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HomeMy WebLinkAbout02-23-2011 Steering Committee Agenda Packet Orange County Sanitation District `AIfI Wednesday,February 23, 2011 Regular Meeting of the r 5:00 P.M. Steering Committee R Administration Building Conference Rooms A & B 10844 Ellis Avenue Fountain Valley, CA (714) 593-7130 AGENDA 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 Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: 1. Approve Minutes of the January 26, 2011 Steering Committee meeting. ACTION ITEMS: 2. Adopt the 2011 Legislative Platform and Goals. INFORMATION ITEMS: 3. Public Affairs Report (Gold) 02/23/11 Steering Committee Agenda Page 1 of 4 CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board 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 54957.61 as noted. Reports relating to(a)purchase and sale of real property;(b)matters of pending or potential litigation;(c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. Convene in closed session. (1) CONFER WITH DISTRICT NEGOTIATORS (Government Code Section 54954.5(o) ( Agency Designated Representatives: James D. Ruth, General Manager; Robert Ghirelli, Assistant General Manager; Jim Herberg, Assistant General Manager, Jeff Reed, Director of Human Resources; and, Richard Spencer, Human Resources Supervisor. ( Employee Organizations: International Union of Operating Engineers, Local 501 and Orange County Employees Association (OCEA) (2) CONFERENCE WITH LEGAL COUNSEL RE. ANTICIPATED LITIGATION (Government Code Section 54956.9(b)) Significant Exposure to Litigation and Potential Initiation of Litigation Number of Potential Cases: 3 a) EnerTech Rialto Facility Contract b) Newport Trunk Sewer, Project 5-58 c) Claim from Kiewit Infrastructure West re. New Secondary Treatment System at Plant No. 1, Project P1-102 (3) CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION (Government Code Section 54956.9(a)) Case: Nguyen v. Orange County Sanitation District, Orange County Superior Court, Case No. 30-2008-00115222 (4) CONFERENCE WITH LEGAL COUNSEL RE. INITIATION OF LITIGATION (Government Code Section 54956.9(c)) Number of Potential Cases: 1 Capital Facilities Capacity Charges for School Districts Reconvene in regular session. 02/23/11 Steering Committee Agenda Page 2 of 4 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 Wednesday, March 23, 2011, at 5:00 p.m. 02/23/11 Steering Committee Agenda Page 3 of 4 Accommodations for the Disabled: Meeting Rooms are 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 gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley,California,not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item,including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Clerk of the Board, Donna Terrones (714)593-7130 dterrones ocsd.com 02/23/11 Steering Committee Agenda Page 4 of 4 STEERING COMMITTEE Meeting Date To Bd. of Dir. 02/23/11 02/23/11 AGENDA REPORT Item Number Item Number 2 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Michael Gold, Public Affairs Manager SUBJECT: 2011 Legislative Platform and Goals GENERAL MANAGER'S RECOMMENDATION Adopt the 2011 Legislative Platform and Goals SUMMARY Last month, at the workshop with the Steering Committee and lobbyists, staff presented the draft 2011 Legislative Platform and the group discussed goals for the coming year. These goals provide staff and lobbyists with direction in both policy and funding areas at the state and federal levels. PRIOR COMMITTEE/BOARD ACTIONS Legislative Platform adopted by the Board of Directors, February 2010. ADDITIONAL INFORMATION The Legislative Platform guides staff's day-to-day decisions on bills and policy issues and allows staff to act quickly on important matters. Each year, staff works with the Steering Committee to develop goals and priorities for the legislative program and, if needed, modify the policy statements. This year, there are no proposed changes to the Legislative Platform other than an update of the goals based on last month's workshop. Based on the Committee's input, staff has developed the following goals: State Priorities ( Aggressively fight against Sacramento taking $60 million from OCSD's property tax revenues by: o Meeting with Legislators and their staff to make them aware of the impact such a take would have on our ability to serve the 2.5 million users of our system. o Developing fact sheets and other educational materials to explain how we use property tax revenues to support our mission. o Working with advocacy groups and trade association partners, such as CASA and CSDA on legislative strategies, specific bills and building coalitions to protect enterprise district revenues. o Ensuring that property tax revenues passed through redevelopment agencies to OCSD remain intact. Page 1 of 3 State Priorities (cont'd) ( Build relationships with Sacramento legislators by: o Scheduling tours of our facilities and issue briefings. o Arranging briefings in Sacramento and in legislators' district offices. o Providing briefing materials and position papers in advance of key votes. This year, in addition to meeting with members of the entire Orange County delegation, we will focus special attention on new members of the Assembly: • Curt Hagman (R-60tn) • Alan Mansoor (R-68tn) • Chris Norby (R-72nd) • Don Wagner (R-70t") ( This year we will work with sister agencies, trade associations, and our lobbyists to aggressively pursue legislative and regulatory changes that would lower the cost of OCSD doing business. These include: o Relaxed rules on converting biosolids to energy. o Changing the income rules for serving on the State and Regional Water Boards to create a larger pool of eligible candidates. o Curtailing bans on land application of biosolids. o Greater flexibility for water recycling projects and chemical usage, based on sound science. o Increased flexibility for air emissions regulations, particularly related to the use of biogas and biosolids to energy. Federal Priorities ( In support of future project funding, OCSD will request a $35 million authorization that will help us access future funds for clean water infrastructure. These funds will be used for: o Infrastructure replacement and rehabilitation o Energy efficiency upgrades o Plant improvements to improve water quality o Alternative and innovative treatment technologies o Projects in support of GWRS ( To expedite the relocation of the SARI Line and ensure OCSD is repaid our $60 million loan to the County of Orange, we will work cooperatively with the County of Orange to ensure adequate funding is appropriated to complete the Santa Ana Mainstem Project in a timely manner. In addition, OCSD staff will work with County staff, the Army Corps of Engineers, and Congressman Gary Miller's office to provide regular updates on project status. Page 2 of 3 Federal Priorities (cont'd) ( As Congress discusses the reauthorization of the Clean Water Act, OCSD will work with CASA and our lobbyist to address the regulatory issues identified above, and also: o Changing the income rule that disqualifies many otherwise qualified individuals from serving on the State and Regional Water Quality Control Boards o Modifying the SRF loan program to provide infrastructure grants and equitable funding for urban and rural agencies so OCSD can compete for these funds. Grants ( Work with Congress, the Department of Energy and the private sector seeking funds for alternative fuel and energy-related projects with the goal of reducing OCSD's capital outlays . Projects may include: o FOG to biodiesel production o Expanding fuel cell/hydrogen energy facilities o Digester gas to energy projects ( Seek grant opportunities, including round 2 of the Integrated Regional Water Management Funds and regularly report to the Steering Committee on grant efforts. Staff is requesting that the Steering Committee adopt the 2010 Legislative Platform. CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS 2011 Legislative Platform and Goals Page 3 of 3 Orange County Sanitation District 2011 Legislative Platform and Goals Legislative Updates Ja :es Please click the link below foi the latest Legislative Tracking M nation q hael Gold. Info • Legis a ive p a es - �1 s u Legislative Bill Tracking(42,9 KB) jL . • . - "loom x I I V NCI Sit Hi 7q li i p t N Orange County Sanitation District 2011 Legislative Platform Legislative Affairs Team OCSD Staff Michael Gold Ph: (714) 593-7529 mgold@ocsd.com Public Affairs Manager Cell: (714) 263-5541 Robert Ghirelli (714) 593-7400 rghirelli@ocsd.com Assistant General Manager James D. Ruth (714) 593-7110 jruth@ocsd.som General Manager Federal Lobbying Team Eric Sapirstein (202)466-3755 esap@ ENS Resources ensresources.com Sacramento Lobbying Team Townsend Public Affairs Christopher Townsend (949) 399-9050 ctownsend@ TownsendPA.com Heather Dion-Stratman (949) 399-9050 hdion@ TownsencIPA.com 2 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform Introduction The Orange County Sanitation District (OCSD) recognizes the need for an active State and Federal legislative advocacy program to ensure the interests of the ratepayer and Board of Directors are protected.Towards that end, the legislative affairs team monitors activities in Sacramento and Washington, D.C. and takes appropriate action in support or opposition of legislative initiatives. Each year,the Board of Directors adopts a Legislative Platform, which is a summary of goals, key issues and OCSD's policy position. The following legislative policies have been developed by OCSD staff and legislative advocates in consideration of OCSD service area cities' and policy needs.These Board- approved policies serve as OCSD's official positions of support or opposition on issues of importance to the agency.The Legislative Platform is a dynamic document, adopted annually and changing to the needs of the Board. The legislative affairs team, in conjunction with the Board, may take appropriate action consistent with the Legislative Platform, including, but not limited to, drafting letters, lobbying legislators and staff and crafting bills. Procedure for Taking Positions on Bills 1. Staff will track bills of greatest interest to the District, particularly those that fall within the goals and objectives identified by the Board of Directors. Staff will monitor bills being watched by similar agencies in Orange County(OCWD, MWDOC, etc.) as well as State Agencies such as California Association of Sanitation Agencies (CASA),the California Special Districts Association (CSDA) and the Association of California Water Agencies (ACWA). 2. For those bills that are being tracked where there is clear policy direction stated in the Board- adopted Legislative Platform or adopted goals, staff can send letters and give direction to the lobbyists to advocate that position. 3. Where a particular issue is not urgent, all legislative letters will be hand-signed by the Chair or Vice-Chair. If a matter is urgent, staff may use the signature stamp, so long as a clear policy direction exists. 4. A summary of bills being tracked will be presented to the Steering Committee monthly. 5. When a bill does not fall within the scope of the Legislative Platform or is a politically controversial issue, staff will seek direction from the Steering Committee. 6. If a bill does not fall within the scope of the Legislative Platform, but the California Association of Sanitary Agencies (CASA),the California Special Districts Association (CSDA) or the National Association of Clean Water Agencies (NACWA) has an adopted position, staff may follow this position but must inform the Steering Committee of such action at the next regularly scheduled meeting. 3 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform State and Federal Legislative Goals for 2011 State Priorities ( Aggressively fight against Sacramento taking$60 million from OCSD's property tax revenues by: o Meeting with Legislators and their staff to make them aware of the impact such a take would have on our ability to serve the 2.5 million users of our system. o Developing fact sheets and other educational materials to explain how we use property tax revenues to support our mission. o Working with advocacy groups and trade association partners, such as CASA and CSDA on legislative strategies, specific bills and building coalitions to protect enterprise district revenues. o Ensuring that property tax revenues passed through redevelopment agencies to OCSD remain intact. ( Build relationships with Sacramento legislators by o Scheduling tours of our facilities and issue briefings. o Arranging briefings in Sacramento and in legislators' district offices . o Providing briefing materials and position papers in advance of key votes. This year, in addition to meeting with members of the entire Orange County delegation, we will focus special attention on new members of the Assembly: • Curt Hagman (R-601h) • Alan Mansoor(R-681h) • Chris Norby (R-72nd) • Don Wagner(R-70tn) ( This year we will work with sister agencies,trade associations, and our lobbyists to aggressively pursue legislative and regulatory changes that would lower the cost of OCSD doing business. These include: o Relaxed rules on converting biosolids to energy. o Changing the income rules for serving on the State and Regional Water Boards to create a larger pool of eligible candidates. o Curtailing bans on land application of biosolids. o Greater flexibility for water recycling projects and chemical usage, based on sound science. o Increased flexibility for air emissions regulations, particularly related to the use of biogas and biosolids to energy. Federal Priorities ( In support of future project funding, OCSD will request a $35 million authorization that will help us access future funds for clean water infrastructure.These funds will be used for: o Infrastructure replacement and rehabilitation o Energy efficiency upgrades o plant improvements to improve water quality and o Alternative and innovative treatment technologies o Projects in support of GWRS 4 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform ( To expedite the relocation of the SARI line and ensure OCSD is repaid our$60 million loan to the County of Orange,we will work cooperatively with the County of Orange to ensure adequate funding is appropriated to complete the Santa Ana Mainstem Project in a timely manner. In addition, OCSD staff will work with County staff,the Army Corps of Engineers, and Congressman Gary Miller's office to provide regular updates on project status. ( As Congress discusses the reauthorization of the Clean Water Act, OCSD will work with CASA and our lobbyist to address the regulatory issues identified above, and also: o Changing the income rule that disqualifies many otherwise qualified individuals from serving on the State and Regional Water Quality Control Boards. o Modifying the SRF loan program to provide infrastructure grants and equitable funding for urban and rural agencies so OCSD can compete for these funds. Grants ( Work with Congress,the Department of Energy and the private sector seeking funds for alternative fuel and energy-related projects with the goal of reducing OCSD's capital outlays. Projects may include: o FOG to biodiesel production o Expanding fuel cell/hydrogen energy facilities o Digester gas to energy projects ( Seek grant opportunities, including round 2 of the Integrated Regional Water Management Funds and regularly report to the Steering Committee on grant efforts. 5 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform Federal and State Legislative Policies 1. Air Quality: OCSD is committed to complying with federal, state, and local air quality laws and rules. OCSD is further committed to establishing an odor policy to assure that the district is a good neighbor to the surrounding communities. a. Support air quality legislation that emphasizes the use of advance technologies and applicable market incentives, and incentives for the use of alternative fuels and the development of the infrastructure for alternative fuel vehicles. b. Support measures that maintain and enhance local decision-making authority, where appropriate, in the development and implementation of air quality attainment strategies. c. Support legislation to ensure greater consistency between the California and Federal Clean Air Acts; including the need to demonstrate cost-effective public health or environmental benefit if California elects to exceed federal standards. d. Support strategies that clearly demonstrate and provide for the most cost-effective means for meeting air quality goals. e. Support, in concept, legislation that would utilize incentives and pricing strategies as a preferred alternative to traditional command and control regulations for meeting emission reduction objectives for all sources. f. Oppose actions that preclude implementation of the Air Quality Management Plan (AQMP)to the extent that such actions could subject the basin to sanction or conformity penalties. 2. Biosolids: OCSD strives to beneficially use biosolids through multiple management options performed at reasonable costs that are protective of public health and the environment. a. Support legislation that supports the use of biosolids as on non-food production agricultural lands. b. Support policies that encourage biosolids product use by horticulture and retail consumers. c. Oppose legislation that bans the use of biosolids for land application in any region, county, or state. d. Support science-based legislation that establishes a state-wide regulatory system for biosolids management. 6 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform 3. Grant Funding: OCSD is committed to offsetting its research, special projects and wastewater infrastructure project and construction costs by obtaining funding through grants and cooperative agreements. a. Support appropriations legislation, bonds, programs, and projects that provide funding for infrastructure construction and rehabilitation, special studies and research or projects relating to security, environmental education, water quality,wastewater processing, urban runoff, water conservation, and water recycling. b. Support projects that provide for public benefit, over projects that are primarily intended for private benefit or gain. c. Support continued federal funding for protecting and realigning the Santa Ana River Interceptor project and for secondary treatment upgrades. d. Oppose proposals placing further requirements on grant recipients that return low value for high administrative costs. 4. Labor Relations:OCSD is committed to the exercise of and provision of orderly procedures for the administration of employer-employee relations, including, but not limited to, meeting and conferring in good faith with recognized employee organizations regarding the wages, hours of work, and other terms and conditions of employment. a. Support measures to reform current workers compensation formulas to rely on higher thresholds for compensation or a proportionate exposure formula. b. Support health insurance reform that does not create additional financial burdens on special districts. c. Support measures to ease applicability of the Fair Labor Standards Act (FLSA) on public agencies. d. Oppose any measure imposing compulsory and binding arbitration with respect to public employees. e. Oppose any measure that imposes upon local government mandated employee benefits that are more properly decided at the local bargaining table. f. Oppose efforts reducing local control over public employee disputes and imposing regulations on an outside agency. g. Oppose any measure granting public employees the right to strike. h. Oppose a new mandatory Social Security tax for public employers and public employees. 7 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform 5. Planning: OCSD ensures the long-range planning of capital improvement programs in order to deliver the highest quality facilities. a. Support reform of existing state, regional, and local planning processes only if directly linked to reforms in the current revenue and tax structure of state and local governments. b. Support measures that provide new revenues for growth management and the public facilities necessary to support expected growth. c. Support proposals encouraging regional, sub-regional or countywide cooperation in planning urban development strategies, especially those that provide funding for effective implementation of agreed upon goals. d. Oppose legislation consolidating special districts that fail to address the concerns of cities affected by the proposed consolidation. e. Oppose measures that prevent or restrict the ability of cities or special districts to participate in the Southern California Association of Governments' (SCAG) sub-regional process. 6. Public Health: Protection of public health is OCSD's core mission. OCSD will work cooperatively with county and state health officers to assure local health protection. a. Support hazard mitigation, emergency response, planning and recovery through direct legislation, policy directives and funding toward floodplain security within the Santa Ana River watershed. b. Support (generally) measures that provide for improved public health through regulation. c. Support the protection of public health through the construction and implementation of advanced wastewater treatment technology. 7. Public Works: OCSD is committed to the achievement of effective and efficient projects that provide wastewater treatment services that benefit its ratepayers. a. Support measures that provide funding and support to publicly owned treatment works and sewerage collection systems. b. Support legislation that allows public agencies to procure goods and services in manners similar to private industry,thereby reducing overall costs of delivery. c. Support legislation that improves the Utility Underground Service Alert Program in order to improve coordination, identification, minimize damage, minimize environmental risks and minimize cost exposure to publicly owned facilities when contractors are performing sub-surface work. 8 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform d. Support a comprehensive response to the State's electricity and natural gas shortages that provide a stable energy supply, respects the ability of municipalities to provide power, recognizes that infrastructure (i.e. emergency and standby generators) exists that could be employed temporarily during weak periods with minimal air quality impact and protects ratepayers (including cities and special districts) against dramatic rate increases and statewide power outages. e. Support legislation that allows OCSD to utilize the Best Value Design/Build option for the construction of public works projects. 8. Revenue and Taxation:Track pending legislation to ensure OCSD remains in compliance with the government code as it pertains to wastewater system user fees and property tax revenues and the investment of public funds. a. Support measures leading to a greater financial independence from the state and would result in greater stability and predictability in local government budgeting. b. Oppose measures that impose mandated costs for which there is no guarantee of local reimbursement or offsetting benefits. c. Oppose legislation that shifts tax revenues away from local governments without the adequate provision of a constitutionally guaranteed backfill to offset the lost revenues of those local governments. d. Oppose measures that allow state retention of existing local revenue sources, including the special district share of property tax, sales tax,vehicle license fees and rate payer fees. e. Oppose the use of revenues traditionally used to fund the delivery of municipal services to fund programs for which the state is responsible, particularly the courts, health, and welfare programs. 9. Special Districts: OCSD supports the maintenance of special districts to provide specific services, in response citizen's demands, in a cost effective manner. a. Support outreach to local, regional, and state elected officials to foster a greater understanding regarding the critical relationship between adequate reserves and the successful short-and-long-term operation of water and wastewater agencies. b. Support the work of the Association of California Water Agencies (ACWA), California Association of Sanitation Agencies (CASA), and California Special Districts Association (CSDA) in any future discussions or negotiations pertaining to the legislative and budget issues relative to preserving control of members' reserves. c. Oppose further state regulations that adversely impact special district financing and operations. d. Oppose measures that create or grant powers to sub-regional or regional bodies that would result in an infringement on clearly local concerns. 9 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform e. Oppose any administrative or legislative efforts to access or transfer any reserve funds held by water and wastewater districts. f. Oppose the imposition of unfunded, mandated programs on local governments. 10. Water Quality and Supply: OCSD is committed to participating collaboratively in the protection of regional water resources for the benefit of the people we serve. a. Support continued federal and state funding for the Santa Ana River Interceptor Relocation project. b. Support (generally) measures to increase water supply and improve water quality in the region. c. Support measures that would increase funding for water reuse technologies, including support for the Groundwater Replenishment System project by the Orange County Water District and OCSD to create new water supplies through recycling. d. Support U.S. Army Corps of Engineers projects for Orange County regarding watershed and water quality protection and sand replenishment. e. Support measures that promote and provide for the use of reclaimed water. f. Support "watershed-based" solutions, including cost-shared studies with the US Army Corps of Engineers of water quality impairments that reflect state-of-the-art science. g. Support policy development,funding, and research for addressing urban runoff and beach closures, including funding for studies that identify the sources of bacterial,viral and other contaminants and human pathogens. h. Support measures to evaluate water quality standards, as needed,to ensure the objectives are appropriately protecting the designated use. i. Support measures to develop a state-wide consistent policy for total maximum daily load (TMDL) listing and delisting. j. Support State General Fund subventions and Bond revenue to special districts for local and regional efforts that educate the public on urban runoff, which provide for long- term capital improvements (like storm drain diversions and filters), and encourage municipalities to implement Urban Runoff Best Management Practices at the local level. k. Support legislation that would retain any Regional Board fines levied against a permit violator within the Region of the fine. I. Support legislation that provides "amnesty"from administrative civil liability(ACL)fines from Regional Boards for agencies participating in comprehensive watershed studies that will, when complete, address the problem that resulted in the ACL fine. m. Support efforts, including legislation, clarifying that Regional Water Quality Control Board rules that require spending funds are unfunded mandates. n. Support measures addressing non-point source pollution in order to protect our ocean water quality and provide funding to mitigate its effects. o. Support measures for alternative energy sources. 10 Originally Adopted December,2005 Revised February, 2011 Orange County Sanitation District 2011 Legislative Platform p. Support efforts to reduce the toxic and non-reusable waste load. q. Support legislation and regulations that promote improved water use efficiency in construction of water efficient buildings and communities. r. Support legislation that promotes improved water use efficiency through state and federal assistance in evaluating and implementing new programs and technologies and increasing public awareness of water use efficiency. s. Support legislation that provides for groundwater management on a local level, with respect to coordination of programs, extraction and production rights, long-term protection and groundwater quality protection. t. Support legislation that provides for the development of the watershed approach, including watershed management plans and watershed based permitting. u. Oppose proposed environmental constraints on government agencies that would result in economic damage to the region while providing only minimal protections. v. Oppose efforts to make all NPDES permits the same. Requirements of other permits may be too onerous or not applicable. OCSD's permit should be tailored to the Orange County region and watershed. w. Oppose the imposition of statewide/nationwide fees for environmental cleanup that is privately caused or regional in nature (e.g., when the nexus between those responsible for environmental abuse and those required to pay for cleanup or mitigation is absent). x. Support measures supporting urban runoff studies and urban runoff reduction. y. Support Coastal Water Quality efforts to ensure that clean beach projects remain a top priority for the state,whether through negotiations on upcoming resources bonds, in setting of legislative priorities, implementation of funding programs, and in any other relevant process. 11 Originally Adopted December,2005 Revised February, 2011 STEERING COMMITTEE Meeting Date To Bd. of Dir. 02/23/11 AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Michael Gold, Public Affairs Manager SUBJECT: Public Affairs update 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. ADDITIONAL INFORMATION Federal Legislative Update Legislative Advocate: Eric Sapirstein, ENS Resources Last month, the 112t" Congress officially convened with new Members sworn into office. Congress spent the first several weeks on organizational matters, including a series of procedural rules that will influence the manner in which legislation is debated and passed. This month, Congress worked to develop the 2011 budget. In keeping with its pledge to cut spending and the deficit, the Republican leaders in the House enacted a new "cut-go" measure for all new legislation. Previous rules required bills to "pay as they go," but the new cut-go requires new spending to include reductions in existing programs so the savings can be applied to reducing the deficit. The Senate has not adopted this approach so the House and Senate will have to work out any differences, which will be a test to the new rule. Budgets and Spending Cuts On the budget front, Congress must complete action on the fiscal year 2011 budget because the current continuing resolution expires March 4. The House has proposed a $35 billion cut but some in their party as seeking additional cuts. Page 1 of 5 Budgets and Spending Cuts (cont'd) While the House has the votes to make more drastic cuts, there is much uncertainty over how this all plays out in the Senate. With no agreement, both chambers may opt for another continuing resolution and focus their attention on the 2012 budget. For water quality programs, this means that EPA will likely continue program spending at Fiscal Year 2010 levels for the foreseeable future. On February 14, the President sent his 2012 budget to Congress containing a number of program cuts but not going far enough in the eyes of Republican leaders. Stark differences remain between the President and House Leaders in particular, gearing both sides up for a bruising battle. Key Committee Appointments The change in House Committee structure, along with the large freshman class has created significant changes in the overall committee picture. Not only do some freshman members yield clout, but California has gained a number of key committee posts: Representative Gary Miller will continue to sit on the committee and its Subcommittee on Water Resources and Environment ensuring that the District's needs will receive a fair hearing because Miller will also be the senior Californian on the committee majority side. Representative Grace Napolitano will sit as the second highest ranking California Democrat behind Californian Bob Filner on the same committee. The important water recycling Subcommittee on Water and Power of the Committee on Natural Resources will be chaired by Tom McClintock of California with Grace Napolitano of California serving as the Ranking Democrat. This means that California water policy will likely dominate the subcommittee agenda. Congressman Ken Calvert will continue to sit on the Appropriations Committee in the House. Mr. Calvert has been a strong supporter of the District's projects and programs in the past. In the Senate, Senator Dianne Feinstein will continue on the key Subcommittee on Energy and Water Development Appropriations. This places the Senator in the key role of deciding how water resources projects should be funded. On matters affecting WRDA and drinking water policy, Senator Barbara Boxer will retain her chairmanship of the Committee on Environment and Public Works. She has indicated that she will pursue a transportation and WRDA bill first and then later in the year, renewal of the Clean Water Act. We expect that Senator Boxer will seek to address infrastructure funding needs that could assist the District. Page 2 of 5 And last, we expect that an aggressive review of the way in which the federal government implements programs and regulations. Representative Darrell Issa of California will sit as Chairman and he has made it clear that he intends to review EPA's programs. House Oversight of EPA Programs While Congress continues to be in an organizing mode, the House Committee on Transportation and Infrastructure has issued an agenda of issues that will be the subject of oversight, including water quality matters. Within this agenda, water quality looms large. Specifically, the Subcommittee on Water Resources and Environment that has jurisdiction over the Clean Water Act has laid out an ambitious list of areas of review. As detailed in a committee memorandum, "The subcommittee will conduct oversight of wastewater treatment and water pollution control funding issues, including levels and sources of funding and management of grant and loan programs; wastewater security; and infrastructure needs. Oversight will also include a review of the effectiveness of watershed, market, and performance-based approaches to addressing local water pollution concerns; issues involving the development and implementation of total maximum daily loads, water quality standards, effluent limitations, and permitting; data quality issues; and continued efforts to improve the management of combined and sanitary sewer overflows, storm water, and nonpoint source pollution. The Subcommittee will investigate whether non-regulatory approaches, such as market- based approaches and other innovative approaches undertaken by State and local governments, may result in greater improvements to the environment..." These areas of review are likely to set the stage for House legislation that will seek to streamline water quality programs that EPA delegates to the State of California. Additionally, it is likely that any oversight will result in new approaches to providing federal support of infrastructure; perhaps relying on public private partnerships. State Legislative Report Legislative Advocates: Christopher Townsend, Heather Dion and Casey Elliott, Townsend Public Affairs State Political Highlights As the Legislature and Governor Brown enter into the second month of the 2011 legislative session, the budget remains a constant and dominate theme. The Governor called a special session of the Legislature several weeks ago to reinforce his commitment to his budget plan being considered by the end of March so his tax measure could be placed on the ballot in June. Page 3 of 5 State Political Highlights (cont'd) If enacted, the five-year tax extensions would generate $12 billion annually but if they fail to pass, Sacramento would need to find an additional $12 billion over the $12.5 billion he has already proposed in cuts to close the budget deficit. Between the special session and regular session, Legislative Counsel is working hard to finish drafting bills in advance of the February 18 bill introduction deadline. Recently, Assembly Budget Committee #3 met to consider the Governor's proposal to replace $13 million in general fund costs with a fee levied on wastewater agencies for programs such as NPDES permitting, the Irrigated Land Program, Basin Planning and Water Rights planning. The expected increase to local wastewater agencies would be about 8-10 percent. As has been noted before, shifting costs and services to local agencies is a prevailing theme in Sacramento, including a water tax/fee to provide steady funding to the Integrated Regional Water Management Program (IRWMP). This is the same fund OCSD accessed (through the Santa Ana Watershed Project Authority) to receive $1 million for secondary treatment upgrades. The Public Utilities Commission (PUC) estimates that the fee based program would generate roughly $680 million annually for the IRWM program. Specific Activities for the Month: ( TPA is monitoring, analyzing and tracking legislation and as appropriate, drafting letters on key bills. ( TPA is working with OCSD to set up staff-level meeting with district staff from local Senate and Assembly offices. Public Affairs Update Grants Update This past month, staff looked into two possible grants for OCSD: the Proposition 1 E Storm Water grants through SAWPA and the M2 Urban Runoff grants through OCTA. Because OCSD does not deal directly with storm water or urban runoff, staff determined we are not eligible to apply for these funds. Honor Walk Nominations Closed At the end of January, the nominations for the Honor Walk closed with four staff and one board member nomination received. As committee members recall, only retired staff or past board members are eligible to be nominated. The Executive Management Team will be meeting to make recommendations on the staff nominees only and will present the staff and board member nominees at the March meeting. Page 4 of 5 SARBS Plant of the Year We are pleased to announce that OCSD won our local Santa Ana Regional "Plant of the Year." This award, sponsored by the California Water Environment Association, recognizes wastewater treatment agencies for overall accomplishments and efficiency. With this award, OCSD will move on to the State wide competition. Salary Information Posted to Website Following the State Controllers publication of salary information for cities, counties and special districts, we created a link to this data on our website. Now, this information (compensation for directors and employees) is readily available to the public within two clicks. Employee Recognition For the past few months, the Public Affairs team has been working with Human Resources to roll out the revamped Employee Recognition program. This program helps staff, supervisors and managers recognize others for supporting OCSD's core values. Working with HR, Public Affairs developed certificates, tips and tools and other ways to thank and recognize people for their contributions. The recognition program is great way to keep morale high, particularly during difficult times. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A Page 5 of 5