HomeMy WebLinkAbout09-28-2011 Steering Committee Agenda Packet Wednesday, September 28, 2011
Orange County Sanitation District ��:"""� :� 5:00 P.M.
Regular Meeting of the r Administration Building
Steering Committee Conference Rooms A & B
- 10844 Ellis Avenue
y Fountain Valley, CA 92708
(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 August 24, 2011 Steering Committee Meeting.
ACTION ITEMS:
No action items.
INFORMATION ITEMS:
2. Public Affairs Report
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.
09/28/11 Steering Committee Agenda Page 1 of 3
Convene in closed session.
(1) CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION
(Government Code Section 54956.9(a))
Case: Mladen Buntich Construction Company v. Orange County Sanitation
District; OCSD v., Buntich Cross-Claim, Orange County Superior Court
Case No. 00491934
(2) CONFERENCE WITH LEGAL COUNSEL RE. ANTICIPATED LITIGATION
(Government Code Section 54956.9(b))
Significant Exposure to Litigation
Number of Potential Cases: 2
Claim of Kiewit Infrastructure West re. Secondary Activated Sludge Facility
Claim of Shea Construction re. Trickling Filters at Plant No. 2, Job No. P2-90
(3) CONFERENCE WITH LEGAL COUNSEL RE. INITIATION OF LITIGATION
(Government Code Section 54956.9(c))
Number of Potential Cases: 1
Potential litigation against the Santa Ana Watershed Project Authority to collect
unpaid invoice amounts.
(4) CONFER WITH DISTRICT NEGOTIATORS
(Government Code Section 54954.5(f))
( Agency Designated Representative: James D. Ruth, General Manager
( Employees: OCSD Executive Management Team
(5) CONFER WITH DISTRICT NEGOTIATORS
(Government Code Section 54954.5(f))
( Agency Designated Representatives: James D. Ruth, General Manager; Robert
Ghirelli, Assistant General Manager; Jim Herberg, Assistant General Manager;
and, Jeff Reed, Director of Human Resources.
( Employees: OCSD Managers' Group and Confidential Employees
(6) PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Government Code Section 54957(b)(1))
Title: General Manager
09/28/11 Steering Committee Agenda Page 2 of 3
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 Wednesday, October 26, 2011, at
5:00 p.m.
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.
Maria E.Ayala
Clerk of the Board
(714)593-7130
mayala(@ocsd.com
09/28/11 Steering Committee Agenda Page 3 of 3
STEERING COMMITTEE Meeting Date To Bd. of Dir.
09/28/11
AGENDA REPORT Item Number Item Number
2
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Michael Gold, Public Affairs Manager
SUBJECT: 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
Public Affairs Update
On the road and in your community
The Public Affairs team has been busy the past month speaking to a number of groups
throughout our service area, including:
( Anaheim Rotary Club
( Fullerton Positive
( Los Alamitos/Seal Beach Rotary Club
( Fountain Valley Rotary Club
( Brea Rotary Club
( Cal State Long Beach
( Brea Kiwanis Club
( Yorba Linda Rotary Club
( Tustin Kiwanis Club
( Fullerton Chamber of Commerce
The presentations are part of OCSD's outreach program to discuss what we do and
how we protect the environment. We continue to schedule presentations with
community groups, such as Chambers of Commerce and Rotary Clubs. If you would
like a member of the Public Affairs team to speak with a community group, please
contact us.
Page 1 of 5
Grants update
This month we received word that the State Department of Water Resources finally
approved the Proposition 84 Integrated Regional Management Plan grants, meaning
OCSD's grant through SAWPA for $1 million has been approved. We will be working
with SAWPA to execute the final grant agreements.
Staff reviewed additional grant opportunities this month, including one through the
AmeriCorps program that we determined was not feasible; however, we are looking into
another grant through EPA for outreach and education programs. This grant provides
up to $150,000 that is sub-awarded to others for outreach and education programs. We
are evaluating our tour and sewer science programs to determine if we are eligible to
apply.
Outreach records
We set an agency record this year for tours reaching an all-time high number of 2,194
tour guests visiting OCSD in fiscal year 2010-11. We also reached 1,300 guests through
the speakers' bureau and participated in ten community events. As our communication
through the web and social media grows, we expect our tour and speaker numbers to
grow next year.
One item of note, as a result of Facebook, more guests are coming on our monthly
open tours.
Federal Legislative Update
Legislative Advocate: Eric Sapirstein, ENS Resources
Congress returned to work in September, following a six week summer break. Their
work to date has focused on the Super Committee finding solutions to debt reductions
per their agreement just before adjourning, as well as the fiscal year 2012 budget that
expires on October 1. To meet this deadline, most expect Congress to pass a
continuing resolution to carry them through the next several weeks. Unlike past years,
the rollercoaster-like nature of the spending debate is expected to be limited because
members of the Committee on Appropriations in both the House and Senate want to
complete action on a final spending bill by November.
Congress will be most focused on the Super Committee's recommendations due by
November 23. With this deadline, Congress cannot afford to be distracted debating the
FY 2012 budget. While some of the twelve budget bills will be finalized, others, including
the USEPA measure, Interior and Environment, appear headed toward incorporation
into either a continuing resolution or part of an omnibus spending bill.
The challenge in completing action on an Interior and Environment spending bill
continues to be efforts to impose mandates on USEPA to roll back regulations and to
prohibit the finalization of any guidance or rule related to the definition of which waters
are subject to NPDES regulation. Democratic opposition in both the House and Senate
has prevented consideration of such efforts; consequently, final action on an agency bill
with regulatory roll-back mandates will be limited if at all. Nonetheless, the prospect for
Page 2 of 5
final spending bills, whether under an omnibus or continuing resolution is likely by
December, avoiding repetition of past years where final spending decisions spilled over
into February and March.
As noted at last month's Steering Committee, Representative Gary Miller introduced the
Sunshine on Conflicts Act to address concerns about our inability to nominate qualified
people to regional water quality control boards. We will be working with Representative
Miller and his staff over the next several weeks to move this bill in the House.
Last month, Senator Dianne Feinstein visited OCSD and OCWD to present an overview
of her efforts to address the water supply and water quality needs of California. As part
of this presentation, the Senator met privately with OCSD Board Chair Crandall where
she was given an update on recent OCSD activities, including the dedication of the
hydrogen energy and fueling station. The Senator was very supportive of our efforts and
expressed her view that this project coupled with GWRS illustrated an exceptional
commitment to addressing future needs of the region in an innovative manner.
On a related matter, upon Congress' return to work in September, Senator Feinstein's
Subcommittee on Energy and Water Appropriations approved an FY 2012 spending bill
for the Department of Energy that includes a provision directing DOE to support
hydrogen transportation fuels. This action suggests that the OCSD refueling project left
an important and positive impression on the Senator.
The new funding commitment could present OCSD with the opportunity to expand our
use of hydrogen fuel cells for a source of clean energy. In addition to these actions, the
Senator agreed to provide more than $25 million to maintain support for the Santa Ana
Mainstem project, which includes relocation of the SARI line.
The federal debt and deficit reduction initiative began in earnest during the past few
weeks. Congress' Super Committee must develop and submit a $1 .5 trillion deficit
reduction plan by November 23, allowing a month of debate before the vote. Under the
rules developed for the Super Committee, the plan they submit can only be voted up or
down with no changes or amendments. Because the committee has unprecedented
authority to redesign federal infrastructure policy through the budget process, efforts are
underway to advance new approaches to support water infrastructure. In discussions
with House infrastructure committee staff, we have learned that a new infrastructure
bank policy is under development that may impact the use of the SRF program and
other existing water infrastructure policies and programs. Committee staff will be
receiving comments on the proposals over the next few weeks.
Page 3 of 5
State Legislative Report
Legislative Advocates:
Christopher Townsend, Heather Dion and Casey Elliott, Townsend Public Affairs
After securing the first on time budget in 25 years, the State Legislature concluded the
legislative session on September 9. On the final day, the Legislature focused on several
last minute issues, including CEQA streamlining, the proposed LA football Stadium, the
Amazon sales tax compromise, and budget clean-up bills. Governor Brown also
attempted to increase state revenue by pushing a last-minute corporate tax package
that cleared the Assembly with two Assembly Republican votes, but then failed in the
Senate due to a lack of a two-thirds vote.
Governor Brown will have until October 9 to sign or veto any bills passed by the
Legislature before adjournment. The Legislature is scheduled to reconvene on January
4, 2012.
Moving forward, the Governor and Legislature will remain focused on implementing and
defending their budget proposal, which has been the source of legal challenges and
referenda efforts. With State revenues more than $500 million below expectations in
July, Governor Brown and the Legislature will likely be forced to re-examine the budget
deal at the end of the year to determine if there are alternatives to the budget "triggers"
of deeper cuts to education and social programs, which will automatically occur if State
revenues continue to come in below projections. Despite opposition from the
Department of Finance, the Democrats passed SB 6x requiring more notice from the
Department of Finance whether "trigger" budget cuts are necessary and then requires
Finance to consult with lawmakers on alternatives. The bill now heads to the Governor
for his signature. Any future budget related measures will have to be introduced in the
regular session, unless the Governor calls for another Extraordinary Session.
Bills we are watching
In the final days of the session, the Legislature passed SB 293 (Padilla) despite heavy
lobbying by public sector groups. The bill set public contract retention rates at five
percent for public works projects. Normally, agencies set a ten percent retention rate.
OCSD sets our contract at ten percent but we reduce that amount to five percent as the
contractor makes progress towards completion.
The ten percent retention is used to hold contractors accountable and ensure timely
completion. The bill actually arose from disputes between contractors and
subcontractors. OCSD sent a letter to Governor requesting a veto of SB 293.
As reported last month, OCSD worked closely with CASA and others on SB 482
(Kehoe) related to beach monitoring. Through our efforts, we removed some elements
of the bill that caused concerns so we changed our position from oppose to neutral. SB
482 is now on the Governor's desk. The updated legislative matrix is attached to this
report.
Page 4 of 5
California Forward update
California Forward released their July 2011 final framework, entitled "Smart
Government: Making California Work Again." The framework makes a series of
recommendations about special districts including revising revenue structures for local
agencies, encouraging integration, collaboration and consolidation and promoting
regional governance. Two major components include encouraging existing LAFCOs to
refocus on consolidation as well as creating a new commission that would conduct a full
review of the structure of local governments and report on ways to consolidate and
pursue other legislative reforms.
The California Special Districts Association (CSDA) has been heavily involved with CA
Forward and that they will seek to incorporate parts of their framework in an initiative on
the November 2012 ballot. This draft language could be released as early as this month
and submitted to the Attorney General for title and summary this fall.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
Attachments: SB 293 veto request letter
OCSD Bill Matrix
CEQA
N/A
BUDGET / DELEGATION OF AUTHORITY COMPLIANCE
N/A
Page 5 of 5
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THE EN��PO
September 14, 2011
The Honorable Jerry Brown
Governor, State of California
California State Capitol
Sacramento, CA 95814
Serving Re: SB 293 (Padilla) — Request for Veto
Anaheim
Brea Dear Governor Brown:
Buena Park The Orange County Sanitation District respectfully requests that you veto
Cypress Senate Bill 293 because it will limit a local agency's ability to set retention rates
Fountain Valley to no more than 5% in public contracts.
Fullerton Under current law, the percentage of any retention rate is specified within the
Garden Grove contract between a public entity and contractor. A retention rate ensures that
Huntington Beach work is done in compliance with the contract document and serves as a financial
incentive for contractors to complete the project. With this bill, current law would
Irvine be amended so that in all cases the retention rate is set from exceeding 5
Le Habra percent of the payment. The Orange County Sanitation District currently sets our
La Palma retention rate at 10 percent but we reduce it to 5 percent with progress on the
Los Alamitos project to ensure timely completion and that public dollars are being spent
efficiently.
Newport Beach
Orange As a public utility, we spend millions each year in construction and need this
Placentia flexibility to ensure project completion that is on-time and within budget.
Santa Ana Ultimately, SB 293 will limit the ability of public agencies to protect themselves
Seal Beach by capping the level of retention proceeds and significantly raising the financial
Stanton risks on construction projects. Because of this, the Orange County Sanitation
District is opposing this bill and respectfully requests your veto of this bill.
Tustin
Villa Park Thank you for your consideration on the important issue.
Yorba Linda
Sincerely,
Costa Mesa
Sanitary District
Midway City za,4,7
Sanitary District
Larry R. andall
Irvine Ranch Water District Chairman of the Board
County of Orange cc: James D. Ruth, General Manager
Nr 10844 Ellis Avenue • Fountain Valley,CA 92708-7018 (714)962-2411 www,ocsd.com
recycled paper
OCSD Legislative Bill Tracking-2011
updated 9/2011
Bill Number Author Summary OCSD Position Notes Status
AB 213 Silva Requires State Agencies to notice"interested Support Two-year bill
parties"of proposed actions on rules and
regulations.
AB 262 Harkey Revises the boundaries of the Santa Ana Watch Two-year bill
Regional Water Quality Control Board to
include south Orange County.
AB 457 Wagner Allows bidders of public contract work to Oppose Offering amendments for Two-year bill
recover full attorney's costs for challenging reciprocity
an award if their bid is determined to be
invalid due to errors or omissions of the
agency.
AB 512 Gordon This bill would expand the definition of an Support To Governor
eligible renewable generating facility to
include facilities that have a generating
capacity of no more than 5 megawatts to
allow bill credits for generating renewable
energy.
AB 646 Atkins Changes exsiting law so that during labor Oppose To Governor
negotations,agencies are no longer allowed
to declare an impasse and impose a contract.
Instead,the agency must appoint a mediator
to recommend a settlement.
AB 741 Huffman Allows the creation of voluntary assessment Support This bill is sponsored by IRWD Enacted
districts to finance the cost of converting
septic to sewer,connecting to a community
system and replacing damaged sewer
laterals.
AB 1178 Ma This bill seeks to clarify existing law to Support Two-year bill
prohibit discriminatory restrictions on the
disposal of solid waste based on its place of
origin.
AB 1354 Huber Eliminates the 5%retention requirements for Oppose Two-year bill
public work contracts and prohibits any
contract retention amount.
MD Legislative Bill Tracking-2011
updated 9/2011
Bill Number Author Summary OCSD Position Notes Status
SB 482 Kehoe Shifts the responsbility of beach testing from Neutral OCSD has been working with To Governor
th Department of Public Health to the State CASA on amendments.The
Water Resources Control Board and allows amendments will clarify who pays
the Board to levy fees on wastewater for the program and cap the total
treatment agencies to pay for administration cost until 2016.
of the program.
SB 293 Padilla Changes the withholding provisions in public Oppose Veto letter sent To Governor
works contracts,lowering the threshold from
10%to 5%
SB 771 Kehoe This bill expands the energy sources that are Support To Governor
eligible to receive funds through the
Renewable Resources Trust Fund to include
digester gas and waste gas to fuel cell power
generation.This bill changes the current
definition of eligible renewable energy to
include digester or other gasses from
wastewater treatment.
SB 900 Steinberg Support Consistent with our efforts at the Two-year bill
Provides that a person would not be federal level to change the 10
disqualified from being a member of a percent income rule.
RWQCB if they receive,or a significant
portiontheir income from a person subject to
waste discharge requirements,or an
applicant for waste discharge requirements,
that govern discharges not within the
jurisdiction of that RWQCB.