executed this Agreement in duplicate as evidenced by the following signatures of authorized representatives of the Parties: ASSIGNOR: ASSIGNEE: CHEVRON U.S.A.INC. ORANGE COUNTY SANITATION DISTRICT Signature: Name: Name: Lance Burton David John Shawver Title: Attorney in Fact Title: Board Chairman ADDRESS FOR NOTICES: ADDRESS FOR NOTICES: 9525 Camino Media 10844 Ellis Ave Bakersfield, CA 93311 Fountain Valley,CA 92708 Attention: Land Manager Attention: Kelly A . Lore, Clerk of the Board Telephone: 661-654-7075 Telephone: 714-593-7433 7 1552341.1 EXHIBIT A—LEGAL DESCRIPTION Well Number Operator Section Township Range API County State Newport West Chevron USA Inc 19 T06S R10W 059-21580 Orange California NC-79 11 1552341.1 Administration Building OPERATIONS COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1589 Agenda Date: 4/28/2021 Agenda Item No: 8. FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2, PROJECT NO. FR2-0013 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Receive and file Bid Tabulation and Recommendation for Trickling Filter Sludge Pump Room Exhaust Fan Relocation at Plant No. 2, Project No. FR2-013; B. Reject low bid from MLC Constructors, Inc. as non-responsive; C. Award a Construction Contract to Mehta Mechanical Co., Inc. DBA MMC, Inc. for Trickling Filter Sludge Pump Room Exhaust Fan Relocation at Plant No. 2, Project No. FR2-0013, for a total amount not to exceed $184,000-1 and D. Approve a contingency of $36,800 (20%). BACKGROUND The Trickling Filter/Solids Contact Facility is one of two secondary treatment processes at Orange County Sanitation District (OC San) Plant No. 2. The facility includes a below-grade pump room that requires ventilation for Operations and Maintenance staff to safely access and to remove heat generated by the pump motors. RELEVANT STANDARDS • California Public Contract Code Section 20103.8: Award Construction Contract to lowest responsive, responsible bidder • Commitment to safety & reducing risk in all operations • Maintain a proactive asset management program PROBLEM Ventilation of the Trickling Filter Sludge Pump Room depends on an exhaust fan located 15 feet above the floor that cannot be safely accessed for routine and corrective maintenance. Orange County Sanitation District Page 1 of 3 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1589 Agenda Date: 4/28/2021 Agenda Item No: 8. PROPOSED SOLUTION Award a Construction Contract for Trickling Filter Sludge Pump Room Exhaust Fan Relocation at Plant No. 2, Project No. FR2-0013. This project will replace the existing fan with a new wall-mounted fan that can be safely accessed from the ground level. Replacement of the fan requires the existing duct work and fan to be removed first. To avoid overheating and to maintain a safe working environment, a substantial temporary ventilation system is required. For this reason, any construction delays have the potential to immediately incur additional costs associated with maintaining the temporary ventilation system. For this reason, staff is requesting a contingency of 20%, rather than the usual 10%. TIMING CONCERNS Delaying the fan replacement would increase the risk that the existing fan may fail because it cannot be properly maintained. A fan failure would require an expensive and complex temporary ventilation system be installed to provide a safe work environment and remove excess heat that could impact pump operations. RAMIFICATIONS OF NOT TAKING ACTION Without this project, the fan would not be properly maintained. ADDITIONAL INFORMATION OC San advertised for bids on November 18, 2020, and four sealed bids were received on January 5, 2021. A summary of the bids follows: Engineer's Estimate $186,000 Bidder Amount of Bid MLC Constructors, Inc. $179,300 Mehta Mechanical Co, Inc. DBA MMC, Inc. $184,000 Metro Builders & Engineers Group, Ltd $210,969 Tharsos Inc. $265,565 The bids were evaluated in accordance with OC San's policies and procedures. The apparent lowest bidder, MLC Constructors, Inc. (MLC) was not able to demonstrate that they had completed the required three similar projects in the last ten years. An evaluation of the second apparent low bidder, MMC, Inc., found MMC, Inc. to be both responsive and responsible. A notice was sent to all the bidders on February 18, 2021, informing them of the intent of OC San to recommend award of the construction contract to MMC, Inc. Staff recommends awarding a Construction Contract to the lowest responsive, responsible bidder, MMC, Inc. for a total amount not to exceed $184,000. Orange County Sanitation District Page 2 of 3 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1589 Agenda Date: 4/28/2021 Agenda Item No: 8. CEQA The project is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations sections 15301 because the project involves repairs, replacement, and or minor alteration of existing facilities involving no expansion of use or capacity. A Notice of Exemption was filed with the OC Clerk-Recorder on May 14, 2020. FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San's Purchasing Ordinance. This recommendation will be funded under the Repairs and Maintenance line item for Division 880, Division Mechanical Maintenance (Adopted Budget, FY 2020-2021 and 2021 - 2022, Section 6, Page 96), and the available funding is sufficient for this action. 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 JM:DR:dm Orange County Sanitation District Page 3 of 3 Printed on 4/20/2021 powered by LegistarT" PART A CONTRACT AGREEMENT C-CA-103020 TABLE OF CONTENTS CONTRACT AGREEMENT SECTION - 1 GENERAL CONDITIONS ..........................................................1 SECTION - 2 MATERIALS AND LABOR........................................................4 SECTION - 3 PROJECT..................................................................................4 SECTION - 4 PLANS AND SPECIFICATONS ................................................5 SECTION - 5 TIME OF COMMENCEMENT AND COMPLETION...................5 SECTION - 6 TIME IS OF THE ESSENCE......................................................5 SECTION - 7 EXCUSABLE DELAYS .............................................................6 SECTION - 8 EXTRA WORK...........................................................................6 SECTION - 9 CHANGES IN PROJECT...........................................................7 SECTION - 10 LIQUIDATED DAMAGES FOR DELAY ....................................7 SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT .................7 SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OFFUNDS.................................................................................9 SECTION - 13 COMPLETION .........................................................................10 SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION...............10 SECTION - 15 SURETY BONDS.....................................................................12 SECTION - 16 INSURANCE............................................................................13 SECTION - 17 RISK AND INDEMNIFICATION...............................................21 SECTION - 18 TERMINATION ........................................................................21 SECTION - 19 WARRANTY............................................................................22 SECTION - 20 ASSIGNMENT .........................................................................23 SECTION - 21 RESOLUTION OF DISPUTES.................................................23 SECTION - 22 SAFETY & HEALTH................................................................23 SECTION - 23 NOTICES .................................................................................24 C-CA-103020 CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 THIS AGREEMENT is made and entered into, to be effective, this April 28, 2021, by and between Mehta Mechanical Co. Inc. dba MMC Inc., hereinafter referred to as "CONTRACTOR" and the Orange County Sanitation District, hereinafter referred to as "OCSD". WITNESSETH That for and in consideration of the promises and agreements hereinafter made and exchanged, OCSD and CONTRACTOR agree as follows: SECTION — 1 GENERAL CONDITIONS CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the Work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR's investigation of all such matters and is in no way relying upon any opinions or representations of OCSD. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents are each incorporated into this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the Work covered by this Contract. A. Contract Documents Order of Precedence "Contract Documents" refers to those documents identified in the definition of"Contract Documents" in the General Conditions — Definitions. CONFORMED C-CA-103020 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 1 of 25 1. In the event of a conflict between one Contract Document and any of the other Contract Documents, the provisions in the document highest in precedence shall be controlling. The order of precedence of the Contract Documents is as follows: a. Supplemental Agreements—the last in time being the first in precedence b. Addenda issued prior to 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 C-CA-103020 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 2 of 25 directed. Full-size details shall take precedence over scale Drawings as to shape and details of construction. Specifications shall govern as to material and workmanship. b. The Contract Documents calling for the higher quality material or workmanship shall prevail. Materials or Work described in words, which so applied, have a well-known technical or trade meaning shall be deemed to refer to such recognized standards. In the event of any discrepancy between any Drawings and the figures thereon, the figures shall be taken as correct. C. Scale Drawings, full-size details, and Specifications are intended to be fully complementary and to agree. Should any discrepancy between Contract Documents come to the CONTRACTOR's attention, or should an error occur in the efforts of others, which affect the Work, the CONTRACTOR shall notify the ENGINEER, in writing, at once. In the event any doubts or questions arise with respect to the true meaning of the Contract Documents, reference shall be made to the ENGINEER whose written decision shall be final. If the CONTRACTOR proceeds with the Work affected without written instructions from the ENGINEER, the CONTRACTOR shall be fully responsible for any resultant damage or defect. d. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to OCSD's ENGINEER, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR's own risk and expense. The decision of the ENGINEER shall be final. CONFORMED C-CA-103020 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 3 of 25 In all matters relating to the acceptability of material, machinery or plant equipment; classifications of material or Work; the proper execution, progress or sequence of the Work; and quantities interpretation of the Contract Documents, the decision of the ENGINEER shall be final and binding, and shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the Board of Directors. B. Definitions Capitalized terms used in this Contract are defined in the General Conditions, Definitions. Additional terms may be defined in the Special Provisions. SECTION — 2 MATERIALS AND LABOR CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by OCSD, to construct and complete the Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, OCSD may settle such claims by making demand upon the Surety to this Contract. In the event of the failure or refusal of the Surety to satisfy said claims, OCSD may settle them directly and deduct the amount of payments from the Contract Price and any amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees. SECTION — 3 PROJECT The Project is described as: PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 C-CA-103020 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 4 of 25 SECTION —4 PLANS AND SPECIFICATONS The Work to be done is shown in a set of Plans and Specifications entitled: PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Said Plans and Specifications and any revision, amendments and addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. SECTION — 5 TIME OF COMMENCEMENT AND COMPLETION CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth in the "Notice to Proceed" sent by OCSD, unless otherwise specified therein and shall diligently prosecute the Work to completion within one hundred eighty (180) 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 zero (0) calendar days determined by OCSD likely to be inclement weather when CONTRACTOR will be unable to work. 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 which the Work is to be performed and shall have the right to decide the time or order in which CONFORMED C-CA-103020 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 5 of 25 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 any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by OCSD's ENGINEER. The decision of the ENGINEER shall be final. C-CA-103020 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 6 of 25 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 One Hundred Eighty-Four Thousand Dollars ($184,000) as itemized on the Attached Exhibit "A". Upon satisfaction of the conditions precedent to payment set forth in the General Requirements, Additional General Requirements and General Conditions (including but CONFORMED C-CA-103020 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 7 of 25 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-103020 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 8 of 25 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." CONFORMED C-CA-103020 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 9 of 25 SECTION — 13 COMPLETION Final Completion and Final Acceptance shall occur at the time and in the manner specified in the General Conditions, "Final Acceptance and Final Completion", "Final Payment" and Exhibit A- Schedule of Prices. Upon receipt of all documentation, records, and releases as required by the Contract from the CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General Conditions. SECTION — 14 CONTRACTOR'S EMPLOYEES COMPENSATION A. Davis-Bacon Act: CONTRACTOR will pay and will require all Subcontractors to pay all employees on said Project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. B. General Prevailing Rate: OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime Work in the locality in which the Work is to be 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-103020 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 10 of 25 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 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 CONFORMED C-CA-103020 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 11 of 25 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-103020 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 12 of 25 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 Acceptance. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of OCSD by CONFORMED C-CA-103020 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 13 of 25 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. If CONTRACTOR maintains higher limits than the minimums shown in this Section, OCSD requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. 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 C-CA-103020 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 14 of 25 exclusions of coverage, or any other reason against OCSD, its or their officers, agents, or employees, and any other contractor or subcontractor performing Work or rendering services on behalf of OCSD in connection with the planning, development and construction of the Project. In all its insurance coverages (except for 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, or any other contractor or subcontractor performing Work or rendering services at the Project. Where permitted by law, CONTRACTOR shall require similar written express waivers and insurance clauses from each of its Subcontractors of every tier. A waiver of subrogation shall be effective as to any individual or entity, even if such individual or entity (a) would otherwise have a duty of indemnification, contractual or otherwise, (b) did not pay the insurance premium, directly or indirectly, and (c) whether or not such individual or entity has an insurable interest in the property damaged. A. Limits of Insurance 1. General Liability: Two Million Dollars ($2,000,000) per occurrence and a general aggregate limit of Four Million Dollars ($4,000,000) 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 Two Million Dollars ($2,000,000) per occurrence and a general aggregate limit of Four Million Dollars ($4,000,000)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 CONFORMED C-CA-103020 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 15 of 25 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 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. C-CA-103020 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 16 of 25 2. Automobile Liabilitv: The CONTRACTOR shall maintain a policy of Automobile Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: Either (1) a combined single limit of One Million Dollars ($1,000,000)for bodily injury, personal injury and property damage; Or alternatively, (2) Five Hundred Thousand Dollars ($500,000) per person for bodily injury; Five Hundred Thousand Dollars ($500,000) per accident for bodily injury, and Five Hundred Thousand Dollars ($500,000) 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. CONFORMED C-CA-103020 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 17 of 25 B. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by OCSD. At the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self- insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD guaranteeing payment of losses and related investigations, claim administration, and defense expenses. C. Other Insurance Provisions 1. Each such policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to contain, the following provisions: a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all public agencies from whom permits will be obtained, and their Directors, officers, agents, and employees are hereby declared to be additional insureds under the terms of this policy, but only with respect to the operations of CONTRACTOR at or from any of the sites of OCSD in connection with this Contract, or acts and omissions of the additional insured in connection with its general supervision or inspection of said operations related to this Contract. b. Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by OCSD shall be excess only and not contributing with insurance provided under this policy. 2. Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, and that coverage shall not be cancelled for non-payment of premium except after ten (10) days prior written notice by certified C-CA-103020 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 18 of 25 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 twenty (20) days prior to the effective date of the change(s). The letter must be signed by a Director or Officer of the broker/agent and must be on company letterhead, and may be sent via e-mail in pdf format. 3. Coverage shall not extend to any indemnity coverage for the active negligence of any additional insured in any case where an agreement to indemnify the additional insured would be invalid under California Civil Code Section 2782(b). 4. If required by a public agency from whom permit(s) will be obtained, each policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to specify by name the public agency and its legislative members, officers, agents, CONSULTANTS, and employees, to be additional insureds. D. Acceptability of Insurers Insurers must have an "A-", or better, Policyholder's Rating, and a Financial Rating of at least Class 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 twenty (20) days written notice. Further, OCSD will CONFORMED C-CA-103020 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 19 of 25 require CONTRACTOR to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20) days of written notice to CONTRACTOR by OCSD or its agent. E. Verification of Coverage CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements affecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by OCSD before Work commences. OCSD reserves the right to require complete, certified copies of all required insurance policies, including endorsements, affecting the coverage required by these Specifications at any time. F. Subcontractors CONTRACTOR shall be responsible to establish insurance requirements for any Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations and work. OCSD and any public agency issuing permits for the Project must be named as "Additional Insured" on any General Liability or Automobile Liability policy obtained by a Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced required documents. G. Required Forms and Endorsements 1. Required ACORD Form a. Certificate of Liability Form 25 C-CA-103020 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 20 of 25 2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are shown, they are listed in order of preference) In the event any of the following forms are cancelled by Insurance Services Office, Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied. a. Commercial General Liability Form CG-0001 10 01 b. Additional Insured Including Form CG-2010 10 01 and Products-Completed Operations Form CG-2037 10 01 C. Waiver of Transfer of Rights of Form CG-2404 11 85; or Recovery Against Others to Us/ Form CG-2404 10 93 Waiver of Subrogation 3. Required State Compensation Insurance Fund Endorsements a. Waiver of Subrogation Endorsement No. 2570 b. Cancellation Notice Endorsement No. 2065 4. Additional Required Endorsements a. Notice of Policy Termination Manuscript Endorsement SECTION — 17 RISK AND INDEMNIFICATION All Work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save, indemnify, defend, and keep OCSD and others harmless as more specifically set forth in General Conditions, "General Indemnification". 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 CONFORMED C-CA-103020 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 21 of 25 manner provided in said General Conditions. If termination for default or convenience is effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be made at the time and in the manner provided in the General Conditions, "Termination for Default" and "Termination for Convenience". SECTION — 19 WARRANTY The CONTRACTOR agrees to perform all Work under this Contract in accordance with the Contract Documents, including OCSD's designs, Drawings and Specifications. The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final Completion" that the completed Work is free from all defects due to faulty materials, equipment or workmanship and that it shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs of any damage to other parts of the system resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections, or other work made necessary by such defects, OCSD may do so and charge the CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any corrected deficiency until the later of(1) the remainder of the original one-year warranty period; 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. C-CA-103020 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 22 of 25 SECTION — 20 ASSIGNMENT No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be received hereunder, will be recognized by OCSD unless such assignment has had prior written approval and consent of OCSD and the Surety. SECTION — 21 RESOLUTION OF DISPUTES OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract Code Section 20104 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. CONFORMED C-CA-103020 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 23 of 25 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 TO CONTRACTOR: Mehta Mechanical Co. Inc. dba MMC Inc. 5901 Fresca Drive La Palma, CA 90623 Copy to: Jagat S. Mehta, President Mehta Mechanical Co. Inc. dba MMC Inc. 5901 Fresca Drive La Palma, CA 90623 C-CA-103020 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 24 of 25 IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: Mehta Mechanical Co. Inc. dba MMC Inc. 5901 Fresca Drive La Palma, CA 90623 By Printed Name Its CONTRACTOR's State License No. 573635 (Expiration Date — 7/31/2022) 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 CONFORMED C-CA-103020 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 25 of 25 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....6 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. CONFORMED C-EXA-080414 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 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 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 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. CONFORMED C-EXA-080414 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 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 C-EXA-080414 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 4 of 8 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 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. CONFORMED C-EXA-080414 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 5 of 8 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; 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 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 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 CONFORMED C-EXA-080414 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 7 of 8 ATTACHMENT 2 — SCHEDULE OF PRICES See next pages from the Bid Submittal Forms (Mehta Mechanical Co. Inc. dba MMC Inc.) BF-14 Schedule of Prices, Pages 1-2 C-EXA-080414 CONFORMED PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO. 2 Page 8 of 8 Bid Submitted By, MMC Inc . (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 applicable sales taxes state and/or federal and any other special taxes patent rights or royalties shall be included in the prices quoted in this Bid. B. Basis of Award AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST RESPONSIVE AND RESPONSIBLE BID. Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials, equipment and services for the construction of the Project per the Contract Documents. BF-14 SCHEDULE OF PRICES C-BF-042720 PROJECT NO.FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO.2 Page 1 of 2 Bid Submitted By: MMC inc. (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 oty 1. Mobilization:The amount for this Bid Item shall not exceed$9,300 of the Total Amount of Bid and shall be in conformance with the Contract Documents and Specifications Section 01155.All amounts included in this Lump Sum N/A x $9,300 = $9,300 Bid Item greater than the allowable maximum payment of$9,300 of the i Total Amount of Bid shall be paid under Bid Item 2. 2. All other portions of the Work set forth in the Contract Documents and Specifications Section 01155,except for the Work performed in Bid Lump Sum N/A x 17(y,700 _ $ ,17 L�-,700 Item 1: Work under this item shall include all labor, equipment, materials, and services necessary for all other Work not specified in Bid Item 1. TOTAL AMOUNT OF BID (BASIS OF AWARD) $ BF-14 SCHEDULE OF PRICES C-BF-042720 PROJECT NO. FR2-0013 TRICKLING FILTER SLUDGE PUMP ROOM EXHAUST FAN RELOCATION AT PLANT NO.2 Page 2 of 2 Administration Building OPERATIONS COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1590 Agenda Date: 4/28/2021 Agenda Item No: 9. FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: HEADQUARTERS COMPLEX AT PLANT NO. 1, PROJECT NO. P1-128A GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Professional Services Agreement with AECOM Technical Services, Inc. to provide construction management, testing, and inspection services for Headquarters Complex at Plant No. 1, Project No. P1-128A, for an amount not to exceed $6,750,000-1 and B. Approve a contingency of $675,000 (10%). BACKGROUND Headquarters Complex at Plant No. 1, Project No. P1-128A, will construct a new Headquarters Building on the north side of Ellis Avenue to house approximately 350 staff as well as Board and public meeting spaces. Surface parking and a pedestrian/utility bridge over Ellis Avenue to Plant No. 1 are also included in the project. The Orange County Sanitation District (OC San) manages its many construction contracts using its own staff, supported by a Supplemental Engineering and Support Services Agreement to handle peaks and to provide specialized engineering support. This approach ensures consistent and professional construction management of a wide range of projects. The construction management teams include construction managers, inspectors, cost estimators, schedulers, and administrative staff. Currently, 41 OC San staff and 13 Supplemental Engineering and Support Services employees are performing construction management full time. RELEVANT STANDARDS • Ensure the public's money is wisely spent • California Government Code §4526: Select the "best qualified firm" and "negotiate fair and equitable fees" Orange County Sanitation District Page 1 of 5 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1590 Agenda Date: 4/28/2021 Agenda Item No: 9. PROBLEM Construction of the Headquarters Complex will last two and a half years and will require the equivalent of approximately six full-time staff for construction management. The work will involve construction, codes, trades, and specialties not typically involved with the construction of wastewater treatment and conveyance projects. The involvement of professionals experienced with office building construction is important to make cost-effective decisions during construction. These professionals could be made available through the Supplemental Engineering and Support Services Agreement, but that agreement will expire approximately six months before construction is completed. That could require replacement of the construction management team at a critical time in the project. PROPOSED SOLUTION Award a Professional Services Agreement to provide construction management, testing, and inspection services for Headquarters Complex at Plant No. 1, Project No. P1-128A. This contract will provide the requisite resources and expertise to provide oversight and management of the construction of this new facility. TIMING CONCERNS The construction contract for the Headquarters Complex is expected by be awarded in May and construction is scheduled to start in June 2021. RAMIFICATIONS OF NOT TAKING ACTION Without a dedicated Construction Management firm, the role would need to be staffed through the Supplemental Engineering and Support Services Agreement, which will expire prior to construction completion. Existing specialty inspection and materials testing contracts are insufficient to complete this work. PRIOR COMMITTEE/BOARD ACTIONS March 2019 - The Headquarters Complex Ad Hoc Committee endorsed staff's recommendation to use the existing staff augmentation contract with Jacobs Engineering to provide third-party engineering design support and construction management services for the Headquarters Complex as needed. November 2018 - The Headquarters Complex Ad Hoc Committee provided direction to staff to consider hiring a third-party Construction Management firm to oversee the project. ADDITIONAL INFORMATION In early 2019, construction was scheduled to be completed before June 2023, when the Supplemental Engineering and Support Services Agreement expires. At the March 4, 2019 Headquarters Complex Ad Hoc Committee meeting, the Committee endorsed staff's recommendation to utilize that contract to provide construction management services for this project. Orange County Sanitation District Page 2 of 5 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1590 Agenda Date: 4/28/2021 Agenda Item No: 9. Challenges in obtaining approval from the City of Fountain Valley delayed the project so that construction will not be completed until late 2023. Consultant Selection: OC San requested and publicly advertised for proposals for construction management services relating to Headquarters Complex at Plant No. 1, Project No. P1-128A, on November 5, 2020. The following evaluation criterion were described in the Request for Proposals (RFP) and used to determine the most qualified Consultant. CRITERION WEIGHT Project Understanding and Approach 40% Related Project Experience 25% Project Team and Staff Qualifications 35% Seven proposals were received on December 23, 2020 and evaluated in accordance with the evaluation process set forth in OC San's Purchasing Ordinance No. OCSD-52 (Purchasing Ordinance) by a pre-selected Evaluation Team consisting of OC San staff: Senior Engineer(Project Manager, non- voting), Construction Inspection Supervisor, Engineering Supervisor, and Engineering Manager. The Evaluation Team also included one voting representative from the Orange County Water District (GWRS Program Manager), one non-voting representative from the Contracts Administration Division, and one non-voting technical advisor from Jacobs Engineering. The Evaluation Team scored the proposals on the established criterion as summarized in the table below: Proposer Project Understanding Related Project Project Team and Total and Approach (Max. 40 Experience Staff Qualifications Score Points) (Max. 25 Points)(Max. 35 Points) (Max. 100 Points) 1 ARCADIS U.S., 31 18 25 74 Inc. 2 AECOM 29 19 25 73 Technical Services, Inc. 3 Vanir 28 20 23 71 Construction Management 4 Hill International 28 14 25 67 5 Griffin 27 16 23 66 Structures 6 The Austin 23 14 23 60 Company 7 Project 18 11 14 43 Management Advisors Orange County Sanitation District Page 3 of 5 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1590 Agenda Date: 4/28/2021 Agenda Item No: 9. Following scoring, the five highest-scoring firms were invited for interviews. The interviews were conducted on January 28 and February 4, 2021. After the interviews, the Evaluation Team determined the highest-scoring proposer based on both the written proposal and the interview. Below is the summary of the final scores. Proposer Project Understanding Related Project Team and Total and Approach (Max. 40 Project Staff Qualifications Score Points) Experience (Max. 35 Points) (Max. 100 (Max. 25 Points) Points) 1 AECOM 33 21 28 82 Technical Services, Inc. 2 ARCADIS U.S., 29 19 29 77 Inc. 3 Vanir 29 20 27 76 Construction Management 4 Griffin Structures 29 19 25 73 5 Hill International 26 16 22 64 AECOM Technical Services, Inc. was selected based on their superior combination of project approach, team experience, and qualifications. The firm proposed an efficient, yet robust, team that was very experienced and had worked together recently on similar successful projects. The AECOM team proposed a project plan that excelled both in risk management as well as testing and inspection strategies. Review of Fee Proposal and Negotiations: Proposals were accompanied by sealed fee proposals. Only the fee proposal of the Evaluation Committee's highest-ranked firm, as approved by the Director of Engineering, was opened in accordance with the Purchasing Ordinance. Staff conducted negotiations with AECOM Technical Services, Inc. to clarify the requirements of the Scope of Work, the assumptions used for the estimated level of effort, and the proposed approach to meet the goals and objectives for the project. Negotiations were held with multiple follow up e-mails and calls. During negotiations, the Scope of Work was reviewed in detail and certain areas were identified that could be adjusted to better meet the needs of the project. Those changes included a greater allowance for change order cost estimating; oversight and coordination for furnishings, fixtures, and equipment; coordinating building information modeling data with the contractor; and replacing the quality control manager with a more highly qualified individual with mass timber experience. Orange County Sanitation District Page 4 of 5 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1590 Agenda Date: 4/28/2021 Agenda Item No: 9. Original Fee Negotiated Fee Proposal Total Hours 29,098 31,537 Total Fee $6,180,186 $6,750,000 The Consultant's fringe and overhead costs, which factor into the billing rate, have been substantiated. The contract profit is 5.00%, which is based on an established formula based on OC San standard professional agreements. Based on the above, staff has determined that the final negotiated fee is fair and reasonable for the level of effort required for this project and recommends award of the Professional Services Agreement to AECOM Technical Services, Inc. CEQA The project is included in the Addendum to the City of Fountain Valley "Fountain Valley Crossings Specific Plan" Program Environmental Impact Report, State Clearinghouse No. 2015101042. FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San's Purchasing Ordinance. This item has been budgeted (Adopted Budget, Fiscal Years 2020-2021 and 2021-22, Section 8, Page 58, Headquarters Complex, Project No. P1-128) 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 Services Agreement • Presentation TG:DF:dm Orange County Sanitation District Page 5 of 5 Printed on 4/20/2021 powered by LegistarTM PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 2811 day of April, 2021, by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT", and AECOM TECHNICAL SERVICES, INC., for purposes of this AGREEMENT hereinafter referred to as "CONSULTANT". The SANITATION DISTRICT and CONSULTANT are referred to herein collectively as the "Parties" or individually as a "Party." WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a consultant for Headquarters Complex at Plant No. 1, Construction Management Services, Contract No. P1-128A, to provide professional services and provide services for the engineering construction management of vertical building construction with elements of a mass timber hybrid structure and all of the elements needed for a building of that type; and, WHEREAS, CONSULTANT is qualified to provide the necessary services in connection with these requirements and has agreed to provide the necessary professional services; and, WHEREAS, the SANITATION DISTRICT has adopted procedures for the selection of professional services and has proceeded in accordance with said procedures to select a CONSULTANT to perform this work; and, WHEREAS, at its regular meeting on April 28, 2021 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee to approve this AGREEMENT between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this AGREEMENT, it is mutually agreed as follows: 1. SCOPE OF WORK CONSULTANT agrees to furnish necessary professional 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, and completeness and coordination of the work and services furnished by the CONSULTANT under this AGREEMENT, including the work performed by its Subconsultants. Where approval by the SANITATION DISTRICT is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all applicable laws, regulations, codes, industry standards and liability for damages caused by errors, omissions, noncompliance with industry standards, and/or negligence on the part of the CONSULTANT or its Subconsultants. B. CONSULTANT is responsible for the quality of work prepared under this AGREEMENT and shall ensure that all work is performed to the highest industry PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 1 of 19 standards for clarity, uniformity, and completeness. CONSULTANT shall timely respond to all comments, suggestions, and recommendations from the SANITATION DISTRICT. All comments from the SANITATION DISTRICT, or its agent, shall be incorporated into the work or addressed, in writing, as to why the comment(s) has/have not been incorporated. CONSULTANT shall ensure that each document prepared is 100% accurate for the level of work submitted (i.e. correct references, terms, capitalization or equal status, spelling, punctuation, etc.). C. In the event that CONSULTANT's services and/or work product(s) is not to the satisfaction of the SANITATION DISTRICT and/or does not conform to the requirements of this AGREEMENT or the applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its work product(s) within the timeframe specified by the Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. Electronic files shall conform to the SANITATION DISTRICT specifications. Any changes to these specifications by the CONSULTANT are subject to review and require advance written approval of the SANITATION DISTRICT. Electronic files shall be subject to an acceptance period of thirty (30) calendar days during which the SANITATION DISTRICT shall perform appropriate reviews. 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, and reports 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 Six Million Seven Hundred Fifty Thousand Dollars ($6,750,000). 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. PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 2 of 19 B. Labor As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the burdened salaries (salaries plus benefits) actually paid by CONSULTANT charged on an hourly-rate basis to this project and paid to the personnel of CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT shall provide the SANITATION DISTRICT with certified payroll records of all employees' work that is charged to this project. C. 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 Subconsultants shall be a percentage of consulting services fees (Burdened Labor and Overhead). When the consulting or subconsulting services amount is $250,000 or less, the maximum Profit shall be 10%. Between $250,000 and $2,500,000, the maximum Profit shall be limited by a straight declining percentage between 10% and 5%. For consulting or subconsulting services fees with a value greater than $2,500,000, the maximum Profit shall be 5%. Addenda shall be governed by the same maximum Profit percentage after adding consulting services fees. As a portion of the total compensation to be paid to CONSULTANT and Subconsultants, the SANITATION DISTRICT shall pay profit for all services rendered by CONSULTANT and Subconsultants for this project according to Attachment "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 Attachment "J" — Minor Subconsultant 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. PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 3 of 19 F. Direct Costs The SANITATION DISTRICT shall pay to CONSULTANT and Subconsultants the actual costs of permits and associated fees, travel, and licenses for an amount not to exceed the sum set forth in Attachment "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 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 scope of work resulting from field investigations and field work required by Contract. These items may include special equipment, test equipment and tooling and other materials and services not previously identified. Refer to attachment "D" 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 "D" - Allowable Direct Costs to this AGREEMENT. The reimbursement of the above-mentioned expenses will be based on an "accountable plan" as considered by Internal Revenue Service (IRS). The plan includes a combination of reimbursements based upon receipts and a "per diem" component approved by IRS. The most recent schedule of the per diem rates utilized by the SANITATION DISTRICT can be found on the U.S. General Service Administration website at http://www.gsa.gov/portal/category/l 04711#. The CONSULTANT shall be responsible for the most economical and practical means or 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. PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 4 of 19 Local Travel is considered travel by the CONSULTANT within the SANITATION DISTRICT geographical area which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial, and Kern Counties. Automobile mileage is reimbursable if CONSULTANT is required to utilize personal vehicle for local travel. Lodging — Overnight stays will not be approved by the SANITATION DISTRICT for local travel. However, under certain circumstances overnight stay may be allowed at the discretion of the SANITATION DISTRICT based on reasonableness of meeting schedules and the amount of time required for travel by the CONSULTANT. Such determination will be made on a case-by-case basis and at the discretion of the SANITATION DISTRICT. Travel Meals — Per-diem rates as approved by IRS shall be utilized for travel meals reimbursements. Per diem rates shall be applied to meals that are appropriate for travel times. Receipts are not required for the approved meals. Additional details related to the reimbursement of the allowable direct costs are provided in the Attachment "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 seventy-five percent (75%) of 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, in a format acceptable to the SANITATION DISTRICT. CONSULTANT shall warrant and certify the accuracy PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 5 of 19 of these costs and provide all support documentation required by the SANITATION DISTRICT. CONSULTANT understands that submitted costs are subject to Section 12 Audit Provisions. B. CONSULTANT will submit monthly statements covering services and/or work performed for payment for those items included in Section 2 hereof no later than the second Wednesday of the following month and in the format required by the SANITATION DISTRICT. The format must include, as a minimum: 1) current billing period invoicing, 2) current billing period "total percent invoiced to date", 3) future activities, 4) previous billing period "total invoiced to date", 5) potential items that are not included in the Scope of Work, 6) concerns and possible delays, 7) percentage of completion to date, and 8) budget status and amount remaining. Such requests shall be accompanied by such supporting data as may be required by the SANITATION DISTRICT. Upon approval of such payment request by the SANITATION DISTRICT, payment shall be made to CONSULTANT as soon as practicable of one hundred percent (100%) of the invoiced amount. 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, The SANITATION DISTRICT may, at the discretion of the Director of Engineering, 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 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 based on the monthly statements, including any retained percentages relating to this portion of the work. PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 6 of 19 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 $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 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. PREVAILING WAGES A. To the extent CONSULTANT intends to utilize employees who will perform work during the contract, as more specifically defined under Labor Code Section 1720, CONSULTANT shall be subject to prevailing wage requirements with respect to such employees. 6. 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 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. PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 7 of 19 B. The CONSULTANT and Subconsultants shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. C. Pursuant to Labor Code Section 1776, the CONSULTANT and Subconsultants shall furnish a copy of all certified payroll records to SANITATION DISTRICT and/or general public upon request, provided the public request is made through SANITATION DISTRICT, the Division of Apprenticeship Standards or the Division of Labor Enforcement of the Department of Industrial Relations. D. The CONSULTANT and Subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations Section 16461(e). 7. DOCUMENT OWNERSHIP — CONSULTANT PERFORMANCE A. Ownership of Documents for the Professional Services performed. All documents in all forms (electronic, paper, etc.), including, but not limited to, studies, sketches, drawings, computer printouts, disk files, and electronic copies prepared in connection with or related to the Scope of Work or Professional Services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's ownership of these documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's Professional Services are terminated: a) by the completion of the AGREEMENT, or b) in accordance with other provisions of this AGREEMENT. Notwithstanding any other provision of this paragraph or AGREEMENT, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the study or deliverable 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. 8. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 8 of 19 ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial Rating of at least Class VIII, or better, in accordance with the most current A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept State Compensation Insurance Fund, for the required policy of Worker's Compensation Insurance subject to the SANITATION DISTRICT's option to require a change in insurer in the event the State Fund financial rating is decreased below "B". Further, the SANITATION DISTRICT will require CONSULTANT to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20) days of written notice to CONSULTANT, by the SANITATION DISTRICT or its agent. iii. Coverage shall be in effect prior to the commencement of any work under this AGREEMENT. B. General Liability The CONSULTANT shall maintain during the life of this AGREEMENT, including the period of warranty, Commercial General Liability Insurance written on an occurrence basis providing the following minimum limits of liability coverage: Two Million Dollars ($2,000,000) per occurrence with Four Million Dollars ($4,000,000) 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 PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 9 of 19 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 by 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 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. PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 10 of 19 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: • 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 PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 11 of 19 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. 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. PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 12 of 19 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. 9. SCOPE CHANGES In the event of a change in the Scope of Work or a change in the proposed Project, as requested by the 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. 10. PROJECT TEAM AND SUBCONSULTANTS CONSULTANT shall provide to SANITATION DISTRICT, prior to execution of this AGREEMENT, the names and full description of all Subconsultants and CONSULTANT's project team members anticipated to be used on this Project under this AGREEMENT by CONSULTANT. CONSULTANT shall include a description of the work and services to be done by each Subconsultant and each of CONSULTANT's Project team member. CONSULTANT shall include the respective compensation amounts for CONSULTANT and each Subconsultant, broken down as indicated in Section 2- COMPENSATION. There shall be no substitution of the listed Subconsultants and CONSULTANT's project team members without prior written approval by the SANITATION DISTRICT. 11. ENGINEERING REGISTRATION The CONSULTANT's personnel and Subconsultants 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, the services of a registered engineer is required, such services hereunder will be performed under the direct supervision of registered engineers who are registered in California. 12. AUDIT PROVISIONS. A. SANITATION DISTRICT retains the reasonable right to access, review, examine, and audit, any and all books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify that the CONSULTANT is in compliance with all requirements under this AGREEMENT. The CONSULTANT shall include the SANITATION DISTRICT's right as described above, in any and all of their subcontracts, and shall ensure that these rights are binding upon all Subconsultants. B. SANITATION DISTRICT retains the right to examine CONSULTANT's books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify all PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 13 of 19 direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance with all requirements under this AGREEMENT during the term of this AGREEMENT and for a period of three (3) years after its termination. C. CONSULTANT shall maintain complete and accurate records in accordance with generally accepted industry standard practices and the SANITATION DISTRICT's policy. The CONSULTANT shall make available to the SANITATION DISTRICT for review and audit, all project related accounting records and documents, and any other financial data within 15 days after receipt of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's request, the CONSULTANT shall submit exact duplicates of originals of all requested records to the SANITATION DISTRICT. If an audit is performed, CONSULTANT shall ensure that a qualified employee of the CONSULTANT will be available to assist SANITATION DISTRICT's auditor in obtaining all Project related accounting records and documents, and any other financial data. 13. LEGAL RELATIONSHIP BETWEEN PARTIES The legal relationship between the parties hereto is that of an independent contractor and nothing herein shall be deemed to transform CONSULTANT, its staff, independent contractors, or Subconsultants into employees of the SANITATION DISTRICT. CONSULTANT'S staff performing services under the AGREEMENT shall at all times be employees and/or independent contractors of CONSULTANT. CONSULTANT shall monitor and control its staff and pay wages, salaries, and other amounts due directly to its staff in connection with the AGREEMENT. CONSULTANT shall be responsible for hiring, review, and termination of its staff and shall be accountable for all reports and obligations respecting them, such as social security, income tax withholding, unemployment compensation, workers' compensation, and similar matters. 14. 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 and addressed as follows: ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Diane Marzano, Senior Contracts Administrator Copy: Dean Fisher, Engineering Manager (Project Manager) CONSULTANT: AECOM TECHNICAL SERVICES, INC. 999 W. Town and Country Road Orange, CA 92868 Attention: Keith Kajiya, Vice President and Principal-in-Charge PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 14 of 19 All communication regarding the Scope of Work, will be addressed to the Project Manager. Direction from other SANITATION DISTRICT staff must be approved in writing by the SANITATION DISTRICT's Project Manager prior to action from the CONSULTANT. 15. TERMINATION The SANITATION DISTRICT may terminate this AGREEMENT at any time, without cause, upon giving thirty (30) days written notice to CONSULTANT. In the event of such termination, CONSULTANT shall be entitled to compensation for work performed on a prorated basis through and including the effective date of termination. CONSULTANT shall be permitted to terminate this AGREEMENT upon thirty (30) days written notice only if CONSULTANT is not compensated for billed amounts in accordance with the provisions of this AGREEMENT, when the same are due. Notice of termination shall be mailed to the SANITATION DISTRICT at the address listed in Section 14 - NOTICES. 16. DOCUMENTS AND STUDY MATERIALS The documents and study materials for this Project shall become the property of the SANITATION DISTRICT upon the termination or completion of the work. CONSULTANT agrees to furnish to the SANITATION DISTRICT copies of all memoranda, correspondence, electronic materials, computation and study materials in its files pertaining to the work described in this AGREEMENT, which is requested in writing by the SANITATION DISTRICT. 17. COMPLIANCE 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. 18. AGREEMENT EXECUTION AUTHORIZATION Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual executing this document by and on behalf of each Party is a person duly authorized to execute this AGREEMENT for that Party. PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 15 of 19 19. DISPUTE RESOLUTION In the event of a dispute arising between the parties regarding performance or interpretation of this AGREEMENT, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar organization or entity conducting alternate dispute resolution services. 20. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this AGREEMENT, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 21. WARRANTY CONSULTANT shall perform its services in accordance with generally accepted industry and professional standards. If, within the 12-month period following completion of its services, the SANITATION DISTRICT informs CONSULTANT that any part of the services fails to meet those standards, CONSULTANT shall, within the time prescribed by the SANITATION DISTRICT, take all such actions as are necessary to correct or complete the noted deficiency(ies). 22. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT's sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's officers, directors, employees, CONSULTANT's, and agents (collectively the "Indemnified Parties"), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses, judgments, fines, penalties, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs, and all other professional, expert or CONSULTANT's fees and costs and the SANITATION DISTRICT's general and administrative expenses; individually, a "Claim"; collectively, "Claims") which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this AGREEMENT to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT's suppliers, CONSULTANT, Subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising solely from: (A) the active negligence or willful misconduct of the Indemnified Parties; or (B) a natural disaster or other act of God, such as an earthquake; or PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 16 of 19 (C) the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, officer, agent, employee, nor CONSULTANT's supplier, CONSULTANT, Subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. Exceptions (A) through (B) above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. CONSULTANT's liability for indemnification hereunder is in addition to any liability CONSULTANT may have to the SANITATION DISTRICT for a breach by CONSULTANT of any of the provisions of this AGREEMENT. Under no circumstances shall the insurance requirements and limits set forth in this AGREEMENT be construed to limit CONSULTANT's indemnification obligation or other liability hereunder. The terms of this AGREEMENT are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this AGREEMENT. 23. DUTY TO DEFEND The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of CONSULTANT and shall be consistent with Civil Code section 2782.8. Such defense obligation shall arise immediately upon presentation of a Claim by any person if, without regard to the merit of the Claim, such Claim could potentially result in an obligation to 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. 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. PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 17 of 19 25. CLOSEOUT When the SANITATION DISTRICT determines that all Work authorized under the AGREEMENT is fully complete and that the SANITATION DISTRICT requires no further work from CONSULTANT, or the AGREEMENT is otherwise terminated or expires in accordance with the terms of the AGREEMENT, the SANITATION DISTRICT shall give the Consultant written notice that the AGREEMENT will be closed out. CONSULTANT shall submit all outstanding billings, work submittals, deliverables, reports, or similarly related documents as required under the AGREEMENT within thirty (30) days of receipt of notice of AGREEMENT closeout. Upon receipt of CONSULTANT's submittals, the SANITATION DISTRICT shall commence a closeout audit of the AGREEMENT and will either: i. Give the CONSULTANT a final AGREEMENT Acceptance: or ii. Advise the CONSULTANT in writing of any outstanding item or items which must be furnished, completed, or corrected at the CONSULTANT's cost. CONSULTANT shall be required to provide adequate resources to fully support any administrative closeout efforts identified in the AGREEMENT Such support must be provided within the timeframe requested by the SANITATION DISTRICT. Notwithstanding the final AGREEMENT acceptance, the CONSULTANT will not be relieved of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to complete any portions of the work, the non-completion of which were not disclosed to the SANITATION DISTRICT (regardless of whether such nondisclosures were fraudulent, negligent, or otherwise), and the CONSULTANT shall remain obligated under all those provisions of the AGREEMENT which expressly or by their nature extend beyond and survive final AGREEMENT Acceptance. Any failure by the SANITATION DISTRICT to reject the work or to reject the CONSULTANT's request for final AGREEMENT Acceptance as set forth above shall not be deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose nor imply acceptance of, or AGREEMENT with, the CONSULTANT's request for final AGREEMENT Acceptance. 26. ENTIRE AGREEMENT This AGREEMENT constitutes the entire understanding and AGREEMENT between the Parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 18 of 19 IN WITNESS WHEREOF, this AGREEMENT has been executed in the name of the SANITATION DISTRICT, by its officers thereunto duly authorized, and CONSULTANT as of the day and year first above written. CONSULTANT: AECOM TECHNICAL SERVICES, 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 Attached Attachment "D" —Allowable Direct Costs Attachment "E" — Fee Proposal Form Attachment "F" — Not Used Attachment "G" — Cost Matrix Attachment "H" — Not Attached Attachment "I"— Not Attached Attachment "J" — Minor Subconsultant Hourly Rate Schedule Attachment "K" — Contractor Safety Standards DM:ms PSA CONTRACT NO. P1-128A Revised 101520 HEADQUARTERS COMPLEX AT PLANT NO. 1, CONSTRUCTION MANAGEMENT SERVICES Page 19 of 19 ATTACHMENT "A" SCOPE OF WORK TABLE OF CONTENTS 1. PROJECT REQUIREMENTS................................................................................................................4 1.0 Summary..........................................................................................................................4 1.0.1 Professional Construction management Services..................................................4 1.0.2 Professional Licensing requirements.....................................................................4 1.1 General Project Description...........................................................................................4 1.1.1 Architectural..........................................................................................................4 1.1.2 Structural...............................................................................................................4 1.1.3 Mechanical............................................................................................................4 1.1.4 Electrical................................................................................................................5 1.1.5 Coordination with Other Projects..........................................................................5 1.2 Project Execution Phases................................................................................................5 1.3 Project Schedule..............................................................................................................5 1.4 Mobilization/Office Space: ...........................................................................................6 2. PHASE 2—PRELIMINARY DESIGN....................................................................................................6 3. PHASE 3—DESIGN..............................................................................................................................6 4. PHASE 4—CONSTRUCTION AND INSTALLATION SERVICES.......................................................6 4.0 Project Management.......................................................................................................7 4.0.1 Project Coordination..............................................................................................7 4.0.2 Pre-construction Services......................................................................................8 4.0.3 Invoicing................................................................................................................9 4.0.4 Project Reporting...................................................................................................9 4.1 Resident Engineering....................................................................................................10 4.1.1 Document Control &Project Correspondence.................................................... 10 4.1.2 Construction Progress Meetings.......................................................................... 10 4.1.3 Interpret Plans and Specifications....................................................................... 10 4.1.4 Contractor's Change Orders and Disputes.......................................................... 11 4.1.5 Inspection Reports............................................................................................... 11 4.1.6 Payment Requests ............................................................................................... 12 4.1.7 Special Testing/Inspection .................................................................................. 12 4.1.8 Record Drawings................................................................................................. 12 4.1.9 Schedules............................................................................................................. 12 4.1.10 Quality Assurance............................................................................................. 12 4.1.11 Safety................................................................................................................. 12 4.1.12 Operation and Maintenance Manuals, Equipment Database, and Warranty Expiration........................................................................................................................ 13 4.2 Field Engineering..........................................................................................................13 4.2.1 Progress Meetings............................................................................................... 13 4.2.2 Schedules and Staffing........................................................................................ 13 4.2.3 Payment Requests ............................................................................................... 13 4.2.4 Record Drawings................................................................................................. 13 4.2.5 Request For Information Review/Responses......................................................13 4.2.6 Daily Construction Photos................................................................................... 14 4.2.7 Stored Equipment and Materials......................................................................... 14 4.2.8 Submittals............................................................................................................ 14 Headquarters Complex CM Services—Att. A 3-12-2021 Page 2 of 19 4.3 Construction Testing And Inspection..........................................................................14 4.3.1 Discipline Expertise ............................................................................................ 14 4.3.2 Inspection Coordination...................................................................................... 14 4.3.3 Inspection Records.............................................................................................. 14 4.4 Photographic And Video Documentation...................................................................15 4.4.1 Documentation Coordination.............................................................................. 15 4.4.2 Documentation Records......................................................................................15 4.4.3 Photographic Documentation.............................................................................. 16 4.4.4 Webcam Documentation..................................................................................... 16 5. PHASE 5—COMMISSIONING SERVICES........................................................................................16 5.0 Project Management.....................................................................................................16 5.1 Resident Engineering....................................................................................................16 5.1.1 Commissioning Plan ........................................................................................... 16 5.1.2 Building Commissioning.....................................................................................16 5.2 Field Engineering..........................................................................................................17 5.3 Construction Testing And Inspection..........................................................................17 5.4 Photographic And Video Documentation...................................................................17 5.5 FF&E Coordination......................................................................................................17 6. PHASE 6—CLOSE OUT ....................................................................................................................17 6.0 Project Management.....................................................................................................17 6.0.1 Final Reporting.................................................................................................... 17 6.1 Resident Engineering....................................................................................................18 6.1.1 Substantial&Final Completion.......................................................................... 18 6.1.2 Record Documents.............................................................................................. 18 6.2 Field Engineering..........................................................................................................18 6.3 Construction Testing And Inspection..........................................................................18 6.4 Photographic And Video Documentation...................................................................18 7. GENERAL REQUIREMENTS.............................................................................................................18 7.0 General...........................................................................................................................18 7.0.1 OCSD Guidelines and Strategic Plan.................................................................. 18 7.0.2 Working Hours.................................................................................................... 18 7.0.3 Software .............................................................................................................. 19 7.1 Staff Assistance..............................................................................................................19 8. EXHIBITS ............................................................................................................................................19 3-12-2021 Headquarters Complex CM Services—Att. A Page 3 of 19 1. PROJECT REQUIREMENTS 1.0 SUMMARY 1.0.1 PROFESSIONAL CONSTRUCTION MANAGEMENT SERVICES Provide professional construction management (CM) services for Project P1-128A, Headquarters Complex at Plant No. 1 throughout the duration of project construction, commissioning, and close-out. Services shall include all needed project management, resident engineering, field engineering, special testing and inspection, document control, and photographic and video documentation as detailed herein. 1.0.2 PROFESSIONAL LICENSING REQUIREMENTS All staff working on this project shall be appropriately licensed and/or certified to perform the associated work tasks. Attention is directed to the project's special inspection and testing requirements noted herein. 1.1 GENERAL PROJECT DESCRIPTION The Orange County Sanitation District(OCSD)will construct Project P1-128A, Headquarters Complex at Plant No. 1 on the north side of Ellis Avenue between Pacific Street and Bandilier Circle. The project's construction cost estimate is $103 million. Current design documents (plans and specifications)are provided as Exhibit 1 — P1-128A, Headquarters Complex at Plant No. 1 Plans and Specifications. The Project includes a new 110,000-square foot, three-story Headquarters Building that consists of a lobby, Board Room, and administrative offices. The project will also include a painted steel, open-air pedestrian bridge over Ellis Avenue connecting the second floor of the building to stairs and an elevator within the secure perimeter of OCSD's Plant No. 1. The site combines five parcels with a total area of approximately 5-acres and will have 261 surface parking spaces. The project will construct a public entrance plaza, an exhibit plaza, and a landscaped employee courtyard. All but one of the existing buildings on the site are being demolished under an active construction contract, while the remaining building will be demolished under the Headquarters Complex construction contract. 1.1.1 ARCHITECTURAL The building envelope system consists primarily of silicon-glazed unitized curtain wall systems at the North and South elevations, and a terracotta rainscreen system at the East and West elevations. Aluminum sunshade blades will provide passive solar shading on the south facing elevations. 1.1.2 STRUCTURAL The foundation is a deep foundation system consisting of cast-in-drilled-hole caissons (CIDH), grade beams and a two-way floor slab. The building structure will utilize glued-laminated timber(glulam) beams and columns for vertical loads, cross-laminated timber(CLT)for elevated floor slabs, and structural steel for seismic and lateral loads. Wood columns and steel bracing will be exposed. CLT slabs will be covered by 2-inches of lightweight concrete but shall be exposed on the lower side. 1.1.3 MECHANICAL The HVAC system for the office portions of the building will utilize 4-pipe active chilled beams (ACB)to provide heating and cooling. The HVAC system for the high-ceiling lobby will be a radiant floor using chilled water for cooling and hot water for heating. The HVAC system for the board room and associated conference room will be conventional air distribution from overhead ductwork and an air handling unit. Headquarters Complex CM Services—Att. A 3-12-2021 Page 4 of 19 Roof-mounted dedicated outside air system (DOAS) units will supply ventilation air to all areas. Roof- mounted air-cooled chillers are utilized for cooling while heating hot water will be provided from Plant No. 1 via 4-inch and 6-inch hot water pipes from the Central Generation system -these pipes will require routing across Ellis Avenue. 1.1.4 ELECTRICAL Electrical power for the building will be from the OCSD Plant No. 1 12kV distribution system and will not be a direct connect to Southern California Edison (SCE). These 12KV ductbanks and cable will need to be routed across Ellis Avenue along with communications fiber optics for networking of the Building. A solar photo-voltaic system is being installed consisting of a 144kW roof-top array and a 215kW parking lot array. There are existing SCE 12kV overhead power lines and overhead data lines on the south side of Ellis Avenue that conflict with the pedestrian bridge. One span of these lines, between two poles, will be relocated underground in Ellis Avenue and this work will need careful coordination with the bridge and building work. There are also 66kV overhead power lines on the same poles that have been deemed high enough, providing a safe overhead clearance to the pedestrian bridge, allowing them to remain in place. 1.1.5 COORDINATION WITH OTHER PROJECTS The following projects may impact or require coordination with this project: A. P1-128C, Headquarters Complex Site Preparation. This project includes the demolition of four existing building from the new Headquarters Complex project site. In addition, P1-128C includes the maintenance of storm water protection elements for the project site after completion of the demolition work. B. P1-105, Headworks Rehabilitation at Plant 1. This project includes modifications to existing facilities at Plant 1. Power for the new Headquarters Complex shall be fed from facilities that are being affected by P1-105; as such, the associated power tie-in, utility routing, etc. will require coordination. C. SCE 12kV Underground Work. Coordinate with SCE and the Contractor to underground the 12kV lines to avoid conflict with the new pedestrian bridge. D. Frontier Communications Work. Coordinate with Frontier Communications and the Contractor to install new Frontier Communications service to the new Main Point of Entry (MPOE)and coordination for transitioning from the current MPOE to the new MPOE. E. OCTA Interstate 405 Widening Project. This project is widening the adjacent 405 freeway through 2023. This may affect traffic control and closures on Ellis Avenue and the adjacent entry/exit ramps that will need to be coordinated with construction operations of the building. 1.2 PROJECT EXECUTION PHASES All OCSD projects are divided into six phases. CONSULTANT shall provide construction management services for all Project Elements listed in this Scope of Work for the following Phases: Phase 1 — Project Development (Not in this Scope of Work) Phase 2— Preliminary Design (Not in this Scope of Work) Phase 3— Design (Not in this Scope of Work) Phase 4—Construction Phase 5—Commissioning Phase 6—Close Out 1.3 PROJECT SCHEDULE 3-12-2021 Headquarters Complex CM Services—Att. A Page 5 of 19 The schedule for the services specified in this SOW shall largely be provided per the construction contract schedule currently anticipated to occur as indicated herein: MAJOR MILESTONE ESTIMATED SCHEDULE Construction and Installation Services 06/2021 to 11/2023 Commissioning 03/2022 to 11/2023 Project Closeout 11/2023 to 05/2024 Total Construction Duration: Approximately 36 months It is currently anticipated that the Construction Management contract will commence in advance of construction notice to proceed to allow for mobilization, project familiarization, and other preparatory tasks in advance of construction. 1 .4 MOBILIZATION / OFFICE SPACE: OCSD shall provide the CONSULTANT office spaces in a commercial building next door to the P1-128A project site throughout the duration of the Project. The available office suites include open space in addition to 4 enclosed offices—they are carpeted with lighting, HVAC, and are pre-wired for typical office use. All office furniture, fixtures, and any communications (network, Wi-Fi, or any other needs) shall be provided by the CONSULTANT. Refer to Exhibit 2—Office Space Layout for details. Suites include access to public restroom facilities on the same floor. OCSD will provide janitorial services and cover the cost of utilities (other than telecom)throughout the course of the work. The CONSULTANT will be expected to perform the following: • Furnish any office supplies, computers, printers, tools, inspection gear, cameras, communication equipment, paper, and any other items as required to provide suitable facilities for CONSULTANT staff. • Provide the CONSULTANT's employees with all required safety equipment and training to conform with its safety programs, the requirements of this Contract and/or applicable Safety Regulations while on the construction jobsite. CONSULTANT shall be familiar with and follow OCSD Safety Policies—refer to Attachment K—OCSD Safety Standards for additional detail. • Promptly remove all CONSULTANT furnished materials and furniture at the end of the contract. 2. PHASE 2 - PRELIMINARY DESIGN Not in this Scope of Work. 3. PHASE 3 - DESIGN Not in this Scope of Work. 4. PHASE 4 - CONSTRUCTION AND INSTALLATION SERVICES Headquarters Complex CM Services—Att. A 3-12-2021 Page 6 of 19 4.0 PROJECT MANAGEMENT 4.0.1 PROJECT COORDINATION The PM shall maintain ongoing interaction and communication with all project stakeholders which includes the OCSD Project Team comprised of OCSD's Project Manager, CM Engineering Supervisor, CM Engineering Manager, Construction Inspection Supervisor, Contract Administrator, and OCSD's Public Outreach Coordinator; the project's General Contractor(s); Testing and Survey Consultants, the Design Engineer and sub-consultants; the City of Fountain Valley; and any other utility entities. A. Prepare a Construction Management Plan (CMP), which shall include at a minimum the following items: 1. Organizational Structure/Staffing Plan: Provide the project's organization; staffing positions (both full-time and part-time); individual assignments; duties and responsibilities; phone numbers; lines of authority; and methods for interfacing with project stakeholders. a. This should include a communication plan for interfacing with OCSD Engineering, OCSD Operations and Maintenance, General Contractors, Testing and Survey Consultants, the Design Engineer, the City of Fountain Valley, and any other utility entities. b. Plan should also include the coordination with other projects, specifically OCSD Project No. P1-105 Headworks Rehabilitation Project, OCTA 1-405 Improvements Project, and the SCE undergrounding of the overhead electrical lines to facilitate the pedestrian bridge. c. Include safety oversight. 2. Project Control Management System (PCMS): Develop a complete documentation and control plan. OCSD prefers that this includes integration into OCSD's cloud-based PCMS system hosed by PMWeb. The CMP should also include a plan and procedures the CONSULTANT will establish to utilize the PMWeb platform to manage correspondence, documents, the submittal review/approval process, Requests for Information, daily reports, punch lists, drawings, and the Change Management process. Recommend any proposed changes to the standard forms and/or workflow approvals that may be anticipated. The access and use of PMWeb would be at no cost to the CONSULTANT, the Contractor and Design Consultant. 3. Meeting and Occurrence Procedures: Provide an outline in the CMP regarding the types of meetings that will be required with typical agendas, reporting procedures, documentation requirements, and acceptance processes. 4. Quality Control and Quality Assurance: Develop complete inspection and testing plan to establish procedures, laboratory testing, coordination checks and construction inspection activities to comply with code requirements, LEED requirements, specification requirements, and to verify workmanship and contract compliance of the Contractor. Include responsibilities for any subconsultants and/or third-party testing agencies employed by the CONSULTANT. Please note the following: a. All testing and inspection activities required by the construction contract or by applicable codes or standards shall be provided by the CONSULTANT. b. Attention is directed to Contract Drawing S-003, Legends and Special Inspection as well as Specification 01 45 23, Tests and Inspections highlighting required inspections and tests. It is intended that the CONSULTANT, as the Owner's Agent, shall be providing and coordinating this testing and inspection work, either through in-house capabilities or through a partnership with strategic sub-Consultants. Schedule of Special Inspection Coordination oversight between these parties shall be done by the CONSULTANT and procedures should reflect this oversight. 3-12-2021 Headquarters Complex CM Services—Att. A Page 7 of 19 c. Mass-Timber: The CONSULTANT, either through in-house expertise or via a sub- consultant shall have specific experience in managing the mass-timber portion of the contract including: supply-chain management and oversight; quality assurance and inspection experience; and familiarity with MEP coordination and construction techniques involved with a hybrid timber structure. Factory inspection at the production mill is also to be included. d. Mock-Ups: There are several mock-ups required by the Contractor and special coordination is required by the CM to ensure timely inspection by stakeholders to verify/validate the construction methods and materials prior to continuing with the work. e. The Design Consultant will provide continuous inspection of the deep pile foundation by the Geotechnical Engineer of Record. f. The Design Consultant will provide a Commissioning Agent to develop commissioning procedures and assist with the commissioning testing. g. The testing plan should reflect this coordinated effort to complete the testing and inspection work to be performed by the Design Consultant. 5. Contract Compliance Procedures: Describe procedures for expediting and processing submittal reviews, clarifications, change orders and contract close out activities. 6. Submit a draft of the Construction Management Plan (CMP)to OCSD within 60 days from the issuance of the Professional Services Agreement for review. 7. CONSULTANT shall incorporate the OCSD's comments and revise the CMP within 10 days from receipt of comments and resubmit for approval. B. Review analyze and comment on the general contractor's initial CPM schedule along with all monthly updates submitted by the general contractor. The CONSULTANT should closely monitor the general contractor's activities and make sure that the field activities and the durations of those activities match the information presented in the CPM schedule. Any deviations should be incorporated into the general contractor's subsequent monthly update. C. Establish a cost control system for monitoring and updating the status of the project costs and budget throughout the project. The cost control system shall be computerized and shall integrate cost and schedule. Report on a regular basis the status of the project cost and budget. The CONSULTANT shall coordinate with the OCSD on any variances of the actual cost and budget. D. The CONSULTANT shall define and include all the needs for inspection and testing required to do the work including materials, soils and specialty testing or laboratory work, as well as special inspection and factory inspection. The CONSULTANT will assist in coordinating schedules and the transmittal reports, findings, or other information to the various project stakeholders. E. Provide all project correspondence not included within the PCMS as searchable pdf files and/or native documents at the end of the contract. Coordinate organization with OCSD in advance of submission of these files. 4.0.2 PRE-CONSTRUCTION SERVICES Pre-construction services include staff familiarization with the P1-128A project; preparation and mobilization to the designated office space; familiarization with OCSD standards, policies, and procedures; etc. Specific pre-construction meetings/activities include the following: A. Preconstruction Conference: CONSULTANT shall work with OCSD's Contract Administrator to schedule and notify appropriate parties and conduct the Preconstruction Conferences with the Contractor. The meeting shall cover the overall project objectives, responsibilities of key personnel and agencies, schedules, schedule of values (bid breakdown), procedures for Headquarters Complex CM Services—Att. A 3-12-2021 Page 8 of 19 handling submittals, correspondence, local agency permit requirements, requests for information, progress payments, change orders and other pertinent topics. Provide opportunities to have the Contractor's questions answered. The meeting shall emphasize the project's philosophy of teamwork and cooperation as goals to achieve a safely constructed project, built on schedule, and in accordance with all quality requirements. The CONSULTANT will be responsible for preparing meeting minutes. B. Construction Hand-Off Workshop: CONSULTANT shall participate in Construction Hand-Off Workshop. The purpose of the workshop is for OCSD and the Design Consultant to transfer project-specific knowledge to the CONSULTANT's construction management and inspection staff that will be managing and monitoring construction. Topics that might be covered in this meeting include the following: • Overview of objective of the project • Review of project elements • Review of sequencing constraints • Key issues to be addressed during construction • Identification of risks and discussions of contingency plans C. PCMS Training: CONSULTANT shall attend one (1)four-hour training session to review OCSD's PCMS. Training on the PCMS will be provided by OCSD to the CONSULTANT. No deliverable is required to be prepared by CONSULTANT. The CONSULTANT's Project Manager; Resident Engineer(s); Field Engineer(s); and other staff, as applicable, shall attend. Additional trainings shall be provided by OCSD as requested. 4.0.3 INVOICING CONSULTANT shall prepare and submit monthly invoices to OCSD. All invoices shall indicate the associated project name and OCSD project number and PO number. The invoices shall document the labor-hours and billing rate for each person that works on the project for each task in the work breakdown structure (WBS). Overhead, profit, and supporting invoices for any direct and subcontracted costs shall also be provided. As part of the summary section of the invoice, CONSULTANT shall also include the following information: • Budget • Current billing period invoicing • Previous billing period "total invoiced to date" • Budget amount remaining • Current billing period "total percent invoice to date" • Current billing period "total percent completed to date" 4.0.4 PROJECT REPORTING Prepare a monthly narrative written report to OCSD. Report shall detail both contract status/progress and updates on the construction work. Monthly progress reports shall be submitted with the project invoice as part of the monthly request for payment. A. Contract Progress: • Work completed in the prior billing period. • Work anticipated in the upcoming month. • Outstanding issues. • Status and issues impacting project scope and/or budget. • Percent complete, tabulated on a per task basis. • Cost to complete, tabulated on a per task basis. • Overall project budget tabulated on a per task basis. • Risk log. 3-12-2021 Headquarters Complex CM Services—Att. A Page 9 of 19 • Out of Scope items log. • Cost Performance Index (CPI). • Schedule Performance Index (SPI). B. Construction Progress: • A summary of the prior month's main accomplishments and current construction activities • Anticipated major work activities in the upcoming month. • Overall contractor's conformance to project schedule and project actual and forecasted percent completes (in terms of both time and cost) • Contractor's quality performance. • Identification of key problems, action items, and issues along with recommendation for solutions. • Summary of progress payments change order disputes, submittals, RFI's, and notices of noncompliance. • Photographs of representative project activities. 4.1 RESIDENT ENGINEERING CONSULTANT shall provide Resident Engineer(s) (RE)that will be responsible for the daily on-site construction management and the lead role for all communication with the Contractor as an agent for OCSD. General tasks and services indicated below. 4.1.1 DOCUMENT CONTROL& PROJECT CORRESPONDENCE Manage and document all relevant project communications using OCSD's PCMS and promptly distribute to OCSD, Contractor, Design Consultant, and all other applicable parties as needed. The P1-128A PCMS Specification and example forms (i.e. RFIs, Change Management Forms, Meeting Minutes) are provided for reference within Exhibit 3—PCMS Specification & Example Documents. RE shall maintain accurate records and documentation and provide timely and professional responses to all Contractor requests and submittals. Maintain field memoranda, transmittals, updated schedules, logs of shop drawings and other submittals, logs of Requests for Information (RFI), change management correspondence (e.g. Request for Proposal (RFP) and Requests for Change (RFC)), progress payment requests, Contractor submittals, progress meeting minutes, daily inspection reports, and all other project correspondence. All original project documents and final project reports generated or stored outside of the PCMS system shall be furnished (submitted electronically or on digital media)to OCSD within 60 calendar days following filing of the Notice of Completion. 4.1.2 CONSTRUCTION PROGRESS MEETINGS Schedule and lead weekly construction progress meetings, subject-specific coordination meetings, issue resolution meetings, safety meetings, change negotiation meetings, and others as necessary with all project stakeholders as needed. Provide meeting agendas to include project schedule, near-term activities, submittals, RFI status, change management and any other topics that need resolution. Prepare meeting minutes with identified action items. Prepare and distribute the meeting minutes to the attendees within two working days. 4.1.3 INTERPRET PLANS AND SPECIFICATIONS A. Inspect construction activities to ensure that the work is compliant with the contract documents. B. Receive and log all Contractor RFI's and submittals. The RE shall initially review RFI's and submittals prior to involving the Design Consultant to determine the validity and suitability of the Headquarters Complex CM Services—Att. A 3-12-2021 Page 10 of 19 document and to determine the best party to provide a response or feedback. The CONSULTANT shall proceed to route these documents to the Design Consultant and/or other appropriate party for comment through PMWeb. The CONSULTANT shall then monitor the review time to assure it does not exceed the contractual time limits. The CONSULTANT shall manage all responses and provide direction to the Contractor to mitigate contractual impacts. C. Lead resolution of day-to-day construction issues as presented. Coordinate with inspection staff, Design Consultant, Contractor, City, and OCSD as required to reach resolution. D. Obtain and maintain key specification referenced standards including: local and regional specifications; codes; standards; publications; regulations; applicable permitting criteria form local, state, and federal agencies; standard drawings and specifications of the local agencies; and related documents as referenced in the Contract Documents and as required to perform the work. Make such documents available for review by the Contractor, OCSD, and other interested parties. 4.1.4 CONTRACTOR'S CHANGE ORDERS AND DISPUTES A. Identify, prepare, log, and monitor all potential change orders, extra work, change orders and disputes. Refer to Exhibit 4 - OCSD Contract Change Management Procedures. B. Resolve scope of extra work and changes to the contract with the Contractor and obtain OCSD approval, including approval from OCSD's Purchasing/Contracts Division. Approvals are generally obtained through electronic workflow within the PCMS. All contract and change order work shall meet the requirements of the Contract and California Public Contract Code. C. Where prudent to direct extra work on a time and material basis: prepare scope, rough cost estimate and justification for OCSD approval prior to issuing to Contractor. Track all daily work accurately for reconciliation upon completion for payment. D. For each change item, prepare a record of negotiation (RON)to include written justification, schedule impact, and independent cost estimates (ICE). Justification shall include: • a statement of the extra work or change; • detailed description of the extra work or change; • background leading to the issue; • resolution alternatives; and • resolution recommendation for action by the OCSD. E. Submit change orders to the OCSD for approval within seven days of the finalization of negotiations. F. Request and review time delays as a Time Impact Analysis to be submitted by the Contractor. Review and substantiate any time extensions. G. Assist and support OCSD in analyzing, responding to, negotiating, and resolving any disputes. The CONSULTANT shall report all verbal and written disputes immediately to OCSD and coordinate all dispute resolution strategies with OCSD in advance of response or negotiation. H. The CONSULTANT shall minimize the potential impact of claims through prompt and equitable resolution and shall evaluate Claims for merit and entitlement. The CONSULTANT shall strive to resolve all claims prior to Final Completion. Should the CONTRACTOR file a Notice of intent to Claim, OCSD may request additional services from the CONSULTANT to provide claims analysis and support. 4.1.5 INSPECTION REPORTS 3-12-2021 Headquarters Complex CM Services—Att. A Page 11 of 19 Review daily inspection reports for completeness in documenting the Contractor's work and for potential change order items, deviations from the Contract Documents, and the progress of work activities in the Contractor's project schedule. 4.1.6 PAYMENT REQUESTS Review Contractor's draft monthly payment request with the project inspector(s) in conjunction with the monthly update of the Contractor's schedule. Provide comments for correction as necessary for official submittal through the PCMS. 4.1.7 SPECIAL TESTING/INSPECTION Coordinate and schedule special testing and inspections with the CONSULTANT team and with Design Consultant, as applicable. Special testing and inspection include elements such as materials, soils, welding, factory witness, specialty inspections, foundation installation, and surveying. Attention is directed to Contract Drawing S-003, Legends and Special Inspection as well as Specification 01 45 23, Tests and Inspections. A. Mass Timber: Quality assurance and inspection of the Contractor's production and supply of timber elements shall be required. Timber elements are of particular concern and require careful oversight and planning between the CONSULTANT, Contractor, and Design Consultant. Thorough oversight of the submittal process, supply chain, millwork, delivery, protection, erection, and finish of this element of the construction is expected as part of this Scope of Work. This should include quality control/inspection at all phases of the work including the production mill (likely located within the Pacific Northwest). B. Mock-up Inspection Coordination: Several onsite and offsite mock-ups will be required for the Contractor to provide and careful coordination of inspection with multiple stakeholders will be required to validate construction methods and materials in order to proceed with the continued construction. 4.1.8 RECORD DRAWINGS Coordinate tracking of as-built drawings. Review the contractor's as-built drawings with inspectors on a weekly basis. Ensure as-built drawings identify RFI's, shop drawing revisions, change order modifications, etc. and are updated as the work progresses. Design Consultant shall be responsible to draft final Record Drawings to be delivered to OCSD. 4.1.9 SCHEDULES Review contractor's baseline and monthly CPM update schedules with conformance to the Contract. Review and substantiate and schedule delays through a Time Impact Analysis. Ensure all Contractor provided documentation meets the Contract Requirements. CONSULTANT shall monitor the Project's actualized dates and track schedule activities via daily reports which can be used as a tool for analyzing potential claims and disputes. Contractor's schedule shall reflect actual progress and will be cost-loaded to develop pay requests. 4.1.10 QUALITY ASSURANCE Monitor the quality of the construction for OCSD and take a proactive approach to ensure materials, equipment, and methods are adequately coordinated, inspected, and approved prior to installation. When necessary CONSULTANT shall issue a "Notice of Non-Compliance"for work that is not in compliance with the Contract Documents or applicable codes or standards. These notices shall be tracked for correction. OCSD shall be notified upon issuance and resolution of all notices. 4.1.11 SAFETY The CONSULTANT shall monitor the work site and the Contractor's means and methods for all temporary and permanent facilities and construction operations to ensure they are accomplished in accordance with Contract Documents, Permits, and other applicable standards and regulations. A. The CONSULTANT employees shall be knowledgeable of applicable OSHA Safety Standards and have valid training certifications as required. The CONSULTANT may be Headquarters Complex CM Services—Att. A 3-12-2021 Page 12 of 19 required to attend OCSD specific training on confined space, hazardous energy control (LOTO), etc. B. The CONSULTANT shall maintain current Training Records onsite. All safety issues shall be documented with corrective actions by the Contractor. All incidents and/or accidents shall be reported to OCSD Construction Safety Representative within 24 hours. C. Safety observations and near misses shall also be reported to OCSD Construction Safety Representatives upon witness by the CONSULTANT or subsequent Contractor notification. 4.1.12 OPERATION AND MAINTENANCE MANUALS, EQUIPMENT DATABASE, AND WARRANTY EXPIRATION A. Coordinate the assimilation of operation and maintenance manuals and vendor equipment manuals as provided by the Design Consultant and the Contractor, respectively. Verify that the number and content of the manuals are complete and accurately reflects the work installed. Manage the overall delivery and quality assurance of these materials to ensure they are organized into a comprehensive, searchable electronic copy in a form acceptable to the Operations and Maintenance Department as required by the Contract Documents. Each operation and maintenance manual shall include, but not be limited to: 1. Catalog cuts on equipment, factory test reports, recommended list of spare parts, maintenance schedules, list of suppliers and phone numbers, electrical wiring diagrams and equipment programming ladder logic and/or configuration files. 2. A list of special equipment requirements and precautions. B. Provide quality assurance over the Equipment and Instrument Database (EID)to be provided by the Contractor(with information from the Design Consultant). This is an important deliverable that assists OCSD in obtaining the information needed to set up the maintenance management system for the maintenance schedules of all the building equipment. C. Prepare a Warranty Expiration spreadsheet for the project. This spreadsheet should contain major equipment items and be broken down into specific process areas and include a Product Name, Manufacturer, Serial Number, Warranty Period, and Warranty Expiration Date for each piece of equipment. Provide the spreadsheet data in native electronic files. 4.2 FIELD ENGINEERING Consultant shall provide field engineers/construction inspectors who will assist in the construction management field duties and who individually, or as part of a team, will be responsible for the following tasks and services: 4.2.1 PROGRESS MEETINGS Participate in weekly construction progress meetings. 4.2.2 SCHEDULES AND STAFFING Review Contractor's three week"look ahead" schedules and coordinate inspection staffing and testing needs with the RE and special inspectors and testing staff. 4.2.3 PAYMENT REQUESTS Review Contractor's payment request with RE for accuracy and conformance to the Contract requirements. 4.2.4 RECORD DRAWINGS Routinely review Contractor's record drawings and ensure they are current prior to monthly progress payment. Prepare written response giving general indication of missing items to be completed by the Contractor as needed. 4.2.5 REQUEST FOR INFORMATION REVIEW/RESPONSES 3-12-2021 Headquarters Complex CM Services—Att. A Page 13 of 19 Discuss responses to RFI and submittals with the Design Engineer as required. Coordinate RFI and submittal responses with appropriate inspection staff. 4.2.6 DAILY CONSTRUCTION PHOTOS Electronically photo-document ongoing construction daily. These daily photographs are separate from the intent of Task 4.4 but may be incorporated if feasible. 4.2.7 STORED EQUIPMENT AND MATERIALS Coordinate all shop inspections and site inspections as material and equipment is delivered. Provide quality assurance and oversight to ensure all stored equipment and materials are properly stored, protected, and are being maintained to ensure integrity and warranty validation. Prepare, review, and approve inspector's daily reports as applicable prior to finalization within the PCMS. 4.2.8 SUBMITTALS Review submittals for familiarity and compliance with minimum submittal requirements. Route for technical review(Design Consultant or others as appropriate)and acceptance within contractual timeframes. Review all submittal comments to ensure clarity and appropriateness prior to returning submittals to the Contractor. Expedite submittal reviews as needed to support timely execution of the completion schedule. Ensure acceptance is achieved prior to manufacture and installation. Ensure submittal of field-testing data as required. Ensure LEED requirements are being complied with and documented properly. Coordinate MEP submittals with timber elements to ensure minimal conflicts and maintain the integrity with the design intent of minimal exposed utilities. 4.3 CONSTRUCTION TESTING AND INSPECTION Consultant shall provide full-time inspection by qualified inspectors to ensure that the Contractor's work is compliant with the Contract Documents. 4.3.1 DISCIPLINE EXPERTISE Inspectors shall be knowledgeable in the discipline and type of construction assigned. For example: inspectors with appropriate expertise shall staff structural, mechanical, plumbing, electrical, controls, and civil site improvements inspection as well as specific LEED compliance requirements. 4.3.2 INSPECTION COORDINATION Any special inspection, testing, witnessing, observations, etc. will be provided by the CONSULTANT. Refer to Contract Drawing S-003, Legends and Special Inspection as well as Specification 01 45 23, Tests and Inspections that highlighting some of the required inspections and tests. Of special note is the specialty inspection for the mass timber construction (glulam beams, CLT panels, including factory mill inspection). The Design Consultant will provide geotechnical inspection for the Geotechnical Engineer of Record for the deep foundation geotechnical work. 4.3.3 INSPECTION RECORDS CONSULTANT shall produce and maintain construction observation records including, as a minimum, daily construction inspector and/or RE reports or diaries. Include digital photos to document construction progress and/or issues that arise during the work and log lessons learned from this project that shall be shared with OCSD on a quarterly basis. Daily reports and diary entries shall be consistent with industry standards, and shall generally contain but not limited to the following information: • General Information: Headquarters Complex CM Services—Att. A 3-12-2021 Page 14 of 19 - Date, Project Identification Number, CONTRACTOR's name, SubCONTRACTOR(s)' names and time of inspection, - Conditions (weather, moisture, soil conditions, etc.) - Documentation of any adverse conditions that hampered or delayed the CONTRACTOR's operations - Hours of work • Work Force and Equipment: - Onsite Personnel ■ Time worked ■ Staffing Details (trade, position, etc.) - Onsite Equipment ■ Time periods of equipment being used ■ Idle or inoperable equipment • Work Activity: - Daily Activities- include details of and indicate CPM schedule activity number for all activities listed - Difficulties encountered (by Inspector or CONTRACTOR) - Controversial matters (disputes, questionable items, etc.). Note if items were settled and, if so, how - Deliveries of major material and equipment (include type, quantity, how delivered, and a statement on the condition of all deliveries) - Tests performed/witnessed (including location and result) • Deficiencies and Violations: - Construction, labor, materials, etc. - Include how and when deficiencies were resolved. • Safety: - Issues and/or Concerns (Observations, Near Misses, Incidents, etc.) ■ Note corrective actions proposed by the CONTRACTOR, the person told of the deficiency, the proposed time frame for correction, the person scheduled to make the correction and the emergency precaution taken until correction could be made. ■ Instructions given and received. Include who the instructions were transmitted to and from whom. - Accident Descriptions (NOTE: A separate accident report is to be filled out and signed by the CONTRACTOR) • Visitors: Names of visitors to the site. • Change Management: Delays and extra work. Example daily reports generated via the PCMS are provided as samples within Exhibit 3- PCMS Specification & Example Documents and this function will be available to the CONSULTANT. 4.4 PHOTOGRAPHIC AND VIDEO DOCUMENTATION Provide photographic and video documentation throughout the duration of construction to capture overall construction progress, milestone documentation, and provide permanent, visual record of final as-built conditions. The goal of this work is to provide historical documentation of the construction and of the mechanical/electrical/plumbing (MEP) components concealed below grade, within slab, or within walls facilities for future use. 4.4.1 DOCUMENTATION COORDINATION All photo and video documentation services will be provided by the CONSULTANT. As such, the CONSULTANT shall be responsible for the scheduling and coordination of such services with the Contractor to facilitate access at the times and locations needed to complete the necessary documentation. 4.4.2 DOCUMENTATION RECORDS 3-12-2021 Headquarters Complex CM Services-Att. A Page 15 of 19 CONSULTANT shall prepare and provide detailed records of the documentation identified herein. All documentation records shall be made accessible to OCSD throughout the course of construction via a digital platform in which indexed records can be utilized. All records shall be provided as a deliverable at the completion of the Work. 4.4.3 PHOTOGRAPHIC DOCUMENTATION Photographs shall be stored and indexed within a digital platform linked to the project construction drawings or otherwise organized to facilitate ease of use. Photographic documentation is intended to be utilized for future facility improvements, operation, and maintenance needs and shall include the following: • Interior progress photos throughout the course of construction. • Exterior/site progress photos throughout the course of construction. • 3D measurable photography in advance of all MEP concealment (pre-pour, pre-insulation and/or dry wall, etc.). 4.4.4 WEBCAM DOCUMENTATION Live streaming video shall be provided via an online platform with on demand access to real-time footage, archive images, and time-lapse videos. Webcams shall be utilized to show progression of construction through the completion of the building envelope and exterior features. • The quantity and placement of the webcams shall be optimized to provide a complete time lapse and historical record of the Work. • At the completion of construction, a time lapse video shall be professionally produced and organized. NOTE: Drone footage will not be required. OCSD's drone fleet will perform video flyovers throughout the project. These flyovers can be provided to the CONSULTANT for incorporation with the final, professionally produced video deliverable. 5. PHASE 5 - COMMISSIONING SERVICES 5.0 PROJECT MANAGEMENT Continue and maintain all Project Coordination elements identified within Phase 4, Construction and Installation throughout the duration of this Phase. 5.1 RESIDENT ENGINEERING Continue and maintain all Resident Engineering elements identified within Phase 4, Construction and Installation throughout the duration of this Phase. 5.1.1 COMMISSIONING PLAN A. The Design Consultant will provide a Commissioning Agent with the responsibility and required expertise to develop the Commissioning Plan with respect to this effort. 1. The CONSULTANT shall facilitate all needed coordination between the Commissioning Agent and Contractor. 2. The CONSULTANT shall assist with the review of the Commissioning Plan to ensure that every building system is thoroughly tested, started up, certified, and documented to be ready for use. B. CONSULTANT shall ensure that the Commissioning Plan has been developed, reviewed, and approved 60 days prior to the start of testing. 5.1.2 BUILDING COMMISSIONING A. Refer to Exhibit 5—Commissioning Responsibility Matrix for additional details pertaining to roles and responsibilities for the various commissioning elements. Headquarters Complex CM Services—Att. A 3-12-2021 Page 16 of 19 B. CONSULTANT shall ensure coordination between the Commissioning Agent and Contractor throughout all stages of commissioning, regardless of whether the CONSULTANT is the witnessed inspector or not. C. CONSULTANT shall notify and keep OCSD informed of commissioning progress, activities, and testing. For elements in which it is deemed beneficial that OCSD staff witnesses the Work, CONSULTANT shall assist with this coordination. D. CONSULTANT shall assist with the monitoring, inspection, and coordination of testing activities between all parties as indicated. E. Coordinate operator and maintenance technician training for use and maintenance of all equipment. F. Coordinate and transmit to OCSD all specified spare parts or special tools. 5.2 FIELD ENGINEERING Continue and maintain all Field Engineering elements identified within Phase 4, Construction and Installation throughout the duration of this Phase. Observe, report, and document outcomes of assigned commissioning activities as assigned and directed by the RE. 5.3 CONSTRUCTION TESTING AND INSPECTION Continue and maintain all Construction Testing and Inspections elements identified within Phase 4, Construction and Installation throughout the duration of this Phase. Observe, report, and document outcomes of assigned commissioning activities as assigned and directed by the RE. 5.4 PHOTOGRAPHIC AND VIDEO DOCUMENTATION Continue and maintain all Photographic and Video Documentation elements identified within Phase 4, Construction and Installation throughout the duration of this Phase as applicable. 5.5 FF&E COORDINATION Incorporate Furniture, Fixtures and Equipment (FF&E)topics into Construction Progress Meetings and when appropriate, schedule FF&E Focused Meetings to coordinate the Design Consultant, Contractor, FF&E Vendors and OCSD (IT, building end users and maintenance)to integrate architectural, mechanical, electrical and Information and Communications Technology (ICT) requirements with FF&E layouts. Oversee installation of mockups and secure associated OCSD approvals from stakeholders. Coordinate with the Design Consultant, Contractor and FF&E vendors for field installation. Provide quality inspection and coordinate punch list and final OCSD sign-offs. 6. PHASE 6 - CLOSE OUT 6.0 PROJECT MANAGEMENT Continue and maintain all Project Coordination elements identified within Phase 4, Construction and Installation throughout the duration of this Phase. 6.0.1 FINAL REPORTING A. Prepare a final executive summary report which provides a complete overview of the contract, Contractor's performance, accomplishments, a comparison of preliminary and final project costs, cash flows, schedules, and recommendations for project activities that may require 3-12-2021 Headquarters Complex CM Services—Att. A Page 17 of 19 reevaluation for future projects as lessons learned from this project. Submit report within 60 calendar days following the filing of the Notice of Completion. B. Furnish all original project documents, inspection records, test reports, and final project reports to OCSD within 60 calendar days following filing of the Notice of Completion. Project documents shall be delivered to OCSD in an electronic format acceptable to OCSD. C. Provide OCSD support for processing final paperwork following Notice of Completion. 6.1 RESIDENT ENGINEERING 6.1.1 SUBSTANTIAL & FINAL COMPLETION A. Ensure all Substantial Completion and Final Completion requirements are adhered to. B. Prepare detailed project punch lists at substantial completion of the project. Coordinate the correction of deficiencies and schedule, coordinate and conduct a final walk-through prior to the acceptance of work with the Design Consultant; the City Building, Fire, and Utility jurisdictions; OCSD's Operations and Maintenance Department; and other staff or parties as needed. C. Coordinate occupancy permitting with the City to ensure all items are finalized with the City and permit conditions are met by the Contractor. D. Review the Contractor's final payment request following filing of Notice of Completion. 6.1.2 RECORD DOCUMENTS A. Receive, review, and accept final as-built drawings. Assist the Design Consultant with clarifications and/or other details during preparation of the Record Drawings. Coordinate the quality control review of the Record Drawings after preparation by the Design Consultant and verify their final delivery to OCSD at completion of the project. B. Receive, review, and accept the final as-built schedule. C. Compile and submit operation and maintenance manuals, instruction manuals, parts lists, spare parts, and warranties for equipment procured as required by the Contract Documents and as otherwise indicated herein. 6.2 FIELD ENGINEERING Assist the RE and PM as needed to complete associated close-out tasks. 6.3 CONSTRUCTION TESTING AND INSPECTION Assist the RE and PM as needed to complete associated close-out tasks. 6.4 PHOTOGRAPHIC AND VIDEO DOCUMENTATION Finalize and prepare the final deliverable of all associated documentation performed and deliver to OCSD within 60 days of filing of Notice of Completion. 7. GENERAL REQUIREMENTS 7.0 GENERAL 7.0.1 OCSD GUIDELINES AND STRATEGIC PLAN A. CONSULTANT shall refer to and adhere to the requirements of OCSD Safety Standards. 7.0.2 WORKING HOURS A. Meetings with OCSD staff shall be scheduled from Monday through Thursday between the hours of 8:00 AM and 4:00 PM. Any CONSULTANT staff working on-site shall conform to OCSD work schedules. Headquarters Complex CM Services—Att. A 3-12-2021 Page 18 of 19 7.0.3 SOFTWARE A. The CONSULTANT is expected to develop and provide services using standard software currently approved for use by OCSD. The standard OCSD software includes, but is not limited to, the following: • Microsoft Office365 Suite • Bluebeam Revu Prime • Primavera Project Planner(newest version) B. Any software that the CONSULTANT needs to comply with these standards shall be purchased and maintained by the CONSULTANT at no additional cost to OCSD. In the event OCSD provides the CONSULTANT with access to OCSD software and hardware at an OCSD facility in order to facilitate performance of their work, all software shall remain the property of OCSD. Only software licensed to OCSD shall be installed on OCSD equipment. In addition, only OCSD IT Department staff will perform the installation of this software. 7.1 STAFF ASSISTANCE OCSD staff member or designee assigned to work with CONSULTANT on this project is Justin Fenton at (714) 593-7386, e-mail to:jfenton@ocsd.com. 8. EXHIBITS Exhibit 1 — P1-128A, Headquarters Complex at Plant No. 1 Plans and Specifications Exhibit 2—Office Space Layout Exhibit 3— PCMS Specification & Example Documents Exhibit 4—OCSD Contract Change Management Procedures Exhibit 5—Commissioning Responsibility Matrix DF:JF:el 3-12-2021 Headquarters Complex CM Services—Att. A Page 19 of 19 1 Headquarters Complex Plant • Project • i Consultant Services Award Presented ey: Kathy Millea Director of Engineering _ � - ,Wd Operations a - �' Committee �. April7,2021 OC�. SAN ttr ORANGE COUNTY SANITATION DISTRICT ��yy 4~ i • • � 1 • i' 3/31/2021 Project • • 3 3 Project - Development r,- ,s _ .. ^c ,r December2020 -I 4 4 2 3/31/2021 Advertise for Bid January 29,2021 Bid Opening April 27,2021 Board Award May 26,2021 Project Construction NTP June 24,2021 Schedule Substantial Completion September 2023 Final Completion November 2023 5 Construction Management Approach • CIC San CM Approach • In-house CM Staffing • Industry-specific experience • Consistency, communicationntrol, '._ III fil go • Considerations • Work differs from typical CIC San projects • Limited CIC San availability u _ • Building/Code Experience • Dedicated team 6 3 3/31/2021 Third Party Construction - • Originally Jacobs team proposed and presented at March 2019 Headquarters Ad-Hoc Committee Meeting • Project delays created timing conflicts with the Jacobs Contract • Revised plan includes a stand-alone contract with a new separate firm .. Construction Management . . - Building Contractor Mai Oversight Field Engineering Change Management a ualit Qy Assurance 'i= Deputy Inspection Safety Oversight Oversight and := and Testing(Code Documentation Compliance) ® Controll Oversight ® Cost Control/Estimating ® 3D Model Coordination 9 Photographic bTj� Furniture,Fixtures,and .0 Commissioning/LEED Documentation Equipment Coordination Coordination Surveying a 8 4 3/31/2021 • Seven proposals received • Interviews conducted with five firms • AECOM Technical Services, Inc. selected Selection Process T Ir , T 9 9 AECOMProposal ■ • Strong Team • Effective Oversight Plan • Recent Related Experience • Team includes 5 subconsultants (49% of Fee) i © CONSTRUCTION_ 1 • citadel (IEM GUIDA .....: SURVEYING INC. 5 3/31/2021 Negotiations ProposalOriginal Fee . Fee Total Hours 29,098 31,537 Total Fees $6,180,186 $6,750,000 Major refinements to reduce risks • Greater allowance for change order cost estimating • Furnishings,fixtures, and equipment oversight and coordination • Added 3-1) Modeling(BIM)coordination • Added mass timber quality assurance—Subconsultant allowance and more experienced inspection oversight. 11 Recommendation: Consultant Services Recommend to the Board of Directors to: • Approve a Professional Services Agreement with AECOM Technical Services, Inc. to provide construction management, testing, and inspection services for Headquarters Complex at Plant No. 1, Project No. P1-128A, for an amount not to exceed $6,750,000; and • Approve a contingency of $675,000 (10%). 12 6 3/31/2021 Questions 13 7 Administration Building OPERATIONS COMMITTEE 10844 Ellis Avenue Fountain Valley,CA 92708 ' AN (714)593-7433 owANGECoUN ��,TpT Agenda Report File #: 2021-1591 Agenda Date: 4/28/2021 Agenda Item No: 10. FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: NEWHOPE-PLACENTIA TRUNK SEWER REPLACEMENT, PROJECT NO. 2-72B GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve a contingency increase of $2,038,470 (3.5%) to the construction contract with Group OHL USA, Inc. for Newhope-Placentia Trunk Sewer Replacement, Project Nos. 2-72B and 2-72C, for a total construction contingency of $5,824,200 (10%). BACKGROUND The upper reaches of the Newhope-Placentia Trunk Sewer carry flows from the cities of Brea, Fullerton, Placentia, and Anaheim to Plant No. 1 for reclamation. The Newhope-Placentia Trunk Replacement, Project No. 2-72, will increase the capacity of the trunk sewer to satisfy current and future flows, allow abandonment under a subsequent project of Yorba Linda Pump Station, and add flexibility to the collections system to divert reclaimable flows to Plant No. 1. In May 2018, a construction contract was awarded to Group OHL USA, Inc. for Newhope-Placentia Trunk Sewer Replacement, Project Nos. 2-72B and 2-72C. The contract replaces four miles of pipeline within sensitive areas along State College Boulevard, including Anaheim's Platinum Triangle, and business and residential areas. The work includes traffic control sequencing, deep excavations, multiple shifts, sewer bypassing, pipeline abandonment, four trenchless jack and bore crossings through major arterial streets and railroads, and sewer pipe crack repair work on the Rolling Hills Sub- Trunk. At the time of award, the work was scheduled to be complete in February 2021, however, due to unknown conditions and sequencing delays it is expected to complete in the summer of 2021. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Maintain a proactive asset management program • Achieve less than 2.1 sewer spills per 100 miles PROBLEM Unforeseen conditions encountered during construction have resulted in higher than expected contract changes. The approved construction contract contingency is not estimated to be sufficient to complete construction. PROPOSED SOLUTION Approve a contingency increase of $2,038,470 (3.5%) to the construction contract for a total contingency of $5,824,200 (10%). This increase will cover additional costs to complete the remaining construction work and provide funds for additional construction-related risks. Orange County Sanitation District Page 1 of 3 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1591 Agenda Date: 4/28/2021 Agenda Item No: 10. TIMING CONCERNS Additional contingency funds are required to authorize construction changes to complete all remaining work without causing additional project delays. The work involves construction in public streets and there are safety risks associated with excavation, shoring, street restoration, and traffic control that require timely mitigation. Stopping the work could result in much higher costs resulting from the need to leave the work site in a safe condition for the public and to demobilize and remobilize the Contractor. RAMIFICATIONS OF NOT TAKING ACTION If the contract contingency is not increased, the Orange County Sanitation District (OC San) could potentially be required to direct the Contractor to stop remaining work, restore the streets to original condition, and demobilize. The project will be delayed and impacts to the public roadway will be prolonged due to remaining construction work not being completed. In addition, final connections required to reroute available flows to Plant No. 1 will not be reclaimed. PRIOR COMMITTEE/BOARD ACTIONS May 2018 - Awarded a construction contract with Group OHL USA, Inc. for Newhope-Placentia Trunk Sewer Replacement, Contract Nos. 2-72B & 2-72C, for a total amount not to exceed $58,242,000, and approved a contingency of$3,785,730 (6.50%). ADDITIONAL INFORMATION Construction work is currently 90% complete and includes the majority of the four miles of open trench pipeline installation, most of the associated sewer lateral connection work, four trenchless jack and bore intersection crossings, and relocation of all City of Anaheim waterlines. It is anticipated that the remaining work, including remaining open trench pipeline installation, connection of all sewer laterals, final connection to the pipeline installed under Project No. 2-72A, sewer pipe crack spot repairs of the Rolling Hills Sub-Trunk, and all roadway asphalt and landscape restoration will be completed in the summer of 2021. There have been a significant number of contract changes during construction, primarily due to unknown conditions, resulting in additional costs and delays. Work within the Platinum Triangle Area was expected to be completed before the 2019 baseball season; however, numerous unknown utilities and associated traffic control resequencing required a second mobilization to the Platinum Triangle Area in 2020 to complete the work. The pipeline installation work was also impacted by deep excavations, working around known and unknown utilities, which also impacted lateral construction, and resulted in trenching and shoring challenges. Lastly, unknown existing roadway conditions have also resulted in the need to restore larger sections of pavement than originally anticipated. The current authorized contingency is insufficient to fund forecasted costs based on an analysis of the known and anticipated changes. Additional contingency is requested for changes currently known and for future risks related to the remaining work on the contract, including roadway and landscaping restoration, changed and unknown conditions, anticipated remaining risks to complete all remaining constriction work, and modifications to sequencing and traffic control to reduce the impact on the surrounding community. The Contractor and OC San are working cooperatively to resolve change orders and to mitigate impacts as they are identified. While this requested contingency increase will be sufficient to complete the remaining construction work, Staff is evaluating the need for an additional future contingency request to resolve disputed Contractor change requests which are not included in this item. These disputed Contractor requests are not supported by OC San at this time with the information provided and these are moving through the dispute resolution process. Currently, OC San and the Contractor have been conducting ongoing dispute resolution meetings to evaluate and mitigate potential claims. Depending on the outcome of this process, an additional contingency request may be needed to settle these disputes and/or mitigate potential claims for impacts and associated legal costs. CEQA The project is included in the Addendum to the 1999 OCSD Strategic Plan" Program Environmental Impact Report, State Clearinghouse No. 2006101018. Orange County Sanitation District Page 2 of 3 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1591 Agenda Date: 4/28/2021 Agenda Item No: 10. FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San's Purchasing Ordinance. This item has been budgeted (Adopted Budget, Fiscal Years 2020-2021 and 2021-22, Section 8, Page 19, Newhope-Placentia Trunk Replacement, Project No. 2 -72) and the budget is sufficient for the recommended action. Date of Approval Contract Amount Contingency 04/21/2018 $58,242,000 $3,785,730 (6.5%) 04/28/2021 $2,038,470 (3.5%) ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Presentation AL:dm Orange County Sanitation District Page 3 of 3 Printed on 4/20/2021 powered by LegistarT" 3/31/2021 NEWHOPE PLACENTIA TRUNK SEWER REPLACEMENT, SEGMENT B and C, PROJECT NO. 2-72B & 2-72C Construction Contract Contingency Newhope-Placentia Trunk I �r 1 Demolish Fullerton Yorba Linda Pump Station Rolling Hills (Future Project) Sub-Trunk Contract 2-72C Fullerton rim __1 Contract 2-65 Grade Separation Fullerton&Anaheim (Complete) Contract 2-72A (2+miles) (Complete) Anaheim rD rD Anaheim rD Contract 2-72B Disne land 2 1 3/31/2021 • Approx. 4 miles of pipe • Work for City of Anaheim — Waterline replacements — Misc. sewer upgrades v — Transfer 2 miles of existing o line for City use • Tie-in to 2-72A Project Q • Rolling Hills Sub-Trunk Sewer Rehabilitation r 3 V A. r I F T_ 4 2 1 Aleansuns -.. ��- r � 1 • MV.7 tir — • OF Project Challenges r , r 3/31/2021 Project Challenges • Traffic control sequencing ✓Sensitive areas ✓Night work -'Limited work windows ✓Adjacent projects J 7 Project Challenges • Restoration Impacts ✓Many contributing factors ✓Increase in A A restoration scope ✓Disputed work -1 iJ g 8 4 3/31/2021 Project Successes - Trenchless Segments Successful Jack & � Bore Sections: M 'ice ✓ Katella Ave - - ✓ SCRRA Railroad ✓ UPRR Railroad & Cerritos Ave - ✓ Ball Road 9 Project Successes • Community Outreach ✓Community Meetings ✓Helped businesses with signage ✓Scheduled around Community Input • Collaboration with I Anaheim :�. I ✓Water Line work ✓Mitigating impacts • No-Dig Conference Presentation NEW JACK CITYI FIVE JACK AND BORE • Working through COVID-19 SEGMENTS INSTALLED ALONG ABUSY TRAFFIC CORRIDOR IN ANAHEIM.CA .,... _M SAN 10 5 3/31/2021 Change • Intersection • Busy intersection RR • Conflict with existing City sewer line • Implemented same days=§ solution with siphon • Mitigated boring rescue, redesign and schedule impacts 4' 11 11 Change Mitigation • Busy intersection • Conflict with Fiber Optic encasement • Worked with AT&T �� to chip away encasement to 1a _ allow sewer pipe installation • Mitigated sewer redesign and a schedule impacts 12 6 3/31/2021 Schedule Actual Forecasted Description I Date Platinum Triangle Mar 2019 July 2020 Substantial Completion: Field work complete Dec 2020 July 2021 Final Completion: Punchlist and closeout Feb 2021 Sept2021 • Seven months behind schedule • Schedule impacts due to: ✓Unknown conditions(utilities) ✓Traffic control and work hour changes ✓Contractor productivity 13 Current Project Status • Currently 90% complete • Remaining field work ✓4 Lateral connections { ✓Roadway restoration, _T 2 miles ✓Median & landscaping restoration, 1.5 miles ✓2-72A tie-in @ SR91 ✓Rolling Hills Sub-Trunk Sewer 14 14 7 3/31/2021 Type of Change Orders • Date Unknown Utility Conflicts $1,089,125 City Inspection Fees&Waterline Changes $886,240 Design Modifications $460,554 Paving Changes $342,874 Unforeseen Obstructions&Existing Utility Repairs $294,216 Traffic Control Changes&Work Resequencing $118,112 TOTAL $3,191,121 • Additional contingency needs: • Known changes and conflicts, not yet negotiated • Risks related to work not yet complete • Potential future needs: • Dispute resolution of Contractor Change Requests �s 15 Contingency Forecast Additional Contingency Requirements Paving&Landscape Restoration Costs $300,000 0.5% Open Changes Pending Negotiation $1,460,000 2.5% Potential Changes on Remaining Field Work $278,470 0.5% Forecasted Contingency Need $2,038,470 3.5% Contract Status . Original Contract $58,242,000 Original Contingency Amount $3,785,730 6.50% Forecasted Contingency Need $2,038,470 3.50% Total Contingency Requested $5,824,200 10.00% 16 8 3/31/2021 • Project budget is $112,000,000 • Budget is sufficient for this action • Dispute resolution process related Project to Contractor Change Requests ✓Disputed work Budget ✓Pavement restoration areas ✓Delays and associated costs 17 Recommended • Recommend to the Board of Directors to: Approve a contingency increase of $2,038,470 (3.5%) to the construction contract with Group OHL USA, Inc. for Newhope-Placentia Trunk Sewer Replacement, Contract Nos. 2-72B & 2-72C, for a total construction contingency of $5,824,200 (10%). 18 9 3/31/2021 Questions? OC6SAN ORANGE COUNTY SANITATION DISTRICT 19 10 ration LEGISLATIVE AND PUBLIC AFFAIRS Ad10844t Ellis Avenuueg SAN COMMITTEE Fountain Valley, 92708 (714)593-743433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2021-1596 Agenda Date: 4/28/2021 Agenda Item No: 11. FROM: James D. Herberg, General Manager SUBJECT: LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF MARCH 2O21 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the Legislative Affairs Update for the month of March 2021. BACKGROUND The Orange County Sanitation District's (OC San) legislative affairs program includes advocating OC San'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 OC San'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 OC San's legislative interests. Help to create/monitor legislation and grants that would benefit OC San, 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 2 Printed on 4/20/2021 powered by LegistarTM File #: 2021-1596 Agenda Date: 4/28/2021 Agenda Item No: 11. RAMIFICATIONS OF NOT TAKING ACTION If we do not work with Local, State, and Federal elected officials, legislation could be passed that negatively affects OC San and the wastewater industry as a whole. Additionally, a lack of engagement may result in missed funding opportunities. ADDITIONAL INFORMATION • OC San Visits Washington, D.C. Virtually for Annual Advocacy Day As part of our legislative outreach program, OC San's Board Chairman Dave Shawver and Vice-Chairman John Withers hosted, for the first-time ever, virtual Advocacy Day meetings on March 29 - April 7, during which current legislation, regulatory affairs, infrastructure, and funding opportunities was discussed with the Orange County Congressional Delegation. • Governor Signs Legislation for Supplemental Paid Sick Leave for Workers On March 19, Governor Newsom signed Senate Bill 95 by Senator Nancy Skinner (D-Berkley) which creates uniform, statewide policy to ensure employees have access to COVID-19 supplemental paid sick leave as of March 29, 2021 through September 30, 2021 retroactive to January 1, 2021. Staff has provided the legally required notice to employees and are ensuring compliance with the new law. • American Rescue Plan On March 11, the President signed the American Rescue Plan into law providing for $1.9 trillion in COVID-19 assistance to the public and private sectors. It is the largest congressional funding bill to date and delivers benefits to OC San and its member cities and agencies. • Community Funding Requests Last month, the House Committee on Appropriations unveiled the new process that will be relied upon for directed federal spending to specific projects, including water and wastewater projects. As such, staff and ENS have entered in project requests to the OC Congressional Delegation and will continue to work with the Delegation and monitor the requests and possible funding opportunities. • Governor Holds the State of the State The State of the State address was held on March 9 and reviewed the State's priorities and goals. Staff and our State legislative consultants will continue to go through the priorities and goals to identify and understand funding and/or impact to the wastewater industry, if any. 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 2 of 2 Printed on 4/20/2021 powered by LegistarTM Ll �V RESOURCES TO: Rebecca Long FROM: Eric Sapirstein DATE: April 4, 2021 SUBJECT: Washington Update Following enactment of the American Rescue Plan, the White House unveiled its American Jobs Plan that sets out an ambitious $2.2 trillion effort to legislate infrastructure assistance,jobs creation, tax increases, and a host of funding priorities to advance technology and workforce development. In addition to this activity,the annual appropriations process began as Members in the House and Senate issued calls for project and/or programmatic funding requests from public agencies. During this period of time, OC San's leadership met virtually with many of its congressional delegation to discuss federal priorities. The following summarizes the past month's activities in Washington. OC SAN Leadership Discusses Federal Priorities with Congressional Delegation The continuing pandemic restrictions required OC San to begin its traditional legislative briefings for the Orange County congressional delegation virtually. These discussions focused upon the priority for infrastructure assistance as well as the ongoing commitment by OC San to develop innovative approaches to leverage the wastewater treatment process to generate clean energy. Of special note and interest was the implementation of the largest behind the "meter" battery storage system that would enhance OC San's overall effort to achieve energy independence. The discussion on priority projects for consideration of federal assistance, delegation was informed that efforts to construct a new headworks facility is vital to ensure reliable wastewater treatment and address many of the new challenges in treating wastewater flows. On the matter of the introduction of nonflushable wipes, Rep.Alan Lowenthal highlighted his plastic pollution legislation, H.R. 2238,that would require "wipes" to be labeled as non-flushable, if applicable. Representative Mike Levin noted his interest in the food waste to energy project. He highlighted his past involvement with OC San's priorities to be innovative in energy and pledged to support OC San's ongoing efforts to address clean energy solutions and general water quality needs. Additional meetings with congressional delegation officials are slated for the next several weeks. 11Page Fiscal Year 2022 Appropriations For the first time in a decade, the House and Senate decided to re-establish the practice of directing federal spending beyond the program level. Recognizing the abuses of the past that led to an earmark ban,the congressional process imposes a detailed approach for public sector entities, like OC San, to submit a request for project assistance. Under the new approach, Members of Congress are limited to ten requests and can only seek project spending for public purposes like water quality infrastructure projects. OC San has provided its priority project to the congressional delegation. Infrastructure Policymaking The Administration's American Jobs Plan was unveiled to divided support as Republicans denounced the provisions to address non-infrastructure issues and raise taxes. Alternatively, Democrats splintered over either too little funding or questions over the kind of taxes contemplated and the absence of a restoration of State and Local Tax deductions. The plan is notable for the less than robust funding for wastewater infrastructure compared with the commitments for drinking water and PFAS cleanups. Under the plan, $111 billion would be dedicated to water infrastructure, but the majority of the assistance is targeted to lead service line replacements, assistance to disadvantaged communities in need of safe and reliable drinking water, and PFAS cleanups. As one Member of Congress noted, it is a plan and Congress will draft the actual legislative proposal, suggesting that a rebalancing of funding priorities could be possible. While the White House has issued its American Jobs Plan,the House and Senate committees with jurisdiction over clean water infrastructure have acted on legislation. In the House, the Committee on Transportation &Infrastructure conducted a hearing into the Water Quality Protection and Job Creation Act of 2021 that is expected to serve as the basis for any final House clean water bill. Under the draft bill, it would: • Provide the clean water State Revolving Loan Fund (SRF) $40 billion over five years. • Renew the Alternative Water Sources Act and authorize $1 billion for grants to support water recycling. • Provide wastewater agencies with a new grants program of$1 billion to support PFAS pretreatment standards implementation. • Support workforce development. 2 1 P a g e The Senate Committee on Environment and Public Works approved the Drinking Water and Wastewater Infrastructure Act that is more limited providing a total of $35 billion. Under the committee bill $16 billion would be provided to support clean water infrastructure needs. As approved, the bill would: • Provide states with increased funding and program flexibilities to invest in community water projects that address aging infrastructure and improve water quality through the SRF. • Promote resiliency projects to address the impacts of climate change. • Increase investment to address recruitment,training, and retention challenges facing the water and wastewater utility workforce. Timing for action on the House bill is optimistically slated for May based upon Chairman Peter DeFazio's comments. The Speaker has set July 4th as the deadline for House action on a comprehensive infrastructure bill. The Senate,where all action is subject to a filibuster, the Majority Leader has indicated that Senate consideration of a water infrastructure bill would happen later in the summer. Taken collectively, it appears that any final water infrastructure bill is unlikely to be voted on before the early fall. Administration Appointments The Senate approved Michael Regan to be the US Environmental Protection Agency Administrator and Regan has assumed his duties. Regan has stated that among his priorities will be to ensure that disadvantaged communities' needs are addressed and to focus on such health matters as lead in drinking water.At the same time, he is expected to play a major role in the development of climate resiliency policies. His Deputy Administrator,Janet McCabe has been voted out of the Senate Committee on Environment and Public Works and she is expected to be confirmed by the Senate later in the month of April. Representative Deb Haaland (D-NM) was also confirmed and sworn in as the Secretary of the Interior. Upon assumption of her position, Haaland emphasized that she is committed to addressing western water issues that should benefit initiatives such water recycling. 3 1 P a g e nr,SAN ORANGE COUNTY SANITATION DISTRICT Federal Legislative Report - March 2021 Last Updated:March 24,2021 Bills by Issue MAN (23) State Bill Number Last Action Status Position Priority us S 914 Read Twice And Referred To The Committee In Senate None None On Environment And Public Works 2021 03 23 Title Bill Summary:Last edited by Sarah Sapirstein at Mar 24,2021,6:52 PM A bill to amend the Safe Drinking Water Act and the Federal Water A comprehensive bill that contains Senate clean water and drinking Pollution Control Act to reauthorize programs under those Acts, water provisions that were dropped out of WRDA 2020 during and for other purposes. conference negotiations.S.914 would invest more than$35 billion in water resource development projects across the country,of which,more Primary Sponsors than 40%can be directly used to benefit small,disadvantaged,rural,and Tammy Duckworth tribal communities through additional subsidization from the State Revolving Loan Funds or direct grant programs. Introduction Date:2021-03-23 Organizational Notes Last edited by Sarah Sapirstein at Mar 24,2021,6:54 PM A comprehensive bill,containing clean water and drinking water policy provisions that failed to be included in last year's WRDA 2020 bill.S.914 was reported out of the Committee on Environment and Public Works on a bipartisan vote of 20-0.The bill now goes to the Senate floor to be considered by the full Senate.Below are the key clean water provisions.•SRF reauthorized at$14 billion and provides that 10%of assistance reserved for grants and other subsidies to reduce costs.•Wastewater efficiency grant program authorized at$100 million to support waste to energy projects.•Alternative Water Source Act reauthorized providing$125 million to support grants to develop reclamation projects generally under$3 million.•Sewer Overflow and storm water grants program reauthorized at$280 million to address CSO and other overflows.25%set aside for rural or financially distressed communities.•Resiliency and sustainability grants assistance provided to support utilities address climate and cyber impacts.$125million authorized.•Small system assistance to improve efficiency of small systems(10,000 or less)authorized.No funding level identified.•Workforce development grants program reauthorized at$5 million.•Water Data Sharing program authorized to provide grants to encourage data sharing related to impaired coastal watersheds,water system with high levels of pollution and other circumstances leading to water quality impacts.Multi-state consortia authorized to enhance sharing of data,technologies,and protocols.$65 million in grants authorized to support state and consortia efforts.•WIFIA reauthorized at$50 million per year.Renews the authority of small systems to bundle projects for WIFIA assistance to meet floor for financing assistance.•Study required on the state of small and disadvantaged communities' historical distribution of funding assistance and ways to improve assistance to such communities.•The Water Reuse Interagency Working Group is created to advance water reuse throughout the country with a focus on federal agencies'mission and ways to create opportunities for reuse. Advanced Clean Water Technologies Study directed to ascertain existing and future technologies that could improve the operations of treatment works.#OCSAN State Bill Number Last Action Status Position Priority us HR 2008 Referred To The Subcommittee On Water In House None None Resources And Environment 2021 03 19 Title Bill Summary:Last edited by David French at Mar 22,2021,3:30 PM To amend the Federal Water Pollution Control Act to reauthorize This bill reauthorizes through FY2024 grants to states for(1)programs certain programs relating to nonpoint source management,and for that manage and control pollution added from nonpoint sources to other purposes. navigable waters,and(2)groundwater quality protection activities to advance state implementation of such programs.Water pollution from Primary Sponsors nonpoint sources is caused by precipitation picking up pollution as it Angie Craig moves over or through the ground. Introduction Date:2021-03-18 Organizational Notes Last edited by Sarah Sapirstein at Mar 22,2021,8:12 PM The Local Water Protection Act would reauthorize$200 million annually for the voluntary grant fund to give local and state governments the flexibility to make conservation improvements aimed at decreasing water pollutants through partnerships within their communities.#OCSAN State Bill Number Last Action Status Position Priority u5 HR 2021 Introduced In House 2021 03 18 In House None None Title Bill Summary:Last edited by Sarah Sapirstein at Mar 22,2021,9:06 PM To restore,reaffirm,and reconcile environmental justice and civil Expansive legislative package focusing upon environmental justice issues rights,and for other purposes. ranging from enhancing transparency and public engagement in the NEPA process,to establishing environmental justice grants to support Primary Sponsors research,education,outreach,development,and implementation of Raul Grijalva projects to address environmental and public health issues,and considering cumulative impacts of permitting decisions under the Clean Water Act to such communities and ensuring that permits will not be issued if the project cannot demonstrate reasonable certainty of no harm to human health. Introduction Date:2021-03-18 Organizational Notes Last edited by Sarah Sapirstein at Mar 22,2021,9:02 PM The legislation is a reintroduction of the bill Rep.Grijalva introduced last year.H.R.2021 would do the following if enacted:create a Federal Energy Transition Economic Development Assistance Fund-paid for through new fees on oil,gas and coal companies-to support communities and workers as they transition away from greenhouse gas-dependent economies;require federal agencies to consider cumulative health impacts under the Clean Air Act and Clean Water Act in making permitting decisions and provides greater public health protections for vulnerable communities;strengthen the Civil Rights Act and reaffirms that private citizens and organizations facing disparate impact discrimination can seek legal remedies,overturning the Alexander v.Sandoval ruling;and provide$75 million in annual grants for research and program development to reduce health disparities and improve public health in environmental justice communities.Newly confirmed Secretary of the Interior Deb Haaland was an original cosponsor of the Environmental justice for All Act in the last Congress,and has been supportive of the bill and its principles throughout her time in Congress#OCSAN State Bill Number Last Action Status Position Priority us S 872 Introduced In Senate 2021 03 18 In Senate None None Title Bill Summary:Last edited by Sarah Sapirstein at Mar 22,2021,9:15 PM A bill to restore,reaffirm,and reconcile environmental justice and Expansive legislative package focusing upon environmental justice issues civil rights,and for other purposes. ranging from enhancing transparency and public engagement in the NEPA process,to establishing environmental justice grants to support Primary Sponsors research,education,outreach,development,and implementation of Tammy Duckworth projects to address environmental and public health issues,and considering cumulative impacts of permitting decisions under the Clean Water Act to such communities and ensuring that permits will not be issued if the project cannot demonstrate reasonable certainty of no harm to human health. Introduction Date:2021-03-18 Organizational Notes Last edited by Sarah Sapirstein at Mar 22,2021,8:20 PM S.872 is the companion bill to H.R.2021 in the House.S.872 would create a Federal Energy Transition Economic Development Assistance Fund- paid for through new fees on oil,gas and coal companies-to support communities and workers as they transition away from greenhouse gas- dependent economies;require federal agencies to consider cumulative health impacts under the Clean Air Act and Clean Water Act in making permitting decisions and provides greater public health protections for vulnerable communities;strengthen the Civil Rights Act and reaffirms that private citizens and organizations facing disparate impact discrimination can seek legal remedies,overturning the Alexander v.Sandoval ruling; and provide$75 million in annual grants for research and program development to reduce health disparities and improve public health in environmental justice communities.Sen.Duckworth is a leader in the Senate on environmental justice issues,co-founding the Senate Environmental justice Caucus in 2019.#OCSAN State Bill Number Last Action Status Position Priority u5 HR 1915 Referred To The Subcommittee On Water In House None None Resources And Environment 2021 03 17 Title Bill Summary:Last edited by Sarah Sapirstein at Mar 22,2021,9:10 PM To amend the Federal Water Pollution Control Act to reauthorize Bipartisan legislation would authorize$50 billion in direct infrastructure certain water pollution control programs,and for other purposes. investment over the next five years to address America's crumbling wastewater infrastructure and local water quality challenges.It would Primary Sponsors also significantly increase the amount of Federal assistance made Peter DeFazio available to States and communities through the successful Clean Water State Revolving Fund(SRF)program. Introduction Date:2021-03-16 Organizational Notes Last edited by Sarah Sapirstein at Mar 22,2021,8:23 PM CASA Supports#OCSAN Last edited by Sarah Sapirstein at Mar 22,2021,9:47 PM H.R.1915 is a comprehensive package that would deliver substantial investment opportunities in the clean water sector.Specifically,the bill would authorize the following:authorize Clean Water SRF at$40 billion over five years;authorize an additional$2 billion in grants to municipalities to capture,treat,or reuse stormwater or sewer overflows;authorize$2.5 billion in grants to States to support implementation of States'water pollution control programs;authorize$1 billion to support clean water pilot programs for watershed-based activities that address wet weather discharges,stormwater best practices,and increase climate resiliency,authorize$1 billion for alternative water source projects, including wastewater or stormwater reuse;authorize$1 billion in grants for municipalities to implement PFAS treatment standards;and, authorize$2.5 billion for wastewater infrastructure assistance to support infrastructure needs of Tribal communities#OCSAN State Bill Number Last Action Status Position Priority us HR 1917 Referred To The Subcommittee On Economic In House Monitor Medium Development Public Buildings And Emergency Management 2021 03 17 Title Bill Summary:Last edited by David French at Mar 22,2021,3:23 PM To modify eligibility requirements for certain hazard mitigation $540 million for the Hazard Mitigation Grant(HMG)program;$249 assistance programs,and for other purposes. million for the Predisaster Mitigation(PDM)program;and,$175 million for the Flood Mitigation Assistance(FMA)program.Would expedite the Primary Sponsors approval of grants for certain property acquisition and relocation Lizzie Fletcher projects that are funded by those programs.The bill would require FEMA to approve grants for all applications submitted under those programs— including those submitted after January 1,2016—if a project satisfies the following two conditions:The project is for acquisition or relocation of a vulnerable property,regardless of whether the applicant initiated planning or construction before or after applying for assistance;and The project is exempt from environmental review requirements under the National Environmental Policy Act(NEPA). Introduction Date:2021-03-16 State Bill Number Last Action Status Position Priority us HR 1881 Referred To The Subcommittee On Water In House None None Resources And Environment 2021 03 15 Title Bill Summary:Last edited by Sarah Sapirstein at Mar 22,2021,9:20 PM To amend the Federal Water Pollution Control Act with respect to Extends the National Pollution Discharge Elimination System(NPDES) permitting terms,and for other purposes. permit to up to,but not exceeding,10 years from the current 5 years,for a municipality. Primary Sponsors John Garamendi Introduction Date:2021-03-12 Organizational Notes Last edited by Sarah Sapirstein at Mar 22,2021,9:24 PM H.R.1881 would allow for the term of National Pollution Discharge Elimination System(NPDES)permit issued to a State or municipality to not to exceed 10 years,from the current 5 years. For all other permitees,the NPDES permit would remain at the current 5 year term limit.#OCSAN State Bill Number Last Action Status Position Priority US HR 1844 Referred To The Subcommittee On Water In House None None Resources And Environment 2021 03 12 Title Bill Summary:Last edited by Sarah Sapirstein at Mar 22,2021,8:24 PM To amend the Federal Water Pollution Control Act to ensure that Would require local governments to alert residents within four hours if publicly owned treatment works monitor for and report sewer stormwater overwhelms sewage plants and carries sewage into rivers overflows,and for other purposes. and watersheds.The bill also allows state and local governments to use grant funding to create the alert system. Primary Sponsors Seth Moulton Introduction Date:2021-03-11 Organizational Notes Last edited by Sarah Sapirstein at Mar 22,2021,8:27 PM H.R.1844 would provide the following:-Help states identify the sources of Combined Sewer Overflow:The bill adds sewer overflow monitoring, reporting,and notifications to the National Pollutant Discharge Elimination System,an EPA program designed to identify sources of pollution for further regulation.-Allow states to better measure the problem of CSOs:The bill lets states use existing Sewer Overflow and Stormwater Reuse Municipal grants for overflow monitoring,reporting,and notifications.-Require states to build a system for monitoring sewer overflows to alert the owner/operator in a timely manner-Require public alerts that are sent no more than 4 hours after the owner/operator becomes aware of the overflow-Require the notification of public health authorities if the sewer overflow may endanger human health.#OCSAN State Bill Number Last Action Status Position Priority US HR 1660 Referred To The Subcommittee On Water In House None None Resources And Environment 2021 03 09 Title Bill Summary:Last edited by Sarah Sapirstein at Mar 22,2021,8:35 PM To make certain municipalities eligible for grants under the Federal Expands and improves the Environmental Protection Agency's(EPA) Water Pollution Control Act,and for other purposes. Stormwater Reuse Municipal Grant program,which is used to award federal grants to states and municipalities for the planning,design,and Primary Sponsors construction for combined sewer overflows,sanitary sewer overflows,or Lori Trahan stormwater management. Introduction Date:2021-03-08 Organizational Notes Last edited by Sarah Sapirstein at Mar 22,2021,8:38 PM H.R.1660 would expand and improve USEPA's Stormwater Reuse Municipal Grant program by doing the following:Increases the authorization of the grant program to$500 million annually and extends that authorization of the program through 2030;Prioritizes grant assistance to communities with high levels of sewage entering public waterways;Reduces the cost-sharing burden on economically disadvantaged areas;and Increases federal investment in green infrastructure projects that capture wet weather and prevent CSOs.This the reintroduction of legislation that Rep.Trahan introduced last Congress and portions of which were included in H.R.2,Moving Forward Act.#OCSAN State Bill Number Last Action Status Position Priority US HR 1563 Referred To The Committee On Natural In House Oppose High Resources And In Addition To The Committee On Science Space And Technology 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 03 03 Title Introduction Date:2021-03-03 To extend the authorities under the Water Infrastructure Improvements for the Nation Act of 2016 providing operational flexibility,drought relief,and other benefits to the State of California. Primary Sponsors Mike Garcia State Bill Number Last Action Status Position Priority u5 HR 1512 Referred To The Subcommittee On Highways In House None None And Transit 2021 03 03 Title Bill Summary:Last edited by Sarah Sapirstein at Mar 22,2021,8:54 PM To build a clean and prosperous future by addressing the climate H.R.1512 is a comprehensive legislative package with the goal of crisis,protecting the health and welfare of all Americans,and achieving net zero greenhouse gas pollution,combating the climate putting the Nation on the path to a net-zero greenhouse gas crisis,putting Americans back to work,and rebuilding our economy.It economy by 2050,and for other purposes. includes limited drinking water provisions,including establishing PFAS grants program for affected community water systems,authorized at Primary Sponsors $500 million.The legislation also includes an extensive environmental Frank Pallone justice title that supports the policy directives from the Administration that 40%of all future federal funding be delivered to disadvantage and environmental justice communities. Introduction Date:2021-03-02 Organizational Notes Last edited by Sarah Sapirstein at Mar 22,2021,8:57 PM Establishes a new grants program under USEPA to aid affected community water systems that are impacted by PFAS contamination with the capitol costs associated with implementing remediation technologies.Priority funding will be provided to disadvantage communities.Grants program to be authorized at$500 million for each of the fiscal years 2022-2031.#OCSAN Last edited by Sarah Sapirstein at Mar 22,2021,5:50 PM Establishes a grant program to award grants to eligible States to receive grants to construct large-scale composting or anaerobic digestion food waste-to-energy projects.For a State to be eligible it must have a plan to limit quantity of food waste that could be disposed of in a landfill, provide USEPA a written commitment that the State has read and agrees to comply with the Food Recovery Hierarchy of the Environmental Protection Agency,and written end-product recycling plan that provides for the beneficial use of the material resulting from any anaerobic digestion food waste-to-energy operation with respect to which the loan or grant is made.Grants may not be used for an anaerobic digester that solely uses manure as undigested biomass.Grants program authorized to be appropriated$100,000,000 for each of fiscal years 2022 through 2031.#OCSAN State Bill Number Last Action Status Position Priority us HR 806 Referred To The Subcommittee On In House None None Commodity Exchanges Energy And Credit 2021 0303 Title Introduction Date:2021-02-04 Clean Energy and Sustainability Accelerator Act Primary Sponsors Debbie Dingell State Bill Number Last Action Status Position Priority u5 HR 1352 Referred To The Subcommittee On Water In House Monitor None Resources And Environment 2021 02 26 Title Bill Summary:Last edited by Sarah Sapirstein at Mar 22,2021,9:43 PM To establish a trust fund to provide for adequate funding for water The Water Affordability,Transparency,Equity,and Reliability(WATER)Act and sewer infrastructure,and for other purposes. of 2021 is a comprehensive solution that creates a WATER Trust Fund, which dedicates nearly$35 billion towards water infrastructure Primary Sponsors improvements across the United States. Brenda Lawrence Introduction Date:2021-02-25 Organizational Notes Last edited by Sarah Sapirstein at Mar 22,2021,9:45 PM Legislation has support from over 540 national,state,and local organizations.The legislation is a reintroduction from last Congress.#OCSAN Last edited by Sarah Sapirstein at Mar 22,2021,9:43 PM H.R.1352 would provide the following support for water infrastructure:provides$34.85 billion a year to drinking water and wastewater improvements;creates a water trust fund;creates up to nearly 1 million jobs across the economy and protect American workers;prioritizes disadvantaged communities with grants and additional support;expands funding for technical assistance to small,rural,and indigenous communities;funds projects to address water contamination from PFAS;requires US EPA to study water affordability,shutoffs,discrimination, and civil rights violations by water providers;upgrades household wells and septic systems;helps homeowners replace lead service lines;and provides more than$1 billion a year to update water infrastructure in public schools.#OCSAN State Bill Number Last Action Status Position Priority us 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 Water Recycling Investment and Improvement Act Increases the authorization level for the Title XVI Program to$500 million from the current$50 million and makes it a permanent program. Description The bill strikes requirement that projects must be in drought or disaster Water Recycling Investment and Improvement Act This bill makes areas and strikes the requirement that the projects need to be permanent,and otherwise revises,the Bureau of designated in an appropriations legislation. Reclamation's grant program for the funding of water recycling and reuse projects.Specifically,the bill removes priority under the Introduction Date:2021-02-11 program for projects in areas that,in the preceding four-year period,have been(1)identified as experiencing severe,extreme,or exceptional drought;or(2)designated as a disaster area by a state. Additionally,the bill increases through FY2025 the authorization of appropriations for the program and otherwise revises provisions related to program funding. Primary Sponsors Grace Napolitano Organizational Notes Last edited by Eric Sapirstein at Feb 25,2021,3:03 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#OCSAN State Bill Number Last Action Status Position Priority us 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 National Climate Bank Act 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 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 State Bill Number Last Action Status Position Priority u5 HR 794 Referred To The Subcommittee On Economic In House Monitor Medium Development Public Buildings And Emergency Management 2021 02 05 Title Bill Summary:Last edited by Sarah Sapirstein at Mar 22,2021,9:55 PM Climate Emergency Act of 2021 States the findings of the growing climate change threats,would require the President to declare a national emergency due to the climate change Primary Sponsors crisis,and require the federal government to respond to mitigate the Earl Blumenauer emergency and send annual reports to Congress on activities. Introduction Date:2021-02-04 Organizational Notes Last edited by Sarah Sapirstein at Mar 22,2021,9:56 PM National Climate Emergency Act builds on that resolution-which was based on input from Oregon environmental activists-by mandating a presidential declaration of a national emergency under the National Emergencies Act of 1976.The legislation also outlines steps that the president can take to address the climate emergency while centering environmental justice.Investments should include,but are not limited to, large scale mitigation and resiliency projects,upgrades to public infrastructure,modernization of millions of buildings to cut pollution, investments in public health,protections for public lands,regenerative agriculture investments that support local and regional food systems,and etc.#OCSAN State Bill Number Last Action Status Position Priority u5 HR 616 Referred To The Subcommittee On In House None None Environment And Climate Change 2021 02 02 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 Description affordability protections for households with incomes up to 150%of the Emergency Water is a Human Right Act This bill creates a grant federal poverty guidelines through authorizing$1.5 billion in grants to program,administered by the Department of Health and Human assist such households pay for drinking water and wastewater services. Services,to provide funds to states and Indian tribes to assist low- income households that pay a high proportion of household Introduction Date:2021-01-28 income for drinking water and wastewater services.Further,any entity receiving financial assistance under this grant program must ensure that no home energy service or public water system service is or remains disconnected or interrupted during the COVID-19(i.e., coronavirus disease 2019)public health emergency. Primary Sponsors Rashida Tlaib 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 State Bill Number Last Action Status Position Priority us HR 516 Referred To The Subcommittee On In House Monitor None Environment And Climate Change 2021 02 02 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 Description demographic factors,environmental burdens,socioeconomic conditions Environmental Justice Mapping and Data Collection Act of 2021 This and public health concerns.The data collected would be used to build bill establishes an interagency Environmental Justice Mapping layered maps that depict what communities experience environmental Committee that must create a tool to identify environmental justice injustices.The bill supports the initiative from the Biden Administration communities.Environmental justice communities are communities to direct 40%of federal investments towards EJ communities. with significant representation of communities of color,low-income communities,or tribal and indigenous communities that Introduction Date:2021-01-28 experience,or are at risk of experiencing,higher or more adverse human health or environmental effects,as compared to other communities.The Environmental Protection Agency(EPA)must establish an environmental justice data repository to maintain the data collected by the committee.The EPA must make the repository available to regional,state,local,and tribal governments. Primary Sponsors Cori Bush 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 State Bill Number Last Action Status Position Priority us HR 448 Referred To The Subcommittee On Energy In House Monitor None 2021 0202 Title Bill Summary:Last edited by Sarah Sapirstein at Feb 24,2021,3:10 PM Energy Resilient Communities Act Creates federal program to support construction of 100%clean energy microgrids that support communities energy needs following extreme Description weather events or power shutoffs.Addresses energy equity and Energy Resilient Communities Act This bill requires the Department environmental justice concerns by prioritizing applications from low- of Energy to establish a program that awards grants to make income communities and communities of color. critical energy infrastructure more resilient to climate change hazards,such as grants for developing clean energy microgrids that Introduction Date:2021-01-25 support critical community infrastructure or customers of electric utilities with special energy needs due to medical conditions. Primary Sponsors Nanette Barragan Organizational Notes Last edited by Eric Sapirstein at Feb 25,2021,3:11 PM H.R.448 would create federal program to support construction of 100%clean energy microgrids.Microgrids would support communities energy needs following extreme weather events or power shutoffs.Microgrids are to support critical infrastructure,which includes water systems. Addresses energy equity and environmental justice concerns by prioritizing applications from low-income communities and communities of color. Specific provisions include:-Authorization of$50 million in annual grants for technical assistance and$15 billion in annual grants for clean energy microgrids to support critical infrastructure following extreme weather events(e.g.water systems)-Allows State and local governments and political subdivisions to apply for grants-Maximum federal cost share is 60%,except for environmental justice communities where the federal cost share maximum is 90%-Includes Buy American provisions for materials and technologies-Employee hiring for projects must hit targets that maximize local and economically disadvantaged workers,including those who live in environmental justice communities or were displaced from a previous job in the energy sector.#OCSAN State Bill Number Last Action Status Position Priority us S 101 Introduced In Senate 2021 01 28 In Senate Monitor 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 Description conditions and public health concerns.Data collected would be used to Environmental Justice Mapping and Data Collection Act of 2021 This build layered maps that depict what communities experience bill establishes an interagency Environmental Justice Mapping environmental injustices. Committee that must create a tool to identify environmental justice communities.Environmental justice communities are communities Introduction Date:2021-01-28 with significant representation of communities of color,low-income communities,or tribal and indigenous communities that experience,or are at risk of experiencing,higher or more adverse human health or environmental effects,as compared to other communities.The Environmental Protection Agency(EPA)must establish an environmental justice data repository to maintain the data collected by the committee.The EPA must make the repository available to regional,state,local,and tribal governments. Primary Sponsors Ed Markey 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 State Bill Number Last Action Status Position Priority us S 91 Read Twice And Referred To The Committee In Senate None None On Finance 2021 01 28 Title Bill Summary:Last edited by Eric Sapirstein at Feb 24,2021,7:57 PM Special Districts Provide Essential Services Act S.91 would provide authority to a Governor to provide financial assistance under COVID-19 relief to Special Districts from State Description allocation. Special Districts Provide Essential Services Act This bill makes special districts eligible for the Coronavirus Relief Fund and the Introduction Date:2021-01-28 Municipal Liquidity Facility program.Specifically,the bill makes special districts eligible for payments from amounts paid to states from any new appropriations to the fund.A special district must submit a request for payment to the state with information demonstrating that the special district has experienced or is likely to experience during the COVID-19(i.e.,coronavirus disease 2019) emergency*reduced revenue or operational funding derived from provided services,taxes,fees,or other sources of revenue;* reduced indirect funding from the federal government,the state, or a unit of general government below the state level;or*as a result of the COVID-19 emergency,increased expenditures necessary to continue operations.The Board of Governors of the Federal Reserve System shall include special districts as eligible issuers in the Municipal Liquidity Facility program,which was created in response to the COVID-19 emergency to buy municipal securities. Primary Sponsors Kyrsten Sinema State Bill Number Last Action Status Position Priority us SRES 17 Introduced In Senate 2021 01 27 In Senate Monitor 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 State Bill Number Last Action Status Position Priority US 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 Description programs that manage nonpoint source pollution or pollution diffusing Local Water Protection Act This bill reauthorizes through FY2025 from runoffs from farms,managed forests and urban areas.The programs within the Environmental Protection Agency that award legislation would reauthorize USEPA's grant program at$200 million grants to states for managing nonpoint source water pollution or annually. protecting groundwater quality.Water pollution from nonpoint sources is caused by precipitation picking up pollution as it moves Introduction Date:2021-01-22 over or through the ground. Primary Sponsors Amy Klobuchar 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: March 22, 2021 Subject: Monthly Legislative Report State Legislative Update The Legislature continues to hold legislative and budgetary hearings to advance the nearly 2,500 active bills and put forth the Legislature's State Budget proposal. The Senate has waived the 30- day rule that requires bills to sit before being amended or heard to allow committees to start their work earlier than expected. This will also allow the Senate to utilize fewer committee rooms and sanitize the rooms before and after each hearing. The goal of waiving the rule is to ensure that all bills will be heard in a timely manner in order to avoid the timing constraints that plagued the last legislative session and allowed priority policy areas to remain unaddressed. Below is a list of upcoming legislative deadlines: March 25: Legislature begins Spring recess April 30: Last day for policy committees to advance fiscal bills May 7: Last day for policy committees to advance non-fiscal bills May 21: Last day for fiscal committees to advance fiscal bills to the floor Governor Delivers State of the State Governor Newsom issued his State of the State address at Dodger Stadium, one of California's, and the Nation's, largest community COVID-19 vaccination sites. The Governor's comments included key statistics as well as major actions taken over the course of the pandemic, including: • California's death rate has remained one of the lowest per capita in the nation: 134 per 100,000, compared to 158 nationally, 153 in Texas and 247 in New York. • California now ranks sixth in the world for vaccine distribution, ahead of many major countries. • The positivity rate is down from a high of 14 percent to 2.1 percent. Hospitalizations are down more than 80 percent since their peak. ICUs are down 77 percent. The Governor also touched on aid that has gone out to small businesses, school reopening efforts, and work on housing the homeless. The Governor also outlined proposals that have been included in his January Budget proposal to further invest in revitalizing California's economy. The Governor emphasized the return to the Blueprint for a Safer Economy model of phased re- opening, where every County will be assigned colored tiers that dictate when the County can safely re-open, based on COVID-19 positivity rates and ICU bed availability. Priority Legislation The below bills have been identified by TPA and OC San staff as priority bills that would have an impact on OC San. 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 would likely result in additional legal challenges to OC San fee schedules and would result in less stable future revenue projections. AB 59 has been double referred to the Assembly Local Government Committee and the Assembly Housing and Community Development Committee. AB 59 has not yet been heard in any policy committees. AB 339 (Lee) — State and local government: open meetings. AB 339 would require local public agencies to provide the following services: 1. Closed captioning services for live streamed meetings 2. Translation of the agenda packet and call-in instructions into languages spoken by at least 5 percent of the jurisdiction's population 3. In-person translation services (for public comments and other needs) for languages spoken by at least 5 percent of the jurisdiction's population AB 339 would require an unknown and potentially significant change to OC San board meetings, potentially resulting in a significant cost to provide service increase. Opposition coalitions have started to work together to oppose the bill. AB 339 has not yet been heard in any policy committees. 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 State Water Resources Control Board (SWRCB) to make National Pollutant Discharge Elimination System (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 Page 12 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. AB 818 (Bloom) - Solid waste:premoistened nonwoven disposable wipes Would require certain premoistened nonwoven disposable wipes manufactured on or after July 1, 2022, to be labeled clearly and conspicuously with the phrase "Do Not Flush" and a related symbol. The bill would prohibit a covered entity from making a representation about the flushable attributes, benefits, performance, or efficacy of those premoistened nonwoven disposable wipes. 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. AB 818 is a reintroduction of previous CASA sponsored legislation. AB 818 will be heard in the Assembly Environmental Safety and Toxic Materials Committee on April 7. 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. SB 45 is a re-introduction of SB 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. SB 45 passed the Senate Natural Resources and Water Committee and will be heard next in the Senate Governance and Finance Committee. Page 13 OC San State Bills of Interest 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-Oppose specified public facilities,the time for mailing the notice of the time and Assembly Local Policies: Special Districts- LOCC-Watch place of the meeting to at least 45 days before the meeting.This bill Government Committee Oppose further state CASA-Watch would also require that all fees collected in excess of the cost of the and the Assembly regulations that adversely CSDA-Oppose service provided be refunded to the ratepayer.This bill would also Housing and Community impact special district ACWA-Oppose 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 322 Salas[D] Current law requires the Energy Commission,in administering moneys Currently in the Watch Legislative and Regulatory ACC-OC-NYC in the Electric Program Investment Charge Fund for research, Assembly Utilities and Policies: Biosolids and LOCC-Watch development,and demonstration programs,to develop and implement Energy Committee and Biogas-Support CASA-Support the EPIC program for the purpose of awarding funds to projects that may will be heard on April 7 streamlined legislation, CSDA-NYC lead to technological advancement and breakthroughs to overcome regulations and policies that ACWA-Favor barriers that prevent the achievement of the state's statutory energy encourage the procurement goals and that may result in a portfolio of projects that are strategically of biogas,biosolids,and focused and sufficiently narrow to make advancement on the most compost significant technological challenges.Current law,until January 1,2023, requires the Energy Commission to expend certain percentages of the moneys appropriated from the fund for technology demonstration and deployment at sites that benefit certain communities.This bill would require the Energy Commission to allocate not less than 20%of the funds appropriated for the EPIC program to bioenergy projects for biomass conversion,as specified. AB 339 Lee[D] Current law requires all meetings,as defined,of a house of the Introduced Watch Legislative and Regulatory ACC-OC-Oppose Legislature or a committee thereof to be open and public,and requires Policies: Special Districts- LOCC-Oppose all persons to be permitted to attend the meetings,except as specified. Oppose further state CASA-Watch This bill would require all meetings,including gatherings using regulations that adversely CSDA-Oppose teleconference technology,to include an opportunity for all persons to impact special district ACWA-Oppose 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. OC San State Bills of Interest BILL AUT=q��� SUMMARY LATEST ACTION OCSD I •. OTHER POSITIONS 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-Watch M.Brown Act when a legislative body of a local agency holds a meeting Government Committee Oppose further state CASA-Watch 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-Favor 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-Oppose and drinkable by January 1,2050,as prescribed.The bill would prohibit Assembly redundant regulatory and LOCC-Oppose 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-Oppose 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. AB 564 Gonzalez[D] Would establish the Biodiversity Protection and Restoration Act and Referred to the Watch Guiding Principles: Oppose ACC-OC-NYC would provide that it is the policy of the state that all state agencies, Assembly Water, Parks, redundant regulatory and LOCC-Watch boards,and commissions shall utilize their authorities in furtherance of and Wildlife Committee legislative requirements that CASA-Watch the biodiversity conservation purposes and goals of certain executive as well as the Assembly cause undue constraints on CSDA-Watch orders.The bill would require all state agencies, boards,and Accountability and efficient operations ACWA-NYC commissions to consider and prioritize the protection of biodiversity in Administrative Review carrying out their statutory mandates.The bill would require strategies Committee. related to the goal of the state to conserve at least 30%of California's land and coastal waters by 2030 to be made available to the public and provided to certain legislative committees by no later than June 30, 2022. OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION POSITION LEGISLATIVE PLAN POSITIONS1 AB 602 Grayson[D] Would,among other things, require,on and after January 1,2022,a city, Currently in the Watch Legislative and Regulatory ACC-OC-NYC county,or special district that conducts an impact fee nexus study to Assembly Local Policies: Special Districts- LOCC-Watch follow specific standards and practices, including,but not limited to,(1) Government Committee Oppose further state CASA-Watch that prior to the adoption of an associated development fee or exaction, and has not yet been regulations that adversely CSDA-Watch an impact fee nexus study be adopted,(2)that the study identify the assigned a hearing date. impact special district ACWA-NYC existing level of service for each assessed impact,identify the proposed financing,operations,and new level of service,explain the level of metric being used,and include a administration. finding of why the new level of service is necessary,and(3)that a fee levied or imposed on a housing development project by a local agency be proportionate to the square footage of the proposed unit or units.The bill would also require a city,county,or special district to post a written fee schedule or a link directly to the written fee schedule on its internet website. AB 622 Friedman[D] Current law,to protect public health and water quality,regulates a broad Currently in the Watch State Priorities: Support ACC-OC-NYC range of consumer products and processes,including water softeners, Assembly legislation or regulations that LOCC-Watch water treatment devices,and backflow prevention devices,among Environmental Safety restrict the use of CASA-Watch others.This bill would require,on or before January 1,2024,that all and Toxic Materials microplastics and chemicals CSDA-NYC washing machines sold as new in California contain a microfiber filtration Committee.Will be of emerging concern in any ACWA-NYC system with a mesh size of 100 microns or smaller. heard on April 7. product that is disposed of through the sewer system. AB 652 Friedman[D] Would,on and after July 1,2023,prohibit a person,including a Currently in the Watch State Priorities: Monitor ACC-OC-NYC manufacturer,from selling or distributing in commerce in this state any Assembly state legislation as well as LOCC-Watch new, not previously owned,juvenile product,as defined,that contains Environmental Safety State Water Resources CASA-Watch perfluoroalkyl and polyfluoroalkyl substances(PFAS)at a detectable and Toxic Materials Control Board(SWRCB) CSDA-NYC level above an unspecified amount.The bill would establish Committee.Will be regulatory activity related to ACWA-NYC requirements for manufacturers when replacing PFAS in juvenile heard on April 7. PFAS. products. OC San State Bills of Interest OCS' •. POSITIONS AB 703 Rubio[D] Current law, by Executive Order N-29-20,suspends the Ralph M. Brown Currently in the Watch Legislative and Regulatory ACC-OC-NYC Act's requirements for teleconferencing during the COVID-19 pandemic, Assembly Local Policies: Special Districts- LOCC-Watch provided that notice requirements are met,the ability of the public to Government Committee Oppose further state CASA-Watch observe and comment is preserved,as specified,and that a local and has not yet been regulations that adversely CSDA-Watch agency permitting teleconferencing have a procedure for receiving and assigned a hearing date. impact special district ACWA-Support swiftly resolving requests for reasonable accommodation for individuals financing,operations,and with disabilities,as specified.This bill would remove the requirements of administration. the act particular to teleconferencing and allow for teleconferencing subject to existing provisions regarding the posting of notice of an agenda and the ability of the public to observe the meeting and provide public comment.The bill would require that, in each instance in which notice of the time of the teleconferenced meeting is otherwise given or the agenda for the meeting is otherwise posted,the local agency also give notice of the means by which members of the public may observe the meeting and offer public comment and that the legislative body have and implement a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities,consistent with the federal Americans with Disabilities Act, as provided. AB 802 Bloom[D] Would require the Water Resources Control Board to identify the best Currently in the Watch State Priorities: Support ACC-OC-NYC available control technology for filtering microfibers from an industrial, Assembly legislation or regulations that LOCC-Watch institutional,or commercial laundry facility on or before an unspecified Environmental Safety restrict the use of CASA-Watch date,and would require the state board to consult with owners and and Toxic Materials microplastics and chemicals CSDA-NYC operators of laundry facilities on the types of filtration systems currently Committee. of emerging concern in any ACWA-Favor in use and with universities, scientific organizations,and experts on product that is disposed of plastic pollution in identifying the best available control technology.The through the sewer system. bill would also require,on or before an unspecified date,any entity that operates an industrial, institutional,or commercial laundry facility to adopt the use of the best available control technology to capture microfibers that are shed during washing. AB 818 Bloom[D] Would require,except as provided,certain premoistened nonwoven Currently in the Support Legislative and Regulatory ACC-OC-NYC disposable wipes manufactured on or after July 1,2022,to be labeled Assembly Policies: Source Control- LOCC-Support clearly and conspicuously with the phrase"Do Not Flush"and a related Environmental Safety Support legislation that CASA-Sponsor symbol,as specified.The bill would prohibit a covered entity,as defined, and Toxic Materials regulates the disposal of CSDA-Support from making a representation about the flushable attributes, benefits, Committee and will be flushable wipes. ACWA-Support performance,or efficacy of those premoistened nonwoven disposable heard on April 7. 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. OC San State Bills of Interest BILL AUT LATEST ACTION OCSD•. OTHER POSITIONS AB 1001 C.Garcia[D] Would require the California Environmental Protection Agency,on or Currently in the Watch Legislative and Regulatory ACC-OC-NYC before May 1,2022,to publish,maintain,and update a list of Assembly Natural Policies:Air Quality- LOCC-Watch overburdened communities,as defined.The bill would,on or after July 1, Resources Committee Support measures that CASA-Concerns 2022, require a permitting agency to take certain actions for an maintain and enhance local CSDA-NYC application for a new environmental permit, as defined,or the renewal of decision-making authority, ACWA-NYC an environmental permit for a facility located in an overburdened where appropriate, in the community.The bill would require a permit applicant to prepare an development and environmental justice impact statement,to conduct a public hearing in implementation of air quality the overburdened community,and to transmit the environmental justice attainment strategies. impact statement to the permitting agency. AB 1200 Ting[D] Would prohibit,beginning January 1,2022,any person from distributing, Currently in the Watch State Priorities: Monitor ACC-OC-NYC selling,or offering for sale in the state any food packaging that contains Assembly state legislation as well as LOCC-Watch intentionally added perfluoroalkyl and polyfluoroalkyl substances or Environmental Safety State Water Resources CASA-Support PFAS, as defined.The bill would define"food packaging,"in part,to and Toxic Materials Control Board(SWRCB) CSDA-Watch mean a nondurable package, packaging component,or food service Committee and will be regulatory activity related to ACWA-NYC ware that is comprised,in substantial part,of paper,paperboard,or heard on April 7. PFAS. other materials originally derived from plant fibers. AB 1271 Ting[D] Current law, beginning January 1,2021, imposes a penalty for violation Currently in the Watch Legislative and Regulatory ACC-OC-NYC of specified surplus land provisions after a local agency receives the Assembly Local Policies: Special Districts- LOCC-Watch notification from the Department of Housing and Community Government Committee Oppose further state CASA-Oppose Development and a penalty for subsequent violations.Current law and has not yet been regulations that adversely CSDA-Watch authorizes specified entities or persons to bring an action against a local assigned a hearing date. impact special district ACWA-NYC agency to enforce the provisions related to surplus land and allows a financing,operations,and local agency 60 days to cure or correct an alleged violation before the administration. action may be brought,except as specified.This bill would provide that these surplus land provisions do not preclude a local agency that purchases surplus land from a disposing agency from reconveying the surplus land to a nonprofit or for-profit housing developer for development of low-and moderate-income housing as authorized under other provisions of law. AB 1296 Kamlager[D] Curent law establishes the South Coast Air Quality Management District Currently in the Watch Legislative and Regulatory ACC-OC-NYC as the district with the responsibility for controlling air pollution from Assembly Natural Policies:Air Quality- LOCC-Watch sources other than vehicular sources in the South Coast Air Basin. Resources Committee Support measures that CASA-NYC Current law establishes a district board consisting of 13 members to and has not been maintain and enhance local CSDA-Watch govern the south coast district.Current law requires one member of the assigned a hearing date decision-making authority, ACWA-NYC district board to be appointed by the Senate Committee on Rules and where appropriate, in the one member to be appointed by the Speaker of the Assembly.This bill development and would increase the number of members of the district board of the south implementation of air quality coast district to 15 members by adding 2 environmental justice attainment strategies. appointees,one appointed by the Senate Committee on Rules and one appointed by the Speaker of the Assembly. OC San State Bills of Interest BILL AUT LATEST ACTION OCSD•. OTHER POSITIONS AB 1434 Friedman[D] Would establish,beginning January 1,2023,until January 1,2025,the Currently in the Watch Legislative and Regulatory ACC-OC-NYC standard for indoor residential water use as 48 gallons per capita daily. Assembly Water, Parks, Policies:Water Quality and LOCC-Watch The bill would establish, beginning January 1,2025,the standard as 44 and Wildlife Committee Supply-Support legislation CASA-Watch gallons per capita daily and,beginning January 1,2030,40 gallons per and has not yet been and regulation that promote CSDA-No capita daily.The bill would eliminate the requirement that the assigned a hearing date. improved water use Position department, in coordination with the state board,conduct necessary efficiency through state ACWA-Oppose studies and investigations and jointly recommend to the Legislature a assistance in evaluating and standard for indoor residential water use. implementing new programs and technologies and increasing public awareness of water use efficiency AB 1500 E.Garcia[D] Would enact the Safe Drinking Water,Wildfire Prevention, Drought Currently in the Watch Guiding Principles: Seek ACC-OC-NYC Preparation, Flood Protection,Extreme Heat Mitigation,and Workforce Assembly Water, Parks, funds for OCSD projects LOCC-Watch Development Bond Act of 2022,which,if approved by the voters,would and Wildlife Committee through grants, CASA-Watch authorize the issuance of bonds in the amount of$6,700,000,000 and will be heard on appropriations,or other CSDA-Support if pursuant to the State General Obligation Bond Law to finance projects April 8. means Amended for safe drinking water,wildfire prevention,drought preparation,flood ACWA-Support if protection,extreme heat mitigation,and workforce development Amended programs. SB 45 Portantino[D] Would enact the Wildfire Prevention,Safe Drinking Water, Drought Passed 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-Watch by the voters,would authorize the issuance of bonds in the amount of Water Committee and is through grants, CASA-Watch $5,510,000,000 pursuant to the State General Obligation Bond Law to currently in the Senate appropriations,or other CSDA-Support if finance projects for a wildfire prevention,safe drinking water,drought Governance and means Amended preparation,and flood protection program. Includes$100 million. Finance Committee ACWA-Support if Amended SB 54 Allen[D] Would establish the Plastic Pollution Producer Responsibility Act,which Currently in the Senate Watch State Priorities:Support ACC-OC-NYC would prohibit producers of single-use,disposable packaging or single- Environmental Quality legislation or regulations that LOCC-Watch use,disposable food service ware products from offering for sale, Committee and will be restrict the use of CASA-Watch selling,distributing,or importing in or into the state such packaging or heard on April 12. microplastics in any product CSDA-Watch products that are manufactured on or after January 1,2032,unless they that is disposed of through ACWA-NYC are recyclable or compostable. the sewer system.❑ OC San State Bills of Interest •. s •. 7P7Skinner Would provide for COVID-19 supplemental paid sick leave for covered Signed into law Watch Legislative and Regulatory ACC-OC-NYC employees,as defined,who are unable to work or telework due to Policies: Special Districts- LOCC-Watch certain reasons related to COVID-19,including that the employee has Oppose further state CASA-Watch been advised by a health care provider to self-quarantine due to regulations that adversely CSDA-Oppose concerns related to COVID-19.The bill would entitle a covered employee impact special district ACWA-NYC to 80 hours of COVID-19 supplemental paid sick leave if that employee financing,operations,and either works full time or was scheduled to work,on average,at least 40 administration. hours per week for the employer in the 2 weeks preceding the date the covered employee took COVID-19 supplemental paid sick leave.The bill would provide a different calculation for supplemental paid sick leave for a covered employee who is a firefighter subject to certain work schedule requirements and for a covered employee working fewer or variable hours,as specified. SB 230 Portantino[D] Would require the State Water Resources Control Board to establish, Passed 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-Watch Constituents of Emerging Concern Program to assess the state of Committee and is State Water Resources CASA-Watch information and recommend areas for further study on,among other currently in the Senate Control Board(SWRCB) CSDA-Support things,the occurrence of constituents of emerging concern(CEC)in Appropriations regulatory activity related to ACWA-Favor drinking water sources and treated drinking water.The bill would require Committee 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 Passed the Senate Watch Legislative and Regulatory ACC-OC-NYC voluntary agreements with entities responsible for stormwater Governance and Policies: Special Districts- LOCC-Watch management—including municipal,industrial,and commercial Finance Committee and Oppose further state CASA-Co- stormwater dischargers—to more effectively manage stormwater and is currently in the regulations that adversely sponsor dry weather runoff. Senate Environmental impact special district CSDA-Support Quality Committee and financing,operations,and ACWA-Favor will be heard on April 12 administration. OC San State Bills of Interest •. •. SIB 274 Wieckowski[D] The Ralph M. Brown Act, requires meetings of the legislative body of a Currently in 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-Watch meetings of the legislative body to be held within the boundaries of the Finance Committee and Oppose further state CASA-Watch territory over which the local agency exercises jurisdiction,with specified will be heard on March regulations that adversely CSDA-Watch exceptions.Current law authorizes a person to request that a copy of an 25 impact special district ACWA-Favor 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 specified. SIB 323 Caballero[D] Current law prohibits a local agency from imposing fees for specified Passed the Senate Watch Legislative and Regulatory ACC-OC-NYC purposes,including fees for water or sewer connections,as defined,that Governance and Policies: Special Districts- LOCC-Support exceed the estimated reasonable cost of providing the service for which Finance Committee and Oppose further state CASA-Watch the fee is charged,unless voter approval is obtained.Current law is currently in the regulations that adversely CSDA-Support provides that a local agency levying a new a water or sewer connection Senate Judiciary impact special district ACWA-Sponsor fee or increasing a fee must do so by ordinance or resolution.Current Committee financing,operations,and law requires,for specified fees, including water or sewer connection administration. fees,any judicial action or proceeding to attack, review,set aside,void, or annul an ordinance, resolution,or motion adopting a new fee or service charge or modifying an existing fee or service charge to be commenced within 120 days of the effective date of the ordinance, resolution,or motion according to specified procedures for validation proceedings.This bill would apply the same judicial action procedure and timelines, as stated above,to ordinances,resolutions,or motions adopting, modifying,or amending water or sewer service fees or charges adopted after January 1,2022,except as provided. SIB 351 Caballero[D] Current law establishes the State Water Resources Control Board for the Currently in the Senate Watch Legislative and Regulatory ACC-OC-NYC purposes of providing for the orderly and efficient administration of the Natural Resources and Policies: Biosolids and LOCC-Watch water resources of the state.This bill,the Water Innovation Act of 2021, Water Committee and Biogas-Support CASA-Watch would create the Office of Water Innovation at the California Water will be heard on April 15 streamlined legislation, CSDA-Support Commission for the furtherance of new technologies and other regulations and policies that ACWA-Favor innovative approaches in the water sector.The bill would require the encourage the procurement office, by December 31,2023,to take specified measures to advance of biogas,biosolids,and innovation in the water sector.The bill would make findings and compost declarations regarding the need for water innovation. OC San State Bills of Interest AUTHOR SUMMARY LATEST ACTION OCSD •. OTHER POSITIONS SIB 695 Ochoa Bogh[R] Would prohibit a local agency from imposing a housing impact Currently in the Senate Watch Legislative and Regulatory ACC-OC-NYC requirement adopted by the local agency on a housing development Governance and Policies:Special Districts- LOCC-Watch project,as defined,unless specified requirements are satisfied by the Finance Committee and Oppose further state CASA-Oppose local agency,including that the local agency prepare and adopt a nexus has not yet been regulations that adversely CSDA-Watch study,as specified.The bill,for purposes of these provisions,defines assinged a hearing date. impact special district ACWA-NYC "housing impact requirement"as a fee imposed under the Mitigation Fee financing,operations,and Act,dedications of parkland or in-lieu fees imposed under the Quimby administration. Act,or a construction excise tax.This bill would require a local agency to adopt a nexus study that is used to demonstrate compliance with these provisions,subject to specified public participation requirements.This bill would prohibit a housing impact requirement from exceeding the amount necessary to maintain the existing level of service identified in the nexus study for the type of capital facility for which the housing impact requirement is imposed. SB 791 Cortese[D] Would,upon appropriation by the Legislature,establish the California Currently in the Senate Watch Legislative and Regulatory ACC-OC-NYC Surplus Land Authority with the primary purpose of facilitating the Housing Committee and Policies:Special Districts- LOCC-Watch development and construction of residential housing on state and local will be heard on April 15 Oppose further state CASA-Oppose surplus property,as defined.In this regard,the bill would authorize the regulations that adversely CSDA-No authority to,among other things, provide advice,technical assistance, impact special district Position and consultative and technical service to local agencies with surplus financing,operations,and ACWA-NYC land and developers that seek to develop housing on the surplus land; administration. raise,administer,and allocate funding to facilitate the development of residential housing on surplus land;assist developers and local agencies in becoming more attractive applicants for financing through financial instruments,including credit enhancements,letters of credit, insurance, and guarantees;and enter into joint ventures with local agencies and developers to develop and manage housing developments on surplus land. 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 OC San'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 Y/N 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 and-Trade program also creates a financial incentive for industries to invest in clean TBD if FY 2021 Grant Applications will be Beach to accept up to 150 wet Organics Grant Program technologies and develop innovative was to reduce pollution. California Climate available TBD TBD tons per day wt d of re- opportunity to determine if it is a fit for TBD TBD Energy/Recycling No g p y p p s( p ) p 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. TPA and OCSD are monitoring the The Proposition 1 IRWM Grant Program,administered by DWR,provides funding for grant program development from the projects that help meet the long term water needs of the state,including: Santa Ana Watershed Project Authority Integrated Regional Water TBD NA No NA (SAW PA).Currently,Round 2 has yet 50% NA.Will return in Water No Management(IRWM)Grant Program Assisting water infrastructure systems adapt to climate change; to be announced.TPA and OCSD will 2021/2022 for Round 2 Providing incentives throughout each watershed to collaborate in managing the continue to watch this.OC IRWM region's water resources and setting regional priorities for water infrastructure expected to receive$7.5 million total,in 2022. FEDERAL ir 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 W IIN 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(W IIN) 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 DES 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 3/23/2021 OC San'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 Y/N Purpose:To support projects that conserve and use water more efficiently;mitigate Cost-Share:30%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 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 In addition,the President's directive allows FEMA to expand the activities eligible for TBD We will monitor for possible public comments reimbursement for work conducted after Jan.21,2021 and until Sept.30,2021. Funding cost-share is not identified in the law TBDfunding opportunities/A. Stormwater and CSO Grant ProgramTBD FY 2020-$28 million Yes Anticipate by July 2020 Water/Infrastructure 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 innovative technologies. issue solicitations for innovative approaches to 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 g g gy' technology and processes for FY 2020-$60 pp re 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 is= 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 3/23/2021 4/6/2021 SAN ORANGE COUNTY SANITATION DISTRICT LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE FEDERAL UPDATE April 12, 2021 go- THE ISSUES Infrastructure Appropriations Delegation Visits z 1 4/6/2021 INFRASTRUCTURE ➢ Biden American Jobs Plan--$2.2 Trillion ✓ Aging Infrastructure: $56 billion ✓ PFAS cleanup: $10 billion ✓ Resiliency: $100 billion ➢ Drinking water and Wastewater infrastructure act (S. 914) ✓ Clean Water SRF $16 billion ➢ Water Quality Protection and Job Creation Act ✓ Clean Water SRF $40 billion ✓ PFAS Pretreatment $1 billion mm 3 FISCAL YEAR 2022 BUDGET ➢ Administration Budget: May? ➢ American Jobs Plan Impact on Budget ➢ Clean Water Program Spending Robust But... ✓ Disadvantaged Communities ✓ PFAS ✓ Climate Resiliency ➢ Community Projects Assistance 99 4 2 4/6/2021 DELEGATION VISITS ➢ Virtual Meetings Convened With Members/Staff ➢ Briefed On OC San Priorities ➢ Reviewed Pending Infrastructure Policymaking and Impacts on OC San NO- Questions 6 3 ==% 0 SEIEC TED FFDERAL WATFR INFRASMUCTURE APPROACHES • C SAN LEG ISLAJIVE AND PUBLICAI' • APRIL 12, 2021 ADMINISTRATION APPROACH AMERICAN JOBS PLAN: GENERAL OUTLINE OF PRIORITIES-NOT A BILL $56 Billion Aging Infrastructure/Water Recycling/Desalination $45 Billion Safe Drinking Water(Lead) $10 BILLION HAS Remediation $100 Billion Climate Resiliency Page Two • USE APPRO AC H HOUSE ENERGY AND COMMERCE COMMITTEE APPROACH LIFT America:Revitalizing our Nation's Infrastructure and Economy(LIFT)(H.R.1848) $51.6 Billion Drinking Water State Revolving Fund Loan(SRF)ASSISTANCE $2.5 Billion PFAS Climate Leadership and Environmental Action for Our Nation's Future Act(H.R.1512) $5 Billion Grants PFAS Monitoring AND Remediation HOUSE TRANSPORTATION&INFRASTRUCTURE COMMITTEE APPROACH Water Quality Protection and Job Creation Act of 2021(H.R.1915) $40 Billion Clean Water SRF $1 Billion Grants For Watersheds,Wet Weather and Resiliency • $1 Billion Grants For PFAS Pretreatment Standards $1 Billion Grants For Alternative Water Sources Projects Page Three SENATE • ban— DRINKING WATER AND WASTEWATER INFRASTRUCTURE ACT (S. 914) $16 Billion Drinking Clean Water SRF Workforce Training Assistance $250 Million Water Infrastructure Finance and Innovation Act $100 Million Resiliency Grants $125 Million Alternative Water Sources Projects Page Four � 1 TOWNS END PUBLIC AFFAIRS EST TPA 1998 WWW.TOWNSENDPA.COM • , SACRAMENTO•WASHINGTON,DC NORTHERN CALIFORNIA•CENTRAL CALIFORNIA•SOUTHERN CALIFORNIA ' Agenda Legislative Calendar Specific Legislation Slide 2 4/6/2021 Legislative • . • Legislature returned from Spring Recess on April 5 • Policy Committee deadline for fiscal bills is April 30 • Policy Committees deadline for non-fiscal bills is May 7 • Budget subcommittees still meeting to discuss the Governor's January Budget • Bill limits nTt'�rr 3 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 o OC San staff recommended position: Oppose 4 2 4/6/2021 . B 339 • Details: o Would require a local agency to provide a call-in or internet-based service for public meetings that includes a closed captioning feature o Would require that local agencies translate agendas and meeting instructions into languages that are spoken by 5 percent of the local agency's jurisdiction o Would also require local agencies have translation services available at public meetings for all languages that are spoken by 5 percent of the local agency's jurisdiction • Status o Has not yet been heard in Committees o OC San staff recommended position: Oppose 5 A: 361 • Details: o Will provide additional flexibility for local city councils, boards, commissions, and other agencies to meet remotely via video and teleconference during a local emergency that makes meeting in person unsafe o Codifies the Governor's executive orders N-25-20, N-29-20, and N-35-20 o During a declared emergency, local agencies would be required to hold a meeting and declare that in-person meetings are unsafe for one or more members of the legislative body • Status o Referred to the Assembly Local Government Committee o Has not yet been assigned a hearing o OC San staff recommendation: Support imm 3 4/6/2021 AB • ' • • 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. • Status o Referred to the Assembly Environmental Safety and Toxic Materials Committee o Will be heard on April 21 o OC San staff recommended position: Support 7 Ai 802 (Bloom) • Details: o Would require the State Water Resources Control Board to identify the best available control technology for filtering microfibers from an industrial, institutional, or commercial laundry facility o Require, on or before an unspecified date, any entity that operates an industrial, institutional, or commercial laundry facility to adopt the use of the best available control technology to capture microfibers that are shed during washing 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 o OC San staff recommended position: Watch illis 4 4/6/2021 SB 95 (Skinner) • Details: o Reestablishes the COVID-19 supplemental paid sick leave for employers with more than 25 employees o Provides up to two weeks or 80 hours of COVID-19 supplemental leave to eligible employees through September 2021 o Specifies that the total number of hours under COVID-19 supplemental paid sick leave is in addition to any paid sick leave that may be available under existing law • Status o Signed into law by Governor Newsom. Currently in effect o OC San is in compliance with the new law 9 OC San Advocacy D. • • TPA and staff are working on scheduling a virtual advocacy days for OC San in Sacramento • Tentatively set to take place over multiple days toward the end of April • Targeting meetings with the following: o Senator Newman o Senator Min o Assembly Member Rivas/Senator Hertzberg —AB 377 o Senator Laird — SIB 619 o Senate Environmental Quality Committee Staff— Microplastics o PFAS regulators—Source identification and biosolids 10 5 4/6/2021 ^#mASAN T N S E N D ORANGE COUNTY SANITATION DISTRICT TPA Thank You Cori Takkinen Eric O'Donnell Southern California Senior Director Senior Associate CTakkinen@townsendpa.com EODonnell@townsendpa.com www.townsendpa.com www.townsendpa.com 11 6 ration LEGISLATIVE AND PUBLIC AFFAIRS Ad10844t Ellis Avenuueg SAN COMMITTEE Fountain Valley, 92708 (714)593-743433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2021-1597 Agenda Date: 4/28/2021 Agenda Item No: 12. FROM: James D. Herberg, General Manager SUBJECT: PUBLIC AFFAIRS UPDATE FOR THE MONTH OF MARCH 2O21 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the Public Affairs Update for the month of March 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 (OC San) is well-recognized within the water/wastewater industry; however, within our service area there is limited knowledge by our customers of the important work we do to protect public health and the environment. In general, the customers we serve do not realize that when they improperly dispose of waste into the sanitation system, it can negatively affect our sewer lines, our treatment plants, and the quality of water we supply to the Groundwater Replenishment System. PROPOSED SOLUTION By providing tours, community outreach, education, and general communication via OC San'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 4/20/2021 powered by LegistarTM File #: 2021-1597 Agenda Date: 4/28/2021 Agenda Item No: 12. RAMIFICATIONS OF NOT TAKING ACTION If we do not educate the community, local agencies, and area businesses about OC San, we may not have the support necessary to deliver our mission. ADDITIONAL INFORMATION - ACTIVITIES FOR THE MONTH OF MARCH 2O21 Virtual Tours Due to the COVID-19 pandemic, in-person Plant tours are temporarily suspended. To continue engaging with the community and stakeholders, staff conducts virtual tours of the Plant which allows participants an opportunity to remotely visit OC San and learn how we protect public health and the environment. For this reporting period, four virtual tours were held. Presentations During the month of March, staff presented virtually at a City Engineers Association of Orange County meeting to discuss outreach during a pandemic and at the Orange County Water Association to present on Asset Management. Additionally, staff made a presentation at the Association of California Cities of Orange County's Public Policy Academy and was part of the Regional Intergovernmental Agency Panel. Staff also spoke at the No Dig Show on the Newhope-Placentia Truck Sewer Project and the trenchless technology used in a heavily populated area to reduce community impact. Staff also presented on a panel for COVID-19 Wastewater Surveillance through the California Water Environmental Association. Orange County Science and Engineering Fair (OCSEF) The OCSEF is an annual event organized to encourage the youth of our county to learn about science and to consider a career in science or engineering. The OCSEF is open to 6th - 12th grade students attending public or private schools in Orange County. Each year OC San volunteers to help with the judging and this year eight employees volunteered by participating virtually. Plant No. 1 Newsletter As part of the ongoing outreach efforts to keep our neighbors informed and engaged with the projects going on at the Plant, we launched a Plant No. 1 neighborhood newsletter. The newsletter will go to the residents surrounding the Plant No 1 facility in Fountain Valley, Huntington Beach, and Costa Mesa. The newsletter will include updates on the ongoing construction projects that are planned, including the Headworks project. Celebrating our Recent Retirees During the month of March, OC San sees many retirements. Due to safety precautions, this year in- person celebrations were not an option; however, virtual celebration boards were created for each retiree to give them a heartfelt send-off. The virtual boards included stories, photos, and warm wishes from fellow staff members. Each retiree will receive a copy of their kudos boards. 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 March 2021 • Presentation Orange County Sanitation District Page 2 of 2 Printed on 4/20/2021 powered by LegistarTM Outreach and Media Summary OC j6 SAh ORANGE COUNTY SANITATION DISTRICT February - March 2021 OCSAN Public Affairs Office Table of Contents OUTREACH REPORT..................................................................PAGE 1 FACEBOOK POSTINGS ..................................................................PAGE 2 TWITTER POSTINGS ..................................................................PAGE 7 INSTAGRAM POSTINGS...............................................................PAGE 9 LINKEDIN POSTINGS..................................................................PAGE 11 NEWS ARTICLES........................................................................................PAGE 13 Outreach Report March 2021 Date Tours Attendees Tour Guide 03/03/2021 CSUF Nursing Tour 17 Cortney Light 03/03/2021 CSUF Nursing Tour 12 Cortney Light 03/20/2021 General Tour 10 Andy DeSilva 03/31/2021 USC Tour 15* Andrew Brown Date Speaking Engagements Attendees Presenter 03/01/2021 City Engineers Association of OC 30 Daisy Covarrubias 03/12/2021 Association of California Cities-OC 20 Jim Herberg 03/17/2021 OC Water Association 80 Eros Yong CWEA COVID-19 Wastewater Sam Choi 03/24/2021 Surveillance 209 Brad Moore, Daniel 03/29/2021 No Dig Show 50* Berokoff and Raul Cuellar *These events have not occurred at time of this report,therefore#of attendees is estimated. Project Area Construction Outreach Notifications #of People Website Posts andReached Text Alerts Anaheim 2 notifications 8,600 1 website posts/ 1 text alerts Westminster 350 2 website posts/ 2 text alerts External #of People Communications Distribution Reached Board Member One 25 Talking Points Website Posts 8 posts 23 views Facebook 23 posts 2.8k people Twitter 32 tweets 14.7k people Instagram 17posts 724 people Linkedln 2 posts 2.1k people 1 Facebook Posts Feb-March 2021 Page Summary Last 28 days+ Export Data 1} Results from Feb 22,2021-Mar 21,2021 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 0 Page Views 41 Page Previews February 22-March 21 February 22-March 21 February 22-March 21 2 106 Total Actions on Page a 100% Total Page Vews v8% ■��� mass Ne have insufficient data to showfor the selected time period Page Likes Post Reach Story Reach February 22-March 21 starch 21, March 21 3 17628 Get Story Insights See stats on how your Page's recent Page Likes.25% People Reached.44% stories have performed Recommendations Post Engagement Videos February 22-March 27 February 22 41,areh 21 February 22-March 21 lip 244 407 Post Engagement v 9% 3-Second Video Views v 12% some We have insufficient data to show for the selected time period- Page Followers February 22-March 21 4 Page Followers.0% 2 Reach Organic 1 Paid N Post Clicks Reactions,Comments& Published Post Type Targeting Reach Engagement 03122/2021 It's so easy to forget the importance • of certain things,especially water! r 44 3r g:2i i21 Do you smell our wastewater A � treatment plants?Neither do we. r , 440 03118/2021 r 10:52 PM 03FIV2021 The Steering Committee(5 pm)and � � 497. 1224 PM Board Meeting(6 pm)will be 03117,2021 On Monday,unfortunately while staff * 93 — 1 was performing preventative 03,'6-2021 I tide can't let#FixALeakWeek go by r 11 82 0 without dropping a helpful hint. 2 03115/2021 Mondays can be hard.Our Monday r 80 1 lip for you is to have something to 2 1 03/1412021 The work week is about to begin.that � �� 256 1 I a:ao AM �. means you still have some extra time 7 1♦ 03112/2021 Have you ever thought of:ghat r �� 185 17 � 9 00 AM #NrandaVision and#OCSan have in 8 03111,12021 ■ A Special Board of Directors Meeting t� 77 4 ■ vall be held on Wednesday,March 17 1 03110/2021 Fitch Ratings has given OC San a r 87 — 2 1 AAA/F1 rating.This would be like OC 1 03108.+2021 a H On#InternationalWomensDay we - 8 "4 = honor all the talented females who �4 , 43 2 1 03/05/2021 ■ The OC San family is a real thing. 104 4 Everyone always says that when 6 03104+2021 ■ Our Admin Committee Meeting will J 66 0 be happening next week on 0 0310312021 , A Hydrogen Dispensing Station is a r 99 1 filling station for hydrogen,usually 3 I) 3 0310112021 ® The Water Environment Federation is fp 87 ' 1 1 offering scholarships for those 0 0310112021 Monday, March 8 at 430 pm is the �► 150 I 1 --- a next Legislative and Public Affairs I 0 02/2712021 After a long week,Saturdays feel 15 � 1= % Rmore like saturdazeeeeeeee But OC r 210 ■ 17 02126/2021 There are so many types of I 0 ? 1-AIM ® engineers at OC San, but they all r lit, S6 t 0 � I 02Z2512021 ■ Wednesday,March 3 at 5 pm is our 36 0 Operations Committee Meeting. Click 0 022412021 Engineers are smart,we can all — 22 14 F6' agree on that, but did you know �� 125 16 0224/2021 41iv0 New faces are joining the OC San � 380 8 � 11 15 And �tr Board. Go to ocsan.gov to read all 4 02/2212021 Don't forget!This Wednesday is our 74 - 0 12:11 Pn1 Steering Committee Meeting(5 pm) 1 I 02/21/2021 Just a simple#PSA to start the week 1 229 tine right By not flushing wipes. Now or 154 2 02/19/2021 Here's a#FunFactFriday.OC San so 72 - 0 s.3o AM produces biosolids used for land 2 1 02/1812021 ■ Construction Alert for City of 84 623 13 829 A.na Westminster and Seal Beach Police 5 O2/17/2021 Bet you didn't know that OC San fp �� 247 24 � s 30 AM offers FREE private tours- If you re 16 i 4 Graphs of Page Likes, Post Reach and Total Views for February-March 2021 Total Page Likes: 975 Total Page Likes I It. r! n� 11 13 15 17 19 21 Page Likes The number of organic Page likes, paid Page likes and unlikes_ Unlikes Organic Likes Paid Likes Oa 1yj 01 01. 11 13 15 11 19 5 Total Views By Section Total Views is Mal n r.iar is rdar 19 Mal zc: r.13f21 Post Reach The number of people who saw any of your posts at least once.This metric is estimated. Organic 0 Paid l5 0" 119 11 13 15 11 19 21 6 Twitter Posts Feb-March 2021 ' ,sm ' • • Orange County Sanitation District ,,Di,trp Page Updated daily 28 day summary Jhange over previous period Tweet/ Tweet-pres . Profile visits Mentions Followers 16 4-5.9% 6,886 11,,209pry 222 �19.9% 9 T1250% 1,711 t8 Mar 2021-21 days so far.. TWEET HIGHLIGHTS Top TMet earned 366 impressions Top mention earned 14engagements Get your Tweets in front of Construction Alert for @WestminsterPIO Judith Marquez I The Grease more people and @Seal Beach Police Westminster Blvd. Trapper Promoted Tweets and content open up your and Bolsa Chica intersection.Night work this GI""ion reach on Twitter to more people. Thursday and continuous weekend work On king a nimpact Wo a world y today, a starting this Friday—Monday.Go to making an impact in the world of wastewater ocsan.go is Friday—Mr for details. at @OC SanDistrict in the#Legislative and #OCS#OCSa ovfWesruction #Political Affairs Cte mtg.Trailblazers have MAR 2021 SUMMARY ianCo pic.twitter.com/NdWjyJs6ln 6ln ideas worth mentioning to combat climate change,save$$,keep air and water clean[ T—M meet mpre 1/twitter.com/OCSanDistrict/... 11 4,0255 •2 Pofile visits Mertors View Tweet 162 9 New followers Top media Tweet earned 255 impressions , ii 2 f Today,on#EmployeeAppreciationDay we �F want to say THANK YOU to our employees View Tweet activity view all Tweet activity for everything they do.Even when they are pooped,they keep going- pic-twifter.com/7xkvi6O37r Top Follower followed by 1,256 people THANK YOU! Scott Coffin,Ph.D. @DrSCofin rouows Yoe r s Environmental Toxicologist I Research Scientist @ CA State Water Board(Drinking Water)I Microplastics, View Tweet activity View all Tweet activity PFAS,Emerging Contaminants I RYT200 C I Yews my own 7 Feb 2021-2a days TNEET HIGHL'GH7S FEB 2621 SUMMARY Top TWeet earned 3.954 impressions Top mention named 16 engagemeni- Tw.ets Tweet-press— Construction Alert for @cityofanaheim. Los Angeles County Sanitation 21 10.7K Northbound State College Blvd.will be Districts closed at Westport Dr.on Saturday.Please TS =et_ s� MertLons use alternate routes to reach your @OCSanDistrict Sewer treatment plants 203 4 destination.Visit ocsan.gov/statecollege for are the real MVPs today!#ftushbow! details.#OCSanConstruction #what2flush @City_of Anaheim «, 93 13 pic.tv';,"er comr'gA4XN1rzA C!7 view Tweet MMOPP state Lortege 7-A CLOSED at Westport Dr. Top media Tweet earned 1,122 impressions �t New faces are joining the OC San Board. o��ub^, wp,►w oc sr contncecn wn�e Go to ocsan.gov to read all about it. tsslf2oe-�9oo a #OCSanBoardofDirectors C oc�com r�,SAN pic.twitter.com/r3fDe02JAR ta3 •3 View Tweet activity View all Tweet activity Top Follower followed by 10.1K people View Tweet activity View all Tareet activity City of Tustin =OL.OWSYOJ The official twitter account for the City of Tustin;Building our Future,Honoring our Past View profile 8 Instagram Posts Feb-March 2021 oesandistriet Edit—le p SSG posts 1,173 followers 72 following SAN OC Sanitation District `�- The OC Sanitation District provides wastewater collection,treatment and recycling for approx 2.6 million people in central&north Orange County. www.ocsan.gov /0% 1 intl w 1 oilel 1 t•wlt WORLD a ► - WATER ♦ �...�.�... 000 n.�.nwMe a+o,x DAY • ^ ow 44 ae tre How does OC Son Hiring treat wastewater? r.r.r r •MntW L�1 MWrL Y.�tICa�Nrr h.. •Ca.tNtavi r.rr �v ..V—. %wr ocviywa. ON AAA/F1r.J nrrrrt Vomea6 rir �I ,r 1 07mr- 9 v BEING AN ENGINEER BECAUSE - t-•+° t:SSA _w r • ELinkedinosts 1 Analytics Last 30 day activity 294 .12% Unique visitors 43 .79% New followers 2.1 K 2% Post impressions 34 .25% Custom button clicks Visitor highlights 0 -3t3 f-!:-3s'_.: _'19/2021-3,21,2021 826 120'. 294 .12% 34 .25% Page it— Unique visitors Custom button clicks Visitor metrics 0 Time range: Mar 6,2021-Mar 20,2021 Page:All Pages Metric:Page views Aggregate desktop and mobile traffic off 0 125 100 3 m 5 a+ IT 50 25 0 Mar 6 Mar 7 Mar 8 Mar 9 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 O Desktop 4 Mobile 11 Orange County Sanitation District m = Check it out!Our very own Samuel Choi is one the speakers. CM[A CWEA(California Water Environment Association) S Join us for our free CWEA COVID-19 Wastewater Surveillance update on March 24th at 11:00 a.m.Come join us for our monthly update on how CO ...see more CWEA COVID-19 Wastewater Surveillance 1 March Update Wednesday, March 24th, 11:00a.m. CWEA 0 Like Q Comment Orange County Sanitation District We can let#FixALeakWeek go by without dropping a helpful hint. PwWMV& !� OU itid a Toilet Leak To check for leaks in the toilet, place a few drops of food coloring in the tank. �• After a minute or so, if 0 there is coloring leaking into the bowl that means Sthe flush valve and/or flapper is leaking. O- 12 Article Date Origin Link 1,000-gallon sewage spill shuts part of 16-Mar-21 LA Times https://www.latimes.com/california/story/2021-03-16/sewage- Newport Beach bay spill-shuts-part-of-newport-beach-bay Sewage spill prompts closure of stretch of 17-Mar-21 OC Register https://www.ocregister.com/2021/03/15/sewage-spill-prompts- beach in Newport Beach closure-of-stretch-of-beach-in-newport-beach/ 13 4/6/2021 Public Affairs Update � 6 flaws What We 1 • CALIFORNIA • OC Register Water Insert WATER • Orange County Science and Engineering Fair , • COVID-19 Updates • Plant No.1 Newsletter • Ongoing construction outreach: • Westminster • Seal Beach • Anaheim Social Media • Fullerton Twitter: 32 tweets/14.7k impressions Facebook: Tours 23 posts/2.8k reach 4 tours /54 guests Instagram: 5 speaking engagements 17 posts/724 people Linkedln: 2 posts/2.1 k impressions 2 1 4/6/2021 What We Are Doing • YES Conference (formally known as the Children's Water Festival) • 5 Minutes Per Month Emails • Internal Communication • Award Applications A RESOURCE NOT A WASTE Put your Tik Tok YouTube.and social media slulls to • Video Contestgood use and create a 15-59 second video that five MONTHPER " DTIRE TO SUBMIT VIDEO 3 3 2 BOARD OF DIRECTORS Administration Building 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1610 Agenda Date: 4/28/2021 Agenda Item No: 13. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: PROPOSED ANNEXATION NO. OC SAN-66 - MASS ANNEXATION OF FIVE AREAS IN ANAHEIM, VILLA PARK, AND YORBA LINDA GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Authorize Staff to annex five Areas to Orange County Sanitation District within the Cities of Yorba Linda, Anaheim, and Villa Park; B. Authorize the General Manager to execute associated Annexation documents in a form approved by General Counsel; C. Adopt Resolution No. OC SAN 21-07 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District authorizing initiation of proceedings and requesting the Orange County Local Agency Formation Commission to take proceedings for the Annexation to the Orange County Sanitation District, of territory in the Cities of Yorba Linda, Anaheim, and Villa Park (Annexation No. OC SAN-66 - Mass Annexation of Five Areas in Anaheim, Villa Park, and Yorba Linda)"; and D. Forego past Annexation, Capital Facility Capacity Charges, and Annual User Fees for the parcels to be annexed which are currently discharging sewer flows to the Orange County Sanitation District. BACKGROUND There are five general areas within the Cities of Yorba Linda, Anaheim, and Villa Park that contain approximately 1,200 parcels that need to be annexed to the Orange County Sanitation District's (OC San) service area. These areas are referenced and displayed in the attached Exhibit and are as follows: Area Number City Major Cross Streets 1 Yorba Linda Yorba Linda Blvd. & Yorba Ranch Rd. 2 Yorba Linda Esperanza Rd. & Yorba Linda Blvd. 3 Anaheim Fairmont Blvd. & Santa Ana Canyon Rd. Orange County Sanitation District Page 1 of 4 Printed on 4/21/2021 powered by LegistarTM File #: 2021-1610 Agenda Date: 4/28/2021 Agenda Item No: 13. 4 Anaheim Stage Coach Rd. & Nohl Ranch Rd. 5 Villa Park Adams Ranch Rd. & Center Dr. A Municipal Services Review process and recent discussions with the Orange County Local Agency Formation Commission (LAFCO) recommended submission of a single application for the five areas of interest. RELEVANT STANDARDS • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities • Protect OC San assets PROBLEM Properties in the proposed annexation areas receive sewer service via their respective local sewer provider. Sewer flows from these areas are collected, treated, and recycled/disposed by OC San's regional sewer system; however, OC San is unable to collect the "Annual User Fee" for these properties because the areas are not annexed to OC San's service area. Additionally, there are several properties in Area Number 3 that are not connected to a sewer system and discharge to septic tanks. These properties would have to be individually annexed when each property owner wants to connect to the local sewer system. Individual annexations would require LAFCO fees that would be borne by each property owner. PROPOSED SOLUTION Adopt a Resolution that will allow OC San staff to process a single application for annexation (Annexation No. OC SAN-66 Mass Annexation of Five Areas in Anaheim, Villa Park, and Yorba Linda) through the LAFCO approval process. Forego all past OC San fees for the properties to be annexed which are currently discharging sewer flows to OC San. User fees will be collected on a prospective basis. TIMING CONCERNS OC San must receive the final resolution from LAFCO prior to December 1, 2021 so sewer user fee collection can begin. RAMIFICATIONS OF NOT TAKING ACTION OC San will not be able to collect Annual User Fees for these properties moving forward. Properties that are on septic systems will have to apply for annexations individually. PRIOR COMMITTEE/BOARD ACTIONS July 2013 - Made a one-time exception to waive the fee in the amount of $2,165. (Regarding unpaid Orange County Sanitation District Page 2 of 4 Printed on 4/21/2021 powered by LegistarTM File #: 2021-1610 Agenda Date: 4/28/2021 Agenda Item No: 13. Capital Facility Connection Fees for a residential property.) October 2005 - Approved the results of the non-residential parcel review project, directed staff to use the corrected database on a going-forward basis and provide direction to staff on the collection of past charges. (Direction was to refrain from pursuing past underpayments for User Fees.) ADDITIONAL INFORMATION Prior Committee/Board Actions have set a precedent to not back-charge property owners for past OC San fees where the current property owner is not at fault. In addition, since these parcels are not included in OC San's user fee roll, Proposition 218 notifications were never sent to these properties. Proposition 218 notifications are required by law and must be sent whenever there is a proposed new or increased property-related fee. Without the notification, Annual User Fees cannot be back- charged. Under the LAFCO Annexation process, all affected properties will be notified, and a public hearing will be conducted. OC San is planning to perform a similar notification in parallel with LAFCO so the annexation can be streamlined, and all affected property owners are aware of the Annual User Fees moving forward. The properties indicated on the attached Exhibit to the Resolution are subject to change after LAFCO begins the application process. However, these will only consist of adjacent parcels that are within the area displayed. Mass annexation of the properties in Area Number 3 that are currently on septic tank systems will streamline the process in the future when they are required to connect to the public sewer system. Water purveyors encourage conversion from septic systems since it reduces quality impacts to groundwater. The estimated costs for the LAFCO Annexation fees is $4,600 for fiscal year 2020/21 and $10,400 for fiscal year 2021/22. CEQA The project is exempt from CEQA under the Class 20 categorical exemptions set forth in CEQA Guidelines (14 California Code of Regulations) Section 15320. Section 15320 (Class 20) "consists of changes in the organization or reorganization of local governmental agencies where the changes do not change the geographical area in which previously existing powers are exercised". Specifically, this project is exempt because this annexation is only an administrative boundary change of OC San's service area. A Notice of Exemption will be filed with the Orange County Clerk-Recorder's office after approval of this item. FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San's Purchasing Ordinance. This item has been budgeted (Adopted Budget, Fiscal Years 2020-2021 and 2021-22, General Management Administration Section 6, Page 3) and the budget is sufficient for the recommended action. Orange County Sanitation District Page 3 of 4 Printed on 4/21/2021 powered by LegistarTM File #: 2021-1610 Agenda Date: 4/28/2021 Agenda Item No: 13. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Resolution No. OC SAN 21-07 Orange County Sanitation District Page 4 of 4 Printed on 4/21/2021 powered by LegistarTM RESOLUTION NO. OC SAN 21-07 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT AUTHORIZING INITIATION OF PROCEEDINGS AND REQUESTING THE ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSION TO TAKE PROCEEDINGS FOR THE ANNEXATION TO THE ORANGE COUNTY SANITATION DISTRICT, OF TERRITORY IN THE CITIES OF YORBA LINDA, ANAHEIM, AND VILLA PARK (ANNEXATION NO. OC SAN-66 - MASS ANNEXATION OF FIVE AREAS IN ANAHEIM, VILLA PARK, AND YORBA LINDA) WHEREAS, the Orange County Sanitation District (OC San) is a duly organized County Sanitation District, existing pursuant to the County Sanitation District Act, California Health & Safety Code Section 4700 et seq. OC San owns, operates, and maintains sewage collection, treatment, and disposal facilities; and WHEREAS, there are five (5) general unannexed areas within the Cities of Yorba Linda, Anaheim, and Villa Park that contribute sewer flows to OC San's regional sewer system; and WHEREAS, more particularly, the Yorba Linda area includes the following subareas, depicted in Exhibit Areas 1 through 2, attached hereto and incorporated herein by this reference: Area Number City Major Cross Streets 1 Yorba Linda Yorba Linda Blvd. & Yorba Ranch Rd. 2 Yorba Linda Esperanza Rd. & Yorba Linda Blvd. and WHEREAS, the Yorba Linda Water District's local sewer system has been providing sewer service to Areas 1 and 2 and conveying sewer flows to OC San's regional system; and WHEREAS, more particularly, the areas located within the City of Anaheim includes the following subareas, depicted in Exhibit Areas 3 through 4, attached hereto and incorporated herein by this reference: Area Number City Major Cross Streets 3 Anaheim Fairmont Blvd. & Santa Ana Canyon Rd. 4 Anaheim Stage Coach Rd. & Nohl Ranch Rd. and WHEREAS, the City of Anaheim local sewer system has been providing sewer service to Areas 3 and 4 and conveying sewer flows to OC San's regional system; and 1378342.1 OCSD 21-07-1 WHEREAS, some parcels within Area 3 are still connected to a sewer septic system; and WHEREAS, more particularly, the area located within the City of Villa Park includes the following area, depicted in Exhibit Area 5, attached hereto and incorporated herein by this reference: Area Number City Major Cross Streets 5 Villa Park Adams Ranch Rd. & Center Dr. and WHEREAS, the City of Villa Park's local sewer system has been providing sewer service to Area 5 and conveying sewer flows to OC San's regional system. NOW, THEREFORE, in consideration thereof, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: Expansion of Service Area. OC San is hereby authorized to initiate, and the Orange County Local Agency Formation Commission is requested to take, proceedings to expand OC San's Service Area to include the five above-referenced areas into the Consoliated Revenue Area. Section 2: Authority. This proposal is made pursuant to the Cortese-Knox- Hertzberg Local Government Reorganization Act of 2000, California Government Code Section 56000 et seq. Section 3: Fees. The proposed boundary expansion shall be subject to all required fees. PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Orange County Sanitation District held April 28, 2021. David John Shawver Board Chairman ATTEST: Kelly A. Lore, MMC Clerk of the Board 1378342.1 OCSD 21-07-2 APPROVED AS TO FORM: Bradley R. Hogin General Counsel 1378342.1 OCSD 21-07-3 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 21-07 was passed and adopted at a regular meeting of said Board on the 28th day of April 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 28th day of April 2021 . Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District 1378342.1 OCSD 21-07-4 a prZ AV ''Th � r Owl . ... > ■■ s f j 11 s, ` w S ♦ a , = 1 �f. k, see 0 . i - �+c.T ,:.rat... � •� � 1 -• 1 I � D m _ a D 0- 0 CD m m W r+ o Cr v r a a. New River Rd City of Yorba Linda �SpeCarZa Rd > City of Anaheim '= N Orange County Sanitation District W+E Annexation Exhibit (Area 2) S 0 0.01 0.02 0.04 Legend Proposed Annexation Parcels Miles Local Sewers ,SAN ORANGE COUNTY SANRATION DISTRICT ► OCSD Sewers DISCLAIMER:Ma prepared b Orange Count Sanitation District.This ma is intended for graphical representation only. Map p Y 9 Y p 9 p p No level of accuracy is claimed for the base mapping shown hereon and graphics should not be used to obtain Proposed Annexation coordinate values,bearings or distances.Portions of this derived product contain geographical information copyrighted by Rand McNally.All Rights Reserved. SOURCES:OCSD GIS Data,Rand McNally 2016 REVISION:March 2018 Revised:2/11/2021 OC` a , , a, S , 9 4 A .I O Y 03 City of Anaheim • r , Orange County Sanitation District w NE Annexation Exhibit (Area 3) s Proposed Annexation Parcels 0 0.0275 0.055 0.11 Legend Miles Local Sewers ,SAN � O C S D Sewers ORANGE COUNTY 91W RATION DIYTAICi DISCLAIMER:Map prepared by Orange County Sanitation District.This map is intended for graphical representation only. No level of accuracy is claimed for the base mapping shown hereon and graphics should not be used to obtain Proposed Annexation coordinate values,bearings or distances.Portions of this derived product contain geographical information copyrighted by Rand McNally.All Rights Reserved. SOURCES:OCSD GIS Data,Rand McNally 2016 REVISION:March 2018 Revised:2/11/2021 M f rt r + ' Z s , xi Aq j 3Ia e J OEM •ak No , a IS Y, a r rVY�.*!�- 'Tux �, 'i� •�� R�r1 i w �k '4 .e K s a � 1 itr} • ,�. 1 w + 1 1 11 11 1 -• 1 �t Y Lincoln Cir a + T— I� F � . Adams Ranch Rd : - a , D Q :9 F v � r I City of iA[ .P k � A a a N Orange County Sanitation District w E s Annexation Exhibit (Area 5) 0 0.0075 0.015 0.03 Legend Proposed Annexation Parcels Miles g , AN Local Sewers ORANGE COUNTY 9ANRATNJN DIYTAICT OCS D Sewers DISCLAIMER:Map prepared by Orange County Sanitation District.This map is intended for graphical representation only. No level of accuracy is claimed for the base mapping shown hereon and graphics should not be used to obtain coordinate values,bearings or distances.Portions of this derived product contain geographical information copyrighted by Rand McNally.All Rights Reserved. Proposed Annexation SOURCES:OCSD GIs Data,Rand McNally 2016 REVISION:March 2018 Revised:2/11/2021 Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1603 Agenda Date: 4/28/2021 Agenda Item No: 14. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: PROPOSED ADOPTION OF ORDINANCE NO. OC SAN-55 UPDATING ELECTRONIC REQUIREMENTS FOR THE PRESENTATION OF CLAIMS OR DEMANDS FOR PAYMENT GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Introduce Ordinance No. OC SAN-55, entitled: "An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Requirements for the Presentation of Claims or Demands for Payment; and Repealing Ordinance No. OCSD-17"; B. Motion to read Ordinance No. OC SAN-55 by title only and waive reading of said entire Ordinance on April 28, 2021; C. Set May 26, 2021, as the date for the second reading and adoption of Ordinance No. OC SAN -55; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. BACKGROUND Under the Government Claims Act, California Government Code Sections 800, et seq., most claims for money or damages against a public agency must be presented to the agency first before a lawsuit is filed against the agency. In 2001, the Orange County Sanitation District (OC San) adopted Ordinance No. OCSD-17 which established the requirements for the presentation of such claims or demands for payment to OC San. RELEVANT STANDARDS • Ordinance No. OCSD-17 • SB 1473 Local Government Omnibus Act of 2020 Chapter 371 Orange County Sanitation District Page 1 of 2 Printed on 4/21/2021 powered by LegistarTM File #: 2021-1603 Agenda Date: 4/28/2021 Agenda Item No: 14. PROBLEM A new law effective January 1, 2021 allows a claimant to submit a claim to a public agency electronically if the agency has adopted an ordinance or resolution authorizing the electronic submission of claims. Ordinance No. OCSD-17 does not authorize the electronic submission of claims. Allowing the electronic submission of claims would benefit both claimants and OC San by providing the convenience of electronic transmission and storage of claims. PROPOSED SOLUTION Modify OC San's Ordinance No. OCSD-17 to include that all claims or demands may be presented, and all OC San responses provided, in either physical or electronic format. TIMING CONCERNS The current change to state law took effect January 1, 2021. In light of the current pandemic and OC San's efforts to adopt a paperless environment, we are requesting this change take place as soon as possible. RAMIFICATIONS OF NOT TAKING ACTION OC San would be unable to accept claims or demands electronically. PRIOR COMMITTEE/BOARD ACTIONS December 2001 - Adopted Ordinance No. OCSD-17, entitled: "An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Requirements for the Presentation of Claims or Demand for Payment". ADDITIONAL INFORMATION Minor changes in staff position titles during reorganization, considered housekeeping, are also included in this update. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Draft Ordinance No. OC SAN-55 (redline) • Draft Ordinance No. OC SAN-55 (clean) Orange County Sanitation District Page 2 of 2 Printed on 4/21/2021 powered by LegistarTM ORDINANCE NO. OGSD-1aOC SAN-55 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING REQUIREMENTS FOR THE PRESENTATION OF CLAIMS OR DEMANDS FOR PAYMENT; AND REPEALING ORDINANCE NO. OCSD-17 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation Ddistrict does hereby ORDAIN as follows: Section 1: Claims for Money or Damages. As a prerequisite to bringing suit against the District or any officer, employee, Department or Committee of the Orange County Sanitation District, any claim for money or damages, including claims which would otherwise be expected by Sections 905 and 935 of the Government Code of the State of California, which are not governed by any other statutes or regulations expressly relating thereto, shall be presented and acted upon in accordance with Title 1, Division 3.6, Part 3, Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of the Government Code of the State of California. This Section relates only to bringing of suit upon a claim and shall not be deemed to apply to the authority of the Assistant General Manager/Director of Finance and the Board of Directors to process and pay, in the ordinary course of business, just obligations of the Orange County Sanitation District, such as routine salaries and wages, principal and interest on bonds, payments for purchases, and other like expenditures where there is no dispute as to the obligation and amount being payable. Section 2: Filing of Claims. All claims against the Orange County Sanitation District, as described in Section 1 of this Ordinance, shall be filed with the Board co„ro+!nr.,Clerk of the Board. Section 3. Audit and Approval of Demands. A. Except for claims described in Section 1 of this Ordinance, every demand, invoice, or claim for purchases, supplies, or services (hereinafter "demand"), shall be presented in writing to and approved in writing by the receiving Department Head or officer, who shall certify to the actual delivery or rendition of the supplies, materials, property, or service for which payment is claimed; that the quality and prices correspond with the original specifications in the contract or purchase order upon which the demand is based; that the demand in all other respects is proper and valid and shall further indicate the budgetary account to which such demand is to be changed. XB. All demands may be presented, and all Orange County Sanitation District responses provided, in either physical or electronic format. B-.C. All demands approved by the receiving Department or officer shall be presented to the Assistant General Manager/Director of Finance, who shall satisfy himself or herself as to whether: 1. The amount is legally due and owing by the Orange County Sanitation District; 2. There are budgeted or otherwise appropriated funds available to pay the claim or invoice; 3. The demand conforms to a valid requisition, contract, or purchase order; 4. The prices and computations shown on the demand are verified; and 5. The demand contains the approval of other Departments and officials, as required. G-.D. Payroll warrants and checks and warrants and checks drawn for payment of demands that have been certified by the Assistant General Manager/Director of Finance or the General Manager as conforming to a budget approved by the Board of Directors, need not be approved by the Board of Directors prior to payment. Except for payroll warrants or checks, demands certified by the Assistant General Manager/Director of Finance and paid prior to presentation to the Board of Directors shall be presented to the Board of Directors for inspection and ratification at its first meeting after delivery of warrants or checks. Should the Assistant General Manager/Director of Finance fail to certify a demand as in conformance with the Orange County Sanitation District's budget, no check or warrant shall be issued until the Board of Directors has approved the demand for payment. D.E. Department Heads shall certify or approve Departmental payrolls or attendance records for employees in their Departments. The General Manager or designee(s) shall certify or approve payrolls or attendance records of other officers or employees. Budgeted expenses shall be presented to the Board of Directors for ratification in the form of an audited comprehensive annual financial report prepared by the Assistant General Manager/Director of Finance or his or her designee. F—.G. Following audit of the demands, as set forth in Subsection B of this Section 3, the Assistant General Manager/Director of Finance shall prepare a register of demands showing the claimant's name, the amount of the demand, and if paid, the warrant or check number and date thereof, and shall transmit the register to the Board of Directors with an affidavit stating that: 1. "In accordance with California Government Code Section 37208, the Assistant General Manager/Director of Finance hereby certifies that the attached demand register has been found to conform to the approved budget, expect as noted, and has been paid. These demands are hereby submitted for Board of Directors' inspection and ratification." 2. "In accordance with California Government Code Section 37202, the Assistant General Manager/Director of Finance certifies to the accuracy of the attached register of demands and to the availability of monies for payment thereof. These demands are hereby submitted to the Board of Directors for approval of payment." G H. An annual audit shall be prepared by and independent certified public accountant and submitted to the Board of Directors for review. Section 4: Checks and Warrants. No check, order, or warrant upon the Orange County Sanitation District treasury shall be drawn unless there are sufficient monies in the fund upon which it is drawn. All checks, orders, and warrants upon the Orange County Sanitation District treasury of any money shall bear the signature of the persons authorized by the Board of Directors. Section 5: The Clerk of the Board shall certify to the adoption of this Ordinance and shall cause a summary to be published in a newspaper of general circulation, as required by law. PASSED AND ADOPTED by the Board of Directors of the Orange County Sanitation District at a regular meeting held Oe"emhor 19, 2001 May 26, 2021. David John Shawver Chair, Board of Directors Orange County Sanitation District ATTEST: Kelly A. Lore, MMC Secretary-Qlerk of the Board of Directors Orange County Sanitation District Thernas `nffBradley R. Hogin, General Counsel Orange County Sanitation District 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-55 was introduced for first reading at a regular meeting of said Board on the 28t—" day of April 2021, and passed and adopted at a regular meeting-of-said Board on th 24t" 26t—" day of March May 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,-26t" xx day of March 2021 May 2021. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District ORDINANCE NO. OC SAN-55 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING REQUIREMENTS FOR THE PRESENTATION OF CLAIMS OR DEMANDS FOR PAYMENT; AND REPEALING ORDINANCE NO. OCSD-17 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN as follows: Section 1: Claims for Money or Damages. As a prerequisite to bringing suit against the District or any officer, employee, Department or Committee of the Orange County Sanitation District, any claim for money or damages, including claims which would otherwise be expected by Sections 905 and 935 of the Government Code of the State of California, which are not governed by any other statutes or regulations expressly relating thereto, shall be presented and acted upon in accordance with Title 1, Division 3.6, Part 3, Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of the Government Code of the State of California. This Section relates only to bringing of suit upon a claim and shall not be deemed to apply to the authority of the Assistant General Manager/Director of Finance and the Board of Directors to process and pay, in the ordinary course of business, just obligations of the Orange County Sanitation District, such as routine salaries and wages, principal and interest on bonds, payments for purchases, and other like expenditures where there is no dispute as to the obligation and amount being payable. Section 2: Filing of Claims. All claims against the Orange County Sanitation District, as described in Section 1 of this Ordinance, shall be filed with the Clerk of the Board. Section 3. Audit and Approval of Demands. A. Except for claims described in Section 1 of this Ordinance, every demand, invoice, or claim for purchases, supplies, or services (hereinafter "demand"), shall be presented in writing to and approved in writing by the receiving Department Head or officer, who shall certify to the actual delivery or rendition of the supplies, materials, property, or service for which payment is claimed; that the quality and prices correspond with the original specifications in the contract or purchase order upon which the demand is based; that the demand in all other respects is proper and valid and shall further indicate the budgetary account to which such demand is to be changed. B. All demands may be presented, and all Orange County Sanitation District responses provided, in either physical or electronic format. OC SAN-55-1 C. All demands approved by the receiving Department or officer shall be presented to the Assistant General Manager/Director of Finance, who shall satisfy himself or herself as to whether: 1. The amount is legally due and owing by the Orange County Sanitation District; 2. There are budgeted or otherwise appropriated funds available to pay the claim or invoice; 3. The demand conforms to a valid requisition, contract, or purchase order; 4. The prices and computations shown on the demand are verified; and 5. The demand contains the approval of other Departments and officials, as required. D. Payroll warrants and checks and warrants and checks drawn for payment of demands that have been certified by the Assistant General Manager/Director of Finance or the General Manager as conforming to a budget approved by the Board of Directors, need not be approved by the Board of Directors prior to payment. Except for payroll warrants or checks, demands certified by the Assistant General Manager/Director of Finance and paid prior to presentation to the Board of Directors shall be presented to the Board of Directors for inspection and ratification at its first meeting after delivery of warrants or checks. Should the Assistant General Manager/Director of Finance fail to certify a demand as in conformance with the Orange County Sanitation District's budget, no check or warrant shall be issued until the Board of Directors has approved the demand for payment. E. Department Heads shall certify or approve Departmental payrolls or attendance records for employees in their Departments. The General Manager or designee(s) shall certify or approve payrolls or attendance records of other officers or employees. F. Budgeted expenses shall be presented to the Board of Directors for ratification in the form of an audited comprehensive annual financial report prepared by the Assistant General Manager/Director of Finance or his or her designee. G. Following audit of the demands, as set forth in Subsection B of this Section 3, the Assistant General Manager/Director of Finance shall prepare a register of demands showing the claimant's name, the amount of the demand, and if paid, the warrant or check number and date thereof, and shall transmit the register to the Board of Directors with an affidavit stating that: OC SAN-55-2 1. "In accordance with California Government Code Section 37208, the Assistant General Manager/Director of Finance hereby certifies that the attached demand register has been found to conform to the approved budget, expect as noted, and has been paid. These demands are hereby submitted for Board of Directors' inspection and ratification." 2. "In accordance with California Government Code Section 37202, the Assistant General Manager/Director of Finance certifies to the accuracy of the attached register of demands and to the availability of monies for payment thereof. These demands are hereby submitted to the Board of Directors for approval of payment." H. An annual audit shall be prepared by and independent certified public accountant and submitted to the Board of Directors for review. Section 4: Checks and Warrants. No check, order, or warrant upon the Orange County Sanitation District treasury shall be drawn unless there are sufficient monies in the fund upon which it is drawn. All checks, orders, and warrants upon the Orange County Sanitation District treasury of any money shall bear the signature of the persons authorized by the Board of Directors. Section 5: The Clerk of the Board shall certify to the adoption of this Ordinance and shall cause a summary to be published in a newspaper of general circulation, as required by law. PASSED AND ADOPTED by the Board of Directors of the Orange County Sanitation District at a regular meeting held May 26, 2021. David John Shawver Chair, Board of Directors Orange County Sanitation District ATTEST: Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District Bradley R. Hogin, General Counsel Orange County Sanitation District OC SAN-55-3 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-55 was introduced for first reading at a regular meeting of said Board on the 28t" day of April 2021, and passed and adopted at a regular meeting of said Board on the 261" day of May 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 26th day of May 2021 . Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OC SAN-55-4 Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1604 Agenda Date: 4/28/2021 Agenda Item No: 15. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: PROPOSED ADOPTION OF ORDINANCE NO. OC SAN-56 UPDATING THE PURCHASING ORDINANCE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Introduce Ordinance No. OC SAN-56, entitled: "An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects; and Repealing Ordinance No. OCSD-52"; B. Motion to read Ordinance No. OC SAN-56 by title only and waive reading of said entire Ordinance on April 28, 2021; C. Set May 26, 2021, as the date for the second reading and adoption of Ordinance No. OC SAN -56; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. BACKGROUND The proposed Purchasing Ordinance sets forth the requirements that apply to the Orange County Sanitation District's (OC San) purchase of goods and services. These requirements are currently set forth in Ordinance No. OCSD-52. The proposed Ordinance updates the requirements set forth in Ordinance No. OCSD-52 and clarifies several individual requirements and procedures. The Ordinance, for example, modifies procedures whereby bids can be accepted electronically, and local preference shall be made when awarding a bid with equal lowest bidders. RELEVANT STANDARDS • CA Public Contract Code Section 20783 • CA Government Code Section 4526; 54202 • Ensure the public's money is wisely spent Orange County Sanitation District Page 1 of 3 Printed on 4/21/2021 powered by LegistarTM File #: 2021-1604 Agenda Date: 4/28/2021 Agenda Item No: 15. PROBLEM OC San last updated its Purchasing Ordinance in 2018 and now requires amendments to the existing requirements to improve its efficiency to purchase goods and services required by OC San. PROPOSED SOLUTION Adopt an Ordinance with the new proposed purchasing requirements and authority based on OC San's staff thorough review and analysis of the limitations of the existing Ordinance. TIMING CONCERNS April 2021 - Introduction of the Ordinance to Administration Committee. April 2021 - Introduction and first reading of the Ordinance to the Board of Directors. May 2021 - Second Reading and Adoption of the Ordinance. June 26, 2021 - Ordinance takes effect. RAMIFICATIONS OF NOT TAKING ACTION The existing Purchasing Ordinance will remain in effect without modifications. PRIOR COMMITTEE/BOARD ACTIONS May 2018 - Adopted Ordinance No. OCSD-52, entitled: "An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects; and Repealing Ordinance No. OCSD-47". ADDITIONAL INFORMATION Under Government Code Section 54202, OC San must adopt policies and procedures governing the purchase of supplies and equipment. Government Code Section 4526 applies to the purchase of professional services from private architects, landscape architects, engineers, environmental professionals, land surveyors, and construction managers. Under Section 4526, OC San must select the specified professionals based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. Section 4526 allows OC San to adopt, by Ordinance, procedures ensuring that the specified services are engaged based on demonstrated competence and professional qualifications at fair and reasonable prices. Under Public Contract Code Section 20783, OC San must award contracts for public works construction worth more than $35,000 to the lowest responsive, responsible bidder. Public Contract Code also imposes a variety of requirements on the award of public works construction contracts. Orange County Sanitation District Page 2 of 3 Printed on 4/21/2021 powered by LegistarTM File #: 2021-1604 Agenda Date: 4/28/2021 Agenda Item No: 15. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Draft Ordinance No. OC SAN-56 (redline) • Draft Ordinance No. OC SAN-56 (clean) Orange County Sanitation District Page 3 of 3 Printed on 4/21/2021 powered by LegistarTM ORDINANCE NO. OC SAND-XX5652 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING REQUIREMENTS AND PROCEDURES FOR THE PURCHASE OF GOODS, SERVICES, AND PUBLIC WORKS PROJECTS; AND REPEALING ORDINANCE NO. OCSD- 1288720.1 CONTENTS ARTICLE 1. GENERAL PROVISIONS...................................................................... .6.5 Section 1.01. Purpose and Scope ...................................................................6 F4 A. Purpose ...............................................................................................65 B. Scope...................................................................................................65 Section1.02. Title .............................................................................................65 Section 1.03. Definitions ...................................................................................65 Section 1.04. Rules and Guidelines..................................................................65 Section 1.05. Budgeted Funds..........................................................................76 Section 1.06. The Purchasing Manager............................................................76 A. Duties.................................................................................................. 76 B. Requests for Procurement...............................................................76 Section 1.07. Exceptions to Competitive Selection ..........................................76 A. Sole Source Procurement. ............................................................. 76 B. Emergency Procurement...................................................... 87- Section 1.08. Evaluation Committees................................................... ............................................................................................................................... 97 Section 1.09. Severability..................................................................... ............................................................................................................................9 ARTICLE 2._ GOODS AND SERVICES ..................................... Section 2.01. Purpose and Scope..........................................................-97- A. Purpose. ..........................................................................................9-7 B. Scope. .............................................................................................99 Section 2.02. Selection Process............................................................ 10 A. Competitive Sealed Bids................................................................ ........................................................................................................10 6 B. Equal Bids OCSD-520C SAN-XX-2 ........................................................................................................10 8 C. Multi-Step Sealed Bidding ....................................................................................................... 10 D. Request for Proposals ....................................................................................................... 11 Section 2.03. Exceptions ..........................................................................................................................11 A. Small Procurements ....................................................................................................... 11 B. Cooperative Purchases................................................................... 1n 11 C. Critical Time-Sensitive Procurements ......................................................................................................... 12 Renewals.......................................................................... 1 E. Sole Source and Emergency Procurements ............................... 120 F. Master Contracts; Maintenance and Repair Services Less Than or Equal to $300,000.......................................................... 120 ARTICLE 3. PROFESSIONAL SERVICES............................................................. 132 Section 3.01. Purpose and Scope................................................................. 132 A. Purpose ....................................................................................... 132 B. Scope ....................................................................................... 132 Section 3.02. Selection Process.................................................................... 142 A. Request for Proposals ................................................................. 142 B. Evaluation and Rankinrl of Proposals.......................................... 142 C. Negotiation of Contract................................................................ 143 Section 3.03. Exceptions ............................................................................... 15- A. Sole Source and Emergency Procurements ............................... 15- B. Contractors Reporting to the Board............................................. 15-3 C. Procurements of $10,000 or less ................................................ 150 OCSD-52OC SAN-XX-3 D. Master Contracts; Professional Services Less Than or Equal to $100,000.................................................................................. 153 E. Master Contracts: Professional Services Qualified Lists.............. 150 ARTICLE 4. PROFESSIONAL DESIGN SERVICES .............................................. 170 Section 4.01. Purpose and Scope................................................................. 175 A. Purpose ....................................................................................... 170 B. Scope .......................................................................................175 Section 4.02. Selection Process ................................................................... 170 A. Competitive Selection.................................................................. 170 B. Professional Design Services Greater Than $300,000............... 175 C. Master Contracts: Professional Design Services Less Than or Equal to $300,000 ................................................................... 197 Section 4.03. Exceptions............................................................................... 219 A. Sole Source and Emergency Procurements ............................. 214-9 B. Additionai Services............................................ 214-9 C. Procurements of $10,000 or less............................................... 214-9 ARTICLE 5. PUBLIC WORKS PROJECTS............................................................. 220 Section 5.01. Purpose and Scope................................................................. 220 A. Purpose ....................................................................................... 220 B. Scope.......................................................................... .................................................................................................... 22 Section 5.02. Selection Process............................................................ .......................................................................................................................... 220 A. Design-Bid-Build..............................................................................220 B. Design-Build ....................................................................................224 C. Prequalification...................................................................................242 Section 5.03. Exceptions ..........................................................................................................................25 A. °. .................................................................. Emergencies and Calamities .......................................................................................................2 S. ...............................................Specification of Brand or Trade Name ................................................................................................... 2 ARTICLE 6. PROTESTS OCSD-52OC SAN-XX-4 2 Section 6.01. Solicitation Protests ......................................................................................................................... 26 Section 6.02. Award Protests ......................................................................................................................... 27 6 Section 6.03. Delay in Award ......................................................................................................................... 27 6 Section 6.04. Remedies ................................................................................... 286 Section 6.05. Public Documents ....................................................................... 286 ARTICLE 7. DELEGATION OF AUTHORITY TO AWARD CONTRACTS................... 286 Section 7.01. Award Authorization .................................................................... 286 A. Delegation by General Manager ..................................................... 286 B. Original Contracts and Contingencies ............................................. 297 C. Amendments, Change Orders, Renewals, Time Extensions & Assignments .................................................................................. 297 Section 7.02. Contingency Release ......................................................................................................................... 302 Section 7.03. Task Orders ......................................................................................................................... 312 ARTICLE8. ETHICS ..........................................................................................................320 Section 8.01. Unlawful Consideration Prohibited.................................................320 Section 8.02. Conflicts of Interest. .................................................................... 330 A. Compliance with the Political Reform Act........................................330 B. Compliance with Government Code § 1090 ...................................334 C. RequirementsApplicabletoConsultants.........................................334 ARTICLE 9. DEFINITION ...............................................................................................334 ARTICLE 10. MISCELLANEOUS................................................................................376 Section 10.01. Noncompliance...............................................................................376 Section 10.02. Effective Date ...........................................................................376 Section 10.03. Repeal of Ordinance No. OCSD-427..................................... 376 Section 10.04. Certification and Publication .................................................. 376 OCSD-52OC SAN-XX-5 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: ARTICLE 1. GENERAL PROVISIONS Section 1.01. Purpose and Scope A. Purpose. This Ordinance is intended to: (1) Comply with certain provisions of State law requiring the Sanitation District to adopt written purchasing procedures; (2) Ensure that the Sanitation District complies with State law governing the award of Contracts for Goods, Services, and Public Works Projects; (3) Establish procedures to ensure that the Sanitation District obtains quality goods and competent services at the best price and/or the best value; (4) Delegate certain spending authority to Sanitation District employees in the interest of efficient administration; (5) Ensure that purchasing decisions are transparent for the public; and (6) Ensure that Contracts are awarded through a process that is fair to prospective Contractors and in the best interests of the Sanitation District. B. Scope. This Ordinance governs the purchase of Goods, Services and the award of Contracts for Public Works Projects. Section 1.02. Title This Ordinance may be referred to as the Sanitation District's "Purchasing Ordinance." Section 1.03. Definitions As used throughout this Ordinance, the terms set forth in Article 9 shall have the meanings as defined therein, unless the context in which they are used clearly requires a different meaning, or a different definition is prescribed for a particular Article or provision. Section 1.04. Rules and Guidelines The General Manager shall implement the requirements of this Ordinance through policies, rules, and guidelines governing the purchase of Goods and Services, and the award of Contracts for Public Works Projects. QGSD 520C SAN-XX-6 Section 1.05. Budgeted Funds No Contract for the purchase of Goods, Services, or Public Works Projects shall be awarded unless and until the General Manager identifies funds in the current budget that are allocated to the purchase. Section 1.06. The Purchasing Manager A. Duties. Consistent with the provisions of this Ordinance, the Purchasing Manager shall: (1) Conduct the procurement of all Goods, Services, and Public Works Projects purchased by the Sanitation District; and receive from Contractor all bids, proposals or other solicitation results; (2) Supervise and control inventories of supplies and materials. (3) Determine the type of procurement, term of the contract including number of renewals and any other contractual provisions necessary and in the best interest of the Sanitation District. B. Requests for Procurement. When a Department desires to procure Goods and/or Services, the Department Director shall file a written Requisition, in advance of a procurement process, with the Purchasing Manager. The Requisition shall describe the Goods and/or Services to be acquired. Public Works procurements require a complete Engineering Budget Approval Form or equivalent document. Section 1.07. Exceptions to Competitive Selection Depending on the nature of the Contract and/or the circumstances, certain provisions of this Ordinance require that Contracts for Goods and/or Services be awarded based on Competitive Sealed Bids or Competitive Sealed Proposals. This Section 1.07 establishes certain general exceptions to competitive selection requirements for the procurement of Goods and Services. The exceptions set forth in this Section 1.07 do not apply to the award of Contracts for the construction of Public Works Projects. A. Sole Source Procurement. Notwithstanding any other provision of this Ordinance, a Contract for Goods and/or Services may be awarded based on Sole Source Procurement, without soliciting bids or proposals as might otherwise be required, if the General Manager or his designee determines in writing that it is in the best interest of the Sanitation District to award the Contract because the Goods and/or Services are (1) of a unique nature based on their quality, durability, availability, fitness or qualifications for a particular use; or (2) only available from one source. OGSD-520C SAN-XX-7 B. Emergency Procurement. Notwithstanding any other provision of this Ordinance, a Contract for Goods and/or Services may be awarded through Negotiated Procurement, without soliciting bids or proposals as might otherwise be required, if the General Manager or his designee determines in writing that the Sanitation District urgently needs the Goods and/or Services in order to respond effectively to an emergency. For purposes of this Section 1.07, emergency procurements are those purchases that are required to prevent immediate interruption or cessation of necessary services or to safeguard life, property, or the public health and welfare. In addition, emergency procurements as used in this Section also include critical time sensitive purchases where time is of the essence, and the Sanitation District does not have sufficient time to solicit bids or proposals. For emergency procurements greater than $100,000, the General Manager shall obtain the concurrence of the Chair of the Sanitation District's Board of Directors or, if the Chair is unavailable, the Vice Chair, and such action shall be ratified by the Board of Directors at its next regular meeting. OGSD-a2OC SAN-XX-8 Section 1.08. Evaluation Committees Evaluation committees convened in connection with procurements under this Ordinance shall generally be composed of full-time Sanitation District employees. In exceptional circumstances, however, the General Manager may appoint one or more persons not employed by the Sanitation District to an evaluation committee if the General Manager determines that (1) evaluating proposals in connection with a particular procurement requires specialized expertise not available among Sanitation District employees; (2) the procurement will impact another agency, and that agency desires to place a representative on the evaluation committee; or (3) it is otherwise in the Sanitation District's interest to do so. Section 1.09. Severability If any provision of this Ordinance, or any application thereof to any person or circumstance, is held invalid, such invalidity shall not affect any other provision of this Ordinance or application to any person or circumstance which can be given effect without the invalid provision or application. The provisions of this Ordinance are declared to be severable. ARTICLE 2. GOODS AND SERVICES Section 2.01. Purpose and Scope A. Purpose. California Government Code Sections 54202 et seq. requires the Sanitation District to adopt written policies and procedures, including bidding requirements, governing the purchase of Goods and Services. This Article is intended to comply with Section 54202. B. Scope. The provisions of this Article 2 apply to Contracts for the purchase of Goods and Services other than Contracts for Professional Services (governed by Article 3) Professional Design Services (governed by Article 4), and Contracts for Public Works Projects (governed by Article 5). Section 2.02. Selection Process Subject to the exceptions set forth in Section 2.03, the award of Contracts for the OGSD-a2OC SAN-XX-9 purchase of Goods and Services shall be based on the competitive procurement methods set forth below. A. Competitive Sealed Bids. For each procurement, the Purchasing Manager shall: �.LlLPublish a Notice Inviting Bids that contains (a) a description of the Goods and/or Services required, (b) a description of the selection process, (c) bidder's security requirement, if applicable, (d) performance bond requirements, if applicable, and (e) such provisions, renewals, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager determines are necessary, desirable, and/or advantageous to the Sanitation District; Receive the Competitive Sealed Bids publicly at the time and place designated in the Notice Inviting Bids, open all bids concurrently, and record the amount of each bid; and &..Determine whether the bids are responsive to the Notice Inviting Bids. +v-. 4 Award: After the bids are opened, take one of the following actions: M a1 Award the Contract to the lowest Responsive and Responsible Bidder; {2)L�L Reject any and all bids presented and/or re-advertise the bid; or Declare that the Goods and/or Services may be acquired at a lower cost by negotiation in the open market and authorize the procurement in that manner. Equal Bids. if two or mere Respenoihle Bidders the same lowest bid, gi the DiStrin+ ma 0 m in its dic en, aGG t either hid er a le � er hid any, as may be r btained e e ref the bidders thre ,nh negetiati„n.lf the Sanitation District determines that there has been a tie for lowest responsive bid between two or more bids received, which are for the same total amount or unit price and in all other respects equal, then the Sanitation District may award the bid based on Local Preference. If neither or both bidders are Local Businesses, the Sanitation District shall award the bid based on the drawing of lots. C. Multi-Step Sealed Bidding. The Purchasing Manager may determine that a prequalification process is necessary and desirable for a particular procurement. The multi-step sealed bidding process requires the Purchasing Manager to (1) issue a Request for Qualifications requesting the submission of qualifications; and (2) issue a OCSD-52OC SAN-XX-10 subsequent Notice Inviting Bids for priced offers from those Contractors whose initial submissions were deemed qualified under the criteria set forth in the initial Request for Qualifications. Award under this process shall be based on the lowest Responsive and Responsible Bidder. D. Request for Proposals. If the Purchasing Manager determines in writing that the Competitive Sealed Bids procedure is not practical and/or not advantageous for the Sanitation District in a particular case, one or more Contracts subject to this Article may be awarded based on Competitive Sealed Proposals. The Request for Proposals process may be used (1) for Goods and/or Services that prove difficult to quantify or describe, where proposers are provided the opportunity to offer different approaches or solutions; and/or (2) for critical, routine or recurring goods or services that require consideration of the broadest possible range of competing services, products and materials available, fitness of purpose, performance reliability, standardization, life cycle costs, delivery timetables, reliable supply, support logistics, diversification of available sources and/or other similar factors in addition to the price in the award of these contracts. Award under this process shall be based upon criteria that provide the best value for the Sanitation District, wherein best value is not solely determined by price. Section 2.03. Exceptions A. Small Procurements. (1) Procurements of $10,000 or Less. Contracts subject to this Article 2 with an estimated value of $10,000 or less may be awarded without Competitive Sealed Bids if the Purchasing Manager determines that a Competitive Sealed Bids process would not result in a lower overall cost to the Sanitation District. (2) Procurements of $50,000 or Less. Contracts subject to this Article 2 with an estimated value of $50,000 or less may be awarded by (a) soliciting at least three bids from identified vendors, and (b) awarding the Contract to the lowest Responsive and Responsible Bidder. If the Purchasing Manager cannot obtain at least three bids, the Contract may be awarded to the lowest Responsive and Responsible Bidder as long as the Purchasing Manager determines that the bid amount is fair and reasonable. 4 -Piecemealing Prohibited. Procurements shall not be artificially divided into different individual Contracts so as to keep each Contract amount below one of the monetary thresholds set forth in this Part A. OGSD-a2OC SAN-XX-11 i B. Cooperative Purchases. When another public agency or government purchasing cooperative organization has awarded a Contract for Goods and/or Services based on Competitive Sealed Bids or Competitive Sealed Proposals, and the agency or organization followed a process substantially similar to the process described in Section 2.02, the Sanitation District may acquire Goods and/or Services under that Contract without obtaining Competitive Sealed Bids or Competitive Sealed Proposals. The Sanitation District may enter into Contracts with other public agencies, government purchasing cooperative organizations within the United States, and/or Contractors for this purpose. C. Critical Time-Sensitive Procurements. The Purchasing Manager may purchase Goods and/or Services through Negotiated Procurement if the Purchasing Manager determines that time is of the essence in the purchase of the Goods and/or Services. For critical time- sensitive procurements valued at more than $100,000, the General Manager shall obtain the concurrence of the Chair of the Sanitation District's Board of Directors or, if the Chair is unavailable, the Vice Chair. D. Renewals. The Purchasing Manager may exercise any options to renew as may be included in existing Contracts without observing the bidding procedures prescribed in Section 2.02 and Section 2.03 E. Sole Source and Emergency Procurements. A Contract for the purchase of Goods and/or Services may be awarded without soliciting competitive bids if any of the exceptions set forth in Section 1.07 apply. F. Master Contracts; Maintenance and Repair Services Less Than or Equal to 300 000. The Purchasing Manager may purchase maintenance and repair Services estimated to cost less than or equal to $300,000 through the master contract procedures set forth below. (1) Request for Qualifications. If a master contract is let for maintenance and repair Services, then at least once every three (3) years, the Purchasing Manager shall prepare and distribute a Request for Qualifications for the maintenance and repair Services required by the Sanitation District. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether suppliers or firms are eligible for the prequalified list. The Request for Qualifications shall require the following information, 9SSD-52OC SAN-XX-12 at a minimum, from proposers: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of Service needed; (b) The experience, training, and skills of the key personnel that will perform and manage the work for the Sanitation District; (c) The firm's capacity and resources to perform the Services required within the specified period of time. The firm must demonstrate that it will provide a sufficient number of qualified staff, equipment, and facilities as applicable. (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of the Department requesting the Procurement shall appoint the remaining members. Each evaluation committee shall determine whether each supplier or firm has the demonstrated competence and qualifications to provide the Services necessary for the satisfactory performance of the Services required. (3) Lists. Based on the recommendations of the evaluation committee, with the concurrence of the Department Director, the Purchasing Manager shall establish a list of at least three (3) prequalified Contractors. If the Sanitation District uses its best efforts to outreach to potential Contractors, and cannot obtain the minimum of three (3) prequalified Contractors, the Purchasing Manager shall document the outreach and responses received. The Sanitation District may then proceed with award to fewer than three (3) prequalified firms. Each list shall be used for a maximum of three (3) years. No later than three (3) years after establishing a prequalified list, the Purchasing Manager must issue a new Request for Qualifications and establish a new 4-4, iflist if such goods and/or services are required. (4) Master Contract. Master Contracts with firms on the prequalified list shall be awarded by the Board of Directors in the amount not to exceed the program budget approved by the Board of Directors. The original term of such Contracts shall be for one (1) year, with an option to renew each Contract for up to two (2) additional one-year renewal periods. (5) Task Orders. The Department Director shall notify the Purchasing Manager when Services subject to this subsection 2.03(F) are required for a maintenance or repair project. Proposals shall be solicited from all the firms on the prequalified list and one of the firms shall be selected pursuant to the process set forth in Section 2.02. Individual Task Orders in an amount not to exceed $300,000 will be awarded for each project. OGSD-a2OC SAN-XX-13 ARTICLE 3. PROFESSIONAL SERVICES Section 3.01. Purpose and Scope A. Purpose. This Article 3 is intended to ensure that the Sanitation District retains obtains Professional Services at fair and reasonable prices based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. B. Scope. The provisions of this Article 3 apply to the award of Contracts for Professional Services and incidental services that members of a Professional Service firm, and those in their employ, may logically perform. The provisions of this Article 3 do not apply to the award of Contracts for Professional Design Services (governed by Article 4). Section 3.02. Selection Process Contracts for Professional Services shall be awarded pursuant to the following procedures: A. Request for Proposals. The Purchasing Manager shall prepare a Request for Proposals in consultation with the Director of the Department requesting the Procurement. The Purchasing Manager, with the concurrence of the Director of the Department requesting the Procurement, may select a limited number of Professional Service firms to receive the Request for Proposals. The Purchasing Manager may issue a Request for Qualifications to prospective Contractors as a means of identifying prospective recipients. The Purchasing Manager may publish notice of the Request for Proposals or Request for Qualifications. B. Evaluation and Ranking of Proposals. All responsive proposals shall be evaluated and ranked, from most qualified to least qualified, based on each firm's demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. The Purchasing Manager may establish a committee to conduct the evaluation. The Purchasing Manager or evaluation committee, if any, may disGuss ewe" prop communicate with 4-a �r proposal's author to seek clarification or otherwise obtain relevant information. OGSD-a2OC SAN-XX-14 C. Negotiation of Contract. The Purchasing Manager shall negotiate a Contract with the firm deemed to be most qualified at a price that the Purchasing Manager, with the concurrence of the Director of the Department requesting the Procurement, deems to be fair and reasonable. If the Purchasing Manager determines that it is in the best interest of the Sanitation District to enter into Contracts with two or more firms, the Purchasing Manager shall negotiate with the desired number of firms starting with the most qualified. The Purchasing Manager shall proceed down the list from most to least qualified until he or she has concluded negotiations with the desired number of firms at fair and reasonable prices. The Sanitation District may, in its sole discretion, reject all proposals. Section 3.03. Exceptions A. Sole Source and Emergency Procurements. A Contract for Professional Services may be awarded without soliciting Competitive Sealed Proposals if the Purchasing Manager makes one of the determinations set forth in Section 1.07. B. Contractors Reporting to the Board. The provisions of this Article 3 shall not apply to the retention of Professional Service firms or individuals that are selected by the Board and report directly to the Board. For such Contracts, the Board shall determine the method of selection, consistent with the requirements of applicable law. C. Procurements of$10,000 or less. Contracts subject to this Article 3 with an estimated value of $10,000 or less may be awarded without following the Request for Proposal/Request for Qualifications process if the Purchasing Manager determines that an RFP/RFQ process would not result in a lower overall cost to the Sanitation District. D. Master Contracts; Professional Services Less Than or Equal to $100,000. The Purchasing Manager may purchase Professional Services estimated to cost less than or equal to $100,000 through the master contract procedures set forth in Section 2.03(F), provided that individual task orders shall not exceed $100,000 for each project. OGSD-520C SAN-XX-15 E. Master Contracts: Professional Services Qualified Lists. The Purchasing Manager may establish qualified lists of Professional Services through the master contract procedures set forth below. (1) Request for Qualifications. If a master contract is let for Professional Services, the Purchasing Manager shall prepare and distribute a Request for Qualifications for the Professional Services required by the Sanitation District. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether firms are eligible for the qualified list. The Request for Qualifications shall require the following information, at a minimum, from proposersfirms: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of Service needed; (b) The experience, training, and skills of the key personnel that will perform and manage the work for the Sanitation District; (c) The firm's capacity and resources to perform the Services required within the specified period of time. The firm must demonstrate that it will provide a sufficient number of qualified staff, equipment, facilities or other requirements as applicable. (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of the Department requesting the Procurement shall appoint the remaining members. Each evaluation committee shall determine whether each firm has the demonstrated competence and qualifications to provide the Services necessary for the satisfactory performance of the Services required. (3) Lists. The Purchasing Manager in conjunction with the Department Director shall determine the number of firms needed on the list based on anticipated work. If the Sanitation District uses its best efforts to outreach to potential Contractors, and cannot obtain the minimum number of firms specified in the RFQ, the Purchasing Manager shall document the outreach efforts and responses to the procurement file. The Sanitation District may proceed with award to fewer firms. No later than three five (53) years after establishing a qualified list, the Purchasing Manager must issue a new Request Q alifiGatiensRFQ and establish a new list, if such services are still required. (4) Master Contract. Master Contracts with firms on the qualified list shall be awarded by the Board of Directors in the amount not to exceed the program budget approved by the Board of Directors. The original term of such Contracts shall be for one three (34-) years, with an option to renew each Contract for up to two (2) additional one-year renewal periods. (5) Task Orders. The Department Director shall notify the Purchasing Manager when Services are subject to this subsection 3.03(E). The Purchasing OCSD-52OC SAN-XX-16 Manager shall follow a competitive selection process or cycle through on a rotation basis to one firm at a time. The Request for Qualifications shall specify any competitive process and/or rotation selection process, including selection of a single firm due to a unique qualification or circumstance, subject to the best interests of the Sanitation District in any particular case. F. Renewals. The Purchasing Manager may exercise any options to renew as may be included in existing Contracts without initiating the procurement procedures prescribed in Section 3.02 and Section 3.03. ARTICLE 4. PROFESSIONAL DESIGN SERVICES Section 4.01. Purpose and Scope A. Purpose. This Article 4 is intended to ensure that the Sanitation Districtretains obtains Professional Design Services at fair and reasonable prices based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. B. Scope. This Article 4 applies to the selection of Contractors for Professional Design Services. Section 4.02. Selection Process A. Competitive Selection. All Professional Design Services estimated to be greater than $300,000 shall be awarded based on Competitive Sealed Proposals. All Professional Design Services with an estimated value of $300,000 or less shall have a separate selection process based upon a master contract procedure whereby the Sanitation District shall solicit Gempetit+ve—Seale' PrepesalsStatements of Qualifications and award one or more master contracts not to exceed $600,000 per year. OGSD 520C SAN-XX-17 B. Professional Design Services Greater Than $300,000. The requirements set forth in this subsection 4.02(B) shall apply to the purchase of Professional Design Services estimated to cost more than $300,000. (1) Annual List. Each Director of a Department that utilizes Professional Design Services s#a4 ay file annually with the Purchasing Manager a list of specific disciplines for which Professional Design Services may be required. The Purchasing Manager may from time to time prepare and distribute a Request for Qualifications for the professional disciplines or project design services required by the Sanitation District subject to this Part B. For each Request for Qualifications issued, the Purchasing Manager shall evaluate the responses, identify qualified firms, and maintain the responses of the qualified firms on file to be used in the Request for Proposals process described below. (2) Request for Proposals. The Purchasing Manager, in consultation with the Director of Engineering, shall issue a Request for Proposals for the Professional Design Services requested. Multiple projects may be bundled into one Request for Proposals such that multiple Contract awards may result from one Request for Proposals and selection may be based upon specialized services. (3) Content of Request for Proposals. Each Request for Proposals shall describe the Professional Design Services required and the selection process. Each Request for Proposals shall also set forth such provisions, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager, in consultation with the Director of Engineering, determines are necessary, desirable, and/or advantageous to the Sanitation District. Each Request for Proposals shall require that proposals contain, at a minimum, the following information: (a) The firm's qualifications for performing the proposed work. (b) The firm's relevant experience and performance on similar projects. (c) The firm's ability to complete the work within the time allotted. (d) The personnel that will be assigned to the project. (e) The estimated number of hours that each member of the team will spend on the project. (f) A statement that the firm's engagement for the project would not create a conflict of interest. (g) Any other information required to properly evaluate the firm's qualifications and experience with similar projects. OGSD-a2OC SAN-XX-18 (h) Proposals for construction management services shall demonstrate that the designated personnel have expertise and experience in construction project design review and evaluation, construction mobilization and supervision, bid evaluation, project scheduling, cost- benefit analysis, claims review and negotiation, and general management and administration of construction project. (i) A fee proposal, based on the method of compensation specified in the Request for Proposal, and an estimate of total fees, enclosed in a separately sealed envelope. Commonly used methods of compensation for Professional Design Service Contracts include (i) cost plus fixed fee with a maximum amount; (ii) per diem rate(s) with a maximum amount; (iii) a lump sum (fixed) fee; and (iv) cost of time and materials. (4) Publication of Request for Proposals. The Sanitation District shall pubfiEize publish each Request for Proposals by two or more of the following methods: (a) Advertising in print or electronic media; and/or (b) Mailing the Request for Proposals to each firm that has been identified as a qualified firm as set forth in subsection 4.02(B)(1)whe has submitted a Statement of Q ialifination �,���--��«�� ���,,s; and/or (c) Mailing the Request for Proposals to each vendor registered in the applicable category, based on the services identified in the Request for Proposals, in the Sanitation District's on-line vendor database. (5) Staff Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the proposals. (a) Management and Composition. The Purchasing Manager shall serve as chair of the evaluation committee. The Director of Engineering shall appoint the other members of the committee. (b) Ranking of Firms. All proposals shall be evaluated and ranked, from most qualified to least qualified, based on each firm's demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. (c) Interviews. At its discretion, the evaluation committee may interview one or more of the firms that have submitted proposals. (d) Report. The evaluation committee shall prepare a written report for the Purchasing Manager and the Director of Engineering setting forth, at a minimum, the ranking of firms from most qualified to least qualified. (6) Negotiations. The Purchasing Manager and the Director of Engineering shall OGSB-52OC SAN-XX-19 negotiate a Contract with the firm that the evaluation committee deems to be most qualified. Fee proposals shall not be opened until the most qualified highest ranked proposer is identified. Only the highest ran most qualified proposer's fee proposal will be opened. If those negotiations fail, the Purchasing Manager shall negotiate with the second most qualified firm, and so on, until an agreement is reached. The Purchasing Manager shall proceed down the list from most to least qualified until he or she has concluded negotiations with the desired number of firms at fair and reasonable prices. The Director of Engineering shall make a written determination that the negotiated fee is fair and reasonable. All unopened price proposals will remain unopen in the Sanitation District's web-based systembe returned to the firm that s bmitt it. The Sanitation District may, in its sole discretion, reject all proposals. C. Master Contracts; Professional Design Services Less Than or Equal to $300,000. The requirements set forth in this subsection 4.02(C) shall apply to the purchase of Professional Design Services estimated to cost less than or equal to $300,000 for each individual project. (1) Request for Qualifications. At least once every fivethree (53) years, the Purchasing Manager shall prepare and distribute a Request for Qualifications for each professional discipline or project design service_ required by the Sanitation District subject to this subsection. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether firms are eligible for the prequalified list. The Request for Qualifications shall require the following information, at a minimum, from prepesersfirms: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of services needed; (b) The education, experience, training, and skills of the key personnel that will perform and manage the work for the Sanitation District; (c) The firm's capacity and resources to deliver the services required within the specified period of time, including but not limited to a sufficient number of qualified staff, computer hardware, computer software, special equipment and facilities as applicable; and (d) The proximity of the firm's office(s) to the Sanitation District, the specific location of key personnel, and the firm's experience and familiarity with the operation of local government. (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of Engineering shall appoint the remaining members. Each evaluation committee shall determine whether each firm has the demonstrated competence and professional qualifications necessary for the satisfactory OCSB-52OC SAN-XX-20 performance of the services required. (3) Lists. Based on the recommendations of the evaluation committee, with the concurrence of the Director of Engineering, the Purchasing Manager shall establish a list of prequalified Contractors within each discipline/category. The RFQ will identify the number of anticipated firms on the prequalified list. The Purchasing Manager in conjunction with the Director of Engineering shall determine the number of firms needed on the list based on anticipated work. If the Sanitation District cannot obtain the minimum number of firms specified in the RFQ, the Purchasing Manager shall record the outreach efforts and responses to the procurement file. The Sanitation District may proceed with award to fewer firms. Each list shall be used for a maximum of 5 (five)3 years. No later than 5 five 3 years after establishing a prequalified list for each service, the Purchasing Manager shall issue a new Request for Qualifications and establish a new list if such services are still required. (4) Master Contract. Master Contracts with firms on the prequalified list shall be awarded by the Board of Directors in an amount not to exceed $600,000 per year. The original term of such Contracts shall be for op,-3 three years, with an option to extend each Contractfor up to two (2)additional one-year renewal periods. (5) Task Orders. The Director of Engineering shall notify the Purchasing Manager when Professional Design Services subject to this subsection are required for a project. Proposals shall be solicited, with price proposals submitted in a separate sealed envelope, from at least two firms on the prequalified list and one of the firms shall be selected pursuant to the process set forth in subsections 4.02(B)(5) and 4.02(B)(6). In determining which firms will be invited to submit proposals, the Purchasing Manager shall follow the selection or rotation process, if any, set forth in the Request for QUalifiGatiGp,saLoposals, subject to the best interests of the Sanitation District in any particular case. Individual Task Orders in an amount not to exceed 300,000 will be awarded for each project. The Director of Engineering shall make a written determination that the neaotiated fee isfair and reasonable for the task. For Task Orders estimated to cost $25,000 or less, the Director of Engineering, with concurrence of the Purchasing Manager, may solicit a proposal from 1 (one)firm on the prequalified list. The price proposal shall be submitted in a separate sealed envelope. The Director of Engineering shall issue a written determination that (i) identifies the basis for selection, including but not limited to the specialized qualifications of the 1 (one) firm, and (ii) states that the negotiated price is fair and reasonable. Section 4.03. Exceptions A. Sole Source and Emergency Procurements. OOSs-520C SAN-XX-21 Contracts for Professional Design Services may be awarded without soliciting Competitive Sealed Proposals if the Purchasing Manager makes one of the determinations set forth in Section 1.07. B. Additional Services. A new contract for additional services related to work already performed under an existing Contract for Professional Design Services may be awarded without observing the Wig-procurement procedures prescribed in subsection 4.02(B) or subsection 4.02(C), as applicable. In connection with any such new contract, the Director of Engineering shall determine in writing that (1) it is in the Sanitation District's best interests to have the original firm perform additional, related services, and (2) the negotiated price isfair and reasonable. C. Procurements of$10,000 or less. Contracts subject to this Article 4 with an estimated value of$10,000 or less may be awarded without following the Request for Proposal/Request for Qualifications process if the Purchasing Manager determines that an RFP/RFQ process would not result in a lower overall cost to the Sanitation District. ARTICLE 5. PUBLIC WORKS PROJECTS Section 5.01. Purpose and Scope A. Purpose. This Article 5 is intended to implement state statutes that govern the Sanitation District's award of construction Contracts for Public Works Projects. B. Scope. This Article 5 applies to the Sanitation District's award of Contracts for the construction of Public Works Projects exceeding $35,000 other than sewerage maintenance or repair projects pursuant to Public Contract Code section 20783 (Projects estimated at $35,000 or less, and sewerage maintenance or repair projects, may be processed pursuant to Article 2). Section 5.02. Selection Process OGSD-520C SAN-XX-22 A. Design-Bid-Build. (1) Competitive Sealed Bids. For projects subject to Public Contracts Code section 20783, the Sanitation District shall select firms for Public Works Projects pursuant to the process described in this subsection 5.02(A). (a) Notice Inviting Bids. For each prospective Contract, the Purchasing Manager shall publish a nNotice ifnviting Bids as required by Public Contract Code Section 20783. �4—Manner of Publication. Each nNotice ifnviting b9ids shall be published in a newspaper of general circulation at least 10 days before the date for the opening of bids consistent with the requirements set forth in Public Contracts Code section 20783, as may be amended or superseded from time to time. Additionally, the Sanitation District may publish each notice inviting bids —on industry bulletin boards, the Sanitation District's on-line vendor database, and/or on the Sanitation District's website. atl ast 1 days before the iQate�rthe opaRiRg of bids GORsisteRt with the Teq_+re�eRts set forth in Dublin Contrartc��seGtiOR 20783, may he amended or superseded from time to time (I� (ii) Contents. Each Notice Inviting Bids shall: 1. Establish a deadline for the receipt of bids that is at least 10 calendar days after the first publication of the Notice Inviting Bids. 2. Provide that the Sanitation District, in its sole discretion, may reject any and all bids; 3. Set forth a procedure that shall be followed in the event of a tie between the lowest Responsive and Responsible bidders; 4. Require bidders to post a bidder's security; 5. State that if a Contract is awarded to the bidder, a payment bond is required pursuant to Civil Code section 9550, as well as a performance bond; 5. 6. Contain detailed plans and specifications for the project. Subject to the exceptions set forth in subsection 5.03(B), the specifications shall not call for a designated material, product, thing, or service by specific brand or trade name OGSD-520C SAN-XX-23 unless the Sanitation District complies with the requirements under California Public Contract Code section 3400 et seq.; and 7. Contain whatever provisions, consistent with this Ordinance, the Purchasing Manager determines are necessary, desirable, and/or advantageous to the Sanitation District. (b) Bid Opening, The Purchasing Manager shall open the bids publicly in the presence of one or more witnesses at the time and place designated in the Notice Inviting Bids. A web-based system may be used in lieu of in person bid opening. The Purchasing Manager shall record the amount of each bid together with the name of each bidder. This record, and each bid, shall be considered public records and shall be available to the public at the point in time specified in the Notice Inviting Bids and consistent with the Public Records Act. (c) Rejection of Bids. The Sanitation District may reject all bids received for a particular project and: (i) Re-advertise for bids;or (ii) Authorize construction of the project through a Negotiated Procurement of day labor and/or materials or supplies, if the Board adopts a resolution by a four-fifths vote declaring that (i) the work can be performed more economically by day labor, and/or (ii) the materials or supplies can be obtained at a lower price in the open market. (d) No Bids. If the Sanitation District does not receive any responsive and responsible bids for a particular project, the Sanitation District's Board of Directors may authorize the Purchasing Manager to conduct a Negotiated Procurement, and present his or her recommendation to the Board for approval. (e) Award to Lowest Responsive and Responsible Bidder. Unless the Sanitation District rejects all bids, the Contract shall be awarded to the lowest Responsive and Responsible Bidder. if two or more Responsible Bidders submit the same lowest bid, the DiStriGt may, i aivretien, aGGept either hid or a !ewer hid! if any, as may he ebtai from ene of the love-st bidders through ne`retiatien If the Sanitation District determines that there has been a tie for lowest responsive bid between two or more bids received, which are for the same total amount or unit price and in all other respects equal, then the Sanitation District may award the bid based on Local Preference. If none or all bidders are Local Businesses, the Sanitation District shall award the bid based on the drawing of lots, identifying each eligible bidder on individual slips of OGSD-520C SAN-XX-24 paper and then randomly drawing one of the slips of paper. If the lowest Responsive and Responsible Bidder refuses to enter into a Contract, then the lowest Responsive and Responsible Bidder shall forfeit its bidder's security, and the Contract shall be awarded to the next lowest Responsive and Responsible Bidder. B. Design-Build. As may be authorized by the Public Contract Code or other statute, the Sanitation District may utilize a design-build selection process for the award of Public Works Contracts. C. Prequalification. The Purchasing Manager may limit the field of prospective bidders for Public Works Contracts by prequalifying Contractors pursuant to California Public Contract Code Section 20101 and the requirements of this subsection 5.02(C)._ Prequalification shall only be required when the Purchasing Manager or the Director of Engineering determines that prequalification is necessary or desirable. The Purchasing Manager may (i) prequalify a list of Contractors for the right to bid on any specific Public Works Project, and/or (ii) prequalify lists of Contractors for the right to bid on unspecified projects of a certain type or size pursuant to Public Contracts Code section 20101(c). If the Purchasing Manager elects to prequalify lists of Contractors for the right to bid on unspecified projects of a certain type or size, he or she shall conduct a prequalification process quarterly, and all qualifications shall be valid for one year. For each prequalified list of either type, the Purchasing Manager shall evaluate and prequalify Contractors pursuant to the following procedures: (1) Questionnaires and Rating Criteria. The Purchasing Manager shall develop a questionnaire and rating criteria for each prequalification. All criteria shall be relevant and objective. The Purchasing Manager may rely on the Department of Industrial Relations model guidelines, questionnaires, and forms, and/or establish additional or modified criteria. (2) Statements of Qualifications. The Purchasing Manager shall solicit Statements of Qualifications from prospective bidders. (3) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate each Statement of Qualifications. The Purchasing Manager shall chair the committee, and the Director of Engineering shall appoint the remaining committee members. The evaluation committee shall review each Statement of Qualifications, rate the Contractors according to their qualifications and objective criteria, and determine which Contractors are qualified and which Contractors are not qualified. (34 4�—Notice of Determination. When the evaluation committee completes its OGSD-52OC SAN-XX-25 review, the Purchasing Manager shall send each Contractor written notice Hof the committee's determinations regarding that Contractor. If the evaluation committee determines that a Contractor is not qualified, the written notice shall also set forth the basis for that determination and any relevant supporting evidence that the evaluation committee considered. (5) Appeal Process. (a) Notice of Appeal. Any Contractor may appeal to the General Manager any determination of the evaluation committee, including any rating assigned to the Contractor and any decision to disqualify the Contractor, by filing a written notice of appeal within seven (7) working days after the Purchasing Manager mails the notice described in subsection 5.02(C)(4). (b) Hearing. Within five (5) working days of the receipt of an appeal, the General Manager, or a designee of the General Manager who has not been involved in the evaluation of qualifications of Contractors for the project, shall conduct a hearing on the appeal. During the hearing, the affected Contractor or subcontractor shall have the opportunity to rebut any evidence used as a basis for disqualification and to present evidence to the General Manager or the General Manager's designee as to why the prospective bidder should be found qualified. (c) Decision. Within five (5) working days of the conclusion of the hearing, the General Manager or the General Manager's designee shall issue a written decision on the appeal. The decision of the General Manager or the General Manager's designee shall be final. Section 5.03. Exceptions A. Emergencies and Calamities. (1) The provisions of this subsection 5.03(A) apply in the event of an emergency or calamity involving a sudden, unexpected occurrence that poses a clear and imminent danger requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. In the event of such an emergency or calamity, the Sanitation District may, through Negotiated Procurement, award Contracts to repair or replace facilities, take any directly related and immediate action required by the emergency or calamity, and procure the necessary equipment, services, and supplies for those purposes. (2) The General Manager may take the actions described in subdivision (1) above, with the concurrence of the Chair of the Board of Directors and/or the Vice Chair, without obtaining prior approval of the Sanitation District's Board of Directors. In taking any such action, the General Manager shall follow the procedures set forth in Public Contracts Code Section 22050. (a�ln the alternative, the Sanitation District's Board of Directors may, by OGSD-52OC SAN-XX-26 resolution adopted by a four-fifths vote, take the actions described in subdivision LaL_above. In taking any such action, the Sanitation District shall follow the procedures set forth in Public Contracts Code 22050. B. Specification of Brand or Trade Name. Notwithstanding subsection 5.02(A)(1)(a)(ii)(6), the specifications for a Public Works Contract may call for a designated material, product, thing, or service by specific brand or trade name without inserting the words "or equal" if the Sanitation District complies with the requirements of the California Public Contract Code section 3400 et seq. The General Manager is authorized to make the findings required under California Public Contract Code section 3400 et seq. The Notice Inviting Bids or Request for Proposals shall state that a particular material, product, thing, or service is necessary or desirable for any of the following purposes: (1) In order that a field test or experiment may be made to determine the product's suitability for future use; (2) In order to match other products in use on a particular public improvement either completed or in the course of completion; (3) In order to obtain a necessary item that is only available from one source; (4) In order to respond to an emergency declared by the Sanitation District, but only if the declaration is approved by a four-fifths vote of the Sanitation District's Board of Directors; or (5) In order to respond to an emergency declared by the state, a state agency, or political subdivision of the state, but only if the facts setting forth the reasons for the finding of the emergency are contained in the public records of the Sanitation District. ARTICLE 6. PROTESTS The Sanitation District shall afford Interested Parties an opportunity to protest the solicitation of bids and proposals and the award of contracts as set forth in this Article 6. The General Manager shall adopt detailed protest procedures consistent with this Article 6. The protest procedures governing any particular procurement shall be set forth in the Notice Inviting Bids or the Request for Proposals, as applicable. Section 6.01. Solicitation Protests A. Interested Parties may file a Solicitation Protest Statement with the Purchasing Manager on the grounds that a free and open competition has not taken place, or OSSD-52OC SAN-XX-27 cannot take place, and/or that a particular specification or requirement is impractical, unduly restrictive, or ambiguous. Each Notice Inviting Bids/Invitation for Bids and Request for Proposals shall identify the date and time that the Solicitation Protest Statement is due, the information required to be included in the Solicitation Protest Statement, the evaluation process, and the types of remedies available. B. The Purchasing Manager shall evaluate each Solicitation Protest Statement and determine what actions, if any, will be taken to remedy any deficiency. The decision of the Purchasing Manager shall be final. Section 6.02. Award Protests A. In connection with any competitive selection process, any Interested Party may file an Award Protest Statement with the Purchasing Manager on the ground that a free and open competition has not taken place in connection with the award recommendation. The Purchasing Manager shall not, however, consider any protest based on a finding that a bid or proposal is not responsive. B. Each Notice Inviting Bids and Request for Proposals shall identify the deadline for Award Protest Statements and describe the information required to be included in any Award Protest Statement, the evaluation process, the appeal process, and the types of remedies available. C. The Purchasing Manager shall evaluate each Award Protest Statement and determine what actions, if any, will be taken to remedy any deficiency. D. If the Protestor wishes to appeal, the Purchasing Manager's decision on an Award Protest Statement, the appeal shall be submitted to the Director of Finance and Administrative Services and the Director of the Department requesting the Procurement. The Director of Finance and Administrative Services and the Director of the Department requesting the Procurement shall evaluate each Award Protest Statement and determine whether to uphold or reject the Purchasing Manager's determination. For Contracts to be awarded by Sanitation District staff, the decision of the Director of Finance and the Director of the Department requesting the Procurement shall be final. For Contracts to be awarded by the Board of Directors, the Board may consider any Award Protest Statements in connection with its consideration of the Contract. Section 6.03. Delay in Award A. Execution of any proposed contract shall be delayed pending resolution of any protests unless one or more of the following conditions is present: (1) The items or services being procured are urgently required; (2) Delivery or performance will be unduly delayed by failure to make an award promptly; or OGSD-52OC SAN-XX-28 ()Failure to make prompt award will otherwise cause undue harm to the Sanitation District. 0-) Section 6.04. Remedies A. If the final decision maker determines that the award or proposed award was not made in accordance with applicable statutes, regulations, policies and/or procedure, the Sanitation District, in its sole discretion, may grant any of the following remedies or any other remedy it deems appropriate: (1) Prior to award, the Sanitation District may issue a new solicitation, make a new selection/award recommendation, or award a contract consistent with applicable statutes, regulations, policies and procedures; (2) Take nofurther action; or (3) Take any other action that is permitted by law to promote compliance with applicable statutes, regulations, policies and/or procedure. B. In determining the appropriate remedy, if any, the Sanitation District shall consider all the circumstances surrounding the Notice Inviting Bids/Invitation for Bids or Requests for Proposal and/or award, including, but not limited to: (1) The seriousness of any deficiency found to exist in the contracting process; (2) The effect of the action on the competitive process; (3) Any urgency surrounding the contract requirement; and (4) The effect that implementing the remedy will have on the Sanitation District. C. Nothing contained herein shall be construed to act as a limitation on the Sanitation District's choice of remedies or confer any right upon any Interested Party or affected party to a remedy. Section 6.05. Public Documents Solicitation Protest Statements and Award Protest Statements are public documents. The Sanitation District will notify the affected parties when a protest has been submitted, and will provide copies of the Protest Statements to the affected parties upon written request. ARTICLE 7. DELEGATION OF AUTHORITY TO AWARD CONTRACTS This Article 7 applies to all Contracts for Goods, Services, and Public Works Projects entered into by the Sanitation District. OGSD-520C SAN-XX-29 Section 7.01. Award Authorization A. Delegation by General Manager. The General Manager shall establish written procedures governing the delegation of authority to the Purchasing Manager to award and execute Contracts, Amendments, Change Orders, Renewals, Time Extensions and Assignments consistent with this Ordinance. Upon delegation of authority by the General Manager each Department Director may further delegate authority to initiate a written Requisition consistent with the General Manager's written procedures. B. Original Contracts,Contingencies and Renewals The Board of Directors hereby delegates the authority to award Contracts within specified limitsasfollows: Delegated Authorized Action Authority General Manager/ (1) Authorization to approve and execute Assistant General Manager Contracts and applicable Renewals for budgeted procurements less than or equal to $100,000. (2) All new procurements between $50,000 and $100,000 are to be reported to the Board of Directors on a quarterly basis. Standing Committees (1) Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements greater than $100,000 and up to or equal to $200,000. (2) Authorization to approve Contingency up to 50%, for a total spending authority of up to $300,000 for each Contract. Board of Directors Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements up to or greater than $200,000, including Contingency. C. Amendments,Change Orders, Renewals, Time Extensions and Assignments The Board of Directors hereby delegates the authority to approve Amendments, Change Orders, Renewals, Time Extensions and Assignments in any amount as OGSL) 520U SAN-XX-30 follows: Delegated Authorized Action Authority General Manager/ (1) Authorization to approve and execute Assistant General Amendments and Change Orders as long as Manager the Amendment o r Change Order is recommended by the applicable Department Director, and (a) the Amendment or Change Order does not change the contract price or the new contract price is within the delegated authority, or (b) the Amendment or Change Order is within the approved contingency. (2) Authorization to approve and execute any Renewals that were originally approved by the General Manager, Standing Committee and/or Board of Directors. (3) Authorization to approve and execute Amendments and Change Orders for Contract Time Extensions (a) without any increase in Contract price; or (b) with an increase in Contract price within the approved Contingency originally approved by the General Manager, Standing Committee and/or Board of Directors. (4) Authorization to approve and execute all Assignments unless determined by the General Manager that the assignment contains material changes and requires approval of the awarding authority. (5) Authorization to approve and execute Amendments to chemical Contracts unless the Contract unit price has increased beyond the unit price contingency approved by the Sanitation District's Standing Committee and/or Board of Directors. (6) Authorization to approve and execute chemical contract Renewals including changes to the unit price, increases or decreases to the estimated annual / or specified term amount. Increases that cause the contract amount to exceed the General Manager's delegated authority shall be OCSD-52OC SAN-XX-31 approved by the Standing Committee and/or Board of Directors. Section 7.02. Contingency Release The General Manager/Assistant General Manager shall manage the release of all contingency funds for use in all amendments and change orders within the approved contingency amounts. Section 7.03. Task Orders The Board of Directors hereby delegates the authority to award Task Orders within specified limits as follows: Delegated Authorized Action Authority General Manager/ (1) For Task Orders covered under Article 2. Goods Assistant General and Services, authorization to approve and Manager execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $300,000, upon the recommendation of the Department Director (2) For Task Orders covered under Article 2. Goods and Services, all new Task Order procurements between $50,000 and $300,000 are to be reported to the Board of Directors on a quarterly basis, in arrears. (3) For Task Orders covered under Article 3. Professional Services of this Ordinance, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $100,000, upon the recommendation of the Department Director. (4) For Task Orders covered under Article 4. Professional Design Services, authorization to OGSL) 520U SAN-XX-32 approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $300,000, upon the recommendation of the Department Director. (5) For Task Orders covered solely under Article 4, Professional Design Services of this Ordinance, the General Manager may delegate authorization to approve and execute Professional Design Service aster ontract Task Orders up to or equal to $100,000, which is inclusive of amendments to Task Orders, to the Director of Engineering. This authorization may not be sub delegated further. This authorization does not apply to mMaster cSontracts covered under Article 2 or Article 3 of this Ordinance. Standing Committees (1) For Task Orders covered under Article 3. Professional Services of this Ordinance, authorization to approve Amendments to the Task Orders where the cumulative value exceeds $100,000 provided the cumulative total of the Task Order and Amendments does not exceed $200,000, upon the recommendation of the General Manager/Assistant General Manager. Board of Directors (1) For Task Orders covered under Article 2. Goods and Services, all Task Orders and/or amendments where the cumulative value exceeds $300,000 shall be approved by the Board of Directors. (2) For Task Orders covered under Article 3. Professional Services, all Task Orders and/or amendments that exceed $200,000 shall be approved by the Board of Directors. (3) For Task Orders covered under Article 4. Professional Design Services, all Task Orders and/or Amendments that exceed $300,000 shall be approved by the Board of Directors. ARTICLE 8. ETHICS Section 8.01. Unlawful Consideration Prohibited OGSD-52OC SAN-XX-33 Sanitation District Officials shall neither solicit nor receive bribes, rebates, kickbacks, and/or any other unlawful consideration from any contracting party, or any party seeking a Contract with the Sanitation District, in exchange for favorable treatment or any other action. Section 8.02. Conflicts of Interest A. Compliance with the Political Reform Act. Sanitation District Officials shall not make any Contracts, participate in the making of any Contracts, or in any way attempt to use their official positions to influence any decision on any Contracts, in violation of Government Code Sections 87100 et seq. B. Compliance with Government Code 1090. Without limiting the requirements of Part A above, no Sanitation District Official shall make any Contract, participate in the making of any Contract, or in any way attempt to use his or her official position to influence any decision on a Contract, in violation of California Government Code Section 1090. C. Requirements Applicable to Consultants. Consultants designated by the Sanitation District's Conflict of Interest Code shall comply in all respects with Government Code Section 87100 et seq., and it's implementing regulations. ARTICLE 9. DEFINITIONS Amendment means a properly executed written agreement entered into and between the Sanitation District and the Contractor, or issued by the Sanitation District, covering modifications to the original Contract and which may result in adjustments to provisions of the Contract, including, but not limited to, terms, scope of work, compensation, and/or period of performance. Assignment means to revise Contracts and related records to reflect changes such as the sale, transfer, or reorganization of a Contractor's business, or a change in the Contractor's name for doing business, as long as all other terms and conditions of the original Contract remain the same. Award Protest Statement shall mean a written objection to the award recommendation prior to final action to award the contract, which shall be submitted after receipt of sealed bids/proposals, but before award of a contract, as specified herein. OGSD-52OC SAN-XX-34 Best value means the overall combination of quality, price, and other elements of a proposal/bid (or combination of several proposals/bids) that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents. Change Order means a properly executed written agreement entered into and between the Sanitation District and the Contractor, or unilaterally issued by the Sanitation District, covering modifications to the original Contract, and which may result in adjustments to the provisions of the Contract, including, but not limited to, terms, scope of work, cost and/or period of performance. Competitive Sealed Bids means a selection process whereby prospective Contractors submit sealed bids and the Contract is awarded to the lowest Responsive and Responsible Bidder. Competitive Sealed Proposals means a selection process whereby prospective Contractors submit sealed proposals and the Contract is awarded to the proposal that best meets the criteria specified in the Request for Proposals. Contingency means an amount above the original Contract price, as awarded by the delegated authority, established at the time of Contract award, as may be amended thereafter, to be used for Contract changes. Contract means any type of agreement for the purchase of Goods, Services, and/or Public Works Projects. Contracts may be labeled in various different ways, including, but not limited to, "contract," "agreement," "purchase order," and "task order." Contractor means any person or entity that has a Contract with the Sanitation District. Department means one ofthe Sanitation District's designated departments. Design-Bid-Build means a selection process for the award of Public Works Contracts involving three basic steps: (1) the -�,anuauon District hires a design professional to prepare detailed plans and specifications or the Sanitation District prepares detailed plans and specifications; (2) the Sanitation District solicits bids from construction firms based on the detailed plans and specifications; and (3) the Sanitation District awards the Contract to the lowest Responsive and Responsible Bidder. Design-Build means a selection process for the award of Public Works Contracts involving two basic steps: (1) the agency solicits proposals from pre-qualified firms to design and construct a project; and (2) depending on the award criteria set forth in the Request for Proposals, the agency awards the Contract to either (a) the lowest Responsive and Responsible Bidder, or (b) the proposal that presents the "best value." Designee means a person selected or authorized to temporarily manage the duty or role of another employee. OSSO-52OC SAN-XX-35 Director means a director of one of the Sanitation District's designated departments, or his or herdesignee(s). Director of Engineering means the Sanitation District's Director of Engineering or his or her designee(s). Fie el cA General Manager means the General Manager of the Sanitation District, or his or herdesignee(s). Goods means fixed, movable, disposable, and/or reusable products, commodities, equipment, materials, supplies or items used by the Sanitation District, and excludes land or any interest in real property. Interested Party shall mean: (1) on solicitation, all bidders or proposers, and prospective bidders or proposers; (2) on award, the unsuccessful bidder or proposer with a direct economic interest in the outcome of their protest. Local Business shall mean a business that has a principal business office, or a satellite office with at least one full-time employee, that is located within the Sanitation District service area. Local Preference shall mean a preference for a Local Business over a business that is not a Local Business. Mailing means transmission by United States Postal Service, electronic mail, or facsimile. Negotiated Procurement means a selection process whereby the Purchasing Manager identifies one or more prospective Contractors of his or her choice, negotiates with one or more of them, and awards the Contract to one of them based on the best interest of the Sanitation District. Notice Inviting Bids invotat;en for Ridgy, means all documents, whether attached or incorporated by reference, utilized for soliciting bids. OGSD 520C SAN-XX-36 Procurement means buying, purchasing, renting, leasing, or otherwise acquiring any goods, services, construction, construction services, or professional services, including professional design services. It also includes all functions that pertain to the obtaining of any goods, services, or construction, including description of requirements, election and solicitation of sources, preparation and award of contract, and all phases of contract administration. Professional Services means (i) services provided by professionals that involve specialized judgment, skill, and expertise, and (ii) incidental services that professionals, and those in their employ, may logically or justifiably perform. Professional Services include, but are not limited to, services provided by accounting, financial, information technology, human resources consultation and advocacy, legislative advocacy, and scientific research/consulting firms. Professional Design Services means architectural, landscape architectural,engineering, environmental, land surveying, construction project management, planning and other miscellaneous engineering related services retained by the Sanitation District in connection with, but not limited to, construction, alteration, and/or repair projects. Public Works/Public Works Project means a project involving the construction, erection, or alteration of any type of structure, building, or improvement other than sewerage maintenance or repair projects. Purchasing Manager means the Sanitation District's Contracts, Purchasing and Materials Management Manager, or his or her designee(s). Purchasing Manager designee—means an employee residing under Contracts, Purchasing and Materials Management Division whose job duties include contracting and procurement execution and administration. Renewal means a mechanism within an approved contract to provide the same goods/services for an additional period of time, at the specified price under the same terms and conditions. The number of renewals, the price, and any contingencies are approved at the time of award. Renewals may or may not increase the contract price. The contract price per term does not accumulate for purposes of approval thresholds. A Renewal may be exercised fewer times or for a shorter duration than the approved number or term, but any remaining time cannot be transferred to an additional renewal. Renewals cannot be added nor entered into for longer than the approved number or term at the time of award. Request for Proposals means all documents, whether attached or incorporated by reference, utilized for soliciting proposals. Request for Qualifications means a request for detailed information concerning the qualifications of prospective Contractors. Requisition means an approved written document making a request for Goods and Services in advance of initiating a procurement process as well as a later request to amend, change, renew, cancel or extend time to a non-public works contract. OGSD-52OC SAN-XX-37 Responsible Bidder means a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the requested services or project. Responsive Bidder/Proposer means a bidder/proposer who has submitted a bid/proposal which conforms in all material respects to the Notice Inviting Bids/Invitation for Bids/Request for Proposals. Sanitation District means the Orange County Sanitation District. Sanitation District Board or Board means the Board of Directors of the Oranae County Sanitation District. Sanitation District Official means any member of the Sanitation District's Board of Directors, any Sanitation District employee, and any Sanitation District consultant that is designated under the Sanitation District's Conflict of Interest Code. Services means the furnishing of materials, labor, time, or effort by a Contractor. Services include both general services janitorial, landscape, repair, maintenance, etc.) professional services, and professional design services, unlessotherwise specified. Sealed (Bids or Proposals) means the submittal of bids or proposals, either in paper or electronic format, whereby the bid or proposal documents are opened at a specific time and not before. Sole Source Procurement means the acquisition of Goods and/or Services from a single source. Solicitation Protest Statement shall mean a written objection during the solicitation phase of the procurement, which shall be submitted prior to the bid/proposal due date as specified herein. Standing Committee means one of the permanent committees designated by the Board of Directors as"Standing Committees." Task Order means a written document pursuant to a Contract issued by the Purchasing Manager which provides for the issuance of orders, containing a defined budget, scope of services, and schedule, and authorizes a Contractor to incur a specified amount for the performance of tasks. Time Extension means an increase to the period of performance specified by the original contract only, as may be amended. ARTICLE 10. MISCELLANEOUS Section 10.01. Noncompliance OGSD-a2OC SAN-XX-38 Any Contract entered into which fails in any respect to comply with the provisions of this Ordinance may be voided by the Board of Directors in its sole and absolute discretion. Any employee who willfully and knowingly violates any provision of this Ordinance maybe subject to disciplinary action. Section 10.02. Effective Date This Ordinance No. OCSD-52 SAN-XX shall take effect June 2 20 upon adoption by the Board of Directors. Section 10.03. Repeal of Ordinance No. OCSD- Ordinance No. OCSD-5247-, entitled "An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects; and repealing Ordinance No. OCSD-47" is hereby repealed in its entirety. Section 10.04. Certification and Publication. The Clerk of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation within 15 days as required by law. OGSD 520C SAN-XX-39 PASSED AND ADOPTED by a majority of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held on May , 202ia-d. Gregor„ G. Cohn ern DI cDavid John Shawver Chairman of the Board of Directors ATTEST: Kelly A. Lore, MMC Clerk of the Board APPROVED AS TO FORM: Bradley R. Hogin General Counsel OGSD-52OC SAN-XX-40 STATE OF CALIFORNIA ) ) SS COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OC SAN-XXSD-52 was introduced for first reading at a regular meeting of said Board on the 285th day of April 20 , and passed and adopted at a regular meeting of said Board on the 2 day of May 20 by the following vote, to wit: BarneBarnes; Bernstein; Berry (Alternate); Gollo 0 s; �rrrccr�vc.�rcrrcrrrcrc � vvrrcr � eatery F iman; B. jenes (Alternate); Kim; R. Murphy; Nagel; Ng ayeR;-Papker>�eotteprd a ern• Shaw; Shawyer>TSmith• T. Smitheel; a7 ;p Wagner;�� Wanke; and With NOES: Alone "' `"' ABSTENTIONS: Nose ABSENT: S. jones and Peterson IN WITNESS WHEREOF, I have hereunto set my hand this 2 day of May 202148. Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District ORDINANCE NO. OC SAN-56 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING REQUIREMENTS AND PROCEDURES FOR THE PURCHASE OF GOODS, SERVICES, AND PUBLIC WORKS PROJECTS; AND REPEALING ORDINANCE NO. OCSD-52 1288720.1 CONTENTS ARTICLE 1. GENERAL PROVISIONS...................................................................... .6 Section 1.01. Purpose and Scope ....................................................................6 A. Purpose ...............................................................................................6 B. Scope...................................................................................................6 Section1.02. Title .............................................................................................6 Section 1.03. Definitions ...................................................................................6 Section 1.04. Rules and Guidelines..................................................................6 Section 1.05. Budgeted Funds..........................................................................7 Section 1.06. The Purchasing Manager............................................................7 A. Duties.................................................................................................. 7 B. Requests for Procurement...............................................................7 Section 1.07. Exceptions to Competitive Selection ..........................................7 A. Sole Source Procurement. ............................................................. 7 B. Emergency Procurement...................................................... 8 Section 1.08. Evaluation Committees................................................... ..9 Section 1.09. Severability.....................................................................9 ARTICLE 2. GOODS AND SERVICES .......................................................................9 Section 2.01. Purpose and Scope..........................................................9 A. Purpose. ..........................................................................................9 B. Scope. .............................................................................................9 Section 2.02. Selection Process............................................................10 A. Competitive Sealed Bids ................................................................10 B. Equal Bids.......................................................................................10 C. Multi-Step Sealed Bidding...............................................................10 D. Request for Proposals ....................................................................11 Section 2.03. Exceptions..................................................................................11 A. Small Procurements .......................................................................11 B. Cooperative Purchases........................................................11 C. Critical Time-Sensitive Procurements......................................12 D. Renewals.......................................................................... 12 E. Sole Source and Emergency Procurements ................................. 12 OC SAN-56-2 F. Master Contracts; Maintenance and Repair Services Less Than or Equal to $300,000............................................................ 12 ARTICLE 3. PROFESSIONAL SERVICES............................................................... 13 Section 3.01. Purpose and Scope................................................................... 13 A. Purpose ......................................................................................... 13 B. Scope ......................................................................................... 13 Section 3.02. Selection Process...................................................................... 14 A. Request for Proposals................................................................... 14 B. Evaluation of Proposals................................................................. 14 C. Negotiation of Contract.................................................................. 14 Section 3.03. Exceptions ................................................................................. 15 A. Sole Source and Emergency Procurements ................................. 15 B. Contractors Reporting to the Board............................................... 15 C. Procurements of $10,000 or less .................................................. 15 D. Master Contracts; Professional Services Less Than or Equal to $100,000.................................................................................... 15 E. Master Contracts: Professional Services Qualified Lists................ 15 ARTICLE 4. PROFESSIONAL DESIGN SERVICES ................................................ 17 Section 4.01. Purpose and Scope................................................................... 17 A. Purpose ......................................................................................... 17 B. Scope .........................................................................................17 Section 4.02. Selection Process ..................................................................... 17 A. Competitive Selection............................................. ............. 17 B. Professional Design Services Greater Than $300,000 ................. 17 C. Master Contracts: Professional Design Services Less Than or Equal to $300,000 ..................................................................... 19 Section 4.03. Exceptions................................................................................. 21 A. Sole Source and Emergency Procurements ................................. 21 B. Additional Services ........................................................................ 21 C. Procurements of $10,000 or less................................................... 21 ARTICLE 5. PUBLIC WORKS PROJECTS............................................................... 22 Section 5.01. Purpose and Scope................................................................... 22 A. Purpose ......................................................................................... 22 B. Scope........................................................................... 22 OC SAN-56-3 Section 5.02. Selection Process............................................................ .22 A. Design-Bid-Build................................................................................22 B. Design-Build ......................................................................................24 C. Prequalification.....................................................................................24 Section 5.03. Exceptions ...................................................................................25 A. Emergencies and Calamities ............................................................25 B. Specification of Brand or Trade Name............................................. 26 ARTICLE6. PROTESTS.................................................................................................... 26 Section 6.01. Solicitation Protests..................................................................... 26 Section 6.02. Award Protests............................................................................ 27 Section 6.03. Delay in Award ............................................................................ 27 Section 6.04. Remedies ................................................................................... 28 Section 6.05. Public Documents ....................................................................... 28 ARTICLE 7. DELEGATION OF AUTHORITY TO AWARD CONTRACTS................... 28 Section 7.01. Award Authorization .................................................................... 28 A. Delegation by General Manager ..................................................... 28 B. Original Contracts and Contingencies ............................................. 29 C. Amendments, Change Orders, Renewals, Time Extensions & Assignments .................................................................................. 29 Section 7.02. Contingency Release.................................................................. 30 Section 7.03. Task Orders................................................................................ 31 ARTICLE8. ETHICS ..........................................................................................................32 Section 8.01. Unlawful Consideration Prohibited.................................................32 Section 8.02. Conflicts of Interest. ....................................................................33 A. Compliance with the Political Reform Act. ....................................... 33 B. Compliance with Government Code § 1090 ...................................33 C. Requirements Applicable to Consultants.........................................33 ARTICLE9. DEFINITIONS...............................................................................................33 ARTICLE 10. MISCELLANEOUS................................................................................37 Section 10.01. Noncompliance...............................................................................37 Section 10.02. Effective Date ...........................................................................37 Section 10.03. Repeal of Ordinance No. OCSD-42......................................... 37 Section 10.04. Certification and Publication .................................................... 37 OC SAN-56-4 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: ARTICLE 1. GENERAL PROVISIONS Section 1.01. Purpose and Scope A. Purpose. This Ordinance is intended to: (1) Comply with certain provisions of State law requiring the Sanitation District to adopt written purchasing procedures; (2) Ensure that the Sanitation District complies with State law governing the award of Contracts for Goods, Services, and Public Works Projects; (3) Establish procedures to ensure that the Sanitation District obtains quality goods and competent services at the best price and/or the best value; (4) Delegate certain spending authority to Sanitation District employees in the interest of efficient administration; (5) Ensure that purchasing decisions are transparent for the public; and (6) Ensure that Contracts are awarded through a process that is fair to prospective Contractors and in the best interests of the Sanitation District. B. Scope. This Ordinance governs the purchase of Goods, Services and the award of Contracts for Public Works Projects. Section 1.02. Title This Ordinance may be referred to as the Sanitation District's "Purchasing Ordinance." Section 1.03. Definitions As used throughout this Ordinance, the terms set forth in Article 9 shall have the meanings as defined therein, unless the context in which they are used clearly requires a different meaning, or a different definition is prescribed for a particular Article or provision. Section 1.04. Rules and Guidelines The General Manager shall implement the requirements of this Ordinance through policies, rules, and guidelines governing the purchase of Goods and Services, and the award of Contracts for Public Works Projects. OC SAN-56-5 Section 1.05. Budgeted Funds No Contract for the purchase of Goods, Services, or Public Works Projects shall be awarded unless and until the General Manager identifies funds in the current budget that are allocated to the purchase. Section 1.06. The Purchasing Manager A. Duties. Consistent with the provisions of this Ordinance, the Purchasing Manager shall: (1) Conduct the procurement of all Goods, Services, and Public Works Projects purchased by the Sanitation District; and receive from Contractor all bids, proposals or other solicitation results; (2) Supervise and control inventories of supplies and materials. (3) Determine the type of procurement, term of the contract including number of renewals and any other contractual provisions necessary and in the best interest of the Sanitation District. B. Requests for Procurement. When a Department desires to procure Goods and/or Services, the Department Director shall file a written Requisition, in advance of a procurement process, with the Purchasing Manager. The Requisition shall describe the Goods and/or Services to be acquired. Public Works procurements require a complete Engineering Budget Approval Form or equivalent document. Section 1.07. Exceptions to Competitive Selection Depending on the nature of the Contract and/or the circumstances, certain provisions of this Ordinance require that Contracts for Goods and/or Services be awarded based on Competitive Sealed Bids or Competitive Sealed Proposals. This Section 1.07 establishes certain general exceptions to competitive selection requirements for the procurement of Goods and Services. The exceptions set forth in this Section 1 .07 do not apply to the award of Contracts for the construction of Public Works Projects. A. Sole Source Procurement. Notwithstanding any other provision of this Ordinance, a Contract for Goods and/or Services may be awarded based on Sole Source Procurement, without soliciting bids or proposals as might otherwise be required, if the General Manager or his designee determines in writing that it is in the best interest of the Sanitation District to award the Contract because the Goods and/or Services are (1) of a unique nature based on their quality, durability, availability, fitness or qualifications for a particular use; or (2) only available from one source. OC SAN-56-6 B. Emergency Procurement. Notwithstanding any other provision of this Ordinance, a Contract for Goods and/or Services may be awarded through Negotiated Procurement, without soliciting bids or proposals as might otherwise be required, if the General Manager or his designee determines in writing that the Sanitation District urgently needs the Goods and/or Services in order to respond effectively to an emergency. For purposes of this Section 1.07, emergency procurements are those purchases that are required to prevent immediate interruption or cessation of necessary services or to safeguard life, property, or the public health and welfare. In addition, emergency procurements as used in this Section also include critical time sensitive purchases where time is of the essence, and the Sanitation District does not have sufficient time to solicit bids or proposals. For emergency procurements greater than $100,000, the General Manager shall obtain the concurrence of the Chair of the Sanitation District's Board of Directors or, if the Chair is unavailable, the Vice Chair, and such action shall be ratified by the Board of Directors at its next regular meeting. Section 1.08. Evaluation Committees Evaluation committees convened in connection with procurements under this Ordinance shall generally be composed of full-time Sanitation District employees. In exceptional circumstances, however, the General Manager may appoint one or more persons not employed by the Sanitation District to an evaluation committee if the General Manager determines that (1) evaluating proposals in connection with a particular procurement requires specialized expertise not available among Sanitation District employees; (2) the procurement will impact another agency, and that agency desires to place a representative on the evaluation committee; or (3) it is otherwise in the Sanitation District's interest to do so. Section 1.09. Severability If any provision of this Ordinance, or any application thereof to any person or circumstance, is held invalid, such invalidity shall not affect any other provision of this Ordinance or application to any person or circumstance which can be given effect without the invalid provision or application. The provisions of this Ordinance are declared to be severable. OC SAN-56-7 ARTICLE 2. GOODS AND SERVICES Section 2.01. Purpose and Scope A. Purpose. California Government Code Sections 54202 et seq. requires the Sanitation District to adopt written policies and procedures, including bidding requirements, governing the purchase of Goods and Services. This Article is intended to comply with Section 54202. B. Scope. The provisions of this Article 2 apply to Contracts for the purchase of Goods and Services other than Contracts for Professional Services (governed by Article 3) Professional Design Services (governed by Article 4), and Contracts for Public Works Projects (governed by Article 5). Section 2.02. Selection Process Subject to the exceptions set forth in Section 2.03, the award of Contracts for the purchase of Goods and Services shall be based on the competitive procurement methods set forth below. A. Competitive Sealed Bids. For each procurement, the Purchasing Manager shall: (1) Publish a Notice Inviting Bids that contains (a) a description of the Goods and/or Services required, (b) a description of the selection process, (c) bidder's security requirement, if applicable, (d) performance bond requirements, if applicable, and (e) such provisions, renewals, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager determines are necessary, desirable, and/or advantageous to the Sanitation District; (2) Receive the Competitive Sealed Bids publicly at the time and place designated in the Notice Inviting Bids, open all bids concurrently, and record the amount of each bid; and (3) Determine whether the bids are responsive to the Notice Inviting Bids. (4) Award: After the bids are opened, take one of the following actions: (a) Award the Contract to the lowest Responsive and Responsible Bidder; (b) Reject any and all bids presented and/or re-advertise the bid; or (c) Declare that the Goods and/or Services may be acquired at a lower OC SAN-56-8 cost by negotiation in the open market and authorize the procurement in that manner. B. Equal Bids. If the Sanitation District determines that there has been a tie for lowest responsive bid between two or more bids received, which are for the same total amount or unit price and in all other respects equal, then the Sanitation District may award the bid based on Local Preference. If neither or both bidders are Local Businesses, the Sanitation District shall award the bid based on the drawing of lots. C. Multi-Step Sealed Bidding. The Purchasing Manager may determine that a prequalification process is necessary and desirable for a particular procurement. The multi-step sealed bidding process requires the Purchasing Manager to (1) issue a Request for Qualifications requesting the submission of qualifications; and (2) issue a subsequent Notice Inviting Bids for priced offers from those Contractors whose initial submissions were deemed qualified under the criteria set forth in the initial Request for Qualifications. Award under this process shall be based on the lowest Responsive and Responsible Bidder. D. Request for Proposals. If the Purchasing Manager determines in writing that the Competitive Sealed Bids procedure is not practical and/or not advantageous for the Sanitation District in a particular case, one or more Contracts subject to this Article may be awarded based on Competitive Sealed Proposals. The Request for Proposals process may be used (1) for Goods and/or Services that prove difficult to quantify or describe, where proposers are provided the opportunity to offer different approaches or solutions; and/or (2) for critical, routine or recurring goods or services that require consideration of the broadest possible range of competing services, products and materials available, fitness of purpose, performance reliability, standardization, life cycle costs, delivery timetables, reliable supply, support logistics, diversification of available sources and/or other similar factors in addition to the price in the award of these contracts. Award under this process shall be based upon criteria that provide the best value for the Sanitation District, wherein best value is not solely determined by price. Section 2.03. Exceptions A. Small Procurements. (1) Procurements of $10,000 or Less. Contracts subject to this Article 2 with an estimated value of $10,000 or less may be awarded without Competitive Sealed Bids if the Purchasing Manager determines that a Competitive Sealed OC SAN-56-9 Bids process would not result in a lower overall cost to the Sanitation District. (2) Procurements of $50,000 or Less. Contracts subject to this Article 2 with an estimated value of $50,000 or less may be awarded by (a) soliciting at least three bids from identified vendors, and (b) awarding the Contract to the lowest Responsive and Responsible Bidder. If the Purchasing Manager cannot obtain at least three bids, the Contract may be awarded to the lowest Responsive and Responsible Bidder as long as the Purchasing Manager determines that the bid amount is fair and reasonable. (3) Piecemealing Prohibited. Procurements shall not be artificially divided into different individual Contracts so as to keep each Contract amount below one of the monetary thresholds set forth in this Part A. B. Cooperative Purchases. When another public agency or government purchasing cooperative organization has awarded a Contract for Goods and/or Services based on Competitive Sealed Bids or Competitive Sealed Proposals, and the agency or organization followed a process substantially similar to the process described in Section 2.02, the Sanitation District may acquire Goods and/or Services under that Contract without obtaining Competitive Sealed Bids or Competitive Sealed Proposals. The Sanitation District may enter into Contracts with other public agencies, government purchasing cooperative organizations within the United States, and/or Contractors for this purpose. C. Critical Time-Sensitive Procurements. The Purchasing Manager may purchase Goods and/or Services through Negotiated Procurement if the Purchasing Manager determines that time is of the essence in the purchase of the Goods and/or Services. For critical time- sensitive procurements valued at more than $100,000, the General Manager shall obtain the concurrence of the Chair of the Sanitation District's Board of Directors or, if the Chair is unavailable, the Vice Chair. D. Renewals. The Purchasing Manager may exercise any options to renew as may be included in existing Contracts without observing the bidding procedures prescribed in Section 2.02 and Section 2.03 E. Sole Source and Emergency Procurements. A Contract for the purchase of Goods and/or Services may be awarded without soliciting competitive bids if any of the exceptions set forth in Section 1.07 apply. F. Master Contracts; Maintenance and Repair Services Less Than or Equal to 300 000. OC SAN-56-10 The Purchasing Manager may purchase maintenance and repair Services estimated to cost less than or equal to $300,000 through the master contract procedures set forth below. (1) Request for Qualifications. If a master contract is let for maintenance and repair Services, then at least once every three (3) years, the Purchasing Manager shall prepare and distribute a Request for Qualifications for the maintenance and repair Services required by the Sanitation District. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether suppliers or firms are eligible for the prequalified list. The Request for Qualifications shall require the following information, at a minimum, from proposers: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of Service needed; (b) The experience, training, and skills of the key personnel that will perform and manage the work for the Sanitation District; (c) The firm's capacity and resources to perform the Services required within the specified period of time. The firm must demonstrate that it will provide a sufficient number of qualified staff, equipment, and facilities as applicable. (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of the Department requesting the Procurement shall appoint the remaining members. Each evaluation committee shall determine whether each supplier or firm has the demonstrated competence and qualifications to provide the Services necessary for the satisfactory performance of the Services required. (3) Lists. Based on the recommendations of the evaluation committee, with the concurrence of the Department Director, the Purchasing Manager shall establish a list of at least three (3) prequalified Contractors. If the Sanitation District uses its best efforts to outreach to potential Contractors and cannot obtain the minimum of three (3) prequalified Contractors, the Purchasing Manager shall document the outreach and responses received. The Sanitation District may then proceed with award to fewer than three (3) prequalified firms. Each list shall be used for a maximum of three (3) years. No later than three (3) years after establishing a prequalified list, the Purchasing Manager must issue a new Request for Qualifications and establish a new list if such goods and/or services are required. (4) Master Contract. Master Contracts with firms on the prequalified list shall be awarded by the Board of Directors in the amount not to exceed the program budget approved by the Board of Directors. The original term of such Contracts shall be for one (1) year, with an option to renew each Contract for up to two (2) additional one-year renewal periods. OC SAN-56-11 (5) Task Orders. The Department Director shall notify the Purchasing Manager when Services subject to this subsection 2.03(F) are required for a maintenance or repair project. Proposals shall be solicited from all the firms on the prequalified list and one of the firms shall be selected pursuant to the process set forth in Section 2.02. Individual Task Orders in an amount not to exceed $300,000 will be awarded for each project. ARTICLE 3. PROFESSIONAL SERVICES Section 3.01. Purpose and Scope A. Purpose. This Article 3 is intended to ensure that the Sanitation District obtains Professional Services at fair and reasonable prices based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. B. Scope. The provisions of this Article 3 apply to the award of Contracts for Professional Services and incidental services that members of a Professional Service firm, and those in their employ, may logically perform. The provisions of this Article 3 do not apply to the award of Contracts for Professional Design Services (governed by Article 4). Section 3.02. Selection Process Contracts for Professional Services shall be awarded pursuant to the following procedures: A. Request for Proposals. The Purchasing Manager shall prepare a Request for Proposals in consultation with the Director of the Department requesting the Procurement. The Purchasing Manager, with the concurrence of the Director of the Department requesting the Procurement, may select a limited number of Professional Service firms to receive the Request for Proposals. The Purchasing Manager may issue a Request for Qualifications to prospective Contractors as a means of identifying prospective recipients. The Purchasing Manager may publish notice of the Request for Proposals or Request for Qualifications. B. Evaluation and Ranking of Proposals. All responsive proposals shall be evaluated and ranked, from most qualified to least qualified, based on each firm's demonstrated competence and professional OC SAN-56-12 qualifications necessary for the satisfactory performance of the services required. The Purchasing Manager may establish a committee to conduct the evaluation. The Purchasing Manager or evaluation committee, if any, may communicate with a proposal's author to seek clarification or otherwise obtain relevant information. C. Negotiation of Contract. The Purchasing Manager shall negotiate a Contract with the firm deemed to be most qualified at a price that the Purchasing Manager, with the concurrence of the Director of the Department requesting the Procurement, deems to be fair and reasonable. If the Purchasing Manager determines that it is in the best interest of the Sanitation District to enter into Contracts with two or more firms, the Purchasing Manager shall negotiate with the desired number of firms starting with the most qualified. The Purchasing Manager shall proceed down the list from most to least qualified until he or she has concluded negotiations with the desired number of firms at fair and reasonable prices. The Sanitation District may, in its sole discretion, reject all proposals. Section 3.03. Exceptions A. Sole Source and Emergency Procurements. A Contract for Professional Services may be awarded without soliciting Competitive Sealed Proposals if the Purchasing Manager makes one of the determinations set forth in Section 1.07. B. Contractors Reporting to the Board. The provisions of this Article 3 shall not apply to the retention of Professional Service firms or individuals that are selected by the Board and report directly to the Board. For such Contracts, the Board shall determine the method of selection, consistent with the requirements of applicable law. C. Procurements of$10,000 or less. Contracts subject to this Article 3 with an estimated value of $10,000 or less may be awarded without following the Request for Proposal/Request for Qualifications process if the Purchasing Manager determines that an RFP/RFQ process would not result in a lower overall cost to the Sanitation District. D. Master Contracts; Professional Services Less Than or Equal to $100,000. The Purchasing Manager may purchase Professional Services estimated to cost less than or equal to $100,000 through the master contract procedures set forth in Section 2.03(F), provided that individual task orders shall not exceed $100,000 for each project. OC SAN-56-13 E. Master Contracts: Professional Services Qualified Lists. The Purchasing Manager may establish qualified lists of Professional Services through the master contract procedures set forth below. (1) Request for Qualifications. If a master contract is let for Professional Services, the Purchasing Manager shall prepare and distribute a Request for Qualifications for the Professional Services required by the Sanitation District. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether firms are eligible for the qualified list. The Request for Qualifications shall require the following information, at a minimum, from firms: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of Service needed; (b) The experience, training, and skills of the key personnel that will perform and manage the work for the Sanitation District; (c) The firm's capacity and resources to perform the Services required within the specified period of time. The firm must demonstrate that it will provide a sufficient number of qualified staff, equipment, facilities or other requirements as applicable. (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of the Department requesting the Procurement shall appoint the remaining members. Each evaluation committee shall determine whether each firm has the demonstrated competence and qualifications to provide the Services necessary for the satisfactory performance of the Services required. (3) Lists. The Purchasing Manager in conjunction with the Department Director shall determine the number of firms needed on the list based on anticipated work. If the Sanitation District uses its best efforts to outreach to potential Contractors and cannot obtain the minimum number of firms specified in the RFQ, the Purchasing Manager shall document the outreach efforts and responses to the procurement file. The Sanitation District may proceed with award to fewer firms. No later than five (5) years after establishing a qualified list, the Purchasing Manager must issue a new RFQ and establish a new list, if such services are still required. (4) Master Contract. Master Contracts with firms on the qualified list shall be awarded by the Board of Directors in the amount not to exceed the program budget approved by the Board of Directors. The original term of such Contracts shall be for three (3) years, with an option to renew each Contract for up to two (2) additional one-year renewal periods. (5) Task Orders. The Department Director shall notify the Purchasing Manager when Services are subject to this subsection 3.03(E). The Purchasing OC SAN-56-14 Manager shall follow a competitive selection process or cycle through on a rotation basis to one firm at a time. The Request for Qualifications shall specify any competitive process and/or rotation selection process, including selection of a single firm due to a unique qualification or circumstance, subject to the best interests of the Sanitation District in any particular case. F. Renewals. The Purchasing Manager may exercise any options to renew as may be included in existing Contracts without initiating the procurement procedures prescribed in Section 3.02 and Section 3.03. ARTICLE 4. PROFESSIONAL DESIGN SERVICES Section 4.01. Purpose and Scope A. Purpose. This Article 4 is intended to ensure that the Sanitation District obtains Professional Design Services at fair and reasonable prices based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. B. Scope. This Article 4 applies to the selection of Contractors for Professional Design Services. Section 4.02. Selection Process A. Competitive Selection. All Professional Design Services estimated to be greater than $300,000 shall be awarded based on Competitive Sealed Proposals. All Professional Design Services with an estimated value of $300,000 or less shall have a separate selection process based upon a master contract procedure whereby the Sanitation District shall solicit Statements of Qualifications and award one or more master contracts not to exceed $600,000 per year. B. Professional Design Services Greater Than $300,000. The requirements set forth in this subsection 4.02(B) shall apply to the purchase of Professional Design Services estimated to cost more than $300,000. OC SAN-56-15 (1) Annual List. Each Director of a Department that utilizes Professional Design Services may file annually with the Purchasing Manager a list of specific disciplines for which Professional Design Services may be required. The Purchasing Manager may from time to time prepare and distribute a Request for Qualifications for the professional disciplines or project design services required by the Sanitation District subject to this Part B. For each Request for Qualifications issued, the Purchasing Manager shall evaluate the responses, identify qualified firms, and maintain the responses of the qualified firms on file to be used in the Request for Proposals process described below. (2) Request for Proposals. The Purchasing Manager, in consultation with the Director of Engineering, shall issue a Request for Proposals for the Professional Design Services requested. Multiple projects may be bundled into one Request for Proposals such that multiple Contract awards may result from one Request for Proposals and selection may be based upon specialized services. (3) Content of Request for Proposals. Each Request for Proposals shall describe the Professional Design Services required and the selection process. Each Request for Proposals shall also set forth such provisions, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager, in consultation with the Director of Engineering, determines are necessary, desirable, and/or advantageous to the Sanitation District. Each Request for Proposals shall require that proposals contain, at a minimum, the following information: (a) The firm's qualifications for performing the proposed work. (b) The firm's relevant experience and performance on similar projects. (c) The firm's ability to complete the work within the time allotted. (d) The personnel that will be assigned to the project. (e) The estimated number of hours that each member of the team will spend on the project. (f) A statement that the firm's engagement for the project would not create a conflict of interest. (g) Any other information required to properly evaluate the firm's qualifications and experience with similar projects. (h) Proposals for construction management services shall demonstrate that the designated personnel have expertise and experience in construction project design review and evaluation, construction mobilization and supervision, bid evaluation, project scheduling, cost• benefit analysis, claims review and negotiation, and general management and administration ofa construction project. OC SAN-56-16 (i) A fee proposal, based on the method of compensation specified in the Request for Proposal, and an estimate of total fees, enclosed in a separately sealed envelope. Commonly used methods of compensation for Professional Design Service Contracts include (i) cost plus fixed fee with a maximum amount; (ii) per diem rate(s) with a maximum amount; (iii) a lump sum (fixed) fee; and (iv) cost of time and materials. (4) Publication of Request for Proposals. The Sanitation District shall publish each Request for Proposals by two or more of the following methods: (a) Advertising in print or electronic media; and/or (b) Mailing the Request for Proposals to each firm that has been identified as a qualified firm as set forth in subsection 4.02(B)(1); and/or (c) Mailing the Request for Proposals to each vendor registered in the applicable category, based on the services identified in the Request for Proposals, in the Sanitation District's on-line vendor database. (5) Staff Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the proposals. (a) Management and Composition. The Purchasing Manager shall serve as chair of the evaluation committee. The Director of Engineering shall appoint the other members of the committee. (b) Ranking of Firms. All proposals shall be evaluated and ranked, from most qualified to least qualified, based on each firm's demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. (c) Interviews. At its discretion, the evaluation committee may interview one or more of the firms that have submitted proposals. (d) Report. The evaluation committee shall prepare a written report for the Purchasing Manager and the Director of Engineering setting forth, at a minimum, the ranking of firms from most qualified to least qualified. (6) Negotiations. The Purchasing Manager and the Director of Engineering shall negotiate a Contract with the firm that the evaluation committee deems to be most qualified. Fee proposals shall not be opened until the most qualified proposer is identified. Only the most qualified proposer's fee proposal will be opened. If those negotiations fail, the Purchasing Manager shall negotiate with the second most qualified firm, and so on, until an agreement is reached. The Purchasing Manager shall proceed down the list from most to least qualified until he or she has concluded negotiations with the desired number of firms at fair and reasonable prices. The Director of Engineering shall make OC SAN-56-17 a written determination that the negotiated fee is fair and reasonable. All unopened price proposals will remain unopened in the Sanitation District's web-based system.. The Sanitation District may, in its sole discretion, reject all proposals. C. Master Contracts; Professional Design Services Less Than or Equal to $300,000. The requirements set forth in this subsection 4.02(C) shall apply to the purchase of Professional Design Services estimated to cost less than or equal to $300,000 for each individual project. (1) Request for Qualifications. At least once every five (5) years, the Purchasing Manager shall prepare and distribute a Request for Qualifications for each professional discipline or project design service required by the Sanitation District subject to this subsection. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether firms are eligible for the prequalified list. The Request for Qualifications shall require the following information, at a minimum, from firms: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of services needed; (b) The education, experience, training, and skills of the key personnel that will perform and manage the work for the Sanitation District; (c) The firm's capacity and resources to deliver the services required within the specified period of time, including but not limited to a sufficient number of qualified staff, computer hardware, computer software, special equipment and facilities as applicable; and (d) The proximity of the firm's office(s) to the Sanitation District, the specific location of key personnel, and the firm's experience and familiarity with the operation of local government. (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of Engineering shall appoint the remaining members. Each evaluation committee shall determine whether each firm has the demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. (3) Lists. Based on the recommendations of the evaluation committee, with the concurrence of the Director of Engineering, the Purchasing Manager shall establish a list of prequalified Contractors within each discipline/category. The RFQ will identify the number of anticipated firms on the prequalified list. The Purchasing Manager in conjunction with the Director of Engineering shall determine the number of firms needed on the list based on anticipated work. OC SAN-56-18 If the Sanitation District cannot obtain the minimum number of firms specified in the RFQ, the Purchasing Manager shall record the outreach efforts and responses to the procurement file. The Sanitation District may proceed with award to fewer firms. Each list shall be used for a maximum of 5 (five) years. No later than 5 (five) years after establishing a prequalified list for each service, the Purchasing Manager shall issue a new Request for Qualifications and establish a new list if such services are still required. (4) Master Contract. Master Contracts with firms on the prequalified list shall be awarded by the Board of Directors in an amount not to exceed $600,000 per year. The original term of such Contracts shall be for 3 (three)years, with an option to extend each Contract for up to two (2) additional one-year renewal periods. (5) Task Orders. The Director of Engineering shall notify the Purchasing Manager when Professional Design Services subject to this subsection are required for a project. Proposals shall be solicited, with price proposals submitted in a separate sealed envelope, from at least two firms on the prequalified list and one of the firms shall be selected pursuant to the process set forth in subsections 4.02(B)(5) and 4.02(B)(6). In determining which firms will be invited to submit proposals, the Purchasing Manager shall follow the selection or rotation process, if any, set forth in the Request for Proposals, subject to the best interests of the Sanitation District in any particular case. Individual Task Orders in an amount not to exceed $300,000 will be awarded for each project. The Director of Engineering shall make a written determination that the negotiated fee is fair and reasonable for the task. For Task Orders estimated to cost $25,000 or less, the Director of Engineering, with concurrence of the Purchasing Manager, may solicit a proposal from 1 (one) firm on the prequalified list. The price proposal shall be submitted in a separate sealed envelope. The Director of Engineering shall issue a written determination that (i) identifies the basis for selection, including but not limited to the specialized qualifications of the 1 (one) firm, and (ii) states that the negotiated price is fair and reasonable. Section 4.03. Exceptions A. Sole Source and Emergency Procurements. Contracts for Professional Design Services may be awarded without soliciting Competitive Sealed Proposals if the Purchasing Manager makes one of the determinations setforth in Section 1.07. B. Additional Services. A new contract for additional services related to work already performed under an existing Contract for Professional Design Services may be awarded without observing the procurement procedures prescribed in subsection 4.02(B) or subsection 4.02(C), as applicable. In connection with any such new contract, the OC SAN-56-19 Director of Engineering shall determine in writing that (1) it is in the Sanitation District's best interests to have the original firm perform additional, related services, and (2) the negotiated price isfair and reasonable. C. Procurements of$10,000 or less. Contracts subject to this Article 4 with an estimated value of$10,000 or less may be awarded without following the Request for Proposal/Request for Qualifications process if the Purchasing Manager determines that an RFP/RFQ process would not result in a lower overall cost to the Sanitation District. ARTICLE 5. PUBLIC WORKS PROJECTS Section 5.01. Purpose and Scope A. Purpose. This Article 5 is intended to implement state statutes that govern the Sanitation District's award of construction Contracts for Public Works Projects. B. Scope. This Article 5 applies to the Sanitation District's award of Contracts for the construction of Public Works Projects exceeding $35,000 other than sewerage maintenance or repair projects pursuant to Public Contract Code section 20783 (Projects estimated at $35,000 or less, and sewerage maintenance or repair projects, may be processed pursuant to Article 2). Section 5.02. Selection Process A. Design-Bid-Build. (1) Competitive Sealed Bids. For projects subject to Public Contracts Code section 20783, the Sanitation District shall select firms for Public Works Projects pursuant to the process described in this subsection 5.02(A). (a) Notice Inviting Bids. For each prospective Contract, the Purchasing Manager shall publish a notice inviting bids as required by Public Contract Code Section 20783. (i) Manner of Publication. Each notice inviting bids shall be published in a newspaper of general circulation at least 10 days before the date for the opening of bids consistent with the requirements set forth in Public Contracts Code section 20783, as may be amended or superseded from time to time. Additionally, the Sanitation District may publish each notice inviting bids on industry bulletin boards, OC SAN-56-20 the Sanitation District's on-line vendor database, and/or on the Sanitation District's website. (ii) Contents. Each Notice Inviting Bids shall: 1. Establish a deadline for the receipt of bids that is at least 10 calendar days after the first publication of the Notice Inviting Bids. 2. Provide that the Sanitation District, in its sole discretion, may reject any and all bids; 3. Set forth a procedure that shall be followed in the event of a tie between the lowest Responsive and Responsible bidders; 4. Require bidders to post a bidder's security; 5. State that if a Contract is awarded to the bidder, a payment bond is required pursuant to Civil Code section 9550, as well as a performance bond; 6. Contain detailed plans and specifications for the project. Subject to the exceptions set forth in subsection 5.03(B), the specifications shall not call for a designated material, product, thing, or service by specific brand or trade name unless the Sanitation District complies with the requirements under California Public Contract Code section 3400 et seq.; and 7. Contain whatever provisions, consistent with this Ordinance, the Purchasing Manager determines are necessary, desirable, and/or advantageous to the Sanitation District. (b) Bid Opening, The Purchasing Manager shall open the bids publicly in the presence of one or more witnesses at the time and place designated in the Notice Inviting Bids. A web-based system may be used in lieu of in person bid opening. The Purchasing Manager shall record the amount of each bid together with the name of each bidder. This record, and each bid, shall be considered public records and shall be available to the public at the point in time specified in the Notice Inviting Bids and consistent with the Public Records Act. (c) Refection of Bids. The Sanitation District may reject all bids received for a particular project and: (i) Re-advertise for bids;or OC SAN-56-21 (ii) Authorize construction of the project through a Negotiated Procurement of day labor and/or materials or supplies, if the Board adopts a resolution by a four-fifths vote declaring that (i) the work can be performed more economically by day labor, and/or (ii) the materials or supplies can be obtained at a lower price in the open market. (d) No Bids. If the Sanitation District does not receive any responsive and responsible bids for a particular project, the Sanitation District's Board of Directors may authorize the Purchasing Manager to conduct a Negotiated Procurement and present his or her recommendation to the Board for approval. (e) Award to Lowest Responsive and Responsible Bidder. Unless the Sanitation District rejects all bids, the Contract shall be awarded to the lowest Responsive and Responsible Bidder. . If the Sanitation District determines that there has been a tie for lowest responsive bid between two or more bids received, which are for the same total amount or unit price and in all other respects equal, then the Sanitation District may award the bid based on Local Preference. If none or all bidders are Local Businesses, the Sanitation District shall award the bid based on the drawing of lots, identifying each eligible bidder on individual slips of paper and then randomly drawing one of the slips of paper. If the lowest Responsive and Responsible Bidder refuses to enter into a Contract, then the lowest Responsive and Responsible Bidder shall forfeit its bidder's security, and the Contract shall be awarded to the next lowest Responsive and Responsible Bidder. B. Design-Build. As may be authorized by the Public Contract Code or other statute, the Sanitation District may utilize a design-build selection process for the award of Public Works Contracts. C. Prequalification. The Purchasing Manager may limit the field of prospective bidders for Public Works Contracts by prequalifying Contractors pursuant to California Public Contract Code Section 20101 and the requirements of this subsection 5.02(C). Prequalification shall only be required when the Purchasing Manager or the Director of Engineering determines that prequalification is necessary or desirable. The Purchasing Manager may (i) prequalify a list of Contractors for the right to bid on any specific Public Works Project, and/or (ii) prequalify lists of Contractors for the right to bid on unspecified projects of a certain type or size pursuant to Public Contracts Code section 20101(c). If the Purchasing Manager elects to prequalify lists of Contractors for the right to bid on unspecified projects of a certain type or size, he or she shall conduct a prequalification process quarterly, and all qualifications shall be valid for one year. For each prequalified list of either type, the Purchasing Manager shall OC SAN-56-22 evaluate and prequalify Contractors pursuant to the following procedures: (1) Questionnaires and Rating Criteria. The Purchasing Manager shall develop a questionnaire and rating criteria for each prequalification. All criteria shall be relevant and objective. The Purchasing Manager may rely on the Department of Industrial Relations model guidelines, questionnaires, and forms, and/or establish additional or modified criteria. (2) Statements of Qualifications. The Purchasing Manager shall solicit Statements of Qualifications from prospective bidders. (3) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate each Statement of Qualifications. The Purchasing Manager shall chair the committee, and the Director of Engineering shall appoint the remaining committee members. The evaluation committee shall review each Statement of Qualifications, rate the Contractors according to their qualifications and objective criteria, and determine which Contractors are qualified and which Contractors are not qualified. (4) Notice of Determination. When the evaluation committee completes its review, the Purchasing Manager shall send each Contractor written notice of the committee's determinations regarding that Contractor. If the evaluation committee determines that a Contractor is not qualified, the written notice shall also set forth the basis for that determination and any relevant supporting evidence that the evaluation committee considered. (5) Appeal Process. (a) Notice of Appeal. Any Contractor may appeal to the General Manager any determination of the evaluation committee, including any rating assigned to the Contractor and any decision to disqualify the Contractor, by filing a written notice of appeal within seven (7) working days after the Purchasing Manager mails the notice described in subsection 5.02(C)(4). (b) Hearing. Within five (5) working days of the receipt of an appeal, the General Manager, or a designee of the General Manager who has not been involved in the evaluation of qualifications of Contractors for the project, shall conduct a hearing on the appeal. During the hearing, the affected Contractor or subcontractor shall have the opportunity to rebut any evidence used as a basis for disqualification and to present evidence to the General Manager or the General Manager's designee as to why the prospective bidder should be found qualified. (c) Decision. Within five (5) working days of the conclusion of the hearing, the General Manager or the General Manager's designee shall issue a written decision on the appeal. The decision of the General Manager or the General Manager's designee shall be final. OC SAN-56-23 Section 5.03. Exceptions A. Emergencies and Calamities. (1) The provisions of this subsection 5.03(A) apply in the event of an emergency or calamity involving a sudden, unexpected occurrence that poses a clear and imminent danger requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. In the event of such an emergency or calamity, the Sanitation District may, through Negotiated Procurement, award Contracts to repair or replace facilities, take any directly related and immediate action required by the emergency or calamity, and procure the necessary equipment, services, and supplies for those purposes. (2) The General Manager may take the actions described in subdivision (1) above, with the concurrence of the Chair of the Board of Directors and/or the Vice Chair, without obtaining prior approval of the Sanitation District's Board of Directors. In taking any such action, the General Manager shall follow the procedures set forth in Public Contracts Code Section 22050. (3) In the alternative, the Sanitation District's Board of Directors may, by resolution adopted by a four-fifths vote, take the actions described in subdivision above. In taking any such action, the Sanitation District shall follow the procedures set forth in Public Contracts Code 22050. B. Specification of Brand or Trade Name. Notwithstanding subsection 5.02(A)(1)(a)(ii)(6), the specifications for a Public Works Contract may call for a designated material, product, thing, or service by specific brand or trade name without inserting the words "or equal" if the Sanitation District complies with the requirements of the California Public Contract Code section 3400 et seq. The General Manager is authorized to make the findings required under California Public Contract Code section 3400 et seq. The Notice Inviting Bids or Request for Proposals shall state that a particular material, product, thing, or service is necessary or desirable for any of the following purposes: (1) In order that a field test or experiment may be made to determine the product's suitability for future use; (2) In order to match other products in use on a particular public improvement either completed or in the course of completion; (3) In order to obtain a necessary item that is only available from one source; (4) In order to respond to an emergency declared by the Sanitation District, but only if the declaration is approved by a four-fifths vote of the Sanitation District's Board of Directors; or (5) In order to respond to an emergency declared by the state, a state agency, or political subdivision of the state, but only if the facts setting forth the reasons OC SAN-56-24 for the finding of the emergency are contained in the public records of the Sanitation District. ARTICLE 6. PROTESTS The Sanitation District shall afford Interested Parties an opportunity to protest the solicitation of bids and proposals and the award of contracts as set forth in this Article 6. The General Manager shall adopt detailed protest procedures consistent with this Article 6. The protest procedures governing any particular procurement shall be set forth in the Notice Inviting Bids or the Request for Proposals, as applicable. Section 6.01. Solicitation Protests A. Interested Parties may file a Solicitation Protest Statement with the Purchasing Manager on the grounds that a free and open competition has not taken place, or cannot take place, and/or that a particular specification or requirement is impractical, unduly restrictive, or ambiguous. Each Notice Inviting Bids/Invitation for Bids and Request for Proposals shall identify the date and time that the Solicitation Protest Statement is due, the information required to be included in the Solicitation Protest Statement, the evaluation process, and the types of remedies available. B. The Purchasing Manager shall evaluate each Solicitation Protest Statement and determine what actions, if any, will be taken to remedy any deficiency. The decision of the Purchasing Manager shall be final. Section 6.02. Award Protests A. In connection with any competitive selection process, any Interested Party may file an Award Protest Statement with the Purchasing Manager on the ground that a free and open competition has not taken place in connection with the award recommendation. The Purchasing Manager shall not, however, consider any protest based on a finding that a bid or proposal is not responsive. B. Each Notice Inviting Bids and Request for Proposals shall identify the deadline for Award Protest Statements and describe the information required to be included in any Award Protest Statement, the evaluation process, the appeal process, and the types of remedies available. C. The Purchasing Manager shall evaluate each Award Protest Statement and determine what actions, if any, will betaken to remedy any deficiency. D. If the Protestor wishes to appeal, the Purchasing Manager's decision on an Award Protest Statement, the appeal shall be submitted to the Director of Finance and Administrative Services and the Director of the Department requesting the Procurement. The Director of Finance and Administrative Services and the Director OC SAN-56-25 of the Department requesting the Procurement shall evaluate each Award Protest Statement and determine whether to uphold or reject the Purchasing Manager's determination. For Contracts to be awarded by Sanitation District staff, the decision of the Director of Finance and the Director of the Department requesting the Procurement shall be final. For Contracts to be awarded by the Board of Directors, the Board may consider any Award Protest Statements in connection with its consideration of the Contract. Section 6.03. Delay in Award A. Execution of any proposed contract shall be delayed pending resolution of any protests unless one or more of the following conditions is present: (1) The items or services being procured are urgently required; (2) Delivery or performance will be unduly delayed by failure to make an award promptly; or (3) Failure to make prompt award will otherwise cause undue harm to the Sanitation District. Section 6.04. Remedies A. If the final decision maker determines that the award or proposed award was not made in accordance with applicable statutes, regulations, policies and/or procedure, the Sanitation District, in its sole discretion, may grant any of the following remedies or any other remedy it deems appropriate: (1) Prior to award, the Sanitation District may issue a new solicitation, make a new selection/award recommendation, or award a contract consistent with applicable statutes, regulations, policies and procedures; (2) Take nofurther action; or (3) Take any other action that is permitted by law to promote compliance with applicable statutes, regulations, policies and/or procedure. B. In determining the appropriate remedy, if any, the Sanitation District shall consider all the circumstances surrounding the Notice Inviting Bids/Invitation for Bids or Requests for Proposal and/or award, including, but not limited to: (1) The seriousness of any deficiency found to exist in the contracting process; (2) The effect of the action on the competitive process; (3) Any urgency surroundingthe contract requirement; and (4) The effect that implementing the remedy will have on the Sanitation District. OC SAN-56-26 C. Nothing contained herein shall be construed to act as a limitation on the Sanitation District's choice of remedies or confer any right upon any Interested Party or affected party to a remedy. Section 6.05. Public Documents Solicitation Protest Statements and Award Protest Statements are public documents. The Sanitation District will notify the affected parties when a protest has been submitted and will provide copies of the Protest Statements to the affected parties upon written request. ARTICLE 7. DELEGATION OF AUTHORITY TO AWARD CONTRACTS This Article 7 applies to all Contracts for Goods, Services, and Public Works Projects entered into bythe Sanitation District. Section 7.01. Award Authorization A. Delegation by General Manager. The General Manager shall establish written procedures governing the delegation of authority to the Purchasing Manager to award and execute Contracts, Amendments, Change Orders, Renewals, Time Extensions and Assignments consistent with this Ordinance. Upon delegation of authority by the General Manager each Department Director may further delegate authority to initiate a written Requisition consistent with the General Manager's written procedures. B. Original Contracts,Contingencies and Renewals The Board of Directors hereby delegates the authority to award Contracts within specified limits asfollows: Delegated Authorized Action Authority General Manager/ (1) Authorization to approve and execute Assistant General Manager Contracts and applicable Renewals for budgeted procurements less than or equal to $100,000. (2) All new procurements between $50,000 and $100,000 are to be reported to the Board of Directors on a quarterly basis. Standing Committees (1) Authorization to approve and execute Contracts and applicable Renewals for budgeted OC SAN-56-27 procurements greater than $100,000 and up to or equal to $200,000. (2) Authorization to approve Contingency up to 50%, for a total spending authority of up to $300,000 for each Contract. Board of Directors Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements up to or greater than $200,000, including Contingency. C. Amendments,Change Orders, Renewals, Time Extensions and Assignments The Board of Directors hereby delegates the authority to approve Amendments, Change Orders, Renewals, Time Extensions and Assignments in any amount as follows: Delegated Authorized Action Authority General Manager/ (1) Authorization to approve and execute Assistant General Amendments and Change Orders as long as Manager the Amendment o r Change Order is recommended by the applicable Department Director, and (a) the Amendment or Change Order does not change the contract price or the new contract price is within the delegated authority, or (b) the Amendment or Change Order is within the approved contingency. (2) Authorization to approve and execute any Renewals that were originally approved by the General Manager, Standing Committee and/or Board of Directors. (3) Authorization to approve and execute Amendments and Change Orders for Contract Time Extensions (a) without any increase in Contract price; or (b) with an increase in Contract price within the approved Contingency originally approved by the General Manager, Standing Committee and/or Board of Directors. (4) Authorization to approve and execute all Assignments unless determined by the General Manager that the assignment OC SAN-56-28 contains material changes and requires approval of the awarding authority. (5) Authorization to approve and execute Amendments to chemical Contracts unless the Contract unit price has increased beyond the unit price contingency approved by the Sanitation District's Standing Committee and/or Board of Directors. (6) Authorization to approve and execute chemical contract Renewals including changes to the unit price, increases or decreases to the estimated annual / or specified term amount. Increases that cause the contract amount to exceed the General Manager's delegated authority shall be approved by the Standing Committee and/or Board of Directors. Section 7.02. Contingency Release The General Manager/Assistant General Manager shall manage the release of all contingency funds for use in all amendments and change orders within the approved contingency amounts. Section 7.03. Task Orders The Board of Directors hereby delegates the authority to award Task Orders within specified limitsasfollows: Delegated Authorized Action Authority General Manager/ (1) For Task Orders covered under Article 2. Goods Assistant General and Services, authorization to approve and Manager execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $300,000, upon the recommendation of the Department Director (2) For Task Orders covered under Article 2. Goods and Services, all new Task Order procurements between $50,000 and $300,000 are to be reported to the Board of Directors on a quarterly basis, in arrears. OC SAN-56-29 (3) For Task Orders covered under Article 3. Professional Services of this Ordinance, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $100,000, upon the recommendation of the Department Director. (4) For Task Orders covered under Article 4. Professional Design Services, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $300,000, upon the recommendation of the Department Director. (5) For Task Orders covered solely under Article 4, Professional Design Services of this Ordinance, the General Manager may delegate authorization to approve and execute Professional Design Service master contract Task Orders up to or equal to $100,000, which is inclusive of amendments to Task Orders, to the Director of Engineering. This authorization may not be sub delegated further. This authorization does not apply to master contracts covered under Article 2 or Article 3 of this Ordinance. Standing Committees (1) For Task Orders covered under Article 3. Professional Services of this Ordinance, authorization to approve Amendments to the Task Orders where the cumulative value exceeds $100,000 provided the cumulative total of the Task Order and Amendments does not exceed $200,000, upon the recommendation of the General Manager/Assistant General Manager. Board of Directors (1) For Task Orders covered under Article 2. Goods and Services, all Task Orders and/or amendments where the cumulative value exceeds $300,000 shall be approved by the Board of Directors. (2) For Task Orders covered under Article 3. Professional Services, all Task Orders and/or OC SAN-56-30 amendments that exceed $200,000 shall be approved by the Board of Directors. (3) For Task Orders covered under Article 4. Professional Design Services, all Task Orders and/or Amendments that exceed $300,000 shall be approved by the Board of Directors. ARTICLE 8. ETHICS Section 8.01. Unlawful Consideration Prohibited Sanitation District Officials shall neither solicit nor receive bribes, rebates, kickbacks, and/or any other unlawful consideration from any contracting party, or any party seeking a Contract with the Sanitation District, in exchange for favorable treatment or any other action. Section 8.02. Conflicts of Interest A. Compliance with the Political Reform Act. Sanitation District Officials shall not make any Contracts, participate in the making of any Contracts, or in any way attempt to use their official positions to influence any decision on any Contracts, in violation of Government Code Sections 87100 et seq. B. Compliance with Government Code 1090. Without limiting the requirements of Part A above, no Sanitation District Official shall make any Contract, participate in the making of any Contract, or in any way attempt to use his or her official position to influence any decision on a Contract, in violation of California Government Code Section 1090. C. Requirements Applicable to Consultants. Consultants designated by the Sanitation District's Conflict of Interest Code shall comply in all respects with Government Code Section 87100 et seq., and it's implementing regulations. OC SAN-56-31 ARTICLE 9. DEFINITIONS Amendment means a properly executed written agreement entered into and between the Sanitation District and the Contractor, or issued by the Sanitation District, covering modifications to the original Contract and which may result in adjustments to provisions of the Contract, including, but not limited to, terms, scope of work, compensation, and/or period of performance. Assignment means to revise Contracts and related records to reflect changes such as the sale, transfer, or reorganization of a Contractor's business, or a change in the Contractor's name for doing business, as long as all other terms and conditions of the original Contract remain the same. Award Protest Statement shall mean a written objection to the award recommendation prior to final action to award the contract, which shall be submitted after receipt of sealed bids/proposals, but before award of a contract, as specified herein. Best value means the overall combination of quality, price, and other elements of a proposal/bid (or combination of several proposals/bids) that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents. Change Order means a properly executed written agreement entered into and between the Sanitation District and the Contractor, or unilaterally issued by the Sanitation District, covering modifications to the original Contract, and which may result in adjustments to the provisions of the Contract, including, but not limited to, terms, scope of work, cost and/or period of performance. Competitive Sealed Bids means a selection process whereby prospective Contractors submit sealed bids and the Contract is awarded to the lowest Responsive and Responsible Bidder. Competitive Sealed Proposals means a selection process whereby prospective Contractors submit sealed proposals and the Contract is awarded to the proposal that best meets the criteria specified in the Request for Proposals. Contingency means an amount above the original Contract price, as awarded by the delegated authority, established at the time of Contract award, as may be amended thereafter, to be used for Contract changes. Contract means any type of agreement for the purchase of Goods, Services, and/or Public Works Projects. Contracts may be labeled in various different ways, including, but not limited to, "contract," "agreement," "purchase order," and"task order." Contractor means any person or entity that has a Contract with the Sanitation District. OC SAN-56-32 Department means one of the Sanitation District's designated departments. Design-Bid-Build means a selection process for the award of Public Works Contracts involving three basic steps: (1) the Sanitation District hires a design professional to prepare detailed plans and specifications, or the Sanitation District prepares detailed plans and specifications; (2) the Sanitation District solicits bids from construction firms based on the detailed plans and specifications; and (3) the Sanitation District awards the Contract to the lowest Responsive and Responsible Bidder. Design-Build means a selection process for the award of Public Works Contracts involving two basic steps: (1) the agency solicits proposals from pre-qualified firms to design and construct a project; and (2) depending on the award criteria set forth in the Request for Proposals, the agency awards the Contract to either (a) the lowest Responsive and Responsible Bidder, or (b) the proposal that presents the "best value." Designee means a person selected or authorized to temporarily manage the duty or role of another employee. Director means a director of one of the Sanitation District's designated departments, or his or herdesignee(s). Director of Engineering means the Sanitation District's Director of Engineering or his or her designee(s). General Manager means the General Manager of the Sanitation District, or his or herdesignee(s). Goods means fixed, movable, disposable, and/or reusable products, commodities, equipment, materials, supplies, or items used by the Sanitation District, and excludes land or any interest in real property. Interested Party shall mean: (1) on solicitation, all bidders or proposers, and prospective bidders or proposers; (2) on award, the unsuccessful bidder or proposer with a direct economic interest in the outcome of their protest. Local Business shall mean a business that has a principal business office, or a satellite office with at least one full-time employee, that is located within the Sanitation District service area. Local Preference shall mean a preference for a Local Business over a business that is not a Local Business. Mailing means transmission by United States Postal Service, electronic mail, or facsimile. Negotiated Procurement means a selection process whereby the Purchasing Manager identifies one or more prospective Contractors of his or her choice, negotiates with OC SAN-56-33 one or more of them, and awards the Contract to one of them based on the best interest of the Sanitation District. Notice Inviting Bids means all documents, whether attached or incorporated by reference, utilized for soliciting bids. Procurement means buying, purchasing, renting, leasing, or otherwise acquiring any goods, services, construction, construction services, or professional services, including professional design services. It also includes all functions that pertain to the obtaining of any goods, services, or construction, including description of requirements, election and solicitation of sources, preparation and award of contract, and all phases of contract administration. Professional Services means (i) services provided by professionals that involve specialized judgment, skill, and expertise, and (ii) incidental services that professionals, and those in their employ, may logically or justifiably perform. Professional Services include, but are not limited to, services provided by accounting, financial, information technology, human resources consultation and advocacy, legislative advocacy, and scientific research/consulting firms. Professional Design Services means architectural, landscape architectural, engineering, environmental, land surveying, construction project management, planning and other miscellaneous engineering related services retained by the Sanitation District in connection with, but not limited to, construction, alteration, and/or repair projects. Public Works/Public Works Project means a project involving the construction, erection, or alteration of any type of structure, building, or improvement other than sewerage maintenance or repair projects. Purchasing Manager means the Sanitation District's Contracts, Purchasing and Materials Management Manager, or his or her designee(s). Purchasing Manager designee means an employee residing under Contracts, Purchasing and Materials Management Division whose job duties include contracting and procurement execution and administration. Renewal means a mechanism within an approved contract to provide the same goods/services for an additional period of time, at the specified price under the same terms and conditions. The number of renewals, the price, and any contingencies are approved at the time of award. Renewals may or may not increase the contract price. The contract price per term does not accumulate for purposes of approval thresholds. A Renewal may be exercised fewer times or for a shorter duration than the approved number or term, but any remaining time cannot be transferred to an additional renewal. Renewals cannot be added nor entered into for longer than the approved number or term at the time of award. Request for Proposals means all documents, whether attached or incorporated by reference, utilized for soliciting proposals. OC SAN-56-34 Request for Qualifications means a request for detailed information concerning the qualifications of prospective Contractors. Requisition means an approved written document making a request for Goods and Services in advance of initiating a procurement process as well as a later request to amend, change, renew, cancel, or extend time to a non-public works contract. Responsible Bidder means a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the requested services or project. Responsive Bidder/Proposer means a bidder/proposer who has submitted a bid/proposal which conforms in all material respects to the Notice Inviting Bids/Invitation for Bids/Request for Proposals. Sanitation District means the Orange County Sanitation District. Sanitation District Board or Board means the Board of Directors of the Orange County Sanitation District. Sanitation District Official means any member of the Sanitation District's Board of Directors, any Sanitation District employee, and any Sanitation District consultant that is designated under the Sanitation District's Conflict of Interest Code. Services means the furnishing of materials, labor, time, or effort by a Contractor. Services include both general services janitorial, landscape, repair, maintenance, etc.) professional services, and professional design services, unlessotherwise specified. Sealed (Bids or Proposals) means the submittal of bids or proposals, either in paper or electronic format, whereby the bid or proposal documents are opened at a specific time and not before. Sole Source Procurement means the acquisition of Goods and/or Services from a single source. Solicitation Protest Statement shall mean a written objection during the solicitation phase of the procurement, which shall be submitted prior to the bid/proposal due date as specified herein. Standing Committee means one of the permanent committees designated by the Board of Directors as"Standing Committees." Task Order means a written document pursuant to a Contract issued by the Purchasing Manager which provides for the issuance of orders, containing a defined budget, scope of services, and schedule, and authorizes a Contractor to incur a specified amount for the performance of tasks. Time Extension means an increase to the period of performance specified by the original OC SAN-56-35 contract only, as may be amended. ARTICLE 10. MISCELLANEOUS Section 10.01. Noncompliance Any Contract entered into which fails in any respect to comply with the provisions of this Ordinance may be voided by the Board of Directors in its sole and absolute discretion. Any employee who willfully and knowingly violates any provision of this Ordinance may be subject to disciplinary action. Section 10.02. Effective Date This Ordinance No. OC SAN-56 shall take effect June 26, 2021, upon adoption by the Board of Directors. Section 10.03. Repeal of Ordinance No. OCSD-52 Ordinance No. OCSD-52, entitled "An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects; and repealing Ordinance No. OCSD-47" is hereby repealed in its entirety. Section 10.04. Certification and Publication. The Clerk of the Board shall certify to the adoption of this Ordinance and shall cause a summary to be published in a newspaper of general circulation within 15 days as required by law. OC SAN-56-36 PASSED AND ADOPTED by a majority of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held on May 26, 2021. David John Shawver Chairman of the Board of Directors ATTEST: Kelly A. Lore, MMC Clerk of the Board APPROVED AS TO FORM: Bradley R. Hogin General Counsel OC SAN-56-37 STATE OF CALIFORNIA ) ) SS COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OC SAN-56 was introduced for first reading at a regular meeting of said Board on the 28th day of April 2021 , and passed and adopted at a regular meeting of said Board on the 26th day of May 2021, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand this 28th day of May 2021 . Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District OC SAN-56-38 BOARD OF DIRECTORS Administration Building 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1613 Agenda Date: 4/28/2021 Agenda Item No: CS-1 FROM: James D. Herberg, General Manager SUBJECT: CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(D)(1) RECOMMENDATION: Convene in Closed Session: Number of Cases: 1 Bayside Village Marina, LLC v. Orange County Sanitation District; Orange County Sanitation District Board of Directors; and Does 1-25, Inclusive, Superior Court of the State of California for the County of Orange - Central Justice Center Case No. 30-2021-01194238-CU-WM-CXC. BACKGROUND During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. RELEVANT STANDARDS • Government Code Sections 54956.8, 54956.9, 54957, or 54957.6, as noted ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Memoranda from General Counsel Orange County Sanitation District Page 1 of 1 Printed on 4/21/2021 powered by LegistarTM RITA WOODRUFF, $PRADLIN SMART c .555 ANTON BOULEVARD, SUITE 1200 COSTA MESA, CA 92626-7670 (714)558-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: April 21, 2021 RE: Closed Session Items The Board of Directors desires to hold a closed session on April 28, 2021 for the purpose of conferring with its legal counsel regarding existing litigation to which the District is a parry. The title of the case is Bayside Village Marina, LLC v. Orange County Sanitation District et. al., Superior Court of the State of California for the County of Orange — Central Justice Center Case No. 30-2021-01194238-CU-WM-CXC. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(1). Respectfully submitted, By Bradley/R. Hogin, eneral Counsel 1411290.1 BOARD OF DIRECTORS Administration Building 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT Agenda Report (714)593 7433 File #: 2021-1614 Agenda Date: 4/28/2021 Agenda Item No: CS-2 FROM: James D. Herberg, General Manager SUBJECT: CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(D)(1) RECOMMENDATION: Convene in Closed Session: Number of Cases: 1 Klean Waters, Inc. v. Orange County Sanitation District, United States District Court, Central District of California, Southern Division, Case No. 8:15-cv-00627. BACKGROUND During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. RELEVANT STANDARDS • Government Code Sections 54956.8, 54956.9, 54957, or 54957.6, as noted ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Memorandum from General Counsel. Orange County Sanitation District Page 1 of 1 Printed on 4/21/2021 powered by LegistarTM RITA WOODRUFF, $PRADLIN SMART c .555 ANTON BOULEVARD, SUITE 1200 COSTA MESA, CA 92626-7670 (714)558-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: April 21, 2021 RE: Closed Session Items The Board of Directors desires to hold a closed session on April 28, 2021 for the purpose of conferring with its legal counsel regarding existing litigation to which the District is a party. The title of the case is Klean Waters, Inc. et. al. v. Orange County Sanitation District, United States District Court, Central District of California, Southern Division, Case No. 8:15-cv-00627. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(1). Respectfully submitted, By Bradley/R. Hogin, eneral Counsel 1411290.1 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.