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HomeMy WebLinkAbout05-26-2010 Steering Committee Agenda Packet AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, MAY 26, 2010 AT 5:30 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 92708-7018 www.ocsd.com DECLARATION OF QUORUM PUBLIC COMMENTS REPORT OF COMMITTEE CHAIR REPORT OF GENERAL MANAGER REPORT OF GENERAL COUNSEL ACTION ITEMS 1. Approve minutes of the April 28, 2010 Steering Committee meeting. 2. Recommend to the Board of Directors to approve Santa Ana River Interceptor (SARI) Line Loan and Repayment Agreement No. D07-042 with the Orange County Flood Control District (OCFCD), providing for: a) A loan of up to 60% of the successful bid amount for improvements to the SARI Line not to exceed $72,000,000; b) No interest accruing until June 2018; c) 3% interest on any unpaid balance through June 30, 2022 and the complete repayment by July 1, 2022; and, d) Authorize the release of $36,000,000 to OCFCD immediately after the award of the contract, and to allow the remaining balance to be released 12 months later. May 26, 2010 INFORMATION ITEMS 3. Public Affairs Report (Gold) 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. A. Convene in closed session. CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54954.5 (f)) 1. Agency Designated Representatives: James D. Ruth, General Manager; Robert Ghirelli, Assistant General Manager; Lorenzo Tyner, Director of Finance and Administrative Services; Jeff Reed, Human Resources and Employee Relations Manager; and Paul Loehr, Human Resources Supervisor. 2. Employee Organizations: a) Orange County Employees Association representing employees in the Technical Services, Engineering, and Administrative and Clerical Units; b) International Union of Operating Engineers - Local 501 representing employees in the operations and maintenance unit; and c) Peace Officers Council of California representing employees in the Professional Group and Supervisor Group. 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 June 23, 2010 at 5:30 p.m. May 26, 2010 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: pkyle6d�ocsd.com STEERING COMMITTEE Meeting Date To Bd. of Dir. 05/26/10 05/26/10 AGENDA REPORT Item Number Item Number 2 11 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services GENERAL MANAGER'S RECOMMENDATION Approve Santa Ana River Interceptor Line Loan (SARI) and Repayment Agreement No. D07-042 with the Orange County Flood Control District (OCFCD), providing for: 1. A loan of up to 60% of the successful bid amount for improvements to the SARI Line not to exceed $72,000,000; 2. No interest accruing until June 30, 2018; 3. 3% interest on any unpaid balance through July 2022 and the complete repayment by July 1 , 2022; and, 4. Authorize the release of $36,000,000 to OCFCD immediately after the award of the contract, and to allow the remaining balance to be released 12 months later. SUMMARY The County of Orange (County) is in the process of constructing a significant improvement to the Prado Dam; specifically, raising the height of the dam. This improvement will result in a negative impact to the Santa Ana River Interceptor (SARI) Line. As the Prado Dam Improvement Project sponsor, the County is responsible for mitigating any negative impacts of the project. Initial mitigation costs were estimated to be as much as $100 million. OCSD previously agreed to loan 60% of that cost ($60 million) to the OCFCD. However, based on more recent information, the total cost has been revised to $120 million. OCSD proposes to loan 60% of the total cost ($72 million) under the terms agreed upon in the prior agreement. Page 1 Participating agencies will contribute as follows: 1. The County would cash-flow $36 million. 2. SAWPA would advance the project $12 million over a two-year period. 3. OCSD would advance the project $72 million over a two-year period. a) OCSD would be reimbursed by the County. b) The County would be primarily relying on State Subvention Funds. c) The Subvention Fund reimbursement process has been improved. d) This loan would be from our reserves and would not impact OCSD rates. PRIOR COMMITTEE/BOARD ACTIONS June 2007: Board approved Santa Ana River Interceptor Line Loan and Repayment Agreement No. D07-42 with the Orange County Flood Control District (OCFCD) to provide a no-interest loan until 2018 (revised from 2016), of 60% of the total bid amount. April 2007: Board approved Santa Ana River Interceptor Line Loan and Repayment Agreement No. D07-42 with the Orange County Flood Control District (OCFCD) to provide a no interest loan until 2016, of 60% of the total bid amount. ADDITIONAL INFORMATION The Orange County Flood Control District (OCFCD) is a department of the County of Orange (County) responsible for providing control of flood and storm waters within the boundary of the County of Orange, and of streams flowing into the County such as the Santa Ana River or San Juan Creek; to mitigate the effects of tides and waves; and to protect the harbors, waterways, public highways and property in the district from such waters. The County is a member agency of Orange County Sanitation District (OCSD). OCSD owns and operates the Santa Ana Regional Interceptor (SARI); a regional sewer pipeline from the Orange County line to the OCSD sewage treatment plant in Huntington Beach. The SARI was constructed as a joint project of OCSD and the Santa Ana Watershed Project Authority. OCFCD and OCSD wish to advance the protection and/or relocation of the SARI (the SARI Project) in response to existing conditions and the raising of the Prado Dam by the U.S. Army Corps of Engineers (the Corps) and OCFCD. The SARI Project shall, to the extent required by law, be publicly bid. The total amount of construction, design, environmental and project administration costs is not expected to exceed one-hundred million dollars ($120,000,000). OCSD will benefit from the continued, uninterrupted use of the SARI and would, therefore, benefit from OCFCD accelerating the protection and/or relocation of Page 2 the SARI Project as part of the Santa Ana River Mainstem Project. OCFCD plans to reimburse OCSD from the State Flood Control Subventions Program. OCSD would loan to the OCFCD 60% of the winning bid amount, plus design, environmental and project administration (total project costs), for purposes of SARI Project design and construction, up to the amount of seventy-two million dollars ($72,000,000), thirty-six million dollars ($36,000,000) after the award of the construction contract, and the remainder one year after initial deposit. If the SARI Project is publicly bid and the total project cost exceeds one-hundred twenty million dollars ($120,000,000), OCFCD and OCSD shall meet and confer to determine if an increase in the Project loan amount is warranted and feasible prior to award of the construction contract, recognizing that, if such an increase is not warranted or feasible, the construction contract may not be awarded. The OCFCD agrees to pay OCSD all funds loaned by OCSD in a maximum amount of seventy-two million dollars ($72,000,000) to the OCFCD as soon as subvention funding is received with the total balance repaid by no later than July 1, 2022, regardless of whether OCFCD received any subvention funds. Interest shall accrue on the unpaid balance from July 1, 2018, at an annual interest rate of three percent (3%) until the unpaid balance has been repaid. Repayment installments will be made within 30 days of the OCFCD's receipt of subvention funding in an amount equivalent to sixty percent (60%) of the funds received with the balance repaid by no later than July 1, 2022 regardless of whether OCFCD received any subvention funds. JDR:LT:Ic Page 3 STEERING COMMITTEE Meeting Date To Bd.of Dir. 04/26/10 AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Michael Gold, Public Affairs GENERAL MANAGER'S RECOMMENDATION Information only SUMMARY This report is the monthly Public Affairs Division update that includes legislative and political information from Washington, D.C. and Sacramento, lobbyists' activities, and outreach education and communication programs to member cities, employees and the public. In addition, attached to this report is the 2010 Legislative Platform for the Committee's consideration. ADDITIONAL INFORMATION Federal Legislative Update Legislative Advocate: Eric Sapirstein, ENS Resources Not much has changed on the Congressional landscape since last month. As reported the budget process is stalled until the fall (after the elections) and the new wrinkle of the President's nomination to the Supreme Court will certainly tie up the Senate for most of the summer. The good news is the Senate is moving ahead with the Water Resources Development Act. Water Resources Development Act (WRDA) The effort to renew WRDA continues and the Senate Committee on Environment and Public Works Chairman Barbara Boxer and Ranking Republican James Inhofe (R-OK) issued a call to Senators to submit WRDA requests for committee consideration. Staff completed and submitted the necessary forms to the offices of Senators Boxer and Feinstein for consideration. As a follow-up Senator Feinstein's office requested support from the County of Orange and the Orange County Water District. Senator Boxer convened a hearing on WRDA and highlighted her commitment to finalize a bill this year. In the House, the Committee on Transportation and Infrastructure has begun to hold hearings into the need for a WRDA reauthorization as well. The District's request for clarification that SARI Line construction costs are part of the overall project's costs appears to be noncontroversial in the House; however, as we reported last month, no Republicans will carry this request. Our biggest champion on this issue, Congressman Miller, had to withdraw our request meaning that we will be relying on the Senate to carry the day. As a reminder, the requested technical amendment will simply clarify that the SARI relocation is "construction project" and thus eligible for possible federal reimbursement when the Santa Ana Mainstem project is complete. The District has been pushing this issue as a backstop measure to ensure payback of the loan to the County of Orange. Form No.DW-102-1 Agenda Report—SC Revised:01/08/07 Page 1 State Legislative Report Legislative Advocates: Christopher Townsend, Heather Dion and Casey Elliott, Townsend Public Affairs Its budget season The biggest news coming out of Sacramento of late is the Governor's release of the May revision to the budget. Acknowledging that revenues lagged expectations, we now know that the budget deficit is just over$19 billion. To close the gap, the Governor's proposal contains drastic cuts, program reductions and policy proposals that the Schwarzenegger believes are necessary. Overall, the May Revise provides for$83.4 billion in spending for the 2010-11 fiscal year. The May revise has numerous differences from the original January budget the most significant difference being many and contains many more cuts. With lagging revenues and a sluggish economy, as well as lack of action by the legislature to enact cuts in the current year, California finds itself in familiar territory wrestling with huge deficits and no consensus on solutions. Throw in the complicating factor of an election year and all signs point to a long summer in Sacramento. Now the Governor's proposals head to the legislature where they will be discussed in public hearings. Interestingly enough, the new Speaker has indicated his preference to hold public meetings as opposed to the private "Big 5" discussions that have occurred in the past. The Democrats in both houses have already stated they do not accept the Governor's proposals and will work to minimize cuts to health, welfare and human services programs. Below are some highlights from the Governor's proposals: Reforms • Pension Reform —The Governor indicated that he would not sign a budget unless it included pension reform. While he did not elaborate on the type of pension reform, his office has been supportive of SB 919 (Hollingsworth), which would make changes to final compensation periods, contribution rates, retirement ages and benefit levels. • Budget Reform —The Governor also indicated that budget reform needed to be included in any final budget package in order to gain his support. Schwarzenegger indicated that his goal for budget reform is to eliminate the wild variances in State revenues and he is supportive of the proposals from the California Commission on a 21s' Century Economy. Health and Human Services The area that was most deeply impacted by the Governor's proposed cuts is health and human services. Since much of the State's General Fund spending is protected through the State Constitution or other voter initiatives, health and human services programs are one of the few remaining areas in which billions of dollars of savings can be achieved. Below are some of the cuts proposed by the Governor: • The elimination of the CalWorks program for a savings of$1.1 billion; • Reduction of 60% for State mental health services for a savings of$600 million; • Unspecified cuts to the In-Home Support Services program for a savings of$750 million; and • Elimination of funding for most child day care for a savings of$1.45 billion. Some funding would be reserved for preschool and afterschool care for low income children. Form No.DW-102-1 Agenda Report—SC Revised:01/08/07 Page 2 Local Government Many of the Governor's proposals will have a significant impact on local governments. The Governor's proposals in the area of health and human services will pressure local governments to provide a safety net for their residents without needed funding from the State. In addition, these proposals will have a direct impact on local government: • State inmate shift—The Governor is proposing to move 15,000 low-risk offenders from State prison facilities to local detention facilities. The Governor has also proposed a block grant, so that for each prisoner transferred, a local government would receive $11,500. In total, this proposal will save the State in excess of$250 million. • Transportation fund borrowing —The Governor is proposing a one-time borrowing of $650 million from the Highway Users Tax Account. Due to the gas tax legislation passed earlier this year, these funds are currently not allocated to any program and are borrowable. The Governor's budget proposes to pay these funds back to HUTA by June 2013. Additionally, the Governor is proposing to borrow an additional $325 million from the Motor Vehicle Account to cover other General Fund spending related to transportation. • Alternative speed enforcement—As he did in January, the Governor is proposing to collect additional revenue by allowing local governments to install and operate cameras which would monitor and enforce speed limits. A portion of the revenue generated by these citations would be transferred to the State. Education The Governor acknowledged that there have been significant cuts to education over the last three budgets, and as such, he tried to spare education from deep cuts in this budget. The Governor proposed to fund K-12 and higher education at the same levels proposed in his January budget. Those funding levels mean that education funding will stay relatively flat compared to the current budget year. It should also be noted that the Governor withdrew his previous proposal to eliminate competitive Cal Grants. Additionally, the Governor proposed a 2.2% enrollment growth funding to community colleges, which equates to an additional $126 million in funding. Miscellaneous The Governor's May Revise contains many provisions which are not covered in this document. Below are other key proposals put forth in the May revise: • State Parks —The Governor has proposed to fund the State Parks in the May Revise. This is a departure from his previous proposals to eliminate funding for the State Parks System. • Tequillon Ridge oil platform —The Governor has removed his support for the Tequillion Ridge oil project in the wake of the large oil spill off of the Louisiana coast. As such, the May revise no longer includes proceeds from this project (which were to pay for the maintenance of the State Parks). • Proposed 2010 Water Bond —The Governor has proposed the allocation of funds from the upcoming water bond before the voters in November. The budget contains the following allocations, should the voters approve the measure in November: o Over $600 million to the Department of Water Resources for various programs contained within the water bond. These programs include: local drought relief, local groundwater and conveyance projects, and grants for desalination facilities. Form No.DW-102-1 Agenda Report—SC Revised:01/08/07 Page 3 o Over $418 million to the State Water Resources Control Board for the implementation of the advanced treatment and water recycling program. State employee furloughs—The Governor has proposed a one-day per month furlough program for most State employees for the 2010-11 fiscal year. The furlough program is expected to save the State $445 million over the course of the year. Public Affairs Report The heavy school-related tour season is over as we approach summer and staff is proud to report we had a banner year with students. Since January, OCSD has given 43 tours to 691 people. Of the 43 tours, 72 percent are students from college, high school, and middle school. This trend of schools coming to OCSD continues to grow and demonstrates the need to focus our outreach efforts on the educational community. Our speaker's bureau has reached over 1300 people and 23 groups. The RFP to redesign OCSD's website is on the streets and so far we have had a very positive response. In about a month, we expect to interview the top firms and hopefully have a selection made in July. Staff has revised the retiree display—the list of all employees that have retired from the district. The new display is modular and will be updated annually at minimal cost. This new display is now in the Board room and matches the color scheme of the lobby-area information displays. Form No.DW-102-1 Agenda Report—SC Revised:01/08/07 Page 4 OCSD Legislative Matrix 5/17/2010 AB 2182 (Huffman D) Contractual assessments: sewer lateral lines. Current Text: Amended: 4/5/2010 „f Introduced: 2/18/2010 Last Amend: 4/5/2010 Is Fiscal: N Location: 5/6/2010-S. RLS. 2Year [21skj Policy I Fiscal I Floor I Desk P01ic Fiscal I Floor Conf. Enrolled F��[7!n Dead ist House 2nd House Conc. Summary: Existing law authorizes a legislative body of a public agency, as defined, to determine that it would be convenient and advantageous to designate an area within which authorized officials and free and willing property owners may enter into contractual assessments to finance the installation of distributed generation renewable energy sources or energy or water efficiency improvements that are permanently fixed to residential, commercial, industrial, agricultural, or other real property. This bill would expand these provisions to include contractual assessments to finance onsite sewer improvements, as defined. The bill would permit onsite sewer improvements to be installed to convert residential, commercial, industrial, agricultural, or other real property from an onsite septic system to community sewer collection service and to modify or replace existing onsite sewer improvements . Position AS 2256 (Huffman D) Product labeling:flushable products. Current Text: Amended: 4/12/2010 htmi Introduced: 2/18/2010 Last Amend: 4/12/2010 Is Fiscal: Y Location: 4/21/2010-A. APPR. 2Year Desk I Policy Lkjcal Floor Desk Policy I Fiscal I Floor Conf.`r7rolledFetoedFhapteredj Dead 1st House 2nd House Conc. Calendar: 5/17/2010 #39 ASSEMBLY ASSEMBLY SECOND READING FILE Summary: Existing law regulates the labeling requirements on various consumer products. This bill would prohibit, on or after January 1, 2012, a person from packaging or labeling a consumer product for distribution or sale in California if that product is contained in a package, or has an affixed label, that states that the product is flushable, sewer and septic safe, or other like term or phrase unless the product meets specified criteria. The bill would require a person who has packaged or labeled a product for distribution or sale in California that is labeled as flushable, sewer and septic safe, or other like term or phrase, to maintain, in written form, documentation of the testing substantiating the validity of the claim. The bill would exempt certain retailers and wholesalers from these provisions. The bill would make violation of this provision punishable by a fine of up to $2,500. Position Support AB 2407 (Harkey R) California regional water quality control boards: boundaries. Current Text: Introduced: 2/19/2010 a 1 W Introduced: 2/19/2010 Is Fiscal: Y Location: 4/23/2010-A. DEAD Desk Folicy Fiscal FFloor riDesk f Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered _ 1st House 2nd House Conc. �_��� Summary: Under the Porter-Cologne Water Quality Control Act, the 9 California regional water quality control boards are among the principal state agencies that carry out responsibilities relating to water quality. The act prescribes the boundaries of each regional board. This bill would revise the description of the boundaries of the Santa Ana Regional Water Quality Control Board and the San Diego Regional Water Quality Control Board. Position SB 918 (Pavley D) Water recycling. Current Text: Amended: 4/26/2010 btu,; Introduced; 2/1/2010 Last Amend: 4/26/2010 Is Fiscal: Y Location: 5/10/2010-S. APPR. SUSPENSE FILE 2Year Desk I Policy I Fiscal I Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House �^ Conc. Summary: Existing law establishes the State Water Resources Control Board and the California regional water quality control boards as the principal state agencies with authority over matters relating to water quality. Existing law requires the State Department of Public Health to establish uniform statewide recycling criteria for each varying type of use for recycled water where the use involves the protection of public health. This bill would require the State Department of Public Health to adopt uniform water recycling criteria for indirect potable water reuse for groundwater recharge, as defined, by December 31, 2013, and develop and adopt uniform water recycling criteria for surface water augmentation, as defined, by December 31, 2016. The bill would require the department to investigate the feasibility of developing uniform water recycling criteria for direct potable reuse and to provide a final report on that investigation to the Legislature by December 31, 2016. The bill, from July 1, 2011, to June 30, 2017, inclusive, would require funds generated by the imposition of specified liabilities for violations of water quality requirements to be made available, upon appropriation by the Legislature, to the department for purposes of developing and adopting the water recycling criteria, in accordance with a specified schedule. Position SR 1107 (Kehoe D) Water quality: interceptor and trap grease. Current Text: Amended: 4/26/2010 L;IL htmi Introduced: 2/17/2 010 Last Amend. 4/26/2010 Is Fiscal: Y Location: 5/5/2010-S. THIRD READING 2Year Desk I Policy I Fiscal Floor Desk Policy Fiscal Floor Conf. Fr70�F;t�r!!nDead 1st House 2nd House Conc. Calendar: 5/17/2010 #40 SENATE SENATE BILLS-THIRD READING FILE Summary: Existing law regulates the transportation of inedible kitchen grease and requires the transporters of inedible kitchen grease to be registered and to pay specified fees. The State Water Resources Control Board is among the principal state agencies with authority relating to water quality. This bill would enact the Interceptor and Trap Grease Transportation Act of 2010. The bill, on and after January 1, 2012, would prohibit any person or entity from engaging in the transportation of interceptor and trap grease, unless that person or entity is registered with, and possesses a valid registration certificate issued by, the state board. The bill would require the state board to impose a registration fee sufficient to cover the costs of implementing the act. The bill would require the state board to deposit all revenues from the registration fee in the Interceptor and Trap Grease Fund, which the bill would establish. The bill would authorize the board to expend moneys in the fund to implement the act, subject to appropriation for that purpose. The bill would define "interceptor and trap grease" to mean grease that is principally derived from food preparation, processing, or waste, and that is removed from a grease trap or grease interceptor. Position Total Measures: 5 Total Tracking Forms: 5