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HomeMy WebLinkAbout12-01-2010 Operations Committee Agenda Packet Orange County Sanitation District SA Wednesday, December 1, 2010 Regular Meeting of the 1" _ 5:00 P.M. Operations Committee Administration Building Engineering, Operations & Board Room Maintenance, and Facilities Support 10844 Ellis Avenue Services +, ,, py,°� Fountain Valley, CA (714) 593-7130 AGENDA PLEDGE OF ALLEGIANCE: DECLARATION OF QUORUM: PUBLIC COMMENTS: If you wish to speak,please complete a Speaker's Form and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee. CONSENT CALENDAR: 1. Approve minutes of the October 6, 2010, Operations Committee meeting. 2. Recommend to the Board of Directors to: A. Award a sole source Professional Services Consultant Agreement with MWH Americas, Inc. for an amount not to exceed $125,206 for developing a Plan of Operation for Secondary Treatment; and, B. Approve a contingency of $5,000 (4%). 3. Recommend to the Board of Directors to: Approve a twelve-month real property lease, and subterranean license agreement with an option to extend, with Brea Imperial Inc. and RV Storage Depot Brea to allow mobilization of a chemical dosing station and injection of chemicals at 1225 West Imperial Highway in Brea, for a total cost of $2,500.00 per month, in a form approved by General Counsel. 12/01/10 Operations Committee Agenda Page 1 of 4 CONSENT CALENDAR: (Cont'd) 4. Recommend to the Board of Directors to: A. Approve a Professional Consultant Services Agreement with Black & Veatch Corporation to provide construction support services for Power Monitoring and Control Systems, Job No. J-33-3, for an amount not to exceed $689,008; and, B. Approve a contingency of $48,231 (7%) 5. Recommend to the Board of Directors to: A. Approve Amendment No. 3 to the Professional Services Agreement with M. J. Schiff & Associates, Inc., providing for additional engineering services for Interplant Gas Line Rehabilitation, Job No. J-106, for an additional amount of $104,450, increasing the total amount not to exceed $361 ,976; and, B. Approve a contingency of $18,099 (5%). NON-CONSENT CALENDAR: 6. Recommend to the Board of Directors to: A. Approve Professional Consultant Services Agreements with Black & Veatch Corporation; Brown and Caldwell; Carollo Engineers, Inc.; HDR Engineering, Inc.; and Malcolm Pirnie, Inc. to provide planning studies on a task order basis for a two-year term, with a one-year optional renewal; B. Authorize the General Manager to assign task orders throughout the contract duration in accordance with the Delegation of Authority Resolution No. OCSD 07-04; and, C. Approve exception to Resolution No. OCSD 07-04, Section 4.05, authorizing the General Manager to select any single suitable firm in the Planning Studies Program for a particular task order valued at$50,000 or less, without having to solicit proposals from multiple firms. 7. Recommend to the Board of Directors to: Approve Amendment No. 2 to the Agreement with EnerTech Environmental California, LLC, providing for reimbursement of diverted biosolids to land application. INFORMATIONAL ITEMS: 8. Regulatory Initiatives Update 12/01/10 Operations Committee Agenda Page 2 of 4 DEPARTMENT HEAD REPORTS: ( Newport Force Main Condition Assessment Update ADJOURNMENT: The next Operations Committee meeting is scheduled for Wednesday, February 2, 2011, at 5:00 p.m. 12/01/10 Operations Committee Agenda Page 3 of 4 Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at(714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main entrance of the Sanitation District not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of all,of the members of District's Board, are available for public inspection in the office of the Clerk of the Board, located at 10844 Ellis Avenue, Fountain Valley, California. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or because there is a need to take immediate action,which need came to the attention of the Committee subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). The Committee Chair will determine if any items are to be deleted from the consent calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee meeting held within five (5)days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adjournment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955 (posted within 24 hours). Notice to Committee Members: For any questions on the agenda or to place any items on the agenda, Committee Members should contact the Committee Chair or Clerk of the Board ten days in advance of the Committee meeting. Committee Chair: Tom Beamish (562)905-9700 General Manager: James D. Ruth (714)593-7110 General Counsel: Brad Hogin (714)415-1006 Clerk of the Board: Donna Terrones (714)593-7130 E-mail: dterrones(o-)ocsd.com 12/01/10 Operations Committee Agenda Page 4 of 4 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 12/01/10 12/15/10 AGENDA REPORT Item Number Item Number 2 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Ed Torres, Director of Operations and Maintenance GENERAL MANAGER'S RECOMMENDATION A. Approve a sole source Professional Services Consultant Agreement with MWH Americas, Inc., for an amount not to exceed $125,206 for developing a Plan of Operation for Secondary Treatment; and B. Approve a contingency of $5,000 (4%). SUMMARY Orange County Sanitation District (OCSD) is currently constructing two new secondary treatment facilities (one at each plant) in accordance with our Ocean Discharge permit and Consent Decree requirements bringing the total number of secondary treatment facilities to five. Assuming that flow levels remain constant or continue to decline, it is evident that full operation of all five of OCSD's secondary treatment facilities will not be routinely necessary, at least until flow levels increase. The cost savings associated with not operating all secondary treatment facilities could be substantial. In 2010, MWH conducted a study to determine the staffing requirements needed to operate, maintain, and support all OCSD completed facilities at required secondary treatment standards. The development of a Plan of Operation for Secondary Treatment (POST) was a recommendation that resulted from this recent study. The POST, which is estimated to take 4 to 6 months to complete, will address which secondary treatment facilities are operated considering staffing, O&M costs, discharge permit compliance, Groundwater Replenishment System requirements and emerging issues such as greenhouse gas emissions and endocrine disrupting chemicals. Because of the significant effort involved in commissioning the two new secondary treatment facilities and the new headwork at Plant 2, O&M does not have the resources to develop the POST using existing staff. Therefore, consultant support is needed. Form No.DW-102 Revised: 11/5/10 Page 1 of 2 SUMMARY (cont'd) Staff feels that MWH is uniquely qualified to prepare the POST because through the staffing study, MWH, and specifically James Stahl and Geoffrey Carthew of MWH, gained an intimate understanding of the Sanitation District staffing requirements as well as a strong understanding of the Sanitation District's secondary treatment facilities. In addition, James Stahl, Vice President and Senior Technical Advisor for MWH will be managing development of the POST. Mr. Stahl served as the General Manager of the Los Angeles County Sanitation District (LACSD) for many years. As Mr. Stahl works on this project, he brings not only his experience as a professional engineer and consultant, but also the unique knowledge and experience gained while serving as the General Manager with LACSD. Mr. Stahl understands the technical complexities of a large and complex treatment system such as OCSD and he also understands the regulatory and other special issues related to managing a large public wastewater treatment. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION MWH has performed similar work at other large public agencies. In 2007, MWH completed a detailed study for the City of Los Angeles —Public Works Department and the Los Angeles Department of Water and Power. The study included exploring optional future uses of the Terminal Island Treatment Plant and the Advanced Wastewater Treatment Facility. The study produced a number of operation alternatives and sub-alternatives based on stakeholder input. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (Dept. 800 FY 2010/11 budget, line item 53230). Form No.DW-102 Revised: 11/5/10 Page 2 of 2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 12/01/10 12/15/10 AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Facility Support Services Project Manager: Carla Dillon, Odor & Corrosion Control Supervisor GENERAL MANAGER'S RECOMMENDATION Approve a twelve month real property lease, and subterranean license agreement with an option to extend, with Brea Imperial Inc. and RV Storage Depot Brea to allow mobilization of a chemical dosing station and injection of chemicals at 1225 West Imperial Highway in Brea for a total cost of $2,500 per month, in a form approved by General Counsel. SUMMARY Orange County Sanitation District (OCSD) currently doses chemicals in its collection facilities at six locations to control odors and corrosion as well as to reduce the level of odors at the treatment plants. Where possible, OCSD has chemical dosing stations at OCSD's pump stations; however these are not always the best practical location for reducing odors throughout the service area. Real property for this purpose has been sought in the past, but not acquired due to costs or availability of suitable site locations. A location in Brea has been identified that would allow for treatment to minimize odors in Buena Park, La Habra, La Palma, Anaheim, Stanton, Cypress, Garden Grove, and Westminster with the potential to reduce chemical treatment further downstream on the Knott sewer trunkline. The business and property owners have agreed to allow OCSD to dose chemicals for a test period of one year to determine the effectiveness. OCSD will pay a monthly rental and license fee. Staff has investigated this type of rental by other wastewater agencies and found the rates to be similar. In addition, the rental price was established based upon the cost to rent the equivalent space for recreational vehicle (RV) storage. PRIOR COMMITTEE/BOARD ACTIONS None Page 1 of 2 ADDITIONAL INFORMATION Magnesium hydroxide, calcium nitrate, and ferrous chloride will be utilized in the trial. The criteria for successful performance will be either decreased hydrogen sulfide levels in the trunkline in the cities downstream of this dosing site, or a reduction in chemical treatment costs downstream as a result of dosing in Brea. If the testing is successful, staff would request to enter into a longer-term agreement. A test report will be produced. Staff continually optimizes the chemical dosing to ensure that the most suitable chemical is applied utilizing best practices. Since conditions change over time in the sewers, trials are periodically conducted to evaluate the most cost effective and also new methods and technologies. If the trial is not successful, OCSD will demobilize the chemical supplier's equipment and vacate the site at RV Storage Depot Brea. The monthly rental fee for the space to locate equipment is $1,750.00 and the license fee to access the site and sewer is $750.00 per month for a total of$2,500 per month. CEQA This project is exempt under CEQA Section 15306. The project consists of basic data collection, research, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource. This is strictly for information gathering purposes leading to a future action which a public agency has not yet approved, adopted, or funded. BUDGET / DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted in line items 58, 60, and 61. Funds will be transferred from these line items to line item 130 for this purpose. Project contingency funds will not be used for this. ATTACHMENT Real Property Lease and Subterranean License Agreement http://sharepoint/gm/board/Agenda Report Form Library/Agenda Report for Brea RV(DILLON)11-16-10.doc Page 2 of 2 REAL PROPERTY LEASE AND SUBTERRANEAN LICENSE AGREEMENT THIS AGREEMENT is made and entered into as of_ , 2010 ("Effective Date") between BREA IMPERIAL INC. ("OWNER"), RV STORAGE DEPOT BREA ("RVSDB"), and ORANGE COUNTY SANITATION DISTRICT ("OCSD"). OWNER, RVSDB and OCSD are individually or collectively referred to herein as the "Party" or the "Parties." This Agreement is made with reference to the following facts: A. OWNER is the fee interest owner of real property located at 1225 West Imperial Highway, in the City of Brea, State of California 92821, commonly known as "Brea RV Storage" ("Property"), which includes a private sewer line below the surface of the Property ("Sewer Line"); and B. RVSDB manages and operates a self-service storage business on the Property; and C. OCSD is responsible for safely collecting, treating and disposing of wastewater generated by more than 2.5 million people living and working within the County of Orange, State of California; and D. As of the date of this Agreement, OCSD has informed OWNER and RVSDB that it intends to conduct a demonstration study to evaluate the effectiveness of utilizing the following technologies (chemicals): magnesium hydroxide, ferrous chloride, and calcium nitrate as applied to wastewater. OCSD has identified a manhole on the south west end of the storage facility yard at the Property as an ideal location for this study (the "Demonstration Study"); and D. OWNER and RVSDB intends to assist OCSD in carrying out the Demonstration Study to the extent of providing land on which OCSD may conduct its activities in connection with the Demonstration Study, to access the Sewer Line beneath the Property through said manhole, and to install conduit through said manhole and Sewer Line through which OCSD intends to transport the above-mentioned chemicals beneath the Property. NOW, THEREFORE, in consideration of the mutual obligations, representations, and promises contained in this License Agreement,the Parties hereby agree as follows: 1. Lease of Land. OWNER and RVSDB hereby leases to OCSD, and OCSD hereby leases from OWNER and RVSDB, the portion of the Property set forth in the site layout in Exhibit "A", attached hereto and incorporated herein, and upon the terms, conditions, promises and provisions stated herein (hereinafter the "Leased Premises"). OWNER and RVSDB also grants to OCSD the right of ingress to, and egress from, the Leased Premises over existing and established traffic routes on the Property even though such areas o£,ingress andl egress are not leased to OCSD hereunder. nr2D 2. Grant of License. OWNER and RVSDB hereby grants OCSD, and OCSD hereby accepts from OWNER and RVSDB a temporary License, for tliew,pbrrpgsefjof Leo> ducting the Demonstration Study, to access the Sewer Line beneath the Property through said manhole, to install tubing through said manhole and Sewer Line, and to transplrough such conduit the 062910BRV1 1 736655.1 above-mentioned chemicals beneath the Property. 3. Scope of Demonstration Study. Such Demonstration Study will consist of no more than two storage tanks above ground, and a conduit that will run through the subterranean Sewer Lines beneath the land of the Property, through which conduit OCSD will transport the following technologies (chemicals): magnesium hydroxide, ferrous chloride, and calcium nitrate for delivery within OCSD's lines downstream of the Property. OCSD represents that that the Sewer Lines beneath the Property will be used only as the transportation conduit beneath the Property, that the conduit will be completely enclosed, and that no hydrogen peroxide will be allowed to escape such conduit into the Sewer Lines beneath the Property. 4. Cooperation. OWNER and RVSDB will cooperate with OCSD to provide access to areas of the Property as may be reasonably necessary to allow OCSD to conduct the Demonstration Study, so long as the same does not interfere with OWNER or RVSDB's operations or interfere with, or cause inconvenience to, OWNER or RVSDB's customers. 5. Term. This Agreement shall expire twelve months from the Effective Date or December 31, 2011, whichever is later, unless extended, in writing, by the Parties. 6. OCSD Promise To Pay — Utilities. RVSDB will bill OCSD for electricity and water under the applicable Tariff, quarterly or annually. OCSD agrees to reimburse RVSDB for the actual costs of water, electricity, and other utility services, if any, as used by OCSD. OCSD's proposed deviation requires the rates and charges billed to OCSD must not exceed those that would apply if OCSD were purchasing such utilities directly from SCE and the City of Brea. OCSD shall pay such charges to RVSDB within 30 days of OCSD's receipt thereof. 7. OCSD Promise To Pay — Rent. RVSDB will bill OCSD on a monthly basis for monthly rent in the sum of $1,750.00 (one thousand fifty dollars) for each monthly period, commencing on the Effective Date, and OCSD shall pay said rent within 30 days of OCSD's receipt thereof. 8. OCSD Promise To Pay—License. RVSDB will bill OCSD on a monthly basis for the License Fee in the sum of $750.00 (seven hundred fifty dollars) for each monthly period, commencing on the Effective Date, and OCSD shall pay said License Fee within 30 days of OCSD's receipt thereof, together with the Rent, as stated herein above. 9. Machinery & Equipment. OWNER and RVSDB understands and thereby authorizes OCSD (or its authorized subcontractors or representatives, as may be necessary to conduct the Demonstration Study) to bring onto the Leased Premises such equipment and/or machinery as may be reasonably necessary to conduct the Demonstration Study, so long as such activity is consistent with the terms and conditions stated herein and does not interfere with OWNER or RVSDB's operations and does not interfere with, or cause inconvenience to, OWNER or RVSDB's customers. 10. Unreasonable Interference; Prior Notice. In conducting the Demonstration Study, OCSD shall not interfere with OWNER or RVSDB's operations. OCSD shall give RVSDB no less than three (3) business days' notice prior to initiating the Demonstration Study. OCSD personnel authorized to have access to the Property under this Agreement shall include OCSD 062910BRV1 2 736655.1 staff and OCSD's primary contractor, if any, upon presentation of proper identification and written authorization from OCSD to RVSDB personnel. OWNER, RVSDB and their employees and agents shall not interfere with, or obstruct, the Demonstration Study or such entry by authorized OCSD personnel or agents, and OWNER and RVSDB shall not cause, or permit others to cause, any such interference or obstruction. 11. Restoring Condition of Property. OCSD agrees: (1) to minimize, to the extent practicable, interference with the activities of OWNER or RVSDB's employees, guests, customers, tenants, occupants and invitees on, and ingress to, and egress from, the Leased Premises; (2) to maintain its machinery and/or equipment, hazards and other materials in an orderly manner while they are located on the Leased Premises; and (3) immediately, upon completion of the Demonstration Study or earlier termination of this Agreement, to remove from the Leased Premises and the Property all debris, trash, machinery, equipment and other materials and items used by OCSD or caused by it to be on the Leased Premises or on the Property. Additionally, OCSD agrees that at the completion of each day OCSD utilizes the Leased Premises, it shall restore the Leased Premises and the Property to as close to the same condition as it existed at the commencement of that day, to the maximum extent possible. Upon completion of the Demonstration Study, at its sole cost OCSD shall restore the Leased Premises and the Property to as close to the same condition as before OCSD's first access to the Property and/or the Leased Premises and before the commencement of the Demonstration Study, to the maximum extent possible, to the reasonable satisfaction of OWNER or RVSDB. At its sole cost, OCSD shall be responsible for the proper lawful disposal of all chemicals, compounds, and other products and materials it brings onto, or causes to be on, the Leased Premises or the Property. Enclosed hereto and incorporated herein as Exhibit "B" is a closed circuit of the Sewer Line evidencing the condition of the Sewer Line prior to OCSD's use thereof. 12. OCSD's Acceptance As-Is, Release. In entering onto the Leased Premises and the Property, OCSD accepts the Leased Premises and the Property in the condition as it now exists and as may hereafter exist, from time to time, during the term of this Agreement, and without any representation or warranties by OWNER or RVSDB as to the condition thereof, and without any duty of OWNER or RVSDB to warn of any conditions thereon or thereunder. Accordingly, OCSD represents that it has inspected the Leased Premises, the Property in general, and the subterranean area beneath the Leased Premises and beneath the Property which may be involved in OCSD's Demonstration Study, or activities related thereto, and agrees to assume all risks associated with its entry onto the Property and the Leased Premises, its subterranean activities, and its presence on the Leased Premises and the Property in general, and its invasion of the subterranean areas beneath the Leased Premises and beneath the Property, and hereby fully, and generally, releases OWNER and RVSDB from any and all legal liability as might, but for this release, legally arise from the condition of the Leased Premises, the Property in general, or the subterranean areas beneath the Leased Premises or beneath the Property. 13. Preparatory Activities. At its sole cost, OCSD agrees to assume full responsibility for determining the presence, or absence, of subterranean utilities, structures and improvements, prior to conducting subterranean work at the Leased Premises, and to perform all other relevant preparatory work as it deems necessary to conduct the Demonstration Study. OCSD also agrees to provide appropriate notification to, and to obtain all required permits from, all applicable regulatory authorities including, without limitation intended, the City of Costa Mesa for the performance of the Demonstration Study, including, but not limited to, building permits, 062910BRV1 3 736655.1 engineering permits and fire prevention permits prior to commencing any activities at, and prior to bringing materials or chemicals onto, the Leased Premises and the Property. 14. No Nuisance. OCSD agrees that it will not maintain any public or private nuisance on the Leased Premises or the Property, and will not allow any odors, smoke, noise or objectionable elements to unreasonably affect OWNER or RVSDB's employees, agents, customers, visitors, or neighboring real property occupants or visitors. 15. Indemnity. OCSD hereby agrees to indemnify, defend, save and hold OWNER and RVSDB, and its owners, partners, agents, officers, members, employees, representatives, and affiliates harmless from, and against, all losses, costs, expenses, claims, causes of action, and damages suffered or incurred by any of them, whether claimed to have been caused by OWNER and RVSDB's approval of this Agreement, or by any of the activities of OCSD, or any of its contractors, subcontractors, employees, agents and representatives on the Leased Premises and/or on the Property . 16. Safety and Site Condition. OCSD shall conduct its operations in a safe manner in compliance with all laws, including, but not limited to, environmental laws, and shall cooperate in maintaining the site in a safe, clean and orderly condition. 17. Sole Cost of OCSD. OCSD agrees that any and all work performed at, and activities conducted by OCSD near, beneath or related to the Leased Premises and/or the Property shall be at the sole cost and expense of OCSD. OCSD agrees to keep the Property free and clear of all liens by paying off all subcontractors before any debt to same becomes a matter of a lien of record against the Property. 18. Insurance. During the term of this and at all times during which access is available to OCSD, OCSD shall require all contractors or subcontractors, and their employees and agents, to maintain insurance with the following minimum coverage: (i) Workers Compensation with California minimum statutory limits; (ii) Automobile Liability with$1,000,000 single limit, or equivalent; and, (iii) Commercial General Liability, with$2,000,000 single limit, or equivalent During and throughout the effective term of this Agreement, OCSD shall attempt to continuously provide RVSDB with a Certificate of Insurance reflecting that Owner and RVSDB is named as an "Additional Insured" on each contractor's and each subcontractor's Commercial General Liability, or similar, liability insurance policy. 19. Limited Access. OCSD agrees that entry upon the Leased Premises and the Property shall be limited to the extent necessary, or desirable, for the performance of the Demonstration Study and/or for the purposes expressed in this Agreement. 20. Temporary License. This License granted herein is intended by the parties, and shall be construed, as a temporary license to conduct the Demonstration Study upon, and beneath, the Leased Premises on the Property, and not as a grant of an easement or of any other legal or equitable interest in, or to, the Leased Premises or the Property. Except as expressly set forth herein, no other rights are created in OCSD by this Agreement. 062910BRV1 4 736655.1 21. Attorneys' Fees. If it becomes necessary for any Party to engage the services of legal counsel to institute any civil action to enforce or confirm, or to defend against, or to interpret or construe, any of provision(s) of this Agreement, the prevailing Party shall be entitled to recover from the other Party or Parties therein all of such Party's attorneys' fees, expert witness fees, other expenses and court costs as the prevailing party actually incurs in connection therewith. 22. Binding on Successors. This Agreement shall be binding upon the Parties to this Agreement, and upon their respective successors, representatives,heirs and assignees. 23. No Waiver. It is further understood and agreed that no failure or delay in exercising any right,power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other, or further, exercise thereof, or the exercise of any right, power or privilege hereunder. A waiver of any right by any one of the Parties hereunder must be in writing, and signed by the Parry granting the waiver. 24. Assignability. OCSD shall not assign, or otherwise transfer, or attempt to transfer, to any other person or entity, any of its rights herein stated, and shall not transfer, or attempt to transfer, to any other person or entity, any of the duties or obligations herein stated, without the prior written consent of OWNER or RVSDB, which may be given or withheld in OWNER or RVSDB's sole and absolute discretion, and any other attempt to do so shall be void and of no legal force or effect. 25. Choice of Law. The terms of this Agreement shall be interpreted and construed according to the laws, regulations and ordinances of the United States of America, the State of California, the County of Orange, and the City of Brea, as they may apply, from time to time. 26. Further Acts. For the duration of this Agreement, each Party shall, whenever requested to do so by the other Party or Parties, execute, acknowledge and deliver, or cause to be executed, acknowledged or delivered, any and all such further instruments and documents, and do any and all other acts as may be reasonably necessary to accomplish the purpose and intent of this Agreement. 27. Entire Agreement. This Agreement constitutes the entire agreement and understanding between the Parties pertaining to the subject matter addressed herein, and supersedes all prior, or contemporaneous, agreements and understandings, both written and oral, pertaining to such subject matter 28. Interpretation. This Agreement will be interpreted according to the fair meaning of its terms and not strictly for, or against, any Party hereto. 29. Modification. The provisions of this Agreement may only be amended or modified by a written agreement executed by both Parties. Each person executing this Agreement hereby warrants that he/she has legal authority to bind the Parry for whom he/she so executes this Agreement. 30. Severability. If any provision of this Agreement is held by any court of law or equity having proper jurisdiction over the matter to be void, invalid or unenforceable for any 062910BRV1 5 736655.1 reason, the remaining provisions of such provision and the remaining provisions of this Agreement overall shall continue in full force and effect without being impaired or invalidated in any way. 31. Notice. All notices or other documents (collectively "notices") given hereunder shall be in writing and shall be addressed to the recipient and sent by personal delivery or by overnight delivery service, such as by United States certified mail, postage prepaid, Federal Express, United Parcel, or the like. Unless and until otherwise notified, the address of each of the Parties for the giving of Notices shall be as follows: If to OWNER: John Saunders, President BREA IMPERIAL INC. C/o RV Storage Depot 1711 Pomona Avenue Costa Mesa, Ca 92627 If to RVSDB: Scott. Ramser, Manager 1711 Pomona Avenue Costa Mesa, Ca 92627 If to OCSD: Brian Reed, Orange County Sanitation District Facility Support Services 10844 Ellis Avenue Fountain Valley, CA 92708 With Copy to: Carla Dillon, Engineering Supervisor Orange County Sanitation District Facility Support Services Collection Facilities Division 10844 Ellis Avenue Fountain Valley, CA 92708 062910BRV1 6 736655.1 IN WITNESS WHEROF, the parties have executed this Agreement on the date set forth below their respective signatures. ORANGE COUNTY SANITATION DISTRICT Dated: APPROVED AS TO FO By: By- Larry R. Crandall Bradley R. Hogin Chair, Board of Directors General Counsel ATTEST: By: Donna N. Terrones Clerk of the Board BREA IMPERIAL INC Dated: By: John Saunders Its: President RVSDB Dated: By: Scott Ramser Its: Manager 062910BRV1 7 736655.1 EXHIBIT A ORANGE COUNTY FIRE AUTHORITY Hazardous Materials Inventory Reporting Form—Business Owner/Operator Identification Page •11Irxxc tylw to wml)cpitdv III black nil:. •'flux Ion.nury he mptcuiaced or dawn loaded mn mir w:hxac at ww'w•uciu.rig •Prn lit'Ity-line utstitmirnts.ruler 4t il:c Nrrcn adored pages •l-nr usxrRtan.r nrnLtt W:1ASCIQitirc(Xki•ai 1714.)57.4.52i() A B I C I D I E I F I G H I J I K L M N 1 � BILL BROS. SYSTEM 2 2 Ii CONTROL ", �hIXER 3 3 I I i I r ELECTRICAL PANEL 26' Z 4 DOSE POINT o 4 EXISTING EYE WASWATER SOURCE BUILDING S'IATI (INDOOR) co 5 _.,i '-- FIRE RISER z 5 m RS i -• ELEC. x N W 6 6 R5; i 3t4"PVC DOSE LINE 7 1 4. LLO TA KS� 7 1 8 EXISTING t� 8 BUILDING 9 \ 9 ter EXISTING FENCE 10 10 11 12 \ 12 13 EXISTING RV STORAGE 13 14 14 15 15 16 16 17 (Building Front) 17 A B C D E F I G I H I I J K I L M N BUSINESS NAME DATE 8/4/10 RV Storage Depot ADDRESS CITY ZIP 1225 W. Imperial Hwy Brea, CA 92821 Site,nap# 1 (page munbet you assign is lobe entered nu chemical inventory sheet) Revised 7105 Page 7 EXHIBIT "B" SITE ACCESS AND LICENSE AGREEMENT November 5, 2010 ROTO- Attention: Brian Reed ROOTER. PLUMBING & OCSD- (Brea RV Storage) DRAIN SERVICE 1225 W. Imperial Highway Brea, Ca. 92821 California contractors license#290688 Ref# an87704-roto-rooter Roto-Rooter provided a video inspection at the above named property for OCSD with details of the condition of an underground sewer pipe as described in the specifications below. Specifications and Pricing Revised Price for Description of Service Frequenc additional this job y cost 1. A video inspection was performed, Ref# Camera $380.00 $380.00 an87704 at the above location. The purpose inspecti was to assess the condition of a 4" clay pipe on beneath ground which the customer would like to make some modifications including but not limited to: adding an above ground cleanout and trenching a 15 foot area to allow for some additional smaller pipe to be laid in place. 2. the 4' clay pipe was found to be in good condition and would allow for the necessary additions including the cleanout to be added without any distruption of the original purpose of the line. 3. There is to follow a proposal from Roto- rooter detailing the scope of work and any parts labor and cost associated with this service. , Stephen Millar Business development Roto-Rooter Sept. 15` 2010 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 12/01/10 12/15/10 AGENDA REPORT Item Number Item Number 4 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Wendy Sevenandt GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Consultant Services Agreement with Black & Veatch Corporation to provide construction support services for Power Monitoring and Control Systems, Job No. J-33-3, for an amount not to exceed $689,008; and B. Approve a contingency of $48,231 (7%). SUMMARY Power Monitoring and Control Systems, Job No. J-33-3, installs electrical monitoring and control equipment and a fiber network at Plant No. 1. These systems will protect the plant from power outage problems and will reduce recovery time when problems do occur. The system will monitor and control the electrical distribution systems to better utilize our generation capacity during Southern California Edison power outages which will reduce the potential for wastewater permit violations and spills. The system will also provide increased safety to electrical maintenance staff by allowing operation of medium voltage and low voltage circuit breakers from a remote location. Black & Veatch Corporation has satisfactorily furnished engineering services for the design and is in the best position to provide support services during construction, commissioning, and closeout phases of this project. PRIOR COMMITTEE/BOARD ACTIONS June 2009 — Authorized staff to enter into negotiations with Black & Veatch for construction support services for Power Monitoring and Control Systems, Job No. J-33-3. February 2007 — Approved a Professional Design Services Agreement with Black & Veatch to provide engineering services for Power Monitoring and Control Systems, Job No. J-33-3. Page 1 of 3 ADDITIONAL INFORMATION The Scope of Services during construction includes the review of submittals, responses to Requests for Information, preparation of change orders, assistance with development of IP addressing scheme and assigning IP addresses, development of commissioning procedures, input of data to the Electrical and Instrumentation Database (EID), creation of the Operation Manual and Procedures, assistance with the startup and commissioning, updates to the drawing backgrounds, record drawing preparation, and project management. The fees in the amount of $689,008 for the construction, commissioning, and close out phases for the consultant services equates to 15% of the estimated construction cost of $4,600,000. This percentage runs higher than most projects for a number of reasons: ( The construction duration will be over three years. This is a low construction dollar project with a long duration. The long construction is due to having to sequence outages to accomplish the work through all the electrical busses for all the power buildings in Plant 1. ( This project is an information technology and electrical work project. There is not a large construction value for excavation, concrete, heavy construction, materials, and equipment that is typical in most projects. This project is predominately labor to pull and terminate wire and fiber optics. ( The contractor typically prepares commissioning procedures. The consultant will be preparing commissioning procedures for this project, so this cost is in the consultant's fee rather than the construction cost. ( The contractor typically inputs data into the EID. The consultant will be inputting the data for the EID for this project. ( The consultant will be developing an IP addressing scheme and assigning the IP addresses for the network communications component of this project. This task is not typical for construction phase work. ( Project complexity also adds to the estimated need for consultant services. This type of project has not been completed by the Sanitation District before which could add to the involvement of the consultant in responding to inquiries by the contractor. Construction was recently completed for the Headworks Rehabilitation/Refurbishment, Job No. P1-71, which was predominately an electrical project with no heavy construction, but a complex sequencing plan to replace variable frequency drives one outage at a time. The consultant fees for construction, commissioning and close out Page 2 of 3 ADDITIONAL INFORMATION (cont'd) phase of this project were 14% of construction cost. The consultant services are running just under this budget for a very successful project. There were no amendments to this agreement and the contingency was not used. With Job No. P1-71 in mind, the value of 15% of the estimated construction cost for Job No. J-33-3 is reasonable due to additional tasks, longer duration, and complexity. The Consultant selection was conducted in accordance with the Orange County Sanitation District's adopted policies and procedures. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted (Line item: Section 8, Page 88), and the budget is sufficient for the recommended action. Project contingency funds will be used for this agreement. Date of Approval Contract Amount Contingency 12/15/10 $689,008 $48,231 (7%) WS:el:gc Page 3 of 3 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 12/01/10 12/15/10 AGENDA REPORT Item Number Item Number 5 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: James D. Herberg, Director of Engineering CIP Project Manager: Martin Dix GENERAL MANAGER'S RECOMMENDATION A. Approve Amendment No. 3 to the Professional Services Agreement with M. J. Schiff & Associates, Inc., providing for additional engineering services for Interplant Gas Line Rehabilitation, Job No. J-106, for an additional amount of $104,450, increasing the total amount not to exceed $361 ,976; and B. Approve a contingency of $18,099 (5%). SUMMARY The purpose of this project is to rehabilitate the interplant gas pipeline that transfers digester gas between the two plants allowing for optimal use of digester gas for power production. The interplant pipeline suffered corrosion related failures and emergency repairs were made in 2003. The pipe was eventually deemed noncompliant by governing jurisdictions and removed from service in 2006. Staff began the rehabilitation design of the pipe in 2005. The project was put on hold in 2006, and restarted in 2009. Amendment No. 3 is necessary to complete the rehabilitation design and includes the addition of revised piping details, permitting efforts, and additional design review. PRIOR COMMITTEE/BOARD ACTIONS February 2010 — Authorized staff to enter into negotiations with M. J. Schiff & Associates, Inc. for construction support services and approved a budget increase of $751,734 for a total budget of $4,503,734. December 2006 — Approved Amendment No. 2 to PSA with M. J. Schiff & Associates. The General Manager approved this no cost amendment. February 2006 — Approved Amendment No. 1 to PSA with M. J. Schiff & Associates and a budget increase of $119,147, for a total budget of $257,526. May 2005 —Approved Professional Services Agreement with M. J. Schiff & Associates. Page 1 of 2 ADDITIONAL INFORMATION The removal of all buried metal in the pipeline is the key change to the design. Buried metal will corrode over time if not properly protected and maintained. Removing buried metal and installing a completely non-metallic plastic pipeline eliminates some of the more costly maintenance and internal inspection requirements like cathodic protection and "Smart Pigging." Besides the elimination of buried metal, the amended scope also includes the following additional services: grouting of the host pipeline and casing crossings at Adams Avenue and Hamilton Avenue to insure leaking gas cannot accumulate and concentrate in the host pipeline annulus; adding ports at Plant 1 and Plant 2 to facilitate purging of the pipeline if a gas leak is detected; adding flanged spools to facilitate the future installation of automatic shut-off valves; expansion of the commissioning specification to include gas leak detection survey, to improve safety and comply with federal guidelines; constructability and safety review; site visits and replacement of buried gas warning signs; meetings with cities and jurisdictional agencies to discuss project, provide notification, and gather any work restrictions that may be imposed during construction. The above tasks may be grouped as design changes ($39,500), design submittals ($40,000) and permitting ($24,900). The recently introduced federal legislation, proposed after the San Bruno explosion, removes the "gathering" line exemption so there will no longer be two pipeline classifications. By removing the less strict "gathering" classification, the Sanitation District's interplant gas pipeline must comply with tougher transmission restrictions necessitating most of the changes listed above. CEQA This project rehabilitates existing facilities and is categorically exempt. A Notice of Exemption was filed on January 19, 2006. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted (FY 2010-12 Budget: Section 8, Page 65) and the budget is sufficient for the recommended action. Date of Approval Contract Amount Contingency 5/25/05 (Orig. PDSA) $138,379 $0 2/22/06 (Amend. No. 1) $257,526 $0 1/24/07 (Amend. No. 2) $257,526 $0 12/15/10 (Amend. No. 3) $361,976 $18,099 (5%) JH:MD:el:gc Page 2 of 2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 12/01/10 12/15/10 AGENDA REPORT Item Number Item Number 6 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Gary Conklin, Senior Engineer GENERAL MANAGER'S RECOMMENDATION A. Approve Professional Consultant Services Agreements with Black & Veatch Corporation; Brown and Caldwell; Carollo Engineers, Inc.; HDR Engineering, Inc.; and Malcolm Pirnie, Inc. to provide planning studies on a task order basis for a two- year term with a one-year optional renewal; B. Authorize the General Manager to assign task orders throughout the contract duration in accordance with the Delegation of Authority Resolution No. OCSD 07-04; and C. Approve exception to Resolution No. OCSD 07-04, Section 4.05, authorizing the General Manager to select any single suitable firm in the Planning Studies Program for a particular task order valued at $50,000 or less, without having to solicit proposals from multiple firms. SUMMARY Staff is requesting the Board of Directors (Board) to award contracts to five engineering consulting firms to perform engineering planning studies on a task order basis. This approach will reduce staff costs and consultant fees, and will accelerate project schedules. Task orders will be assigned throughout the contract duration, and will be subject to approval through the Orange County Sanitation District (OCSD) Delegation of Authority (DOA), Resolution No. OCSD 07-04, with an exception for studies under $50,000, where the General Manager may select any single suitable firm. Task orders that cost $50,000 to $100,000 will be subject to approval by the General Manager. Task orders from $100,000 to $200,000 will require approval by the Operations Committee. Approval by the Board of Directors will be required for studies over $200,000. The term of the agreements shall be for two years with an optional third year at the discretion of the Purchasing Manager as described in the DOA under Section 4.08. Page 1 of 5 Staff anticipates awarding up to $2 million in studies each year that will resolve issues identified in the 2009 OCSD Facilities Master Plan and other similar planning issues. These studies have been budgeted in the December 2009 OCSD Facilities Master Plan SUMMARY (cont'd) or are included in approved Divisional budgets under consulting services. The Planning Studies Program (Program) will clarify a number of highly complex planning issues which are critical to the future CIP, and require the diverse technical expertise that the selected firms provide. PRIOR COMMITTEE/BOARD ACTIONS None ADDITIONAL INFORMATION Program Overview The 2009 OCSD Facilities Master Plan identified over 30 planning issues that are critical to the CIP program. The Program was developed to execute the studies that will resolve these issues and other ongoing planning issues. The issues are highly complex and require the diverse technical expertise that the selected firms have to offer. They involve the diagnosis of problems and decisions on which future efforts will be based. Program Approach Staff is recommending a task order approach that is used by similar agencies. Although the DOA addresses the task order type of contract only within the context of Facilities Engineering Projects, the DOA does provide the Board authority pursuant to Section 4.08 of the DOA to exercise its discretion, when it appears in the best interest of OCSD, to deviate from particular prescribed procedures in the negotiation and award of contracts for services. For the purposes of the Program, implementation of this task- order type of contract provides a number of benefits to OCSD, including cost and time savings. The consultants have been prequalified by a competitive process as described below, which results in a short list of eligible firms. The terms (except for rates) and duration of all the contracts are identical for each firm. Approval for the individual task orders will generally follow the procedures and policies described in the DOA. Task orders for specific studies will be issued to prequalified consultants on the list. Rotation and budget thresholds will be established to manage this list and to ensure fair and transparent access to upcoming opportunities for prequalified consultants. This approach allows multiple projects to be performed under a single agreement rather than having to issue individual solicitations. It results in administrative overhead savings of Page 2 of 5 40 to 80 staff hours per project. This approach reduces project schedules by six months and enables staff to focus on technical issues. In addition, consultants will benefit from reduced costs related to solicitation(s) participation and management, which improves competitive pricing of their proposals. ADDITIONAL INFORMATION (cont'd) The Program provides for fair and balanced competition between the firms, and pre- negotiates staff assignments and labor rates, to insure that OCSD gets the best value. RFP Selection Process A Request for Proposal (RFP) was sent to seven nationally recognized engineering firms who were satisfactorily performing similar services at OCSD. Each firm provided a proposal. The proposals were evaluated by a team of five staff members. Based on the initial evaluation, two firms were eliminated and interviews were arranged for the remaining five firms. Following the interviews, the firms were evaluated according to the following criteria: ( Qualifications of firm (20%) ( Qualifications of Staff (40%) ( Interviews (20%) ( Price (20%) Based on the evaluation, staff recommends awarding contracts to the following firms: Black & Veatch Corporation Brown and Caldwell Carollo Engineers, Inc. HDR Engineering, Inc. Malcolm Pirnie Program Administration and Task Order Management Process Individual task orders will be assigned throughout the duration of this contract. Board approval will be required for each task order through the DOA, with an exception for Category I tasks, as explained below. The method of assigning tasks varies with the estimated task amount, as explained below. Staff will evaluate scope modifications as needed. For all categories, selection will be according to best value to OCSD. Page 3 of 5 ADDITIONAL INFORMATION (cont'd) Task Order Assignment Method Category Task Cost Process 1 <$50,000 Negotiate with one firm at time. Annual limit of $150,000 per firm, for projects in this category. II Over $50,000 to 200,000 3 proposals, by rotation. III Over $200,000 to 700,000 Request proposals from all firms in the program. Minimum of 3 proposals IV Over $700,000 Traditional RFP process, outside the program. CATEGORY I (SMALL TASKS) Tasks in this category involve an exception to the DOA. The DOA dictates that procurements for amounts less than $50,000 and over $5,000 provide at least three bids, except for sole source agreements. Section 4.08 of the DOA, however, provides that the Board of Directors may, when it appears in the best interests of OCSD, authorize the Staff to negotiate and award a contract for services, including Professional Service Consultants, without observing the procedures prescribed. In this instance, under Category I, it is in OCSD's best interest, based on cost and time savings, to allow the General Manager, without having to obtain at least three bids, to select any single firm in the Program for a particular task order based on the General Manager's determination of the firm's suitability and qualification for the task order. The amount of work in this category that can be assigned to any one firm is subject to an annual limit. CATEGORY 11 (MEDIUM TASKS) Task order proposals will be requested from three firms based on rotation. The initial list will be determined according the initial ranking. The RFP will be sent to the first Page 4 of 5 three firms on the list. The successful firm will move to the end of the list, and the list will be adjusted accordingly. The next task order RFP will be sent to the top three firms on the list. If a firm declines to submit a proposal when requested, that firm will move to the end of the list, and the proposal will be sent to the next firm on the list. The Project Manager will attempt to obtain three bids for every proposal in this category. CATEGORY III (LARGE TASKS) Task order proposals in this category will be sent to all firms in the program. The Project Manager will attempt to obtain three bids for every proposal in this category. ADDITIONAL INFORMATION (cont'd) CATEGORY IV (TASKS OUTSIDE THE CONTRACT) Projects in this category will not be included in these contracts without special approval of the Board. These projects will be procured according to a standard RFP procedure, and could include firms which are not in this program. CEQA The project is Statutorily Exempt and will only involve feasibility studies for possible future actions, which the agency has not approved, adopted, or funded, and will not have a legally binding effect on later activities. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This action does not impact the Budget. The anticipated task order costs either have individual project budgets or are identified within a Divisional budget under consulting services. This authorization complies with authority levels of the OCSD's Delegation of Authority, with the exception requested for approval to extend the General Manager's authority for studies up to $50,000 to select any single suitable firm in the Program for a particular task. Date of Approval Contract Amount Contingency N/A N/A N/A ATTACHMENT Project List GC:sa:gc:sa Page 5 of 5 Planning Studies Program Project List ID# Project Name Description P2 Criticality Table Update Update the P2 Criticality Tables. PB-3A Standby Evaluate and resolve potential PB-3A standby power P1-111 Power Capacity deficiency. SP-132 Fuel Cell Feasibility Evaluate the feasibility of installing fuel cells. Evaluate EPSA motors need for cooling water, SP-154 EPSA Cooling Water consider emergency override. P1 Primary Treatment Area Condition assessment of the P1 Primary Treatment SP-137 Rehabilitation Study facilities. Digester Gas Facilities Condition Assessment of the P1/P2 Digester Gas SP-141 Assessment Facilities (compressor, flares, gas holder). Roof Condition Assessment and SP-142 Rehabilitation Study Facility-wide Roof Condition Assessment. P2, 54-inch Primary Effluent BFV Use Valve cleaning, inspection, and/or a study to SP-144 Study evaluate needs and alternatives. Facility Assets Condition assessment of civil and structural SP-145 Assessment components in process areas. Utility Water Update base maps, hydraulic model, evaluate code SP-146 Systems Study compliance. Administrative Facilities Master Condition Assessment, code compliance evaluation, SP-147 Plan space planning study. Plant Air System Evaluate P1&2 Plant Air Systems, and P2 Air SP-148 Master Plan Compressor Bldg. Uninterruptible Power System Provide a conceptual layout for the UPS System, SP-150 (UPS) Study based 2007 Energy Master Plan. Climate Change Evaluate facility impacts from global climate change SP-152 Impact Study per Executive Order (EO) S-13-08. P1 Holders 5&6 Conversion to Evaluate the feasibility of converting 2 holding SP-172 Working Digesters digesters into working digesters. P2 Soil Liquefaction Evaluate the liquefaction/settlement potential for SP-177 Study older P2 solids structures. Sidestream Update Plant 1 and Plant 2 sidestream tables, Evaluation evaluate capacity of P1 WSSPS. P2 WSSPS 2A Evaluate P2 WSSPS 2A tunnel flooding and access Motor Location issues. Http://Sharepoint/Gm/Board/Published Agenda Reports And Minutes/09.Plan 2010 PCSA_Att_1.Docx,11/23/2010 3:50 PM,page 1 of 2 Planning Studies Program Project List ID# Project Name Description Implement findings of the NWRI study. Evaluate Effluent Disinfection proximity of AS channel bleach feed point to EPSA SP-156 Study feed point. 66-inch Interplant Effluent Pipeline Evaluate best use and rehab for 66" Interplant SP-164 Needs Assessment Effluent Pipeline, rehabilitation plan. Wastehauler Odor Evaluate options for reducing off-site odors from SP-140 Control wastehauler station. Food Waste Collection and Evaluate feasibility, costs, funding opportunities for SP-171 Treatment Study OCSD to accept food waste. P2 Effluent Reuse Identify beneficial uses for Plant 2 secondary SP-173 Study effluent. Potable Water Evaluate quality of Potable Water quality, feasibility SP-175 Quality Study of possible water softening. Electrical System SP-149 Base Map GIS mapping of plant electrical conduits. Standby Power SP-158 Study Evaluate standby power demands and capacities. Outage Recovery SP-170 Plan Study potential impacts of SCE power outages. Process SCADA Identify options to replace leased land line SP-157 Pump Station Link communication to Pump Stations. Uniform Level of Develop uniform Level-of-Service maintenance SP-151 Service Standards standards for non-process facilities. Plant Hydraulic Update the process flow hydraulic profiles for each SP-168 Study treatment plant. Odor Control Master Update June 2005 Odor Modeling and Control Plans SP-166 Plan for Plants 1 & 2. Stormwater Flow Update the 2005 Peak Flow Management SP-167 Study Stormwater Master Plan. Safety Assessment Survey for major items of concern Misc Process Projects funded under approved division project Studies budget. Misc Asset Mgt Projects funded under approved division project Studies budget. Http://Sharepoint/Gm/Board/Published Agenda Reports And Minutes/09.Plan 2010 PCSA_Att_1.Docx,11/23/2010 3:50 PM,page 2 of 2 OPERATIONS COMMITTEE Meeting Date To Bd.of Dir. 12/01/10 12/15/10 AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Ed Torres, Director of Operations and Maintenance GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 2 to the Agreement with EnerTech Environmental California, LLC, providing for reimbursement of diverted biosolids to land application. SUMMARY EnerTech Environmental California, LLC. (EnerTech) has obtained Bondholder approval to implement an Interim Technical Plan (Plan) to correct all deficiencies and commission the Rialto facility by March 2, 2012. Since commissioning began and until completion of the Plan, EnerTech will have diverted a portion of Orange County Sanitation District's (OCSD) biosolids to Arizona for land application. This management option costs less than processing the biosolids to an energy by-product at the Rialto facility. OCSD staff is seeking Board approval for Amendment No. 2 to the original agreement to reimburse OCSD for the cost difference OCSD pays EnerTech to divert biosolids for land application against the contract rate. If OCSD elects to receive some reimbursement in the form of non-cash "Diversion Credits," such reimbursement could begin upon completion of the Plan. Cash reimbursement will begin 3 years after completion of the Plan. Amendment No. 2 to the agreement includes the following highlights: ( Reimburses OCSD $3.2 million for biosolids diversion that occurred between February 2009 and October 2010; ( Reimburses OCSD an estimated amount of $2.4 million for biosolids diversion that will occur between November 2010 and February 2012, which is the estimated completion date for their Technical Plan; ( Provides that OCSD may, in its discretion, accept certain specified non-cash "Diversion Credits" such as "Discount Capacity Credits" or "Environmental Credits," in lieu of cash for some or all of the reimbursement amount; and Page 1 of 2 SUMMARY (cont'd) ( Provides three (3) critical interim project milestones. If these milestones are not met, OCSD may exercise its right to cease transporting biosolids to the Rialto facility or after 30 days of missing any milestone, OCSD can initiate the process for terminating the agreement. PRIOR COMMITTEE/BOARD ACTIONS 11/15/06, adoption of Amendment No. 1 to Agreement with EnerTech Environmental California, LLC, increasing the amount of Biosolids from 200 tons to 225 tons, and increasing the contract period from 20 to 25 years, and to increase cost from $69.40 to $72.40 per ton. 07/20/05, adoption of 10-year agreement with EnerTech Environmental California, LLC with four five-year options at an initial cost of$69.40 per ton of biosolids managed. ADDITIONAL INFORMATION EnerTech began commissioning of the biosolids to energy facility in Rialto, California in November 2008. They have been unable to complete the commissioning process to date. This failure has been attributed to numerous start-up issues related to their patented SlurryCarbTM process and engineering design deficiencies that eventually lead to a sanitary sewer overflow and a "Cease and Desist Order" issued by the Santa Ana Watershed Project Authority in December 2009, due to violations of their wastewater discharge permit. The EnerTech contract rate for management of biosolids is $72.40 per wet ton plus a variable rate for the cost of natural gas, electricity, and CPI increases (currently at about $6.30 per wet ton). A land application cost rate of $47.34 per wet ton is used for determining the reimbursement amount. CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A Page 2 of 2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 12/oi�io AGENDA REPORT Item Number Item Number s Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg Project Manager: Jim Colston GENERAL MANAGER'S RECOMMENDATION Regulatory Initiatives Update SUMMARY Staff will provide a brief presentation on several key proposed regulatory initiatives facing OCSD that will have an immediate impact on the agency's operations, capital program, or finances. Key regulations that will be discussed: ( Assembly Bill 32 (2006): The California Air Resources Board (CARB) is continuing with implementation of the approved Scoping Plan including modifications to the current Mandatory Regulation for the Reporting of Greenhouse Gases, and the cap- and-trade regulation which is scheduled to be approved at CARB's December 16, 2010 Board meeting. ( Proposition 23 (2010): On November 2, Proposition 23 was not approved by voters. This initiative would have suspended implementation of AB 32 until California unemployment rates dropped below 5.5%. ( EPA Greenhouse Gas Rule (Tailoring Rule): EPA's tailoring rule was approved in May 2010; implementation dates begin in January 2011 and correspond to specified greenhouse gas emission thresholds. Specific requirements related to greenhouse gas emissions will be included in future renewals of OCSD's Title V air quality permits. ( Wastewater Discharge Requirements — Holloway Mines and Westlake Farms ( EPA Sewage Sludge Incinerator Rule ( Constituents of Emerging Concern (CECs): The State Water Resources Control Board (SWRCB) established two expert panels to evaluate CECs. Page 1 of 2 PRIOR COMMITTEE/BOARD ACTIONS May 2010 — Information Item to Operations Committee ADDITIONAL INFORMATION None CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A JC:jb:gc Page 1 of 2