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HomeMy WebLinkAbout07-08-2020 Administration Committee Meeting Complete Agenda PacketORANGE COUNTY SANITATION DISTRICT SPECIAL NOTICE REGARDING CORONAVIRUS (COVID-19) AND ATTENDANCE AT PUBLIC MEETINGS On March 4, 2020, Governor Newsom proclaimed a State of Emergency in California as a result of the threat of COVID-19. On March 12, 2020 and March 18, 2020, Governor Newsom issued Executive Order N-25-20 and Executive Order N-29-20, which temporarily suspend portions of the Brown Act which addresses the conduct of public meetings. The General Manager and the Chairman of the Board of Directors have determined that due to the size of the Orange County Sanitation District’s Board of Directors (25), and the health and safety of the members, the Board of Directors will be participating in meetings of the Board telephonically and Internet accessibility. PUBLIC PARTICIPATION Your participation is always welcome. The Administration Committee meeting will be available to the public online at: https://ocsd.legistar.com/Calendar.aspx You may submit your comments and questions in writing for the Administration Committee’s consideration in advance of the meeting only by sending them to OCSDClerk@ocsd.com with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”. Submit your written comments by 5:00 p.m. on Tuesday, July 7, 2020. All public comments will be provided to the Administration Committee and may be read into the record or compiled as part of the record. Thank you. July 1, 2020 NOTICE OF MEETING ADMINISTRATION COMMITTEE ORANGE COUNTY SANITATION DISTRICT Wednesday, July 8, 2020 – 5:00 P.M. ACCESSIBILITY FOR THE GENERAL PUBLIC Due to the spread of COVID-19, the Orange County Sanitation District will be holding all upcoming Board and Committee meetings by teleconferencing and Internet accessibility. This meeting will be available to the public online at: https://ocsd.legistar.com/Calendar.aspx A regular meeting of the Administration Committee of the Orange County Sanitation District will be held in the manner indicated herein on Wednesday, July 8, 2020 at 5:00 p.m. ADMINISTRATION COMMITTEE MEETING DATE BOARD MEETING DATE 07/08/20 07/22/20 AUGUST DARK 08/26/20 09/09/20 09/23/20 10/14/20 10/28/20 11/10/20 * 11/18/20 ** 12/09/20 12/16/20 ** JANUARY DARK 01/27/21 02/10/21 02/24/21 03/10/21 03/24/21 04/14/21 04/28/21 05/12/21 05/26/21 06/09/21 06/23/21 * Meeting will be held on the second Tuesday of the month ** Meeting will be held on the third Wednesday of the month ROLL CALL ADMINISTRATION COMMITTEE Finance, Information Technology, Environmental Services and Human Resources Meeting Date: July 8, 2020 Time: 5:00 p.m. Adjourn: COMMITTEE MEMBERS (13) Chad Wanke, Chair Richard Murphy, Vice-Chair Jim Ferryman Peter Kim Mark Murphy Steve Nagel Andrew Nguyen Glenn Parker Erik Peterson Tim Shaw Christina Shea David Shawver (Board Chair) John Withers (Board Vice-Chair) OTHERS Brad Hogin, General Counsel STAFF Jim Herberg, General Manager Rob Thompson, Assistant General Manager Lorenzo Tyner, Assistant General Manager Celia Chandler, Director of Human Resources Kathy Millea, Director of Engineering Lan Wiborg, Director of Environmental Services Kelly Lore, Clerk of the Board ORANGE COUNTY SANITATION DISTRICT Effective 06/16/2020 BOARD OF DIRECTORS Complete Roster AGENCY/CITIES ACTIVE DIRECTOR ALTERNATE DIRECTOR Anaheim Lucille Kring Denise Barnes Brea Glenn Parker Cecilia Hupp Buena Park Fred Smith Connor Traut Cypress Mariellen Yarc Stacy Berry Fountain Valley Steve Nagel Patrick Harper Fullerton Jesus J. Silva Jan Flory Garden Grove Steve Jones John O’Neill Huntington Beach Erik Peterson Lyn Semeta Irvine Christina Shea Anthony Kuo La Habra Tim Shaw Rose Espinoza La Palma Peter Kim Nitesh Patel Los Alamitos Richard Murphy Dean Grose Newport Beach Brad Avery Joy Brenner Orange Mark Murphy Kim Nichols Placentia Chad Wanke Ward Smith Santa Ana Nelida Mendoza David Penaloza Seal Beach Sandra Massa-Lavitt Schelly Sustarsic Stanton David Shawver Carol Warren Tustin Allan Bernstein Chuck Puckett Villa Park Robert Collacott Chad Zimmerman Sanitary/Water Districts Costa Mesa Sanitary District James M. Ferryman Bob Ooten Midway City Sanitary District Andrew Nguyen Margie L. Rice Irvine Ranch Water District John Withers Douglas Reinhart Yorba Linda Water District Brooke Jones Phil Hawkins County Areas Board of Supervisors Doug Chaffee Donald P. Wagner Orange County Sanitation District ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, July 8, 2020 - 5:00 PM Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 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, and on the Sanitation District’s website at www.ocsd.com 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. AGENDA DESCRIPTION: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. MEETING AUDIO: An audio recording of this meeting is available within 24 hours after adjournment of the meeting. Please contact the Clerk of the Board's office at (714) 593-7433 to request the audio file. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, the item must be submitted in writing to the Clerk of the Board: Kelly A. Lore, MMC, (714) 593-7433 / klore@ocsd.com at least 14 days before the meeting. FOR ANY QUESTIONS ON THE AGENDA, BOARD MEMBERS MAY CONTACT STAFF AT: General Manager: Jim Herberg, jherberg@ocsd.com / (714) 593-7300 Asst. General Manager: Lorenzo Tyner, ltyner@ocsd.com / (714) 593-7550 Asst. General Manager: Rob Thompson, rthompson@ocsd.com / (714) 593-7310 Director of Human Resources: Celia Chandler, cchandler@ocsd.com / (714) 593-7202 Director of Engineering: Kathy Millea, kmillea@ocsd.com / (714) 593-7365 Director of Environmental Services: Lan Wiborg, lwiborg@ocsd.com / (714) 593-7450 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, July 8, 2020 CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL & DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: You may submit your comments and questions in writing for the Committee's consideration by sending them to the Clerk of the Board at OCSDClerk@ocsd.com with the subject line "PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)" or "PUBLIC COMMENT NON-AGENDA ITEM". Submit your written comments by 5:00 p.m. on July 7, 2020. All public comments will be provided to the Committee and may be read into the record or compiled as part of the record. REPORTS: The Committee Chairperson 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: Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.2020-1075APPROVAL OF MINUTES RECOMMENDATION: Approve Minutes of the Regular Meeting of the Administration Committee held June 10, 2020. Originator:Kelly Lore Agenda Report 06-10-2020 Administration Committee Minutes Attachments: 2.2020-1148PROPERTY MANAGEMENT SERVICES FOR 18350 MT. LANGLEY STREET AND 18368-18375-18381-18384 BANDILIER CIRCLE, FOUNTAIN VALLEY RECOMMENDATION: Recommend to the Board of Directors to: Approve Amendment No. 4 of the sole source agreement with The Muller Company for Property Management Services for 18350 Mt. Langley Street and 18368- 18375- 18381- 18384 Bandilier Circle in Fountain Valley for the period of September 1, 2020 Page 1 of 3 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, July 8, 2020 through June 30, 2021 for a management fee of $3,200 per month plus other incurred expenses, including an additional renewal period of six months. Originator:Lorenzo Tyner Agenda Report Amendment No. 4 Attachments: NON-CONSENT: 3.2020-1149GENERAL MANAGER AUTHORITY TO TERMINATE LEASE AGREEMENTS AT 18350 MT. LANGLEY STREET AND 18368 BANDILIER CIRCLE, FOUNTAIN VALLEY RECOMMENDATION: Recommend to the Board of Directors to: Authorize the General Manager to terminate lease agreements at his discretion for the following tenants at 18350 Mt. Langley Street and 18368 Bandilier Circle in Fountain Valley, for the period of July 1, 2020 through June 30, 2021: Lessee Property Suites Expiration Kroll/On Track 18350 Mt. Langley Street 110 06/30/2021 Western Youth Services 18350 Mt. Langley Street 200, 206, 215, 220 05/30/2021 Atlantic-Pacific Processing 18350 Mt. Langley Street 205, 210 11/30/2021 United Family 18350 Mt. Langley Street 209 03/04/2021 De La Rosa Maintenance 18368 Bandilier Circle 01/31/2023 Contractors Originator:Lorenzo Tyner Agenda ReportAttachments: 4.2020-11302021 BENEFITS INSURANCE RENEWAL RECOMMENDATION: Recommend to the Board of Directors to: Approve the Orange County Sanitation District 2021 Benefits Insurance Renewal for the amount of $12,953,965 for active employees and $958,858 for retiree-paid health premiums, for an overall not-to-exceed amount of $13,912,823, as specified below: A. WORKTERRA (medical, dental, and vision plans; and Employee Assistance Program [EAP]) - Not to Exceed $12,184,838; B. Prudential (basic life, short- and long-term disability) - Not to Exceed $718,480; C. The Standard (EMT & Manager disability) - Not to Exceed $30,000; D. BenefitWallet (Health Savings Accounts [HSA]) - Not to Exceed $20,647; Page 2 of 3 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, July 8, 2020 E. WORKTERRA (additional retiree costs, recouped from retirees through premium payments) - Not to Exceed $958,858; and F. Approve a contingency of $695,641 (5%). Originator:Celia Chandler Agenda ReportAttachments: INFORMATION ITEMS: None. DEPARTMENT HEAD REPORTS: CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Directors may request staff to place an item on a future agenda. ADJOURNMENT: The next Administration Committee meeting is scheduled for Wednesday, September 9, 2020 at 5:00 p.m. Page 3 of 3 Orange County Sanitation District ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2020-1075 Agenda Date:7/8/2020 Agenda Item No:1. FROM:James D. Herberg, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: APPROVAL OF MINUTES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve Minutes of the Regular Meeting of the Administration Committee held June 10, 2020. BACKGROUND In accordance with the Board of Directors Rules of Procedure,an accurate record of each meeting will be provided to the Directors for subsequent approval at the following meeting. RELEVANT STANDARDS ·Resolution No. OCSD 19-19 ATTACHMENT The following attachment(s)may be viewed on-line at the OCSD website (www.ocsd.com)with the complete agenda package: ·Minutes of the Administration Committee meeting held June 10, 2020 Orange County Sanitation District Printed on 7/1/2020Page 1 of 1 powered by Legistar™ Orange County Sanitation District Minutes for the ADMINISTRATION COMMITTEE Wednesday, June 10, 2020 5:00 PM Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A regular meeting of the Administration Committee was called to order by Committee Chair Chad Wanke on Wednesday, June 10, 2020 at 5:02 p.m. in the Administration Building of the Orange County Sanitation District. Chair Wanke stated that the meeting was being held telephonically and via audio/video teleconferencing in accordance with the Governor's Executive Order No. N-29-20, due to the Coronavirus Pandemic (COVID-19). Alternate Director Penaloza led the Flag Salute. The Clerk of the Board announced the teleconference meeting guidelines and stated that votes will be taken by roll call. ROLL CALL & DECLARATION OF QUORUM: Roll call was taken and a quorum was declared present, as follows: PRESENT:Chad Wanke, Richard Murphy, James Ferryman, Peter Kim, Mark Murphy, Andrew Nguyen, Glenn Parker, Christina Shea, David Shawver and John Withers ABSENT:Steve Nagel and Erik Peterson STAFF PRESENT: Jim Herberg, General Manager; Kelly Lore, Clerk of the Board; and Brian Engeln were present in the Board Room. Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources; Kathy Millea, Director of Engineering; Lan Wiborg, Director of Environmental Services; Jennifer Cabral; Thys Devries; Brad Hamilton; Tina Knapp; Laura Maravilla; Rob Michaels; John Preston; and Wally Ritchie were in attendance telephonically. OTHERS PRESENT: Brad Hogin, General Counsel was present in the Board Room; Dennis Mulqueeney (Alliant Insurance); Mitch Barker and Hoody Fritz (PARS) were in attendance telephonically. PUBLIC COMMENTS: There were no public comments received. The Clerk of the Board stated that she received Late Communication from Assistant General Manager Lorenzo Tyner regarding a change to the proposed dollar amount of the recommendation in Item No. 7 which was forwarded to the Committee and made available to the public. Page 1 of 7 ADMINISTRATION COMMITTEE Minutes June 10, 2020 REPORTS: Chair Wanke did not provide a report. General Manager Jim Herberg provided a brief COVID-19 update and indicated his weekly written update to the Board of Directors would be emailed by the end of the week . CONSENT CALENDAR: 1.APPROVAL OF MINUTES 2020-1019 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Administration Committee held May 13, 2020. AYES:Chad Wanke, Peter Kim, Mark Murphy, Andrew Nguyen, Glenn Parker, David Shawver and John Withers NOES:None ABSENT:Richard Murphy, James Ferryman, Steve Nagel, Erik Peterson and Christina Shea ABSTENTIONS:None RECUSED:David Penaloza (Alternate) 2.ENVIRONMENTAL REGULATORY REPORTS 2020-1006 Originator: Lan Wiborg MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file environmental regulatory reports: Biosolids Management Compliance Report 2019; Annual Pretreatment Program Report Fiscal Year 2018-2019; Semi-Annual Pretreatment Program Report Fiscal Year 2019-2020 (July-December); Annual Greenhouse Gas Emissions Report 2019; Annual Emission Report 2019; and Marine Monitoring Annual Report 2018/2019. AYES:Chad Wanke, Peter Kim, Mark Murphy, Andrew Nguyen, Glenn Parker, David Penaloza (Alternate), David Shawver and John Withers NOES:None ABSENT:Richard Murphy, James Ferryman, Steve Nagel, Erik Peterson and Christina Shea ABSTENTIONS:None Page 2 of 7 ADMINISTRATION COMMITTEE Minutes June 10, 2020 3.COMPLETE FIELD INSTRUMENT CALIBRATION SOLUTION 2020-1048 Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Award a Professional Services Agreement to Beamex, Inc. to provide Instrumentation Data Management Services, Specification No. CS-2020-1102, for a total amount not to exceed $257,714; B. Award a sole source purchase order for the purchase of instrumentation hardware in an amount not to exceed $259,124; and C. Approve a contingency in the amount of $77,525 (15%) for both procurements. AYES:Chad Wanke, Peter Kim, Mark Murphy, Andrew Nguyen, Glenn Parker, David Penaloza (Alternate), David Shawver and John Withers NOES:None ABSENT:Richard Murphy, James Ferryman, Steve Nagel, Erik Peterson and Christina Shea ABSTENTIONS:None 4.GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2020-21 2020-1061 Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 20-XX, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District Establishing the Annual Appropriations Limit for Fiscal Year 2020-21 for the District in accordance with the Provisions of Division 9 of Title 1 of the California Government Code”. AYES:Chad Wanke, Peter Kim, Mark Murphy, Andrew Nguyen, Glenn Parker, David Penaloza (Alternate), David Shawver and John Withers NOES:None ABSENT:Richard Murphy, James Ferryman, Steve Nagel, Erik Peterson and Christina Shea ABSTENTIONS:None 5.FY 2020-21 USE CHARGES FOR SANTA ANA WATERSHED PROJECT AUTHORITY 2020-1085 Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 3 of 7 ADMINISTRATION COMMITTEE Minutes June 10, 2020 Adopt Resolution No. OCSD 20-XX, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District Establishing Use Charges for the 2020-21 Fiscal Year Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority (“SAWPA”)”. AYES:Chad Wanke, Peter Kim, Mark Murphy, Andrew Nguyen, Glenn Parker, David Penaloza (Alternate), David Shawver and John Withers NOES:None ABSENT:Richard Murphy, James Ferryman, Steve Nagel, Erik Peterson and Christina Shea ABSTENTIONS:None 6.TRIPLE QUADRUPOLE MASS SPECTROMETER (TQMS)2020-1087 Originator: Lan Wiborg MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve a purchase order to VWR for a Triple Quadrupole Mass Spectrometer (TQMS) System in the amount of $277,228.34 (including the TQMS system, freight, sales tax, and two (2) year extended warranty) in accordance with Ordinance No. OCSD-52, Section 2.03(B): Cooperative Procurement; (NASPO Value Point Master Agreement No. MA16000234-2 created by the State of Idaho which California (CA) agencies may utilize (CA Participating Addendum No. 7-16-99-26-01)). AYES:Chad Wanke, Peter Kim, Mark Murphy, Andrew Nguyen, Glenn Parker, David Penaloza (Alternate), David Shawver and John Withers NOES:None ABSENT:Richard Murphy, James Ferryman, Steve Nagel, Erik Peterson and Christina Shea ABSTENTIONS:None Directors Jim Ferryman and Christina Shea arrived at the meeting at approximately 5:20 p.m. NON-CONSENT: 7.2020-21 PROPERTY - LIABILITY INSURANCE RENEWALS 2020-1091 Originator: Lorenzo Tyner Mr. Tyner provided the updated information included in the Late Communication memo stating that some of the numbers have increased due to recent economics, COVID-19, and natural disasters. Mr. Tyner also provided an in-depth explanation of the process of purchasing coverage and the changes to the dollar amounts and responded to questions from the Committee. Director Parker thanked staff for the analysis. Page 4 of 7 ADMINISTRATION COMMITTEE Minutes June 10, 2020 MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve the Orange County Sanitation District FY 2020-21 Property-Liability Insurance Renewals for the not-to-exceed amounts specified below as amended: Property and Boiler & Machinery - Not to Exceed Excess General Liability Insurance - Not to Exceed Excess Workers’ Compensation Insurance - Not to Exceed Earthquake Insurance - Not to Exceed TOTAL AYES:Chad Wanke, James Ferryman, Peter Kim, Mark Murphy, Andrew Nguyen, Glenn Parker, David Penaloza (Alternate), Christina Shea, David Shawver and John Withers NOES:None ABSENT:Richard Murphy, Steve Nagel and Erik Peterson ABSTENTIONS:None 8. PROPOSED FY 2020-21 AND FY 2021-22 BUDGET 2020-1068 Originator: Lorenzo Tyner Mr. Tyner stated that over the last six months the Committee has received information regarding the budget. He requested that, prior to voting on this item, the Committee hear Item No. 9 regarding a User Fee Rate Adjustment requested by Board Chairman Shawver. Mr. Tyner then introduced Controller Wally Ritchie who provided an informative PowerPoint presentation on the Proposed Budget Summary for FY 2020-21 and 2021-22. Mr. Tyner proceeded to present Item No. 9 which was requested by the Board Chair due to the financial pressure and impacts of COVID-19 on the County. He stated that foregoing the FY 2020-21 rate adjustment, that is scheduled to begin on July 1, 2020, would result in a $71 million loss in revenue that could be mitigated by adjustments in the OCSD Debt Program. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve and amend the 2020-21 proposed budget below; foregoing the scheduled FY 2020-21 rate increase adjustment that is scheduled to begin on July 1, 2020. Page 5 of 7 $ 1,151,935 $ 745,336 $ 207,000 $ 100,000 $ 2,204,271 ADMINISTRATION COMMITTEE Minutes June 10, 2020 Approve the proposed Operating, Capital, Debt Service, and Self-Insurance Budgets for FY 2020-21 and FY 2021-22 as follows: FY 2020-21 FY 2021-22 Net Operating $ 173,910,516 $ 174,065,159 Self-Insurance - Workers’ Comp $ 780,000 $ 800,000 Self-Insurance - Property & Gen. Liability $ 1,630,000 $ 1,680,000 Net Capital Improvement Program $ 147,562,000 $ 240,846,000 Debt/COP Service(1) $ 72,838,369 $ 240,591,869 Intra-District Joint Equity Purchase/Sale(2) $ 3,500,000 $ 3,500,000 Total $ 400,220,885 $ 661,483,028 PP(1)PPIncludes $173,855,000 in maturing and callable debt (2)PPCash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA15) AYES:Chad Wanke, James Ferryman, Peter Kim, Mark Murphy, Andrew Nguyen, David Shawver and John Withers NOES:Glenn Parker ABSENT:Richard Murphy, Steve Nagel, David Penaloza (Alternate), Erik Peterson and Christina Shea ABSTENTIONS:None Committee Vice-Chair Richard Murphy arrived at the meeting at 5:42 p.m. INFORMATION ITEMS: 9. FY 2020-21 USER FEE RATE ADJUSTMENT 2020-1093 Originator: Lorenzo Tyner ITEM RECEIVED AS AN: Information Item. 10. INTERNAL REVENUE CODE SECTION 115 TRUST PENSION ACCOUNT 2020-1096 Originator: Lorenzo Tyner Mr. Tyner provided a brief explanation of an Internal Revenue Code Section 115 Trust Pension Account and described OCSD's retirement program and other post-employment benefits. He suggested that if the Committee wanted to pursue this matter, the rate of return information for the previous five years of data could be provided for analysis. Page 6 of 7 ADMINISTRATION COMMITTEE Minutes June 10, 2020 Chair Wanke stated that he requested that this information item be brought to the Committee. At his request, representatives from PARS were in attendance at the meeting for questions. Mr. Mitch Barkers and Mr. Hoody Fritz (PARS), and Mr. Tyner responded to questions from the Committee regarding PARS fee structures and the differences between PARS and OCERS investments. The consensus of the Committee was to direct staff to complete additional research and bring back information. It was suggested to focus on the importance of a business case that would lead to concluding that opening a 115 Trust Pension Account is in OCSD's best interest. ITEM RECEIVED AS AN: Information Item. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Wanke declared the meeting adjourned at 6:48 p.m. to the Regular meeting to be held on Wednesday, July 8, 2020 at 5:00 p.m. Submitted by: __________________ Kelly A. Lore, MMC Clerk of the Board Page 7 of 7 Orange County Sanitation District ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2020-1148 Agenda Date:7/8/2020 Agenda Item No:2. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: PROPERTY MANAGEMENT SERVICES FOR 18350 MT.LANGLEY STREET AND 18368-18375- 18381-18384 BANDILIER CIRCLE, FOUNTAIN VALLEY GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Approve Amendment No.4 of the sole source agreement with The Muller Company for Property Management Services for 18350 Mt.Langley Street and 18368-18375-18381-18384 Bandilier Circle in Fountain Valley for the period of September 1,2020 through June 30,2021 for a management fee of $3,200 per month plus other incurred expenses,including an additional renewal period of six months. BACKGROUND The Board of Directors has previously approved a sole source agreement with The Muller Company for property management services for buildings owned by the Orange County Sanitation District (Sanitation District)at 18350 Mt Langley Street and 18368-18375-18381-18384 Bandilier Circle in Fountain Valley.The properties are occupied by staff and commercial tenants with leases that expire in 2021 and 2023. The Sanitation District purchased these properties as part of the overall strategy to build Administration Building facilities and maximize process area.This strategy is not fully implemented as the Sanitation District is still working on obtaining building approvals.Once that process is complete,the Sanitation District will have a better vision of long-term property needs.Pending those decisions, the Sanitation District will require property management services. RELEVANT STANDARDS ·Protect Orange County Sanitation Districts assets PROBLEM The Sanitation District owned properties have commercial tenants and there is a need to professionally manage them utilizing services such as maintenance,tenant relations,and repairs.At present,the Sanitation District does not employ staff with this scope of commercial property Orange County Sanitation District Printed on 7/1/2020Page 1 of 3 powered by Legistar™ File #:2020-1148 Agenda Date:7/8/2020 Agenda Item No:2. present,the Sanitation District does not employ staff with this scope of commercial property expertise. PROPOSED SOLUTION Extend the current sole source property management contract until a permanent property management strategy has been developed. TIMING CONCERNS The current property management agreement expires on August 31, 2020. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will lose continuity of care of the property and of services to tenants. PRIOR COMMITTEE/BOARD ACTIONS May 2019 -Approved Amendment No.3 with The Muller Company for Property Management Services,to extend the services for twelve-months from September 1,2019 through August 31,2020 with all terms and provisions of the Agreement remaining unmodified and in full force and effect. February 2019 -By exercising the renewal option in Amendment No.1,staff executed Amendment No. 2. September 2018 -Approved Amendment No.1 with The Muller Company for Property Management Services,for an additional management fee of $3,293 per month plus other incurred expenses,for the addition of Sanitation District acquired properties on Bandilier Circle and Pacific Street including two additional renewal periods of six months each. February 2018 -Approved a sole source agreement with The Muller Company for Property Management Services,for the period of March 1,2018 through August 31,2018,for a management fee of $4,200 per month plus other incurred expenses,including two additional renewal periods of six months each. ADDITIONAL INFORMATION Monthly expenses for services such as utility bills and repair work vary month-to-month.All expenses will be reviewed and approved by Sanitation District staff. CEQA N/A FINANCIAL CONSIDERATIONS The property management costs will be offset by rents collected on the commercial leases. Orange County Sanitation District Printed on 7/1/2020Page 2 of 3 powered by Legistar™ File #:2020-1148 Agenda Date:7/8/2020 Agenda Item No:2. ATTACHMENT The following attachment(s)may be viewed on-line at the OCSD website (www.ocsd.com)with the complete agenda package: · Amendment No. 4 Orange County Sanitation District Printed on 7/1/2020Page 3 of 3 powered by Legistar™ -1- AMENDMENT NO. 4 TO MANAGEMENT AGREEMENT This AMENDMENT NO. 4 TO MANAGEMENT AGREEMENT ("Amendment") is made and entered into effective as of June ___ 2020, by and between ORANGE COUNTY SANITATION DISTRICT, a county sanitation district duly organized and existing pursuant to Section 4700 et. seq. of the Health & Safety Code of the State of California ("Owner"), and THE MULLER COMPANY, LLC ("Manager"). R E C I T A L S : A. Owner and Manager entered into that certain Management Agreement dated as of February 28, 2018, Amendment No 1 dated August 28, 2018, Amendment No 2 dated February 28, 2019 and Amendment No 3 dated May 22, 2019 (collectively the "Agreement") pursuant to which Owner contracted with Manager to provide management services for 18350 Mount Langley, Fountain Valley, California, the "Property" and to provide management services for 18368, 18375, 18381, 18384, 18410, 18430, 18436 Bandilier Circle and 18429 Pacific Street, Fountain Valley, California, the “Additional Properties” . B. Except as otherwise set forth herein, all capitalized terms used in this Amendment shall have the same meaning given such terms in the Agreement. C. Owner and Manager desire to amend the Agreement to change the Expiration Date and change the Management Fee and Properties, as hereinafter provided. NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Parties agree to renew the Agreement for a ten (10) month term from September 1, 2020 through June 30, 2021 (“Expiration Date”). 2. Parties agree to provide the Option to renew the Agreement for an additional six (6) month term from July 1, 2021 through December 31, 2021 upon written notice. 3. The Agreement shall be reduced to exclude the management of the following: 18410, 18430, 18436 Bandilier Circle and 18429 Pacific Street, Fountain Valley (“Reduction Properties”) 4. Effective Date of Reduction Properties: September 1, 2020 5. The parties hereby agree that the Owner shall pay to Manager, as compensation for Manager’s management services, on a monthly basis, a management fee (the “Additional Properties Management Fee”) in the amount equal to $0.05/psf/month for the actual Additional Properties in addition to the existing Management Fee in the Agreement for the Property. The square footage of the Additional Properties and Additional Properties Management Fee per each individual Additional Property is as follows: a. 18368 Bandilier Circle 6,000 sq.ft. $ 300.00/month b. 18375 Bandilier Circle 6,000 sq.ft. $ 300.00/month c. 18381 Bandilier Circle 6,000 sq.ft. $ 300.00/month d. 18384 Bandilier Circle 6,000 sq.ft. $ 300.00/month Total square footage: 24,000 @ $0.05/psf/month = $ 1,200.00/month -2- 6. No Further Modification. Except as set forth in this Amendment No. 4, all of the terms and provisions of the Agreement shall remain unmodified and in full force and effect. IN WITNESS WHEREOF, this Amendment has been executed as of the day and year first above written. ORANGE COUNTY SANITATION DISTRICT Dated: ____________________________ By:______________________________ David John Shawver, Board Chairman Dated: ____________________________ By:______________________________ Kelly A. Lore Clerk of the Board Dated:____________________________ By:______________________________ Ruth Zintzun Purchasing & Contracts Manager THE MULLER COMPANY, LLC Dated:____________________________ By:_____________________________ Jon M Muller, President _______________________________ IRS Employer’s I.D. Number Orange County Sanitation District ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2020-1149 Agenda Date:7/8/2020 Agenda Item No:3. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: GENERAL MANAGER AUTHORITY TO TERMINATE LEASE AGREEMENTS AT 18350 MT. LANGLEY STREET AND 18368 BANDILIER CIRCLE, FOUNTAIN VALLEY GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Authorize the General Manager to terminate lease agreements at his discretion for the following tenants at 18350 Mt.Langley Street and 18368 Bandilier Circle in Fountain Valley,for the period of July 1, 2020 through June 30, 2021: Lessee Property Suites Expiration Kroll/On Track 18350 Mt. Langley Street 110 06/30/2021 Western Youth Services 18350 Mt. Langley Street 200, 206, 215, 220 05/30/2021 Atlantic-Pacific Processing 18350 Mt. Langley Street 205, 210 11/30/2021 United Family 18350 Mt. Langley Street 209 03/04/2021 De La Rosa Maintenance 18368 Bandilier Circle 01/31/2023 Contractors BACKGROUND The Orange County Sanitation District (Sanitation District)purchased properties at 18350 Mt. Langley Street and 18368 Bandilier Circle as part of the overall strategy to build a new Headquarters Complex and to reserve land at Plant No.1 for wastewater treatment.The new Headquarters Project is currently under design and permitting and staff is developing a permanent property management strategy that will be impacted by the outcome of the building design and permitting process.Pending those decisions,the Sanitation District currently has commercial tenants that lease part of the properties at 18350 Mt. Langley Street and 18368 Bandilier Circle in Fountain Valley. RELEVANT STANDARDS ·Protect Orange County Sanitation Districts assets Orange County Sanitation District Printed on 7/1/2020Page 1 of 3 powered by Legistar™ File #:2020-1149 Agenda Date:7/8/2020 Agenda Item No:3. PROBLEM The Sanitation District owned properties have commercial tenants and due to current financial circumstances,tenants have inquired about the possibility of early release from their lease agreements.At present,the General Manager does not have authority to approve early termination of the lease agreements and foregoing the lease payments. PROPOSED SOLUTION Authorize the General Manager,at his discretion,to release current tenants from their lease agreements and forego the remaining lease payments. TIMING CONCERNS Termination of lease agreements due to financial circumstances needs to be executed in a timely manner. RAMIFICATIONS OF NOT TAKING ACTION Tenants may not have the financial resources to be able to make the financial obligations stipulated in the lease agreements. PRIOR COMMITTEE/BOARD ACTIONS September 2017 -Approved a Standard Offer,Agreement,and Escrow Instructions for Purchase of Real Estate (Purchase Agreement)with K&A Investments LP for Property at 18350 Mt.Langley Street,Fountain Valley and Authorized General Manager and General Counsel to Execute any and all instruments related to the transaction. August 2018 -Received and filed the fully executed Agreement of Purchase and Sale and joint Escrow Instructions for 18410-18436 Bandilier Circle and 18368-18384 Bandilier Circle,Fountain Valley;and Authorized the General Manager to Execute any and all other instruments related to the transaction. ADDITIONAL INFORMATION Ultimately,the properties at Mt.Langley and Bandilier are planned for demolition to make room for a new Headquarters Complex,and possibly a new Laboratory.Currently,there are 35 Sanitation District employees working at the Mt. Langley building. Plans for moving employees who are currently telecommuting back into the office will require social distancing and more space between employees.Vacant space made available by early lease terminations could be used to provide for social distancing of our employees when they return to the office. CEQA N/A Orange County Sanitation District Printed on 7/1/2020Page 2 of 3 powered by Legistar™ File #:2020-1149 Agenda Date:7/8/2020 Agenda Item No:3. FINANCIAL CONSIDERATIONS The Sanitation District will forego any monthly revenues associated with terminated lease agreements. All lease termination requests will be reviewed by Sanitation District staff. ATTACHMENT The following attachment(s)may be viewed on-line at the OCSD website (www.ocsd.com)with the complete agenda package: N/A Orange County Sanitation District Printed on 7/1/2020Page 3 of 3 powered by Legistar™ Orange County Sanitation District ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2020-1130 Agenda Date:7/8/2020 Agenda Item No:4. FROM:James D. Herberg, General Manager Originator: Celia Chandler, Director of Human Resources SUBJECT: 2021 BENEFITS INSURANCE RENEWAL GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Approve the Orange County Sanitation District 2021 Benefits Insurance Renewal for the amount of $12,953,965 for active employees and $958,858 for retiree-paid health premiums,for an overall not- to-exceed amount of $13,912,823, as specified below: A. WORKTERRA (medical, dental, and vision plans; and Employee Assistance Program [EAP]) - Not to Exceed $12,184,838; B. Prudential (basic life, short- and long-term disability) - Not to Exceed $718,480; C. The Standard (EMT & Manager disability) - Not to Exceed $30,000; D. BenefitWallet (Health Savings Accounts [HSA]) - Not to Exceed $20,647; E. WORKTERRA (additional retiree costs, recouped from retirees through premium payments) - Not to Exceed $958,858; and F. Approve a contingency of $695,641 (5%). BACKGROUND In accordance with collective bargaining agreements,the Orange County Sanitation District (Sanitation District)has a contractual obligation to provide healthcare and welfare insurance benefits to employees and eligible dependents. Over the years,Human Resources (HR)has implemented ongoing cost-containment measures to include:joining a risk-sharing pool under Public Risk Innovation,Solutions,and Management (PRISM)*,making plan design changes to align with best practices,bundling insurance coverages, and negotiating rate guarantees.HR met and conferred with the unions to secure all benefit changes, as applicable. *In June 2020,California State Association of Counties -Excess Insurance Authority (CSAC-EIA) Orange County Sanitation District Printed on 7/1/2020Page 1 of 5 powered by Legistar™ File #:2020-1130 Agenda Date:7/8/2020 Agenda Item No:4. *In June 2020,California State Association of Counties -Excess Insurance Authority (CSAC-EIA) officially rebranded and changed their name to Public Risk Innovation,Solutions,and Management (PRISM). The Sanitation District,in conjunction with the health insurance broker,Alliant,began the renewal process for the agreed to benefits in March and received quotes in May.After negotiating with the insurance carriers,the Sanitation District was able to secure competitive rates without compromising the level of benefits provided to employees and eligible dependents. The cost of the active employee insurance coverage will decrease by -1.4%overall for the 2021 Plan Year (from $13,137,895 to $12,953,965).Key factors contributing to the decrease included a highly favorable utilization rate and established rate guarantees on the Sanitation District’s vision,disability, life insurance,and EAP plans.Employees share in the cost of medical and dental insurance.For medical insurance coverage,employees who select employee-only HMO coverage contribute 10%of the premium cost and those that select employee-only PPO-level coverage,employee-plus-one coverage,or family coverage contribute 20%of the premium costs.For dental coverage,all employees contribute 20%of the premium costs.The Sanitation District covers the cost of vision insurance,basic life insurance,short-term disability,long-term disability (only for those employees with at least five years of service), EMT and Manager disability, and EAP. A contingency budget in the amount of $695,641,or 5%,of the total cost for employee and retiree benefits insurance,is requested.This contingency budget may be utilized in the event there are unforeseen additional costs due to fluctuations such as employees retiring/resigning,hiring of new employees,overall changes to staff numbers as employees are placed on and off plans throughout the year,changes in employee plan selection during the open enrollment period scheduled for October 2020 for the 2021 plan year,additions of dependents or spouse/partners,changes in employees’ eligibility, and other factors. Sanitation District retirees have the option to remain on the Sanitation District’s medical and/or dental insurance,and the majority of retirees are responsible for 100%of their premiums.However,a portion of retirees hired prior to July 1,1988 receive a limited duration of Sanitation District-paid medical insurance upon retirement.Retirees falling within this group receive 2.5 months of Sanitation District-paid medical insurance for each year of continuous service.Employees hired after July 1,1988 are ineligible for this benefit.Therefore,the benefit will reduce and eventually expire over time as the remaining employees within this group retire and as the limited duration of each eligible retiree’s benefit is completed.The cost for retirees in this group is $810,096 and is factored into Item A of the Recommendation. This renewal also incorporates $958,858 in retiree insurance coverage administered by the Sanitation District for which the retirees reimburse the Sanitation District.Although these costs are paid by the retirees themselves and are not expected to be paid by the Sanitation District,we are incorporating the item herein for transparency purposes and to ensure adequate funding as we pay in advance and are reimbursed by the retiree. In prior years,the overall increase to insurance was 4.1%for the 2019 Plan Year and 0.1%for Plan Year 2020. In May 2015,the Board of Directors approved moving the Sanitation District’s medical insurance fromOrange County Sanitation District Printed on 7/1/2020Page 2 of 5 powered by Legistar™ File #:2020-1130 Agenda Date:7/8/2020 Agenda Item No:4. In May 2015,the Board of Directors approved moving the Sanitation District’s medical insurance from direct contracts with the carriers to joining the insurance risk sharing pool under PRISM.The association with PRISM resulted in immediate and future cost savings to the Sanitation District in medical insurance premiums and dictated a change from fiscal to calendar-based plan year,from January through December.Staff typically presents the benefits renewal information to the Board of Directors annually every July,for an effective date of January 1 of the year thereafter.The move to PRISM has proven to be beneficial based on the rate increases the Sanitation District has received in the past few years. RELEVANT STANDARDS ·Offer competitive compensation and benefits ·Comply with OCSD Policy 4.1 - Insurance PROBLEM The Sanitation District has a contractual obligation to provide healthcare and welfare insurance benefits to employees and eligible dependents,and any benefit changes are subject to the meet and confer process.Additionally,the Sanitation District is required to hold an annual benefits open enrollment period every October to provide employees and eligible dependents the opportunity to make changes to their benefit elections,for an effective date of January 1 of the year thereafter. Insurance contracts are required to be finalized in August 2020, ahead of open enrollment. Each year,the benefit renewal data used in cost projections is calculated based on the census data, which is required by the insurance carriers eight months in advance of the plan year.Throughout the plan year,changes in employee composition such as new hires,employee plan selection,and turnover,may result in a change in actual costs.Based on the required timelines,projected costs and actual costs will vary year to year. PROPOSED SOLUTION Approve the benefits insurance renewals with the respective carriers and the contingency,as described above, to ensure continued coverage for employees and eligible dependents. TIMING CONCERNS Board approval is necessary in July 2020 to ensure that the Sanitation District meets its insurance renewal deadlines in August,to finalize preparations for the October benefits open enrollment,and for continued coverage for Sanitation District employees and eligible dependents,in accordance with collective bargaining agreements and personnel policies. RAMIFICATIONS OF NOT TAKING ACTION Without Board approval,the Sanitation District cannot finalize the contracts with the insurance carriers in August for the 2021 Plan Year.A lapse in payment to the insurance carriers would result in the interruption of medical,dental,vision,EAP,life,and disability coverage and services to employees and eligible dependents;and the Sanitation District would not be meeting its obligation to Orange County Sanitation District Printed on 7/1/2020Page 3 of 5 powered by Legistar™ File #:2020-1130 Agenda Date:7/8/2020 Agenda Item No:4. employees and eligible dependents;and the Sanitation District would not be meeting its obligation to provide these benefits as provided for in collective bargaining agreements and personnel policies. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Medical Insurance The Sanitation District’s medical benefits are designed to help maintain wellness and protect employees and their families from major financial hardship in the event of illness or injury.The Sanitation District offers a choice of medical plans through Anthem Blue Cross and Kaiser Permanente. HMO (Health Maintenance Organization)plans offer comprehensive coverage.Employees have a choice between the Anthem Blue Cross HMO or the Kaiser HMO plan.The PPO (Preferred Provider Organization)plan through Anthem Blue Cross offers a network of doctors and healthcare facilities that provide services to plan members at special discounted rates.The Sanitation District also offers two high deductible plans:a high deductible HMO plan through Kaiser and a high deductible PPO plan through Anthem Blue Cross. Dental Insurance The Sanitation District provides the Delta Dental plan to all benefit eligible employees. Vision Insurance The Sanitation District currently provides vision insurance to all benefit eligible employees through Vision Service Plan (VSP). Basic Life Insurance Life insurance provides protection for an employee’s beneficiary in the event of death.All benefit eligible full-time and part-time employees automatically receive Basic Life and Accidental Death & Dismemberment insurance coverage.The benefit amount is $50,000 for employees,and three times salary for managers and executives. Coverage is offered through Prudential. Short-Term Disability Insurance The short-term disability insurance plan protects employees when non-work related illness or injury makes it impossible for them to work for a short period of time.Under the plan,income may be continued for up to 26 weeks.The Sanitation District pays the entire cost of coverage for regular full- time and part-time employees. Coverage is offered through Prudential. Long-Term Disability Insurance The long-term disability insurance plan protects employees when an illness or injury makes it impossible for them to work for an extended period of time.Under the plan,employees who are disabled for more than 90 days are eligible to receive a benefit of 67%of their basic monthly pay up to $5,000/month.The Sanitation District pays the entire cost of coverage for regular full-time and part-time employees with five or more years of service. Coverage is offered through Prudential. Orange County Sanitation District Printed on 7/1/2020Page 4 of 5 powered by Legistar™ File #:2020-1130 Agenda Date:7/8/2020 Agenda Item No:4. Executive Disability This additional long-term disability insurance plan provides increased income protection for executives and managers.Under the plan,eligible employees who are disabled for more than 90 days due to a non-work related illness or injury are eligible to receive an additional benefit of $3,100/month.The first $5,000/month is covered by the Sanitation District group long-term disability plan benefit. Coverage is offered through The Standard. Health Savings Account Employees who elect the Anthem High Deductible Health Plan (HDHP)are simultaneously enrolled in a Health Savings Account (HSA)which provides a method for the employee to save for health- related expenses.The Sanitation District currently makes an annual contribution to the HSA based on the increased deductible and the savings incurred by employees electing the HDHP plan compared to the PPO plan. Employee Assistance Program The EAP plan protects employees and family members when they need help with personal problems such as marital and relationship problems;stress,anxiety,and depression;grief and loss;or substance abuse. Coverage is offered through ComPsych. CEQA N/A FINANCIAL CONSIDERATIONS The funds for the renewal of these insurances are derived from the Sanitation District Operating Budget. ATTACHMENT The following attachment(s)may be viewed on-line at the OCSD website (www.ocsd.com)with the complete agenda package: N/A Orange County Sanitation District Printed on 7/1/2020Page 5 of 5 powered by Legistar™ ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS ACWA Association of California Water Agencies LOS Level Of Service RFP Request For Proposal APWA American Public Works Association MGD Million Gallons Per Day RWQCB Regional Water Quality Control Board AQMD Air Quality Management District MOU Memorandum of Understanding SARFPA Santa Ana River Flood Protection Agency ASCE American Society of Civil Engineers NACWA National Association of Clean Water Agencies SARI Santa Ana River Interceptor BOD Biochemical Oxygen Demand NEPA National Environmental Policy Act SARWQCB Santa Ana Regional Water Quality Control Board CARB California Air Resources Board NGOs Non-Governmental Organizations SAWPA Santa Ana Watershed Project Authority CASA California Association of Sanitation Agencies NPDES National Pollutant Discharge Elimination System SCADA Supervisory Control And Data Acquisition CCTV Closed Circuit Television NWRI National Water Research Institute SCAP Southern California Alliance of Publicly Owned Treatment Works CEQA California Environmental Quality Act O & M Operations & Maintenance SCAQMD South Coast Air Quality Management District CIP Capital Improvement Program OCCOG Orange County Council of Governments SOCWA South Orange County Wastewater Authority CRWQCB California Regional Water Quality Control Board OCHCA Orange County Health Care Agency SRF Clean Water State Revolving Fund CWA Clean Water Act OCSD Orange County Sanitation District SSMP Sewer System Management Plan CWEA California Water Environment Association OCWD Orange County Water District SSO Sanitary Sewer Overflow EIR Environmental Impact Report OOBS Ocean Outfall Booster Station SWRCB State Water Resources Control Board EMT Executive Management Team OSHA Occupational Safety and Health Administration TDS Total Dissolved Solids EPA US Environmental Protection Agency PCSA Professional Consultant/Construction Services Agreement TMDL Total Maximum Daily Load FOG Fats, Oils, and Grease PDSA Professional Design Services Agreement TSS Total Suspended Solids gpd gallons per day PFAS Per- and Polyfluoroalkyl Substances WDR Waste Discharge Requirements GWRS Groundwater Replenishment System PFOA Perfluorooctanoic Acid WEF Water Environment Federation ICS Incident Command System PFOS Perfluorooctanesulfonic Acid WERF Water Environment & Reuse Foundation IERP Integrated Emergency Response Plan POTW Publicly Owned Treatment Works WIFIA Water Infrastructure Finance and Innovation Act JPA Joint Powers Authority ppm parts per million WIIN Water Infrastructure Improvements for the Nation Act LAFCO Local Agency Formation Commission PSA Professional Services Agreement WRDA Water Resources Development Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS – A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS – The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD) – The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. BIOGAS – A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS – Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) – Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. COLIFORM BACTERIA – A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. COLLECTIONS SYSTEM – In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP) – A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) – Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (D/T) – The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG) – In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming (“greenhouse effect”). GROUNDWATER REPLENISHMENT SYSTEM (GWRS) – A joint water reclamation project that proactively responds to Southern California’s current and future water needs. This joint project between the Orange County Water District and OCSD provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE (LOS) – Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) – A N-nitrosamine suspected cancer-causing agent. It has been found in the GWRS process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. NATIONAL BIOSOLIDS PARTNERSHIP (NBP) – An alliance of the NACWA and WEF, with advisory support from the EPA. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) – A large group (over 6,000) of human-made compounds that are resistant to heat, water, and oil and used for a variety of applications including firefighting foam, stain and water-resistant clothing, cosmetics, and food packaging. Two PFAS compounds, perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA) have been the focus of increasing regulatory scrutiny in drinking water and may result in adverse health effects including developmental effects to fetuses during pregnancy, cancer, liver damage, immunosuppression, thyroid effects, and other effects. PERFLUOROOCTANOIC ACID (PFOA) – An ingredient for several industrial applications including carpeting, upholstery, apparel, floor wax, textiles, sealants, food packaging, and cookware (Teflon). PERFLUOROOCTANESULFONIC ACID (PFOS) – A key ingredient in Scotchgard, a fabric protector made by 3M, and used in numerous stain repellents. PLUME – A visible or measurable concentration of discharge from a stationary source or fixed facility. PUBLICLY OWNED TREATMENT WORKS (POTW) – A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR (SARI) LINE – A regional brine line designed to convey 30 million gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. SANITARY SEWER – Separate sewer systems specifically for the carrying of domestic and industrial wastewater. SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) – Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. SECONDARY TREATMENT – Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. SLUDGE – Untreated solid material created by the treatment of wastewater. TOTAL SUSPENDED SOLIDS (TSS) – The amount of solids floating and in suspension in wastewater. ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS TRICKLING FILTER – A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. URBAN RUNOFF – Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. WASTEWATER – Any water that enters the sanitary sewer. WATERSHED – A land area from which water drains to a particular water body. OCSD’s service area is in the Santa Ana River Watershed.