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Home My WebLink About2009-04-22 MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, April 22, 2009, at 5:30 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, April 22, 2009, at 5:30 p.m., in the District's Administrative Office. A quorum was declared present, as follows: STEERING COMMITTEE MEMBERS: Ed Torres, Director of Technical Services DIRECTORS PRESENT: Lorenzo Tyner, Director of Finance and Doug Davert, Chair Administrative Services Larry Crandall, Vice Chair Michael Gold, Legislative Affairs Liaison Bill Dalton, Operations Committee Chair Bret Colson, Public Information Office Manager Mark Waldman, Administration Committee Jeff Reed, Human Resources Manager Chair Penny Kyle, Clerk of the Board Jim Ferryman Dean Fisher Phil Luebben Ryal Wheeler David Shawver Juanita Skillman STAFF PRESENT: DIRECTORS ABSENT: Jim Ruth, General Manager N/A Bob Ghirelli, Assistant General Manager Nick Arhontes, Director of Operations and OTHERS PRESENT: Maintenance Brad Hogin, General Counsel Tod Haynes, Engineering Manager T %[)IN HE THE BE OOF ORANGE c uNv SANiTATION DISTRICT PUBLIC COMMENTS MAY 2 0 2009 There were no public comments BY: COMMITTEE CHAIR REPORT Doug Davert, Board Chair, reported that the Steve Anderson Lift Station dedication was held on April 17th. He advised that nominations would be open for the Board Chair and Vice Chair positions at the May board meeting, He also reported that he would be traveling to Washington, D.C. later that evening and would be meeting with congressional delegation members as well as attending two GWRS award ceremonies. Minutes of the Steering Committee April 22, 2009 Page 2 GENERAL MANAGER REPORT Jim Ruth, General Manager, provided a brief overview on his April status report. Bret Colson, Public Information Office Manager, presented the new public service announcement clips and updated the Committee on media outreach. Jeff Reed, Human Resources Manager, reviewed the Leadership Academy program and its success. Ed Torres, Director of Technical Services, provided an overview on the Fuel Cell Project. GENERAL COUNSEL REPORT There was no report. ACTION ITEMS 1. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the March 25, 2009 Steering Committee meeting. INFORMATION ITEMS 2. Legislative Affairs Report—Gold Michael Gold provided an update on the federal stimulus funds, and reported that members of the congressional delegation are carrying the Sanitation District's funding requests for secondary treatment upgrades. In addition, he reported that the Sanitation District was in support of AB 1100, Assemblyman Duvall's bottling bill. CLOSED SESSION There was no closed session. ADJOURNMENT The next Steering Committee meeting is scheduled for Wednesday, May 20, 2009, at 5:30 p.m. The Chair declared the meeting adjourned at 6:26 p.m. Submitted by: 22 Penny M Ale Clerk of the Board LEAGUE 1400 K Street, Suite 400 • Sacramento, California 95814 Phone: 916.658.8200 Fax: 916.658.8240 hF c.*A I I F0I:N I A www,cacities.org CITIES April 14, 2009 TO: Chris McKenzie, Executive Director FROM: Betsy Strauss, Special Counsel RE: Constitutional Protection of Local Tax Revenues You have asked for a summary of those sections of the California Constitution that protect local tax revenues. 1. Article XIII, Section 25.5 [Proposition 1A added in 20041 This section protects property tax and sales tax by prohibiting the Legislature from: • Transferring property taxes from cities, counties or special districts to school districts except under certain circumstances; • Reducing the local sales and use tax rate or changing the way it is distributed (unless necessary to implement an interstate compact or federal law); • Using property tax revenue to reimburse local governments for state-imposed mandates. In addition to these long-term protections, this section also prohibits the Legislature from: • Extending the "triple-flip period" during which X cent of the local sales tax was suspended; • Reducing the property tax payments due during the "triple-flip period." This section does not: • Guarantee cities, counties, and special districts with a certain dollar amount of property taxes. Rather, it protects the percentage share of the county-wide property tax rate that was allocated collectively to cities, counties and special districts as of November 2004, • Guarantee cities and counties with a certain amount of sales and use tax revenue. This section allows: Distributed at the Steering Committe Meeting held on �d 9 1 • the Legislature to change the allocation of property taxes as between cities, counties, and special districts with a 2/3 vote; • the property tax protection to be suspended if(a) Governor declares that a "severe state fiscal hardship" makes suspension of the protection necessary; (b) the Legislature enacts a statute with a 2/3 vote suspending the protection; (c) the Legislature concurrently adopts a statute providing for the full repayment of the total amount of local government property tax loss, including interest. Full repayment must be made within 3 years of the fiscal year in which the suspension occurs. The suspension may not occur for more than two years in any 10 year period and may not occur until previously-incurred property tax losses have been repaid. 2. Article XI, Section 15 [VLF] This section prohibits the Legislature from reducing the VLF rate below 0.65%without providing local governments an equal amount of replacement revenue from a different source. This section does not guarantee that cities will receive a share of the VLF. Section 15 allows the Legislature to distribute all revenues from the 0.65%VLF rate to counties and cities and counties for realignment programs. 3. Article XIIIB, Section 6 [State Mandates] Beginning with costs incurred in the 2004-05 fiscal year,this section requires the Legislature to suspend the operation of a mandate if it fails to fully fund reimbursement due to cities, counties or school districts. [Excluded from this protection are mandates relating to any procedural or substantive protection, right, benefit, or employment status of any employee or retiree, or of any local government employee organization]. This section also requires the Legislature to reimburse all costs incurred prior to the 2004-05 fiscal year, that remain unpaid, over a term of years beginning with 2005-06. This section prohibits the Legislature from using property tax revenues to reimburse local governments for the costs of a state mandate. 4. Article XIII, Section 24 [Local Taxes] This section prohibits the Legislature from imposing taxes for local purposes. Although not explicitly stated, this means that the Legislature may not take revenues from local taxes for state purposes. This section protects local taxes such as the business license tax, the utility users tax and the transient occupancy (hotel) tax. Please let me know if you have questions or need additional information. 2 I� CALIFORNIA LEGISLATURE i STATE CAYITOL SACRAMENTO.CALIFORNIA 95S1.1 Distributed at the Steering Committee Meeting held on April 16, 2009 The Honorable Arnold Schwarzenegger Governor of California State Capitol, First Floor Sacramento, CA 95814 i Dear Governor Schwa rzene99 er: We are writing in reference to SB 27 (Negrete-McLeod, Carteret al) of the 3`d Extraordinary Session. This measure is sponsored by your Administration to make changes to state law needed to expedite the expenditure of federal funds under the American Recovery and Reinvestment Act (ARRA) for clean water and related investments. We strongly support the general thrust of the bill. However, we, and other members of the Legislature, have been contacted by urban water agencies throughout the state expressing concern over recent administrative actions taken by the State Water Resources Control Board (SWRCB) with respect to the allocations of federal ARRA funds the state may receive as a result of the bill's passage. Specifically, these agencies are concerned that the administrative resolution adopted by the SWRCB on March 171h spelling out how funds will be spent adversely affects the ability of urban wastewater agencies to compete fairly for these federal funds. As you know, ARRA is intended to create jobs and stimulate economic activity throughout the country and throughout California. We are pleased with the Board's decision to ensure that some of the funds are prioritized for projects serving small rural communities in our state. Many of those communities have poor drinking water quality and it is imperative that the state assist with projects that will provide those communities with clean, healthy drinking water, as well as create jobs and stimulate the economy in those regions, We congratulate the Board on its decision to prioritize some grant funds for projects that serve those communities; however, there are small disadvantaged communities that may not qualify under the Board's narrow definition. w- The Honorable Arnold Schwarzenegger April 13, 2009 Page 2 We also recognize, however, that urban communities in our state need help too. We I believe that agencies that serve urban communities in our state, with their economically challenged neighborhoods and populations, should share equitably in these funds along with the rural regions of the state. In view of the concerns we gave heard, we respectfully request that your Administration meet with these parties to review these issues and determine if there are actions the SCRWB or others can take to address those concerns. Our offices would be pleased to i participate in this meeting as appropriate, and we suspect that other legislative offices would do so as well. We have asked our Budget subcommittees to review this issue when they take up the budget of the SWRCB to ensure that the issues receive full public review and consideration. Thank you in advance for your assistance. Sincerely, DARRELL STEINBERG KAREN BASS j Senate President pro Tempore Speaker of the Assembly i i Orange County Sanitation District Public Outreach Update -- April 22, 2009 Public Service Announcements • 4 new spots—2 general and 2 produced for Source Control. • Agreements in place with local cable providers to air spots. Delivery within the next 1-2 weeks. Tour Program • 60% increase last year from the previous year. • This year, to date, we have matched FY 2007-08 totals FY 2007-08 • 115 tours and 1,468 guests--46 different OCSD tour guides • Tours split equally among adult groups and school groups • 20 elementary, 24 high school, 18 college level groups FY 2008-09, through mid-April • 113 tours and 1,506 guests • Anticipate another 20% increase over last FY Speakers' Bureau FY 2007-08—27 speaking engagements with an audience of approx. 900 people FY 2008-09 -- through mid-May, 30 speaking engagements with an audience of 1,500 people Community Events • Spring is our high season due to Earth Day and school related events • April — June 2009 -- 13 major events (i.e. Earth Day at UCI, Earth Day at Rainbow Disposal, Children's Water Festival, Fountain Valley Summer Fest, etc.) • Combined attendance is 6,000 to 7,000 people Distributed at the Steering Committee Meeting held on STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and the Agenda for the Steering Committee meeting to be held on o2a, d Ud�was duly posted for public inspection in the main lobby of the District's offices on IN WITNESS WHEREOF, I have hereunto set my hand this day of Penny M. Kyle, Irk o t board Board of Directors Orange County Sanitation District H:\DEPT\GMO\1501151\BS\FORMS\AGENDA CERTIFICATION-STEERING COMMITTEE.DOC Nay SANIr�TT ORANGE COUNTY SANITATION DISTRICT 9 LNG THE 10644 F%r,P%wxw Aril 15. 2009 Fwntarn vaary rra 927DB 7018 M}sing Address PO Buz 8127 Feuntam\noley !.A 8^c72e91c7 www.00sd corn Phone (714)S522411 NOTICE OF MEETING Fax (7141962n356 STEERING COMMITTEE Serving Amheirn ORANGE COUNTY SANITATION DISTRICT Hur+na Park rount on ✓li," WEDNESDAY, APRIL 22, 2009 - 5:30 P.M. Fuktrr wn Gwilen`o"ve ADMINISTRATIVE OFFICES Hunbngum I Htm-: 10844 ELLIS AVENUE kmile FOUNTAIN VALLEY, CALIFORNIA 92708 La thilm-a WWW.00SD.COM !a Palma Los Atamites Ncv4x;Y Rearr A regular meeting of the Steering Committee of the Orange County Sanitation District will be held at the above location, date and time. 5•of Beecn 4anG�n TiA-4n Volta Park fbrtm Linda Cosm Mesa Santaq Ihsni,x Mrd%ey C.ky antoiry 0MzMx Hrane Ranch Water IJe zvl CaurKy M(kwge M protect public neeAh and the envrrunment ay providing of-mnv water coliecoon• ovatm8nt, and m--y--*nc, STEEPING COMMITTEE AND BOARD MEETING DATES April 22, 2009 *May 20, 2009 June 24, 2009 July 22. 2009 August 26, 2009 September 23, 2009 October 28, 2009 *November 18, 2009 *December 16, 2009 January 27. 2010 February 24, 2010 March 24, 2010 ~Meetings being held the third Wednesday of the month. STEERING COMMITTEE (1) Roll Call: Meeting Date: April 22, 2009 Meeting Time: 5:30 p.m. Committee Members DougDavert, Board Chair................................................... ........... Larry Crandall, Vice Chair................................................... ........... Mark Waldman, Administration Committee Chair................ ........... Bill Dalton, Operations Committee Chair............................. ........... JimFerryman...................................................................... ........... PhilLuebben....................................................................... ........... DavidShawver.................................................................... ......... Others Brad Hogin, General Counsel............................................. ........... Staff Jim Ruth, General Manager................................................... Bob Ghirelli, Assistant General Manager.................................. . Nick Arhontes, Director of Operations & Maintenance................. . Jim Herberg, Director of Engineering....................................... . Ed Torres, Director of Technical Services.................................. Lorenzo Tyner, Director of Finance & Administrative Services........ Michael Gold, Legislative Affairs Liaison.................................... Penny Kyle, Clerk of the Board........................................... Other Staff Present AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, APRIL 22, 2009 AT 5.30 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California www.ocsd.com DECLARATION OF QUORUM PUBLIC COMMENTS REPORT OF COMMITTEE CHAIR REPORT OF GENERAL MANAGER REPORT OF GENERAL COUNSEL ACTION ITEMS (1) 1. Approve minutes of the March 25, 2009 Steering Committee meeting. INFORMATION ITEMS (2) 2. Legislative Affairs Report— Gold (Book Page 7) Book Page I April 22, 2009 CLOSED SESSION During the course of conducting the business set forth on this agenda as a regular meeting of the Steering Committee, the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to(a) purchase and sale of real property, (b) matters of pending or potential litigation: (c) employment actions or negotiations with employee representatives, or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Directors during a permitted closed session and are not available for public inspection. At such time as final actions are taken by the Board on any of these subjects,the minutes will reflect all required disclosures of information. Convene in closed session, if necessary. Reconvene in regular session. Consideration of action, if any, on matters considered in closed session. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY ADJOURNMENT The next Steering Committee meeting is scheduled for May 20, 2009 at 5:30 p.m. Book Page 2 April 22, 2009 Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all. or a majority of all, of the members of District's Board. are available for public inspection in the office of the Clerk of the Board, located at 10844 Ellis Avenue, Fountain Valley, California Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the 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. Public Comments. Any member of the public may address the Steering Committee on specific agenda items or matters of general interest As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). Consent Calendar: All matters placed on the consent calendar are considered as not requiring discussion or further explanation, and unless a particular item is requested to be removed from the consent calendar by a Director of staff member. there will be no separate discussion of these items. All items on the consent calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar All items removed from the consent calendar shall be considered in the regular order of business. 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). 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. 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 Doug Davert (714)318-9550 General Manager James D Ruth (714)593-7110 General Counsel Brad Hogin (714)415-1006 Clerk of the Board Penny Kyle (714)593-7130 E-mail: okkyle(&ocsd.com Book Page 3 MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, March 25, 2009, at 5.30 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, March 25, 2009, at 5:30 p.m., in the District's Administrative Office. A quorum was declared present, as follows: STEERING COMMITTEE MEMBERS: STAFF PRESENT: DIRECTORS PRESENT: Jim Ruth, General Manager Doug Davert, Chair Bob Ghirelli, Assistant General Manager Larry Crandall, Vice Chair Nick Arhontes, Director of Operations and Bill Dalton, Operations Committee Chair Maintenance Mark Waldman, Administration Committee Jim Herberg, Director of Engineering Chair Ed Torres, Director of Technical Services Jim Ferryman Lorenzo Tyner, Director of Finance and Phil Luebben Administrative Services David Shawver Michael Gold, Legislative Affairs Liaison Penny Kyle, Clerk of the Board DIRECTORS ABSENT: Ryal Wheeler N/A Juanita Skillman OTHERS PRESENT: Brad Hogin, General Counsel Drew Kolosky, Liberty Compost PUBLIC COMMENTS There were no public comments REPORT OF THE COMMITTEE CHAIR Doug Davert, Board Chair, reported that he would be traveling to Washington, DC, to accept awards for the Groundwater Replenishment System from the American Society of Civil Engineers and the American Council of Engineering Companies. It was also announced that another Groundwater Replenishment System award will be presented mid-July by the National Association of Clean Water Agencies in Milwaukee, Wisconsin. He reminded the Directors that the Steve Anderson Lift Station Dedication would take place on April 17, 2009. REPORT OF GENERAL MANAGER Jim Ruth, General Manager, provided a brief recap of his monthly written report. Book Page 4 Minutes of the Steering Committee March 25, 2009 Page 2 REPORT OF GENERAL COUNSEL There was no report. l ACTION ITEMS (1-2) 1. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the February 25, 2009 Steering Committee meeting. 2. a) MOVED, SECONDED AND DULY CARRIED: Direct staff to initiate discussions with the City of Newport Beach to transfer the Balboa Trunk Sewer System to the City; and, b) Direct staff to continue to explore new opportunities to transfer additional local sewer assets to the City of Newport Beach. INFORMATION ITEMS (3) 3. Legislative Affairs Report— Government Affairs Manager, Michael Gold, informed the Steering Committee about OCSD's support for AB 1100 by Assembly Member Mike Duvall. This bill would allow the bottling of recycled water, such as GWR water, for educational and demonstration purposes only. Gold also discussed the status of the economic stimulus funds for wastewater infrastructure. He stated that the State Water Resources Control Board adopted a resolution specifying that 65% of the $280 million would be made available as grants to disadvantaged communities and projects that were supposed to receive bond funding but were frozen due to lack of bond sales. The remaining 35% of the funds would be distributed as loans to agencies through the Clean Water State Revolving Loan Fund (SRF) program. Under these guidelines, OCSD would not be eligible to receive any grant funds. Gold also reported that a coalition or urban wastewater agencies, including San Francisco, Los Angeles City and County, Oakland and Orange County, have been working to change the criteria so that all economic stimulus funds would be distributed as grants and our efforts focused on a bill moving quickly through the legislature. He said the bill would be taken up on March 26. Book Page 5 Minutes of the Steering Committee March 25, 2009 Page 3 CLOSED SESSION There was no closed session. ADJOURNMENT The next Steering Committee meeting is scheduled for Wednesday, April 22, 2009, at 5:30 p.m. The Chair declared the meeting adjourned at 6:17 p.m. Submitted by: A&Ityk./A Penny M. qle Clerk of the Board Book Page 6 STEERING COMMITTEE Meeting Date To Bd.of Dir. 03/25/2009 AGENDA REPORT Item Number Item Number 2 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Michael Gold. Government Affairs SUBJECT: Legislative, Policy and Political Update GENERAL MANAGER'S RECOMMENDATION Information Only SUMMARY This report is the monthly update from Washington, D.C. and Sacramento highlighting lobbyists' activities, OCSD legislative priorities and other information of interest to the Steering Committee. PRIOR COMMITTEE/BOARD ACTIONS None ADDITIONAL INFORMATION F ederal Legislative Report ic Sapirstein, ENS Resources Federal political update In the past month, Congress adopted the FY 2009 budget (a holdover budget from the previous Congress) and passed the framework for the FY 2010 budget. As has been reported previously, the FY 2009 contained a $300,000 earmark for OCSD. During the past month, the District finalized its formal requests for continued funding of the secondary treatment upgrade program and submitted them to each Congressional office for consideration as part of the FY 2010 budget. We are pleased to report that Congressmen Calvert, Miller and Rohrabacher, along with Congresswoman Sanchez all agreed to carry our appropriations request. This is the first time Congressman Rohrabacher has carried one of OCSD's requests. The Administration continued to fill top policymaking positions and for the District, an important nomination was announced. The President selected California's Pete Silva to be the next Assistant Administrator for the EPA Office of Water. Silva, a former Regional Water Board member, is deeply schooled in water quality issues and is expected to bring a significant level of experience and expertise to EPA's Water Programs Office. Turning attention to the economic stimulus assistance program (American Recovery and Reinvestment Act), the Executive Branch began the process of implementing funding assistance and as part of this effort, the District was provided information on Office of Management and Budget guidance governing the way in which assistance is provided to state and local governments. Among the key issues of concern to the District was the decision of the State of California to provide highly subsidized SRF assistance to economically disadvantaged Form No.DVJ 10 -t Agenda Report-SC Revised OVO&O7 Page 1 Book Page 7 and rural communities, rather than allowing such assistance to flow to urban communities. In an effort to build support for the District's position that highly subsidized assistance should be made available to all POTWs, ENS met with policy staff to the Speaker of the House to discuss this matter. During this discussion it was made clear that the issue was one that needed to be resolved at the state level given Congress' decision to rely on the SRF program. A second matter of concern involves the decision requiring infrastructure assistance would be provided only to those projects that are constructed using American iron and steel and manufactured goods (the "Buy American" provisions). This mandate jeopardizes project construction because of the absence of adequate supplies of such materials and goods on the west coast and the availability of less expensive alternatives from other countries. As a result, we worked with EPA to discuss the potential for the development of waivers from the mandates to ensure timely project construction. EPA has indicated that it will be reviewing the matter with an intent issue such waiver guidance. Aside from stimulus related activities, water policy matters received congressional attention this past month. The House debated and passed 317 - 101 a reauthorization of the Clean Water Act's SRF program, providing a five year authorization of $14 billion. The program also included provisions mandating monitoring of sewage overflows and public notification of such events; however, the District and CASA were successful in allowing state delegation of this notification program. This means California's current program will not be changed. Another District priority, removing the introduction of pharmaceutical and other biologics from being disposed of via wastewater treatment systems, advanced in Congress with the introduction of H.R. 1191. This bill would provide for states to establish programs to establish drug take-back programs. The bill is expected to be acted on in the coming months. In the Senate, Chairman Barbara Boxer has noted that this matter is a concern and her Committee on Environment and Public Works is expected to consider the matter during this Congress. State Legislative Report State political highlights Recently, the State's Legislative Analyst Office reported that due to lagging revenues, there is a current year budget deficit of $8 billion. With recent polling indicating that the May Special Election ballot measures are not sitting well with voters, concerns around the Capitol grew. Should the measures fail, California will immediately find itself in a $14 billion budget hole. Such an event would set off another round of partisan fighting about the best way to shrink the deficit. Complicating the picture, groups on the right and left are split about the propositions. The Governor has stepped up his efforts to garner support for the ballot measures. Federal stimulus funds update As was reported last month, the Federal clean water stimulus funds has been taking a complicated journey to local wastewater agencies with the California State Water Resources Control Board adopting rules that exclude urban and regional agencies from seeking grant funds. Briefly, California is slated to receive $280 million in clean water economic stimulus funds (for wastewater treatment agencies) and the State Water Board was given broad authority by the US EPA to adopt guidelines regarding how the funds would be spent. In March, the Water Board adopted a resolution with the following provisions: Form No OW 102-1 Agenda Report-SC Rev sod O V0&O7 Page 2 Book 1',Ige 8 • $182 million (65%) set-aside for subsidized assistance (grants) with priority given to small agencies serving disadvantaged communities and projects that were approved for bond funding but frozen because of State budget ills. • The remaining funds would be combined with existing State Revolving Loan fund dollars and would be available on a competitive basis to agencies as a 1% loan. To implement these changes after their adoption by the State Water Board, SB 27xxx (Negerete-McCloud) was introduced and quickly passed by both houses. A coalition of urban agencies, including San Francisco, Los Angeles City and County, Sacramento, Oakland and Orange County fought to amend SB 27xxx making all funds available as grants to all agencies on a competitive basis. Legislative leaders were reluctant to amend SB 27xxx and allowed it to pass; however they did understand our concerns. As a compromise, the Speaker of the Assembly and the President Pro Tern of the Senate agreed to write a letter to the State Water Board expressing their concerns and wanting to work with the administration to ensure urban agencies have a fair shot at the stimulus dollars. While we have not yet seen the letter, it is supposed to contain language stating that if their concerns are not addressed they might address this issue through the budget process. On a related note, prior to the funds being distributed to California, the Water Resources Control Board also expressed interest in modifying the loan process because they recognized that many agencies (like OCSD) did not seek SRF loan funds because of the administrative and bureaucratic red tape. To our disappointment, when the Water Board released its guidelines for the 1% loans, they made no changes to the loan requirements. Additional federal stimulus opportunities for OCSD that will be carried through the State including an allocation of $266 million from the Department of Energy to the California Energy Commission for the state's energy program. The funding will be allocated by the California Energy Commission. Specific guidelines for the program are not yet available. Activities for the month Chris Townsend and Heather Dion, Townsend Public Affairs • TPA worked with the Orange County State Delegation to amend SB 27xxx providing that the State Water Resources Control Board would provide 100 percent of the federal stimulus funding ($280 million) in the form of grants. TPA has been working with Assemblyman Duvall on a possible future legislative change, as well as administrative changes. • TPA is working with the Senate Natural Resources Committee and Senator Pavley's office on suggested amendments to SB 565 (Pavley). • TPA and OCSD staff arranged for and met with Senator Huffs District Director and lead water staff member. • TPA and OCSD staff attended the March State Water Resources Control Board hearing regarding the SWRCB staff recommendation's amending the Clean Water program's guidelines for the stimulus funding. Form No.DW-10:-t Agenda Report-SC R"sod-011O 07 Page 3 Book Page 9 2009 Legislative • Number Summary, Position* Status AB 815 (Ma) This hill requires a public agency to provide full, complete and accurate plans and specifications to Oppose bidders and that the agency assumes responsibility for the accuracy of those plans A redo of AB 983 (Ma) from 2008, which OCSD opposed. AB 969 This bill modifies the Recycled Water Act of 1991 to establish goals for recycling an unspecified Watch (Calderon) percentage of water by 2020 AB 1100 (Duvall) This bill allows the bottling of potable demonstration water for educational purposes and to promote Support OCWD will water recycling. (Note. this bill is aimed at allowing the bottling of GWRS water for demonstration sponsor and educational purposes only). o AB 1336 (Feuer) This bill allows a local agency that maintains a community sewer system, to control salinity rom Support Redo of similar °r residential water softeners, if the regional water quality control board makes findings that reducing legislation from salinty would achieve water quality objectives. 2008 w ti SB 26 (Simitian) This bill would require the California State Board of Pharmacy to coordinate with local agencies and Support drug manufacturers to develop programs managing pharmaceutical wastes and disposal. Authorizes pharmacies to accept home-generated prescription drugs. SB 565 (Pavley) Requires the State Water Resources Control Board to develop a plan ensuring that 50% of Watch/Requesting To be heard on wastewater discharged into the ocean would be recycled and Put to beneficial use. Requies the Amendments April 14 State Board to impose a fee on ocean discharges to implement the program. SB 711 (Lend) Requires the disclosure of written communications prior to entering into closed session regarding Oppose labor negotiations. Form No DW-102.1 Agenda Report-SC Rewsod o1�0&07 Page 4 ORANGE COUNTY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailirg Address: F.O. Sox. 8127 Founta0 Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018