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HomeMy WebLinkAbout06-04-2025 Operations Committee Meeting Complete Agenda Packet SPECIAL NOTICE PUBLIC ATTENDANCE & PARTICIPATION AT PUBLIC MEETINGS Operations Committee Meeting Wednesday, June 4, 2025 5:00 p.m. Your participation is always welcome. OC San offers several ways in which to interact during meetings. You will find information as to these opportunities below. IN-PERSON MEETING ATTENDANCE You may attend the meeting in-person at the following location: Orange County Sanitation District Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 ONLINE MEETING PARTICIPATION You may join the meeting live via Teams on your computer or similar device or web browser by using the link below: Click here to join the meeting We suggest testing joining a Teams meeting on your device prior to the commencement of the meeting. For recommendations, general guidance on using Teams, and instructions on joining a Teams meeting, please click here. Please mute yourself upon entry to the meeting. Please raise your hand if you wish to speak during the public comment section of the meeting. The Clerk of the Board will call upon you by using the name you joined with. Meeting attendees are not provided the ability to make a presentation during the meeting. Please contact the Clerk of the Board at least 48 hours prior to the meeting if you wish to present any items. Additionally, camera feeds may be controlled by the meeting moderator to avoid inappropriate content. HOW TO PARTICIPATE IN THE MEETING BY TELEPHONE To join the meeting from your phone: Dial (213) 279-1455 When prompted, enter the Phone Conference ID: 722 496 138# All meeting participants may be muted during the meeting to alleviate background noise. If you are muted, please use *6 to unmute. You may also mute yourself on your device. Please raise your hand to speak by use *5, during the public comment section of the meeting. The Clerk of the Board will call upon you by using the last 4 digits of your phone number as identification. NOTE: All attendees will be disconnected from the meeting at the beginning of Closed Session. If you would like to return to the Open Session portion of the meeting, please login or dial-in to the Teams meeting again and wait in the Lobby for admittance. WATCH THE MEETING ONLINE The meeting will be available for online viewing at: https://ocsd.legistar.com/Calendar.aspx SUBMIT A COMMENT You may submit your comments and questions in writing for consideration in advance of the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx or sending them to OCSanClerk@ocsan.gov with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”. You may also submit comments and questions for consideration during the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx. The eComment feature will be available for the duration of the meeting. All written public comments will be provided to the legislative body and may be read into the record or compiled as part of the record. For any questions and/or concerns, please contact the Clerk of the Board’s office at 714-593-7433. Thank you for your interest in OC San! May 28, 2025 NOTICE OF REGULAR MEETING OPERATIONS COMMITTEE ORANGE COUNTY SANITATION DISTRICT Wednesday, June 4, 2025 – 5:00 P.M. Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 ACCESSIBILITY FOR THE GENERAL PUBLIC Your participation is always welcome. Specific information as to how to participate in this meeting is detailed on the Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during this meeting: you may participate in person, join the meeting live via Teams on your computer or similar device or web browser, join the meeting live via telephone, view the meeting online, and/or submit comments for consideration before or during the meeting. The Regular Meeting of the Operations Committee of the Orange County Sanitation District will be held at the above location and in the manner indicated on Wednesday, June 4, 2025 at 5:00 p.m. OPERATIONS COMMITTEE MEETING DATE BOARD MEETING DATE 06/04/25 06/25/25 07/02/25 07/23/25 AUGUST DARK 08/27/25 09/03/25 09/24/25 10/01/25 10/22/25 11/05/25 11/19/25 * 12/03/25 12/17/25 * JANUARY DARK 01/28/26 02/04/26 02/25/26 03/04/26 03/25/26 04/01/26 04/22/26 05/06/26 05/27/26 * Meeting will be held on the third Wednesday of the month ROLL CALL OPERATIONS COMMITTEE Engineering and Operations & Maintenance Meeting Date: June 4, 2025 Time: 5:00 p.m. COMMITTEE MEMBERS (14) Pat Burns (Chair) Bob Ooten (Vice-Chair) Joyce Ahn Debbie Baker Doug Chaffee Johnathan Ryan Hernandez Stephanie Klopfenstein Lisa Landau Carlos A. Leon Tom Lindsey Scott Minikus Jamie Valencia Ryan Gallagher (Board Chair) Jon Dumitru (Board Vice-Chair) OTHERS Scott Smith, General Counsel STAFF Rob Thompson, General Manager Lorenzo Tyner, Assistant General Manager Jennifer Cabral, Director of Communications Mike Dorman, Director of Engineering Laura Maravilla, Director of Human Resources Riaz Moinuddin, Director of Operations & Maintenance Wally Ritchie, Director of Finance Lan Wiborg, Director of Environmental Services Kelly Lore, Clerk of the Board ORANGE COUNTY SANITATION DISTRICT Effective 2/11/2025 BOARD OF DIRECTORS Complete Roster AGENCY/CITIES ACTIVE DIRECTOR ALTERNATE DIRECTOR Anaheim Carlos A. Leon Ryan Balius Brea Christine Marick Cecilia Hupp Buena Park Joyce Ahn Lamiya Hoque Cypress Scott Minikus Bonnie Peat Fountain Valley Glenn Grandis Ted Bui Fullerton Jamie Valencia Shana Charles Garden Grove Stephanie Klopfenstein Cindy Ngoc Tran Huntington Beach Pat Burns Gracey Van Der Mark Irvine Melinda Liu Kathleen Treseder La Habra Jose Medrano Rose Espinoza La Palma Debbie Baker Vikesh Patel Los Alamitos Jordan Nefulda Tanya Doby Newport Beach Erik Weigand Michelle Barto Orange Jon Dumitru John Gyllenhammer Placentia Chad Wanke Ward Smith Santa Ana Johnathan Ryan Hernandez Jessie Lopez Seal Beach Lisa Landau Ben Wong Stanton David Shawver John D. Warren Tustin Ryan Gallagher Austin Lumbard Villa Park Jordan Wu Kelly McBride Sanitary/Water Districts Costa Mesa Sanitary District Bob Ooten Art Perry Midway City Sanitary District Andrew Nguyen Tyler Diep Irvine Ranch Water District John Withers Dan Ferons Yorba Linda Water District Tom Lindsey Gene Hernandez County Areas Board of Supervisors Doug Chaffee Janet Nguyen OPERATIONS COMMITTEE Regular Meeting Agenda Wednesday, June 4, 2025 - 5:00 PM Board Room Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 ACCOMMODATIONS FOR THE DISABLED: If you require any special disability related accommodations, please contact the Orange County Sanitation District (OC San) Clerk of the Board’s office at (714) 593-7433 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 OC San's Headquarters located at 18480 Bandilier Circle, Fountain Valley, California, and on the OC San’s website at www.ocsan.gov not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including those distributed less than 72 hours prior to the meeting to a majority of the Board of Directors, are available for public inspection with 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 RECORDING: A recording of this meeting is available within 24 hours after adjournment of the meeting at https://ocsd.legistar.com/Calendar.aspx or by contacting the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, the item must be submitted to the Clerk of the Board: Kelly A. Lore, MMC, (714) 593-7433 / klore@ocsan.gov at least 14 days before the meeting. For any questions on the agenda, Board members may contact staff at: General Manager: Rob Thompson, rthompson@ocsan.gov / (714) 593-7110 Asst. General Manager: Lorenzo Tyner, ltyner@ocsan.gov / (714) 593-7550 Director of Communications: Jennifer Cabral, jcabral@ocsan.gov / (714) 593-7581 Director of Engineering: Mike Dorman, mdorman@ocsan.gov / (714) 593-7014 Director of Environmental Services: Lan Wiborg, lwiborg@ocsan.gov / (714) 593-7450 Director of Finance: Wally Ritchie, writchie@ocsan.gov / (714) 593-7570 Director of Human Resources: Laura Maravilla, lmaravilla@ocsan.gov / (714) 593-7007 Director of Operations & Maintenance: Riaz Moinuddin, rmoinuddin@ocsan.gov / (714) 593-7269 OPERATIONS COMMITTEE Regular Meeting Agenda Wednesday, June 4, 2025 CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL AND DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: Your participation is always welcome. Specific information as to how to participate in a meeting is detailed in the Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during meetings: you may participate in person, join the meeting live via Teams on your computer or similar device or web browser, join the meeting live via telephone, view the meeting online, and/or submit comments for consideration before or during the meeting. 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. 1.2025-4313APPROVAL OF MINUTES RECOMMENDATION: Approve minutes of the Regular meeting of the Operations Committee held May 7, 2025. Originator:Kelly Lore Agenda Report 05-07-2025 Operations Committee Meeting Minutes Attachments: 2.2025-4164ENGINEERING PROGRAM CONTRACT PERFORMANCE REPORT RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Engineering Program Contract Performance Report for the period ending March 31, 2025. Originator:Mike Dorman Page 1 of 4 OPERATIONS COMMITTEE Regular Meeting Agenda Wednesday, June 4, 2025 Agenda Report Engineering Program Contract Performance Report for the period ending March 31, 2025 Attachments: 3.2025-4261SANTA ANA TRUNK SEWER REHABILITATION, PROJECT NO. 1-23 RECOMMENDATION: Recommend to the Board of Directors to: Approve an agreement with the Union Pacific Railroad Company (UPRR) for the installation and operation of a temporary, above grade, bypass pipe in the UPRR right-of-way during the construction of Santa Ana Trunk Sewer Rehabilitation, Project No. 1-23, in the amount of $373,770, in a form approved by General Counsel. Originator:Mike Dorman Agenda Report Union Pacific Railroad Company Agreement Attachments: NON-CONSENT: 4.2025-4144ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS, PROJECT NO. J-98 RECOMMENDATION: Recommend to the Board of Directors to: A. Receive and file Bid Tabulation and Recommendation for Electrical Power Distribution System Improvements, Project No. J-98; B. Award a Construction Contract Agreement to Shimmick Construction Company, Inc., for Electrical Power Distribution System Improvements, Project No. J-98, for a total amount not to exceed $ 24,352,127; and C. Approve a contingency of $2,435,213 (10%). Originator:Mike Dorman Agenda Report J-98 Construction Contract Agreement Presentation - J-98 Contract Award Attachments: 5.2025-4150ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS, PROJECT NO. J-98 RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a Professional Construction Services Agreement with Brown and Caldwell to provide construction support services for Electrical Power Distribution System Improvements, Project No. J-98, for a total amount not to exceed $2,667,874; and Page 2 of 4 OPERATIONS COMMITTEE Regular Meeting Agenda Wednesday, June 4, 2025 B. Approve a contingency of $266,787 (10%). Originator:Mike Dorman Agenda Report J-98 Professional Construction Services Agreement Presentation - J-98 PCSA Award Attachments: INFORMATION ITEMS: 6.2025-4072OC SAN - OPERATIONS & MAINTENANCE WASTEWATER 101 PART 2: COLLECTIONS RECOMMENDATION: Information Item. Originator:Riaz Moinuddin Agenda Report Presentation - WW101 Collections Attachments: 7.2025-4249STRATEGIC PLAN: LEVELS OF SERVICE RECOMMENDATION: Information Item. Originator:Rob Thompson Agenda Report OC San Strategic Plan 2023 GM's FY 2024-25 Work Plan Presentation - Levels of Service Attachments: 8.2025-4078FY 2025-26 BUDGET UPDATE PRESENTATION RECOMMENDATION: Information Item. Originator:Wally Ritchie Agenda ReportAttachments: DEPARTMENT HEAD REPORTS: Page 3 of 4 OPERATIONS COMMITTEE Regular Meeting Agenda Wednesday, June 4, 2025 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: Adjourn the meeting until the Regular Meeting of the Operations Committee on July 2, 2025 at 5:00 p.m. Page 4 of 4 OPERATIONS COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4313 Agenda Date:6/4/2025 Agenda Item No:1. FROM:Robert Thompson, 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 Operations Committee held May 7, 2025. 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. OC SAN 24-09 ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·May 7, 2025 Operations Committee meeting minutes Orange County Sanitation District Printed on 5/23/2025Page 1 of 1 powered by Legistar™ Orange County Sanitation District Minutes for the OPERATIONS COMMITTEE Wednesday, May 7, 2025 5:00 PM Board Room Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A regular meeting of the Operations Committee of the Orange County Sanitation District was called to order by Committee Chairman Pat Burns on Wednesday, May 7, 2025 at 5:00 p.m. in the Orange County Sanitation District Headquarters. General Manager Rob Thompson led the Pledge of Allegiance. ROLL CALL AND DECLARATION OF QUORUM: Clerk of the Board Kelly Lore declared a quorum present as follows: PRESENT:Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten, Jaime Valencia and Cindy Tran (Alternate) ABSENT:None STAFF PRESENT: Rob Thompson, General Manager; Lorenzo Tyner, Assistant General Manager; Jennifer Cabral, Director of Communications; Mike Dorman, Director of Engineering; Laura Maravilla, Director of Human Resources; Riaz Moinuddin, Director of Operations and Maintenance; Wally Ritchie, Director of Finance; Lan Wiborg, Director of Environmental Services; Kelly Lore, Clerk of the Board; Mo Abiodun; Jon Bradley; Cheri Calisang; Morty Caparas; Jackie Castro; Sam Choi; Raul Cuellar; Don Cutler; Thys DeVries; Martin Dix; Justin Fenton; David Haug; Mark Kawamoto; Tom Meregillano; Nick Oswald; Jonathon Powell; Olga Prado; Valerie Ratto; Sammady Yi; and Ruth Zintzun were present in the Board Room. OTHERS PRESENT: Mal Richardson, General Counsel; and Gus Garcia, Center for Contract Compliance were present in the Board Room. PUBLIC COMMENTS: Gus Garcia, Center for Contract Compliance commented in opposition of Item No. 3 and provided a letter for distribution to the Directors. REPORTS: Chair Burns announced that the OC San Honor Wall Ceremony would be held on June 23, 2025, at 3:30 p.m. and that OC San's Administrative Offices would be closed on Monday, May 26th in observance of Memorial Day. General Manager Rob Thompson announced that it was Municipal Clerks Week and acknowledged the Clerk of the Board and the Assistant Clerk of the Board. Page 1 of 6 OPERATIONS COMMITTEE Minutes May 7, 2025 CONSENT CALENDAR: 1.APPROVAL OF MINUTES 2025-4252 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the Special meeting of the Operations Committee held April 2, 2025. AYES:Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten and Cindy Tran (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez and Jaime Valencia ABSTENTIONS:None 2.PURCHASE AND INSTALLATION OF CENTRIFUGE ISOLATORS AT PLANT NO. 1 2025-4107 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Sole Source General Services Contract to GEA Mechanical Equipment US, Inc. for the purchase and installation of isolator units on six (6) Thickening and Dewatering centrifuges, for a total amount not to exceed $696,726; and B. Approve a contingency of $69,673 (10%). AYES:Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten and Cindy Tran (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez and Jaime Valencia ABSTENTIONS:None 3.SAFETY SHOWER AND EYEWASH STATIONS INSPECTIONS AND TESTING, SPECIFICATION NO. S-2025-669BD 2025-4228 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 2 of 6 OPERATIONS COMMITTEE Minutes May 7, 2025 A. Receive and file Zeco, Inc. protest statement dated April 2, 2025; B. Receive and file Orange County Sanitation District’s Protest Response letter dated April 16, 2025; C. Approve a General Services Contract to Haws Corporation for Safety Shower and Eyewash Stations Inspections and Testing, Specification No. S-2025-669BD, for a total amount not to exceed $224,594; and D.Approve a contingency of $33,689 (15%). AYES:Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten and Cindy Tran (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez and Jaime Valencia ABSTENTIONS:None 4.MANHOLE CCTV INSPECTION SERVICES, SPECIFICATION NO. S-2024-658BD 2025-4245 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a General Services Contract to Mattucci Plumbing, Inc. to perform manhole CCTV inspection services, Specification No. S-2024-658BD, for a total amount not to exceed $164,000, with four (4) one-year renewal options; and B. Approve an annual contingency of $16,400 (10%) increase over the prior year for all renewal periods. AYES:Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten and Cindy Tran (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez and Jaime Valencia ABSTENTIONS:None 5.BUILDING 6, CONTROL CENTER, AND LABORATORY ELEVATOR REHABILITATION AT PLANT NO. 1, PROJECT NO. FE24-06 2025-4280 Originator: Mike Dorman MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 3 of 6 OPERATIONS COMMITTEE Minutes May 7, 2025 A. Approve a Purchase Order Contract to TK Elevator (TKE) for Building 6, Control Center, and Laboratory Elevator Rehabilitation at Plant No. 1, Project No. FE24-06, using Sourcewell Cooperative Contract No. 080420-TKE, for a total amount not to exceed $633,000; and B. Approve a contingency of $126,600 (20%). AYES:Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten and Cindy Tran (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez and Jaime Valencia ABSTENTIONS:None 6.QUARTERLY ODOR COMPLAINT REPORT 2025-4233 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Fiscal Year 2024-25 Third Quarter Odor Complaint Report. AYES:Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten and Cindy Tran (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez and Jaime Valencia ABSTENTIONS:None NON-CONSENT: None. Director Jamie Valencia arrived at the meeting at approximately 5:07 p.m. and Director Johnathan Ryan Hernandez arrived at approximately 5:12 p.m. INFORMATION ITEMS: 7.FY 2025-26 CAPITAL IMPROVEMENT PROGRAM BUDGET UPDATE 2025-4074 Originator: Mike Dorman Director of Engineering Mike Dorman introduced Engineering Manager Justin Fenton and Finance Manager Ruth Zintzun who provided a joint PowerPoint presentation regarding the Capital Improvement Program (CIP) FY 2025-26 Budget Update which included an overview of the CIP Asset Management Plan, the proposed active and upcoming projects, net capital expenses overview and budget update, the 10-year net CIP outlay, the 20-year net CIP outlay, top budget increases and decreases, the FY Page 4 of 6 OPERATIONS COMMITTEE Minutes May 7, 2025 2025-26 CIP reserves, and key meeting dates. ITEM RECEIVED AS AN: Information Item. 8.OC SAN - OPERATIONS & MAINTENANCE WASTEWATER 101 PART 1: TREATMENT AND RECYCLING 2025-4070 Originator: Riaz Moinuddin Director of Operations & Maintenance Riaz Moinuddin introduced Operations Manager Jon Bradley who provided a PowerPoint presentation regarding the wastewater treatment process. The presentation included a diagram overview of the plant process, the metering and diversion structure, the preliminary and secondary treatments, illustrations of solids removal during treatment, the solids recovery process, dewatering operation, truck loading, and an overview of biogas. ITEM RECEIVED AS AN: Information Item. 9.STRATEGIC PLANNING - CORE VALUES 2025-4269 Originator: Laura Maravilla Director of Human Resources Laura Maravilla provided a PowerPoint presentation regarding OC San's core values. The presentation also provided an overview of upcoming topics scheduled for Committee meetings, including the level of service in June and the risk register in July. ITEM RECEIVED AS AN: Information Item. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. Page 5 of 6 OPERATIONS COMMITTEE Minutes May 7, 2025 BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Burns declared the meeting adjourned at 5:39 p.m. to the next Regular Operations Committee meeting to be held on Wednesday, June 4, 2025 at 5:00 p.m. Submitted by: __________________ Kelly A. Lore, MMC Clerk of the Board Page 6 of 6 OPERATIONS COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4164 Agenda Date:6/4/2025 Agenda Item No:2. FROM:Robert Thompson, General Manager Originator: Mike Dorman, Director of Engineering SUBJECT: ENGINEERING PROGRAM CONTRACT PERFORMANCE REPORT GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Engineering Program Contract Performance Report for the period ending March 31, 2025. BACKGROUND The Engineering Program involves awarding and managing multiple construction and consulting contracts.In 2008,the Orange County Sanitation District (OC San)Board of Directors began authorizing contingencies along with construction and consulting contracts,allowing the General Manager to approve construction change orders and amendments to consulting contracts up to the amount of the authorized contingency.This practice reduces administrative costs,expedites resolution of project issues that arise,helps avoid contractor delay claims,and facilitates efficient management of many contracts. The Engineering Program Contract Performance Report summarizes construction and consulting contract performance and activities for the quarter ending March 31,2025.This report is updated quarterly and includes a summary of the General Manager approved contract contingencies among other key performance indicators. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Engineering Program Contract Performance Report for the period ending March 31, 2025. MD:lb Orange County Sanitation District Printed on 5/28/2025Page 1 of 1 powered by Legistar™ Engineering Program Contract Performance Report For the Period Ending March 31, 2025 1 DATE: June 04, 2025 TO: Orange County Sanitation District Board of Directors FROM: Rob Thompson, General Manager Through: Mike Dorman, Director of Engineering This report summarizes the status, activities, and performance of construction contracts and consultant agreements. This report also identifies the names and status of projects being performed under master budgets for planning studies, research, small construction projects, Operations & Maintenance capital projects and information technology projects. As of March 31, 2025, Orange County Sanitation District (OC San) Engineering Department manages 136 active projects, with project budgeting totaling close to $4 billion. These projects are in various project phases, ranging from Project Development to Closeout. The graphic below shows the number of projects in each of the project phases. This report is organized into six parts, as follows. Detailed tables can be found in the appendix section of the report. Part 1 – Construction Contracts ................................................................................................. 2 Part 2 – Engineering Professional Services Agreements ........................................................... 4 Part 3 – Master Budget Projects ................................................................................................ 6 Part 4 – Supplemental Engineering Services Contract ............................................................... 7 Part 5 – Programming Professional Services Contract ............................................................... 9 Part 6 – On-Call Services Agreements ......................................................................................11 Engineering Program Contract Performance Report For the Period Ending March 31, 2025 2 PART 1 – CONSTRUCTION CONTRACTS Construction Contracts As shown in the graph below, there are currently 52 active construction contracts totaling just over $1billion. The graph also categorizes the active construction contracts by project type (plant, collections, and other) with the “Other” category capturing research and small capital projects. Table 1 in the appendix lists the Board-awarded construction contracts while Tables 2 and 3 list the Operations Committee and General Manager awarded construction contracts, active as of March 31, 2025. The General Manager may award contracts up to $150,000 and task orders up to $500,000. The table below summarizes the number of active and closed construction contracts and total contract amounts. See Tables 4, 5, and 6 in the appendix for a list of the closed contracts. Type Contracts Total Contract Amount Active Board-Awarded Construction Contracts 50 $1,007,066,019 Active Ops Committee Awarded Construction Contracts 0 $0 Active GM Awarded Construction Contracts 2 $468,760 Closed Board-Awarded Construction Contracts 3 $5,260,799 Closed Committee-Awarded Construction Contracts 0 $0 Closed GM Awarded Construction Contracts 1 $153,450 $313 Million Collection Projects 11 Contracts Plant Projects 41 Contracts $684 Million Engineering Program Contract Performance Report For the Period Ending March 31, 2025 3 Cumulative Change Order Rates When the OC San Board of Directors awards a construction contract, they also approve a contingency which allows the General Manager to approve contract change orders up to the amount of the contingency. One purpose of this report is to document how much of the contingency is utilized. A contract’s change order rate is only meaningful when the work is completed. As such, this report's change order performance charts are based only on contracts closed since the Board began approving contingencies in 2008. The following chart shows how cumulative change order rates have changed for plant, collections, and all contracts over the past 15 years. Change Order Goals Project Type 15-Year Sliding Window Change Order Goal Plant – New 5% Plant – Rehab 8% Collections 10% Engineering Program Contract Performance Report For the Period Ending March 31, 2025 4 PART 2 – ENGINEERING PROFESSIONAL SERVICES AGREEMENTS Professional Design and Related Service Agreements OC San engages engineering consultants through Professional Service Agreements (PSAs), Professional Design Services Agreements (PDSAs), and Professional Construction Services Agreements (PCSAs). PDSAs are used to obtain design engineering services, and PCSAs are a subsequent agreement with the design consultant to provide support services during construction. PSAs are used for planning studies and other consultant assignments. There are currently 50 Professional Design and Related Service Agreements (26 individual firms) with total agreement amount of $293,161,368. Table 7 in the appendix provides a detailed list of Professional Design and Related Service Agreements. Master Agreements Master Agreements are issued to a pool of pre-qualified consultants for smaller projects. On those smaller projects, OC San solicits task order proposals from interested firms and awards a task order to the most qualified consultant. The Master Agreements are listed below. • 2017 Master Agreements for Planning Studies (expired) • 2018 Master Professional Design Services Agreements (expired) • 2020 Master Agreements for On-Call Planning Studies (expired) • 2021 Master Professional Design Services Agreements (expired) • 2024 Master Agreements for On-Call Planning Studies • 2024 Master Professional Design Service Agreements • Agreement for Design Installation, Implementation and Maintenance of a Process Control System Engineering Program Contract Performance Report For the Period Ending March 31, 2025 5 New task orders cannot be issued under expired agreements but previously issued task orders remain active until completed. Task Orders are limited by OC San Ordinance No. OC SAN-61 to $500,000 per task order. Below is a summary of the various master agreements with active task orders. See Table 8 in the appendix for a detailed list of task orders. Task Order Contracts Total Contract Amount 2017 Master Agreements for Planning Studies 0 $0 2018 Master Professional Design Service Agreements 15 $3,033,474 2020 Master Agreements for On-Call Planning Studies 4 $1,174,966 2021 Master Professional Design Service Agreements 16 $4,139,422 2024 Master Agreements for On-Call Planning Studies 4 $1,249,850 2024 Master Professional Design Service Agreements 1 $325,715 Master Service Agreements Through a competitive procurement process, a Master Services Agreement (MSA) was awarded to ABB Inc. for the design, installation, implementation, and maintenance of a control system for a term of 15 years with renewals up to 25 years under Project SP-196, Process Control Systems Upgrades Study. Specific equipment and services will be procured under task orders associated with each CIP project and operating budget. Task Order Contracts Total Contract Amount Design Installation, Implementation and Maintenance of a Process Control System Master Agreement 2 $12,160,423 Engineering Program Contract Performance Report For the Period Ending March 31, 2025 6 PART 3 – MASTER BUDGET PROJECTS The Board-adopted budget for Fiscal Years 2022-23 and 2023-24 includes master program budgets that allow staff to initiate, execute, and manage smaller projects that fit within the scope of a particular program more quickly. The projects chartered under these program budgets are referred to as sub-projects and are managed to the same standards as projects specifically listed in the adopted budget. A status table for each of these programs listing the sub-projects is attached in the appendix. These projects include Planning Studies (PS), Research (RE), Facility Engineering (FE), Maintenance (MP), and Small Capital (SC) and Information Technology (IT). Master Program Title Status Table Number of Projects Total Allocated Budget Planning Studies Program Table 9 18 $11,643,943 Research Program Table 10 2 $8,101,029 Small Construction Projects, Operations & Maintenance Capital Programs Table 11 42 $115,469,700 Information Technology Capital Program Table 12 8 $2,247,322 Engineering Program Contract Performance Report For the Period Ending March 31, 2025 7 PART 4 – SUPPLEMENTAL ENGINEERING SERVICES CONTRACT In April of 2022, the OC San Board of Directors approved two Professional Service Agreements - one with AECOM Technical Services, Inc. and one with Jacobs Project Management Co. - to provide Supplemental Engineering Services for a three-year period commencing May 1, 2022, through April 30, 2025, with two one-year renewal options. The Board approved the agreements for an amount not to exceed $29,700,000 per individual agreement. The benefits of using a supplemental engineering services contract, as opposed to hiring full-time staff or limited-term employees, include rapid mobilization of highly skilled/technical staff, flexibility to change the mix of staff positions on an immediate and as-needed basis, the ability to reduce staff as workloads decrease, access to technical experts to support special tasks, and access to staff with wastewater project experience. Status tables for the supplemental engineering services contract and labor summary for the 2022 Supplemental Engineering Services Contract with AECOM and Jacobs Project Management Co. are included below. 2022 Supplemental Engineering Services Contract Status (AECOM) Total Fees Time Contract $29,700,000 60 Months(1) Actuals to Date $4,144,168 14% 35 Months 58% Remaining $25,555,832 86% 25 Months 42% (1) Assuming two additional 1-year extensions 2022 Supplemental Engineering Services Labor Summary (AECOM) This Quarter Inception to Date Labor Hours 4,185 22,761 Full Time Equivalents 9.30 4.34 Labor Costs (no expenses) $782,848 $4,058,040 Average Hourly Rate $187 $178 Engineering Program Contract Performance Report For the Period Ending March 31, 2025 8 2022 Supplemental Engineering Services Contract Status (Jacobs) Total Fees Time Contract $29,700,000 60 Months(1) Actuals to Date $18,596,217 63% 35 Months 48% Remaining $11,103,783 37% 25 Months 52% (1) Assuming two additional 1-year extensions 2022 Supplemental Engineering Services Labor Summary (Jacobs) This Quarter Inception to Date Labor Hours 14,455 107,510 Full Time Equivalents 30 19 Labor Costs (no expenses) $2,642,558 $18,145,797 Average Hourly Rate $182 $183 Engineering Program Contract Performance Report For the Period Ending March 31, 2025 9 PART 5 – PROGRAMMING PROFESSIONAL SERVICES CONTRACT In April of 2022, the OC San Board of Directors approved two Professional Service Agreements - one with Enterprise Automation and one with Rockwell Automation, Inc. (formerly Maverick Technologies) - to provide Programming Professional Services for a three-year period commencing May 11, 2022, through May 10, 2025, with two one-year renewal options. The Board approved the agreements for an amount not to exceed $4,900,000 per individual agreement. The programming professional services will program, test, commission, maintain, upgrade, and configure programmable logic controllers, HMI graphics, databases, servers, and networks for select projects. The benefits of using a programming professional services contract, as opposed to hiring full-time staff or limited-term employees, include the ability to provide the needed short-term resources during the execution of Project No. J-120, Process Control Systems Upgrades, rapid mobilization of highly skilled technical resources, flexibility to change the mix of needed resources to match project requirements, and the ability to increase or reduce project resources as workloads change. Status tables for the programming professional services contract and labor summary for the 2022 Programming Professional Services Contract with Enterprise Automation and Rockwell Automation are included below. 2022 Programming Professional Services Contract Status (Enterprise Automation) Total Fees Time Contract $4,900,000 60 Months(1) Actuals to Date $1,863,636 38% 35 Months 53% Remaining $3,043,927 62% 25 Months 47% (1) Assuming two additional 1-year extensions 2022 Programming Professional Services Labor Summary (Enterprise Automation) This Quarter Inception to Date Labor Hours 16 9,845 Full Time Equivalents 0 1.8 Labor Costs (no expenses) $3,634 $1,855,989 Average Hourly Rate $227 $189 Engineering Program Contract Performance Report For the Period Ending March 31, 2025 10 2022 Programming Professional Services Contract Status (Rockwell Automation) Total Fees Time Contract $4,900,000 60 Months(1) Actuals to Date $1,711,624 35% 35 Months 58% Remaining $3,188,376 65% 25 Months 42% (1) Assuming two additional 1-year extensions 2022 Programming Professional Services Labor Summary (Rockwell Automation) This Quarter Inception to Date Labor Hours 806 8748 Full Time Equivalents 1.6 1.5 Labor Costs (no expenses) $164,383 $1,711,624 Average Hourly Rate $204 $196 Engineering Program Contract Performance Report For the Period Ending March 31, 2025 11 PART 6 – ON-CALL SERVICES AGREEMENTS OC San uses three sets of on-call services agreements for coating inspection and corrosion testing; materials testing, inspection, and other geotechnical testing; and surveying. Services are typically requested by inspection supervisors as needs arise, and the work is generally spread among the available firms. The table below lists the contract limits and funds expended to date for each of the agreements which became effective on March 23, 2022, and will expire on April 30, 2025. For each of these services, OC San typically uses a single firm for a particular construction contract. Consultant Contract Limit Total Costs Incurred Remaining Coating Inspection Services (PSA2022-001) CSI Services, Inc. $300,000 $44,216 $255,784 Diversified Project Services Int'l (DPSI) $300,000 $222,404 $77,596 Geotechnical Testing Services (PSA2022-003) AESCO $400,000 $327,944 $72,056 Atlas Technical Consultants $400,000 $285,905 $114,095 Koury Engineering and testing, Inc. $400,000 $199,926 $200,074 MTGL, Inc $400,000 $371,307 $28,693 Surveying Services (PSA2022-002) D.Woolley & Associates $200,000 $66,518 $133,482 Michael Baker International, Inc. $200,000 $36,681 $163,320 Psomas $200,000 $73,958 $126,042 Stantec Consulting Services, Inc. $200,000 $50,450 $149,550 OC San uses an on-call corrosion engineering service agreement to perform condition assessments and an on-call corrosion engineering support agreement to support condition assessment and provide confined space entry support. Engineering Program Contract Performance Report For the Period Ending March 31, 2025 12 The table below lists the contract limits and funds expended to date for each of the agreements. The Corrosion Management Support Services is a one-year agreement with four one-year renewal options that became effective on February 1, 2020. The Condition Assessment On-Call Contractor Support Services is a one-year agreement with four one- year renewal options that became effective on November 1, 2021. Consultant Contract Limit Total Costs Incurred Remaining Corrosion Management Support Services Corrpro Companies Inc $700,000 $24,419 $675,581 Condition Assessment On-Call Contractor Support Services Jamison Engineering Contractors, Inc $783,470 $29,950 $483,520 Engineering Program Contract Performance Report For the Period Ending March 31, 2025 13 APPENDIX Engineering Program Contract Performance Report For the Period Ending March 31, 2025 14 Table 1 - Active Board-Awarded Construction Contracts Project/Contract Contractor Award Date Contract Amount Contingency Award Change Orders Current % Spent Original Current Used Remaining 2-49 Taft Branch Improvements Big Ben Inc. 05/22/2024 $20,458,250 $0 $20,458,250 4.2% 10.0% 10.0% 0.0% 10.0% 3-64B Los Alamitos Trunk Sewer Rehabilitation Steve P. Rados, Inc. 05/26/2021 $17,775,000 $1,025,000 $18,800,000 88.2% 10.0% 10.0% 5.8% 4.2% 3-64C Los Alamitos Sub-Trunk and Westside Relief Interceptor Rehabilitation T.E. Roberts, Inc. 12/18/2024 $35,320,572 $0 $35,320,572 0.0% 10.0% 10.0% 0.0% 10.0% 3-67 Seal Beach Pump Station Replacement Walsh Construction Company II, LLC 12/14/2023 $97,032,743 $1,273 $97,034,016 8.6% 10.0% 10.0% 0.0% 10.0% 5-67 Bay Bridge Pump Station Replacement J.F. Shea Construction, Inc. 02/26/2025 $87,321,000 $0 $87,321,000 0.0% 10.0% 10.0% 0.0% 10.0% 7-65 Gisler-Red Hill Interceptor and Baker Force Main Rehabilitation Steve P. Rados, Inc. 05/24/2023 $44,706,000 ($1,067,300) $43,638,700 51.7% 10.0% 10.0% -2.4% 12.4% 7-68 MacArthur Force Main Improvements SRK Engineering, Inc. 07/26/2023 $3,897,000 $0 $3,897,000 84.3% 10.0% 10.0% 0.0% 10.0% FE18-13 Redhill Relief Sewer Relocation at State Route 55 SRK Engineering, Inc. 06/22/2022 $2,213,000 $683,317 $2,896,317 13.1% 15.0% 60.0% 30.9% 29.1% FE19-01 Pump Station Portable Generator Connectors Pacific Industrial Electric 09/29/2021 $1,207,479 $68,343 $1,275,822 99.5% 10.0% 16.0% 5.7% 10.3% FE19-02 Cengen Plant Water Pipe Replacement at Plant No. 1 Innovative Construction Solutions 03/27/2024 $3,385,000 $0 $3,385,000 0.0% 10.0% 10.0% 0.0% 10.0% FE19-03 Trickling Filter Sludge and Scum Pumps Replacement at Plant No. 1 Garney Pacific, Inc. 02/23/2022 $778,000 $23,471 $801,471 91.0% 10.0% 10.0% 3.0% 7.0% FE19-04 Sunflower Pump Replacement at Plant No. 1 GSE Construction Company, Inc. 10/27/2021 $2,123,200 $196,143 $2,319,343 82.7% 10.0% 25.0% 9.2% 15.8% Engineering Program Contract Performance Report For the Period Ending March 31, 2025 15 Table 1 - Active Board-Awarded Construction Contracts Project/Contract Contractor Award Date Contract Amount Contingency Award Change Orders Current % Spent Original Current Used Remaining FE19-08 Secondary Treatment VFD Replacements at Plant No. 2 ACS Engineering 03/23/2022 $1,433,000 $0 $1,433,000 10.8% 10.0% 10.0% 0.0% 10.0% FE20-02 Digester C, D, F, and G Mechanical Rehabilitation at Plant No. 2 J.F. Shea Construction, Inc. 08/13/2024 $3,694,000 $0 $3,694,000 0.0% 10.0% 10.0% 0.0% 10.0% FE20-04 Cengen Cooling Water Pipe Replacement at Plant No. 2 Innovative Construction Solutions 11/16/2022 $3,487,600 $0 $3,487,600 47.5% 10.0% 10.0% 0.0% 10.0% FE20-05 Plant Water Piping Replacement at Secondary Clarifiers 1-26 at Plant No. 1 T.E. Roberts, Inc. 09/25/2024 $1,375,313 $0 $1,375,313 0.0% 10.0% 10.0% 0.0% 10.0% FE20-08 Olive Sub-Trunk Siphon Rehabilitation at Santa Ana River MMC, Inc. 04/26/2023 $1,944,000 $0 $1,944,000 80.3% 10.0% 10.0% 0.0% 10.0% FE21-07 Liquid Oxygen Tank A Replacement at Plant No. 2 J.R. Filanc Construction Company, Inc. 01/18/2023 $2,608,007 $0 $2,608,007 36.6% 10.0% 10.0% 0.0% 10.0% FE21-08 Newhope-Placentia Sewer Manhole Replacements Sancon Technologies Inc. 12/18/2024 $406,730 $0 $406,730 0.0% 20.0% 20.0% 0.0% 20.0% FE22-01 Platform Modifications for Process Areas at Plant No. 1 and No. 2 Tharsos, Inc. 12/18/2024 $494,494 $0 $494,494 0.0% 15.0% 15.0% 0.0% 15.0% FE22-02 Liquid Oxygen Tank B Replacement at Plant No. 2 J.R. Filanc Construction Company, Inc. 07/01/2024 $3,098,000 $0 $3,098,000 2.1% 10.0% 10.0% 0.0% 10.0% FE23-01 Digester Gas Compressor Dryer Replacements at Plant Nos. 1 and 2 Innovative Construction Solutions 09/10/2024 $5,942,500 $0 $5,942,500 0.0% 10.0% 10.0% 0.0% 10.0% Engineering Program Contract Performance Report For the Period Ending March 31, 2025 16 Table 1 - Active Board-Awarded Construction Contracts Project/Contract Contractor Award Date Contract Amount Contingency Award Change Orders Current % Spent Original Current Used Remaining FE23-06 HVAC Replacements at Plant Nos. 1 and 2 ACCO Engineered Systems 07/24/2024 $1,698,204 $0 $1,698,204 0.0% 10.0% 10.0% 0.0% 10.0% FE23-08 Power Buildings 7 and 8 HVAC Replacement at Plant No. 1 Trane U.S. Inc. 10/02/2024 $687,708 $0 $687,708 0.0% 5.0% 5.0% 0.0% 5.0% FE23-09 Primary Clarifiers F and G Rotating Mechanism Rehabilitation at Plant No. 2 Vicon Enterprise 11/15/2024 $3,150,000 $0 $3,150,000 25.4% 15.0% 15.0% 0.0% 15.0% FR1-0005 Cengen and 12Kv Service Center Switchgear Battery System Upgrades at Plant No. 1 Mass Electric Construction Co. 11/27/2023 $970,000 $21,052 $991,052 88.0% 10.0% 20.0% 2.2% 17.8% FR1-0007R Control Center Offices and Day Training Room Remodeling at Plant No. 1 A2Z Construct Inc. 02/20/2024 $348,000 $28,485 $376,485 62.5% 10.0% 10.0% 8.2% 1.8% FR1-0011 VFD Replacements at Plant No. 1 ACS Engineering 12/15/2022 $1,214,888 $0 $1,214,888 19.6% 10.0% 10.0% 0.0% 10.0% FR1-0020 Traffic Signal Installation at Ellis Avenue and Mt. Langley Street Intersection Asplundh Construction LLC 10/04/2024 $746,250 $0 $746,250 0.0% 10.0% 10.0% 0.0% 10.0% FR2-0023 Activated Sludge Clarifier Entry Improvements at Plant No. 2 Tharsos, Inc. 03/21/2024 $1,171,000 $0 $1,171,000 86.7% 10.0% 10.0% 0.0% 10.0% FR2-0026 Headworks Phase 3 Cable Replacement at Plant No. 2 ACS Engineering 02/22/2023 $575,360 $12,846 $588,206 50.8% 20.0% 20.0% 2.2% 17.8% FR2-0032 Digester K Dome Repair at Plant No. 2 Structural Preservation Systems, LLC 11/20/2024 $876,707 $0 $876,707 0.0% 15.0% 15.0% 0.0% 15.0% FR2-0033 Digesters O - T Bridge Repair at Plant No. 2 Jamison Engineering 03/20/2025 $255,962 $0 $255,962 0.0% 10.0% 10.0% 0.0% 10.0% FRC-0010 Warner Avenue Vault Cover Improvements Minako America Corporation 09/17/2024 $977,000 $0 $977,000 0.0% 10.0% 10.0% 0.0% 0.0% Engineering Program Contract Performance Report For the Period Ending March 31, 2025 17 Table 1 - Active Board-Awarded Construction Contracts Project/Contract Contractor Award Date Contract Amount Contingency Award Change Orders Current % Spent Original Current Used Remaining J-117B Outfall Low Flow Pump Station Shimmick Construction 12/19/2018 $90,200,000 $5,746,639 $95,946,639 93.8% 8.0% 8.0% 6.4% 1.6% J-120 Plant Water Pipeline Replacement in Kinnison, Lindstrom and Scott Tunnels at Plant No. 2 ABB, Inc 07/28/2021 $11,803,801 $26,644 $11,830,445 62.0% 10.0% 10.0% 0.10% 9.90% J-120A.1 Control Room Reconfiguration at Plant No.1 ABB, Inc 10/28/2024 $356,622 $0 $356,622 0.0% 10.0% 10.0% 0.0% 0.0% J-135B Engine and Generator Overhauls at Plant No. 1 and 2 Cooper Machinery Services 07/27/2022 $29,361,029 $3,644,111 $33,005,140 72.6% 10.0% 18.0% 12.4% 5.6% P1-105 Headworks Rehabilitation at Plant 1 Kiewit Infrastructure West Co. 03/24/2021 $222,330,000 $4,521,064 $226,851,064 64.8% 4.0% 8.0% 2.0% 6.0% P1-128A Headquarters Complex at Plant No. 1 Swinerton Builders 05/26/2021 $102,544,973 $4,917,352 $107,462,325 100% 5.0% 6.5% 4.8% 1.7% P1-128A.1 Headquarters Complex at Plant No. 1 EIDIM Group, Inc. 09/20/2023 $1,580,000 $66,150 $1,646,150 97.8% 10.0% 10.0% 4.2% 5.8% P1-132 Uninterruptable Power Supply Improvements at Plant 1 Leed Electric 12/15/2022 $5,765,789 ($3,381) $5,762,408 67.4% 10.0% 10.0% -0.1% 10.1% P1-133 Primary Sedimentation Basins No. 6-31 Reliability Improvements at Plant No. 1 Shimmick Construction 02/23/2022 $6,275,000 $181,874 $6,456,874 96.4% 10.0% 10.0% 2.9% 7.1% P1-134 South Perimeter Security and Utility Improvements at Plant No.1 Tovey-Shultz Construction, Inc. 07/28/2021 $4,396,779 $405,201 $4,801,980 97.7% 10.0% 10.0% 9.2% 0.8% P2-127 Collections Yard Relocation and Warehouse Demolition at Plant No. 2 Archico Design Build, Inc. 09/19/2023 $6,500,000 $201,890 $6,701,890 88.4% 10.0% 10.0% 3.1% 6.9% P2-128A South Perimeter Wall and Soil Improvements at Plant No. 2 Ames Construction, Inc. 03/27/2025 $25,270,000 $0 $25,270,000 1.5% 10.0% 10.0% 0.0% 10.0% Engineering Program Contract Performance Report For the Period Ending March 31, 2025 18 Table 1 - Active Board-Awarded Construction Contracts Project/Contract Contractor Award Date Contract Amount Contingency Award Change Orders Current % Spent Original Current Used Remaining P2-137A Digester P and R Dome Tendon Repair Structural Preservation Systems, LLC 09/18/2024 $2,597,864 $0 $2,597,864 3.8% 10.0% 10.0% 0.0% 10.0% P2-98A A-Side Primary Clarifiers Replacement at Plant 2 PCL CONSTRUCTI ON INC. 05/26/2021 $111,405,880 $2,479,434 $113,885,314 54.0% 6.0% 6.0% 2.2% 3.8% SC19-06 EPSA Standby Power Generator Control Upgrades at Plant No. 2 Shimmick Construction 10/17/2023 $3,500,000 $18,230 $3,518,230 46.5% 10.0% 10.0% 0.5% 9.5% SC22-01 EPSA Electrical Building and Distribution Center H HVAC System Replacement at Plant No. 2 Trane U.S. Inc. 06/28/2023 $3,862,000 $0 $3,862,000 35.7% 10.0% 10.0% 0.0% 10.0% SC22-02 HVAC Replacement for Plant 2 Centrifuge Building, Operations Building, and Bitter Point PS Trane U.S. Inc. 02/26/2025 $2,746,477 $0 $2,746,477 0.0% 10.0% 10.0% 0.0% 10.0% Total $983,868,181 $23,197,838 $1,007,066,019 Engineering Program Contract Performance Report For the Period Ending March 31, 2025 19 Table 2 - Active Operations Committee Awarded Construction Contracts Project/Contract Contractor Award Date Contract Amount Contingency Award Change Orders Current % Spent Original Current Used Remaining No Committee-Awarded Construction Contracts this quarter Table 3 - Active GM Awarded Construction Contracts Project/Contract Contractor Award Date Contract Amount Contingency Award Change Orders Current % Spent Original Current Used Remaining FE21-04 Thickening and Dewatering Facility Handrail Installation at Plant No. 1 J.R. Filanc Construction Company, Inc. 07/30/2024 $110,400 $0 $110,400 0.0% 10.0% 10.0% 0.0% 10.0% FR2-0026R Headworks Phase 3 Cable Replacement at Plant No. 2 Big Sky Electric 03/18/2025 $358,360 $0 $358,360 0.0% 0.0% 0.0% 0.0% 0.0% Total $468,760 $0 $468,760 Engineering Program Contract Performance Report For the Period Ending March 31, 2025 20 Table 4 - Closed Board-Awarded Construction Contracts Project/Contract Contractor Award Date Closed Date Contract Amount Contingency Award Change Orders Final Original Final Unused 5-68 Newport Beach Pump Station Pressurization Improvements Innovative Construction Solutions 04/25/2023 03/11/2025 $937,500 $97,756 $1,035,256 10.0% 17.0% 6.6% FE20-03 Return Activated Sludge Discharge Piping Replacement at Activated Sludge Plant No. 1 GSE Construction Company, Inc. 12/15/2022 01/14/2025 $3,985,400 $44,613 $4,030,013 10.0% 10.0% 8.9% FR2-0027 Heavy Mechanics Group Office Space Upgrade at Plant No. 2 MBE Construction 02/08/2024 01/28/2025 $195,676 ($146) $195,530 10.0% 10.0% 10.1% Total $5,118,576 $142,223 $5,260,799 Engineering Program Contract Performance Report For the Period Ending March 31, 2025 21 Table 6 - Closed GM-Awarded Construction Contracts Project/Contract Contractor Award Date Closed Date Contract Amount Contingency Original Award Amount Change Orders Final Contract Amount Original Final Unused FR2-0025 Digester O- T and Q-R Bridge Repair at Plant No. 2 O’Connell Engineering & Construction, Inc. 01/14/2004 01/07/2025 $115,450 $38,000 $153,450 0% 32.91% 0.00% Total $115,450 $38,000 $153,450 0% 32.91% 0.00% Table 5 - Closed Committee -Awarded Construction Contracts Project/Contract Contractor Award Date Closed Date Contract Amount Contingency Original Award Amount Change Orders Final Contract Amount Original Final Unused No Committee-awarded construction contract closed this quarter Engineering Program Contract Performance Report For the Period Ending March 31, 2025 22 Table 7 - Active Engineering Services Agreements Project/Contract Consultant Type Award Date Contract Amount Contingency Award Amendments Current % Spent Original Current Used Remaining 11-33 Edinger Pump Station Replacement Arcadis U.S., Inc. PDSA 09/27/2023 $3,125,590 $35,180 $3,160,770 51% 10.0% 10.0% 1.1% 8.9% 1-23 Santa Ana Trunk Sewer Rehabilitation Stantec Consulting Services Inc. PDSA 04/27/2022 $3,880,000 $0 $3,880,000 83% 10.0% 10.0% 0.0% 10.0% 1-24 Greenville Trunk Improvements Brown and Caldwell PDSA 10/26/2022 $4,730,000 $0 $4,730,000 35% 10.0% 10.0% 0.0% 10.0% 2-49 Taft Branch Improvements Woodard & Curran, Inc. PCSA 07/23/2024 $1,108,033 $0 $1,108,033 17% 10.0% 10.0% 0.0% 10.0% 2-49 Taft Branch Improvements Woodard & Curran, Inc. PDSA 02/24/2021 $2,200,000 $147,062 $2,347,062 99% 10.0% 10.0% 6.7% 3.3% 3-60 Knott - Miller Holder Artesia Branch Rehabilitation Dudek PDSA 10/24/2023 $1,200,000 $0 $1,200,000 40% 10.0% 10.0% 0.0% 10.0% 3-64 Rehabilitation of Western Regional Sewers AECOM Technical Services, Inc. PDSA 01/27/2016 $17,639,250 $195,850 $17,835,100 63% 10.0% 10.0% 1.1% 8.9% 3-64B Los Alamitos Trunk Sewer Rehabilitation AECOM Technical Services, Inc. PCSA 05/26/2021 $610,000 $0 $610,000 86% 10.0% 10.0% 0.0% 10.0% 3-64C Los Alamitos Sub-Trunk and Westside Relief Interceptor Rehabilitation AECOM Technical Services, Inc. PCSA 02/04/2025 $1,576,696 $0 $1,576,696 0% 0.0% 10.0% 0.0% 10.0% 3-67 Seal Beach Pump Station Replacement Lee & Ro, Inc. PCSA 12/14/2023 $6,148,000 $0 $6,148,000 16% 10.0% 10.0% 0.0% 10.0% 5-67 Bay Bridge Pump Station Replacement Arcadis U.S., Inc. PCSA 03/10/2025 $12,143,580 $0 $12,143,580 0% 10.0% 10.0% 0.0% 10.0% Engineering Program Contract Performance Report For the Period Ending March 31, 2025 23 Table 7 - Active Engineering Services Agreements Project/Contract Consultant Type Award Date Contract Amount Contingency Award Amendments Current % Spent Original Current Used Remaining 5-67 Bay Bridge Pump Station Replacement Arcadis U.S., Inc. PDSA 10/25/2017 $7,137,000 $2,116,140 $9,253,140 91% 10.0% 35.0% 29.7% 5.3% 5-68 Newport Beach Pump Station Pressurization Improvements Dudek PCSA 02/01/2023 $124,979 $0 $124,979 49% 10.0% 10.0% 0.0% 10.0% 6-20 Fairview Sewer Rehabilitation Dudek PDSA 07/27/2022 $1,200,000 $0 $1,200,000 67% 10.0% 10.0% 0.0% 10.0% 7-65 Gisler-Red Hill Interceptor and Baker Force Main Rehabilitation CDM Smith Inc. PCSA 05/24/2023 $988,460 $98,846 $1,087,306 59% 10.0% 10.0% 10.0% 0.0% 7-68 MacArthur Force Main Improvements Michael Baker International , Inc. PCSA 09/11/2023 $272,002 $0 $272,002 52% 10.0% 10.0% 0.0% 10.0% 7-68 MacArthur Force Main Improvements Michael Baker International, Inc. PDSA 05/26/2021 $500,000 $0 $500,000 100% 10.0% 10.0% 0.0% 10.0% FR1-0007 Control Center Offices and Day Training Room Remodeling at Plant No. 1 AECOM Technical Services, Inc. PSA 07/24/2017 $48,000 $33,351 $81,351 11% 69.5% -69.5% J-117B Outfall Low Flow Pump Station SEL Engineering Services Inc. PSA 03/27/2019 $1,096,074 $0 $1,096,074 61% 10.0% 10.0% 0.0% 10.0% J-117B Outfall Low Flow Pump Station Brown and Caldwell PCSA 12/19/2018 $8,563,913 $1,584,324 $10,148,237 83% 10.0% 18.5% 18.5% 0.0% J-124 Digester Gas Facilities Rehabilitation Brown and Caldwell PDSA 11/15/2017 $11,770,000 $10,214,559 $21,984,559 67% 10.0% 89.9% 86.8% 3.1% Engineering Program Contract Performance Report For the Period Ending March 31, 2025 24 Table 7 - Active Engineering Services Agreements Project/Contract Consultant Type Award Date Contract Amount Contingency Award Amendments Current % Spent Original Current Used Remaining J-128 Project Management Information System PMWeb, Inc. PSA 06/27/2017 $1,022,500 $200,817 $1,223,317 86% 20.0% 20.0% 19.6% 0.4% J-133 Laboratory Replacement at Plant No. 1 Hazen and Sawyer PSA 02/06/2025 $6,777,839 $0 $6,777,839 0% 0.0% 0.0% J-137 Ocean Outfalls Rehabilitation Hazen and Sawyer PSA 11/05/2024 $7,941,723 $0 $7,941,723 0% 0.0% 0.0% J-98 Electrical Power Distribution System Improvements Schweitzer Engineering Laboratories, Inc PSA 03/25/2020 $1,296,878 $0 $1,296,878 36% 10.0% 10.0% 0.0% 10.0% J-98 Electrical Power Distribution System Improvements Brown and Caldwell PDSA 02/26/2020 $2,240,000 $223,806 $2,463,806 94% 10.0% 10.0% 10.0% 0.0% P1-105 Headworks Rehabilitation at Plant 1 SEL Engineering Services Inc. PSA 01/30/2024 $137,275 $0 $137,275 20% 10.0% 10.0% 0.0% 9.3% P1-105 Headworks Rehabilitation at Plant 1 Carollo Engineers, Inc PCSA 03/24/2021 $16,500,000 $0 $16,500,000 58% 10.0% 10.0% 0.0% 10.0% P1-126 Primary Sedimentation Basins No. 3-5 Replacement at Plant No. 1 Black & Veatch Corporation PDSA 04/27/2022 $14,163,000 $207,183 $14,370,183 57% 10.0% 10.0% 1.5% 8.5% P1-128A Headquarters Complex at Plant No. 1 HDR Engineering, Inc. PCSA 05/26/2021 $4,900,000 $726,720 $5,626,720 97% 10.0% 15.0% 14.8% 0.2% P1-128A Headquarters Complex at Plant No. 1 AECOM Technical Services, Inc. PSA 04/28/2021 $6,750,000 $299,107 $7,049,107 99% 10.0% 10.0% 4.4% 5.6% Engineering Program Contract Performance Report For the Period Ending March 31, 2025 25 Table 7 - Active Engineering Services Agreements Project/Contract Consultant Type Award Date Contract Amount Contingency Award Amendments Current % Spent Original Current Used Remaining P1-132 Uninterruptable Power Supply Improvements at Plant 1 Tetra Tech, Inc. PCSA 11/09/2023 $217,830 $0 $217,830 48% 10.0% 10.0% 0.0% 10.0% P1-132 Uninterruptable Power Supply Improvements at Plant 1 Tetra Tech, Inc. PDSA 11/20/2019 $784,630 $62,755 $847,385 100% 10.0% 10.0% 8.0% 2.0% P1-133 Primary Sedimentation Basins No. 6-31 Reliability Improvements at Plant No. 1 Carollo Engineers, Inc PCSA 03/23/2022 $530,000 $0 $530,000 63% 10.0% 10.0% 0.0% 10.0% P1-134 South Perimeter Security and Utility Improvements at Plant No.1 HDR Engineering, Inc. PCSA 07/28/2021 $235,000 $0 $235,000 58% 10.0% 10.0% 0.0% 10.0% P1-137 Support Buildings Seismic Improvements at Plant No. 1 Simpson, Gumpertz, and Heger PDSA 07/27/2022 $1,900,000 $151,537 $2,051,537 90% 10.0% 10.0% 8.0% 2.0% P1-140 Activated Sludge-1 Rehabilitation at Plant No. 1 HDR Engineering, Inc. PDSA 12/15/2022 $18,462,443 $0 $18,462,443 44% 10.0% 10.0% 0.0% 10.0% P2-123 Return Activated Sludge Piping Replacement at Plant 2 Spec Services, Inc. PCSA 09/25/2019 $252,329 $25,233 $277,562 100% 10.0% 10.0% 10.0% 0.0% Engineering Program Contract Performance Report For the Period Ending March 31, 2025 26 Table 7 - Active Engineering Services Agreements Project/Contract Consultant Type Award Date Contract Amount Contingency Award Amendments Current % Spent Original Current Used Remaining P2-124 Interim Food Waste Receiving Facility Kennedy/ Jenks Consultants, Inc. PDSA 09/26/2018 $695,000 $31,168 $726,168 100% 10.0% 10.0% 4.5% 5.5% P2-128 Digester Replacement at Plant No. 2 Brown and Caldwell PDSA 07/22/2020 $39,300,000 $9,602,657 $48,902,657 61% 10.0% 26.0% 24.4% 1.6% P2-128A South Perimeter Wall and Soil Improvements at Plant No. 2 Brown and Caldwell PCSA 11/20/2024 $2,043,717 $0 $2,043,717 1% 10.0% 10.0% 0.0% 0.0% P2-135 Chemical Systems Rehabilitation at Plant No. 2 Lee & Ro, Inc. PDSA 03/22/2023 $862,328 $86,220 $948,548 93% 10.0% 10.0% 10.0% 0.0% P2-136 Activated Sludge Aeration Basin Rehabilitation at Plant No. 2 Carollo Engineers, Inc PDSA 10/25/2023 $5,891,599 $180,630 $6,072,229 22% 10.0% 10.0% 3.1% 6.9% P2-137 Digesters Rehabilitation at Plant No. 2 CDM Smith Inc. PDSA 03/23/2022 $2,700,000 $1,290,938 $3,990,938 72% 10.0% 58.0% 47.8% 10.2% P2-137A Digester P and R Dome Tendon Repair CDM Smith Inc. PCSA 08/27/2024 $209,000 $0 $209,000 18% 10.0% 10.0% 0.0% 10.0% P2-138 Operations and Maintenance Complex at Plant No. 2. Stantec Architecture Inc. PDSA 01/25/2023 $7,914,529 $431,414 $8,345,943 33% 10.0% 42.0% 5.5% 36.5% P2-98A A-Side Primary Clarifiers Replacement at Plant 2 SEL Engineering Services Inc. PSA 05/23/2023 $97,399 $0 $97,399 0% 10.0% 10.0% 0.0% 0.0% Engineering Program Contract Performance Report For the Period Ending March 31, 2025 27 Table 7 - Active Engineering Services Agreements Project/Contract Consultant Type Award Date Contract Amount Contingency Award Amendments Current % Spent Original Current Used Remaining P2-98A A-Side Primary Clarifiers Replacement at Plant 2 Black & Veatch Corporation PCSA 05/26/2021 $8,400,000 $0 $8,400,000 59% 10.0% 10.0% 0.0% 10.0% PDB24-00 Progressive Design-Build Owner Advisor, Program management, and Professional Engineering Support Services Hazen and Sawyer PSA 11/05/2024 $19,340,000 $0 $19,340,000 0% 10.0% 10.0% 0.0% 0.0% PS20-02 Collection System Flow Level Monitoring Study Woodard & Curran, Inc. PSA 07/28/2021 $616,562 $0 $616,562 75% 10.0% 10.0% 0.0% 10.0% PS21-06 Urban Runoff Optimization Study Michael Baker International , Inc. PSA 03/22/2023 $711,230 $70,700 $781,930 85% 10.0% 10.0% 9.9% 0.1% PS21-07 Process Simulation Model Development for Cen Gen Facilities Intelliflux Controls PSA 02/05/2024 $150,308 $0 $150,308 22% 10.0% 10.0% 0.0% 10.0% PS23-04 Digital Asset Management Study Black & Veatch Corporation PSA 03/26/2025 $799,917 $0 $799,917 0% 10.0% 10.0% 0.0% 10.0% RE21-01 Supercritical Water Oxidation Demonstration at Plant No. 1 374Water Systems, Inc. PSA 12/15/2021 $5,139,000 $101,558 $5,240,558 42% 10.0% 10.0% 2.0% 8.0% Total $265,043,613 $28,117,755 $293,161,368 Engineering Program Contract Performance Report For the Period Ending March 31, 2025 28 Table 8 - Active Task Orders by Master Agreement Agreement/Project Consultant Award Date Original Task Order Value Amendments Current Task Order Value % Spent 2018 Master Professional Design Service Agreements FE18-06 CenGen Instrument Air Compressors Replacement at Plant No. 1 IDS Group, Inc. 04/27/2020 $89,876 $0 $89,876 83% FE18-13 Redhill Relief Sewer Relocation at State Route 55 GHD, Inc. 03/27/2020 $168,612 $105,331 $273,943 95% FE19-02 Cengen Plant Water Pipe Replacement at Plant No. 1 AECOM Technical Services, Inc. 07/08/2020 $156,498 $143,378 $299,876 83% FE19-10 Digesters C, D, F, G and I Gas Balance Lines Replacement at Plant No. 2 GHD, Inc. 02/03/2021 $25,000 $65,749 $90,749 80% FE19-11 Primary Clarifiers Nos. 6-31 Lighting and Alarm Improvements at Plant No. 1 AECOM Technical Services, Inc. 09/21/2020 $226,685 $6,137 $232,822 75% FE19-13 VFD Replacements at Seal Beach Pump Station AECOM Technical Services, Inc. 03/24/2021 $78,033 $0 $78,033 60% FE20-01 Wastehauler Station Safety and Security Improvements AECOM Technical Services, Inc. 03/16/2021 $161,012 $16,247 $177,259 91% FE20-02 Digester C, D, F, and G Mechanical Rehabilitation at Plant No. 2 HDR Engineering, Inc. 03/02/2021 $188,212 $34,352 $222,564 95% FE20-03 Return Activated Sludge Discharge Piping Replacement at Activated Sludge Plant No. 1 GHD, Inc. 06/14/2021 $249,000 $0 $249,000 92% FE20-04 Cengen Cooling Water Pipe Replacement at Plant No. 2 Dudek 05/18/2021 $240,000 $130,000 $370,000 87% FE20-05 Plant Water Piping Replacement at Secondary Clarifiers 1- 26 at Plant No. 1 IDS Group, Inc. 06/22/2021 $186,626 $0 $186,626 88% FE20-08 Olive Sub-Trunk Siphon Rehabilitation at Santa Ana River Dudek 06/10/2021 $240,000 $0 $240,000 101% FE20-09 CenGen Smoke Detection Improvements at Plant No. 1 and No. 2 IDS Group, Inc. 06/15/2021 $63,275 $0 $63,275 83% FR1-0011 VFD Replacements at Plant No. 1 Black & Veatch Corporation 04/08/2021 $283,000 $17,000 $300,000 83% FRC-0009 Bitter Point Trunk Sewer Repair at Bitter Point Pump Station GHD, Inc. 06/17/2021 $159,451 $0 $159,451 83% Subtotal $2,515,280 $518,194 $3,033,474 Engineering Program Contract Performance Report For the Period Ending March 31, 2025 29 Table 8 - Active Task Orders by Master Agreement Agreement/Project Consultant Award Date Original Task Order Value Amendments Current Task Order Value % Spent 2020 Master Agreements for On-Call Planning Studies PS22-02 Onsite Oxygen Generation Feasibility Study at Plant No. 2 Black & Veatch Corporation 02/13/2023 $393,374 $17,718 $411,092 52% PS21-08 Pure Oxygen Activated Sludge Operations Study at Plant No. 2 Hazen and Sawyer 09/22/2022 $241,791 $55,413 $297,204 100% PS21-10 Integrated Nitrogen Management Hazen and Sawyer 10/19/2023 $247,000 $0 $247,000 20% PS20-09 Thickening & Dewatering Plant Water Study at Plant No. 1 HDR Engineering, Inc. 04/21/2022 $219,670 $0 $219,670 80% Subtotal $1,101,835 $73,131 $1,174,966 2021 Master Professional Design Service Agreements FR1-0023 Secondary Treatment Area Cable Replacement at Plant No. 1 Brown and Caldwell 06/28/2024 $338,943 $0 $338,943 32% FRC-0014 Magnolia Sewer Manhole Abandonment at Interstate-5 Brown and Caldwell 03/15/2023 $195,055 $0 $195,055 63% P1-142 Trickling Filter Media Replacement at Plant No. 1 Brown and Caldwell 05/21/2024 $397,030 $56,128 $453,158 34% FR1-0017 Trickling Filter Valve Replacement at Plant No. 1 Dudek 08/16/2022 $101,108 $0 $101,108 90% FR1-0018 Dewatering Centrifuge Diverter Gate Improvements at Plant No. 1 Dudek 08/16/2022 $140,000 $93,191 $233,191 97% FRC-0017 Valve Replacements and Wet Well Access Improvements at Slater Pump Station Dudek 06/14/2024 $281,000 $0 $281,000 49% FRJ-0003 Interplant Gas Line Blow Off Vault Repairs Dudek 09/08/2022 $165,000 $165,091 $330,091 59% FE21-08 Newhope-Placentia Sewer Manhole Replacements GHD, Inc. 02/28/2023 $235,820 $0 $235,820 90% FE22-01 Platform Modifications for Process Areas at Plant No. 1 and No. 2 ProjectLine Technical Services. Inc. 03/14/2023 $159,296 $0 $159,296 80% FR2-0023 Activated Sludge Clarifier Entry Improvements at Plant No. 2 AECOM Technical Services, Inc. 01/13/2022 $120,030 $79,828 $199,858 71% FR2-0027 Heavy Mechanics Group Office Space Upgrade at Plant No. 2 ProjectLine Technical Services. Inc. 09/13/2022 $126,153 $0 $126,153 100% FR2-0031 Activated Sludge System Scum Rerouting at Plant No. 2 GHD, Inc. 06/14/2024 $369,479 ($46,402) $323,077 35% FRC-0010 Warner Avenue Vault Cover Improvements Kleinfelder, Inc. 11/16/2021 $205,000 $43,128 $248,128 92% Engineering Program Contract Performance Report For the Period Ending March 31, 2025 30 Table 8 - Active Task Orders by Master Agreement Agreement/Project Consultant Award Date Original Task Order Value Amendments Current Task Order Value % Spent J-120A Control Room Reconfiguration at Plant No.1 ProjectLine Technical Services. Inc. 12/04/2023 $255,036 $27,672 $282,708 85% P2-127 Collections Yard Relocation and Warehouse Demolition at Plant No. 2 ProjectLine Technical Services. Inc. 08/02/2022 $188,898 $142,938 $331,836 95% SC19-06 EPSA Standby Power Generator Control Upgrades at Plant No. 2 Spec Services, Inc. 11/03/2021 $241,153 $58,847 $300,000 77% Subtotal $3,519,001 $620,421 $4,139,422 2024 Master Professional Design Service Agreements FRC-0020 College Pump Station Wet Well Rehabilitation HDR Engineering, Inc. 01/28/2025 $325,715 $0 $325,715 0% Subtotal $325,715 $0 $325,715 2024 On-Call Planning Studies PS23-01 Fleet Facilities Improvements Study Stantec Consulting Services Inc. 09/10/2024 $243,543 $0 $243,543 56% PS23-03 2025 Outfall Initial Dilution Model Hazen and Sawyer 07/16/2024 $425,232 $0 $425,232 83% PS23-06 Seismic Resilience Study at Plant No. 2 Brown and Caldwell 10/22/2024 $488,959 $0 $488,959 14% PS24-02 Bioscrubber Fan and Transformer Failure Root Cause Analysis Study Hazen and Sawyer 01/28/2025 $92,116 $0 $92,116 5% Subtotal $1,249,850 $0 $1,249,850 Total $8,385,966 $1,211,746 $9,597,712 Table 9 - Planning Studies Status Report Project Number Project Name Status Allocated Budget PS19-03 Laboratory Rehabilitation Feasibility Study Active $450,000 PS20-02 Collection System Flow Level Monitoring Study Active $743,218 PS20-08 Euclid Trunk Sewer Hydraulic Modeling and Odor Control Analyses Active $500,000 PS20-09 Thickening & Dewatering Plant Water Study at Plant No. 1 Active $400,000 PS21-01 Exterior Lighting Study at Plant Nos. 1 and 2 Active $345,533 PS21-02 Public Announcement and Fire System at Plant Nos. 1 and 2 Active $500,000 PS21-04 Energy and Digester Gas Master Plan Active $1,785,000 PS21-05 CAD Design Manual Update for 3D Design Active $758,000 PS21-06 Urban Runoff Optimization Study Active $1,100,000 PS21-07 Process Simulation Model Development for Cen Gen Facilities Active $211,192 PS21-10 Integrated Nitrogen Management Active $372,000 PS22-02 Onsite Oxygen Generation Feasibility Study at Plant No. 2 Active $295,000 PS23-01 Fleet Facilities Improvements Study Active $350,000 PS23-03 2025 Outfall Initial Dilution Model Active $708,000 PS23-04 Digital Asset Management Study Active $630,000 PS23-05 Utility Water Planning Study at Plant Nos. 1 and 2 Active $1,100,000 PS23-06 Seismic Resilience Study at Plant No. 2 Active $946,000 PS24-01 Deep Well Injection Feasibility Study Active $450,000 Grand Total $11,643,943 Number of Chartered Projects 18 Board Approved Program Budget $25,000,000 Remaining Unallocated Budget $13,356,057 Table 10 - Research Program Status Report Project Number Project Name Status Allocated Budget RE20-06 Co-Thickened Sludge Pump Trial at Plant No. 1 Active $160,000 RE21-01 Supercritical Water Oxidation Demonstration at Plant No. 1 Active $7,941,029 Grand Total $8,101,029 Number of Chartered Projects 2 Board Approved Program Budget $10,000,000 Remaining Unallocated Budget $1,898,971 Table 11 - Small Construction Projects Program Status Report Project Number Project Name Status Allocated Budget FE18-06 CenGen Instrument Air Compressors Replacement at Plant No. 1 Active $1,150,000 FE18-13 Redhill Relief Sewer Relocation at State Route 55 Active $4,100,000 FE18-14 Plant Water Pipeline Replacement in Kinnison, Lindstrom, and Scott Tunnels at Plant No. 2 Active $2,300,000 FE19-01 Pump Station Portable Generator Connectors Active $2,570,000 FE19-02 Cengen Plant Water Pipe Replacement at Plant No. 1 Active $5,725,000 FE19-03 Trickling Filter Sludge and Scum Pumps Replacement at Plant No. 1 Active $3,200,000 FE19-04 Sunflower Pump Replacement at Plant No. 1 Active $4,300,000 FE19-06 EPSA Motor Cooling Improvements at Plant No. 2 Active $1,825,000 FE19-08 Secondary Treatment VFD Replacements at Plant No. 2 Active $2,900,000 FE19-10 Digesters C, D, F, G and I Gas Balance Lines Replacement at Plant No. 2 Active $176,000 FE19-11 Primary Clarifiers Nos. 6-31 Lighting and Alarm Improvements at Plant No. 1 Active $1,250,000 FE20-01 Wastehauler Station Safety and Security Improvements Active $2,923,000 FE20-02 Digester C, D, F, and G Mechanical Rehabilitation at Plant No. 2 Active $6,622,000 FE20-03 Return Activated Sludge Discharge Piping Replacement at Activated Sludge Plant No. 1 Active $6,840,000 FE20-04 Cengen Cooling Water Pipe Replacement at Plant No. 2 Active $5,180,000 FE20-05 Plant Water Piping Replacement at Secondary Clarifiers 1-26 at Plant No. 1 Active $2,485,000 FE20-08 Olive Sub-Trunk Siphon Rehabilitation at Santa Ana River Active $3,500,000 FE20-09 CenGen Smoke Detection Improvements at Plant No. 1 and No. 2 Active $950,000 FE21-01 Plasma Cutting Fume Extractor installation at Plant No. 1 Rebuild Shop Active $400,700 FE21-04 Thickening and Dewatering Facility Handrail Installation at Plant No. 1 Active $510,000 FE21-06 Chemical Dosing Station Installation at Westside Pump Station Active $560,000 FE21-07 Liquid Oxygen Tank A Replacement at Plant No. 2 Active $3,800,000 FE21-08 Newhope-Placentia Sewer Manhole Replacements Active $1,225,000 FE22-01 Platform Modifications for Process Areas at Plant No. 1 and No. 2 Active $1,300,000 FE22-02 Liquid Oxygen Tank B Replacement at Plant No. 2 Active $4,200,000 FE23-01 Digester Gas Compressor Dryer Replacements at Plant Nos. 1 and 2 Active $8,000,000 FE23-03 Wetwell Level Monitoring Upgrade at Collections Pump Stations Active $4,005,000 FE23-04 Truck Loading Scale Replacement at Plant No. 2 Active $916,000 FE23-05 Primary Clarifier Nos. 6-31 Scum Pump Replacement at Plant No. 1 Active $3,789,000 FE23-06 HVAC Replacements at Plant Nos. 1 and 2 Active $2,840,000 FE23-07 Pipeline Utility Easement Clean Up in Huntington Beach Active $4,500,000 FE23-08 Power Buildings 7 and 8 HVAC Replacement at Plant No. 1 Active $850,000 FE23-09 Primary Clarifiers F and G Rotating Mechanism Rehabilitation at Plant No. 2 Active $4,360,000 FE24-02 Gas Compressor Building Heat Exchanger Replacement at Plant No. 1 Active $640,000 Table 11 - Small Construction Projects Program Status Report Project Number Project Name Status Allocated Budget SC19-03 Return Activated Sludge Pump Station Elevator Rehabilitation at Plant No. 2 Active $890,000 SC19-06 EPSA Standby Power Generator Control Upgrades at Plant No. 2 Active $4,800,000 SC20-02 Ocean Outfall Booster Station Elevator Rehabilitation Active $410,000 SC22-01 EPSA Electrical Building and Distribution Center H HVAC System Replacement at Plant No. 2 Active $5,100,000 SC22-02 HVAC Replacement for Plant 2 Centrifuge Buillding, Operations Building, and Bitter Point PS Active $3,712,000 SC23-01 Electric Vehicle Charging Stations and Network Installation Active $391,000 SC23-02 Effluent Junction Box Security Fence Replacement at Plant No. 1 Active $130,000 SC23-03 Collection System Critical Assets Active $145,000 Grand Total $115,469,70 0 Number of Chartered Projects 42 Board Approved Program Budget $125,000,000 Remaining Unallocated Budget $9,530,300 Table 12 - Information Technology Capital Program Status Report Project Number Project Name Status Allocated Budget IT19-05 IT P1 & P2 Data Refresh (IT19-05)Active $1,200,000 IT20-05 Client Management Modernization (ICE-69_IT20-05) 6520005 Active $99,000 IT20-08 Field Computer for Nerissa and Interface with LIMS(ICE-68_IT20-07) 6520008 Active $121,000 IT20-10 Digitize Quality Assurance Tracking Processes/TNI/ELAP Standards (ICE-76_IT20-10) 6520010 Active $145,700 IT21-04 Databridge Scale Management Software (ICE - 84_IT21-04)Active $42,752 IT23-03 Workforce Timecard Migration (ICE-98_IT23-03)Active $314,403 IT23-04 Evacuation Mustering & Visitor Management System (ICE -99_IT23-04)Active $176,000 IT24-01 ServiceNow Employee Center Intranet Portal Migrations (ICE - 101_IT24-01)Active $148,467 Grand Total $2,247,322 Number of Chartered Projects 8 Board Approved Program Budget $10,000,000 Remaining Unallocated Budget $7,752,678 OPERATIONS COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4261 Agenda Date:6/4/2025 Agenda Item No:3. FROM:Robert Thompson, General Manager Originator: Mike Dorman, Director of Engineering SUBJECT: SANTA ANA TRUNK SEWER REHABILITATION, PROJECT NO. 1-23 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Approve an agreement with the Union Pacific Railroad Company (UPRR)for the installation and operation of a temporary,above grade,bypass pipe in the UPRR right-of-way during the construction of Santa Ana Trunk Sewer Rehabilitation,Project No.1-23,in the amount of $373,770,in a form approved by General Counsel. BACKGROUND The Santa Ana Trunk carries sewage from the southern portion of the cities of Santa Ana and Costa Mesa to Orange County Sanitation District (OC San)Plant No.1.This sewer was originally constructed in the early 1950s and consists of unlined 42-inch and 48-inch diameter reinforced concrete pipes.Over the past 60 years,several projects have replaced or rehabilitated small portions of the sewer and rehabilitated most of the manholes. The project area for the Santa Ana Trunk Sewer Rehabilitation is located on Alton Avenue heading west from Bristol Street then diagonally through easements in a light industrial/commercial area toward Plant No. 1. There is an UPRR right-of-way that runs parallel to Alton Avenue. RELEVANT STANDARDS ·Protect OC San assets ·Maintain collaborative and cooperative relationships with regulators,stakeholders,and neighboring communities ·Maintain a culture of improving efficiency to reduce the cost to provide the current services level or standard PROBLEM To facilitate the required rehabilitation work,sewer flows along Alton Avenue must be bypassed.In addition,several flows originating north of the UPRR tracks need to be intercepted and rerouted around the bypassed section.The only viable route for this bypass piping is through the UPRR right-Orange County Sanitation District Printed on 5/28/2025Page 1 of 3 powered by Legistar™ File #:2025-4261 Agenda Date:6/4/2025 Agenda Item No:3. around the bypassed section.The only viable route for this bypass piping is through the UPRR right- of-way. UPRR requires an agreement to allow OC San use of their right-of-way for the bypass. PROPOSED SOLUTION Approve an agreement with the UPRR to allow OC San to install the needed temporary,above grade bypass pipe in the UPRR right-of-way.This agreement,including the terms,location,and the costs, has been negotiated by staff to meet the needs of the Santa Ana Trunk Sewer Rehabilitation Project and safety requirements of the UPRR. TIMING CONCERNS UPRR requires the agreement to be fully executed,including payment,by September 26,2025.The construction project is scheduled to begin in January 2026.Installing the bypass line in the UPRR right-of-way is required before the contractor can begin the repair work on the trunk line. RAMIFICATIONS OF NOT TAKING ACTION Without this agreement,bypassing of sewer flows around the UPRR right-of-way would not be possible and therefore the rehabilitation of the Santa Ana Trunk Sewer would be considerably more expensive and cause more community impacts. PRIOR COMMITTEE/BOARD ACTIONS April 2022 -Approved a Professional Design Services Agreement with Stantec Consulting Services, Inc.to provide engineering services for Santa Ana Trunk Sewer Rehabilitation,Project No.1-23,for an amount not to exceed $3,880,000; and approved a contingency of $388,000 (10%). ADDITIONAL INFORMATION N/A CEQA The project is exempt from CEQA under Class 1,2,and 3 categorical exemptions set forth in California Code of Regulations Sections 15301,15302,and 15303.A Notice of Exemption will be filed with the OC Clerk-Recorder after OC San Board of Directors approval of the Construction Contract. FINANCIAL CONSIDERATIONS This request complies with the authority levels of OC San’s Purchasing Ordinance.This item has been budgeted (Budget FY 2024-25 and 2025-26,Section 8,Page 15,Santa Ana Trunk Sewer Rehabilitation, Project No. 1-23) and the budget is sufficient for the recommended action. Orange County Sanitation District Printed on 5/28/2025Page 2 of 3 powered by Legistar™ File #:2025-4261 Agenda Date:6/4/2025 Agenda Item No:3. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Union Pacific Railroad Company Agreement VP:lb Orange County Sanitation District Printed on 5/28/2025Page 3 of 3 powered by Legistar™ Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340 Pipeline Encroachment 052118 Project No. 0797181Last Modified: 07/02/2018 Form Approved, AVP-Law LONGITUDINAL PIPELINE AGREEMENT Between Mile Posts 521.29 and 522.58, Santa Ana Industrial Lead Subdivision Location: Santa Ana, Orange County, California THIS AGREEMENT (“Agreement”) is made and entered into as of March 26, 2025, (“Effective Date”) by and between UNION PACIFIC RAILROAD COMPANY, a Delaware corporation, (“Licensor”) and ORANGE COUNTY SANITATION DISTRICT, to be addressed at 18480 Bandilier Circle, Fountain Valley, California 92708 (“Licensee”). IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS: Article 1. LICENSOR GRANTS RIGHT. A.In consideration of the license fee to be paid by Licensee set forth below and in furtherconsideration of the covenants and agreements to be performed by Licensee, Licensor hereby grants toLicensee the right to construct and thereafter, during the term hereof, maintain and operate one (1)twenty-four inch (24") HDPE six thousand eight hundred ninety foot (6890') temporary sewer bypass pipeline encroachment only, including any appurtenances required for the operation of said pipeline(collectively, "Licensee's Facilities") across Licensor’s real property, trackage, or other facilities locatedin Santa Ana, Orange County, State of California ("Railroad Property"). The specific specifications and limited purpose for Licensee's Facilities on, along, across and under Railroad Property are described inand shown on the Print and Specifications dated January 28, 2025, attached hereto as Exhibit A andmade a part hereof. B.Licensee represents and warrants that Licensee's Facilities will (i) only be used for one (1)twenty-four inch (24") HDPE six thousand eight hundred ninety foot (6890') temporary sewer bypasspipeline encroachment, and (ii) not be used to convey any other substance, any fiber optic cable, or forany other use, whether such use is currently technologically possible, or whether such use may comeinto existence during the life of this Agreement. C.Licensee acknowledges that if it or its contractor provides Licensor with digital imagery depicting Licensee's Facilities ("Digital Imagery"), Licensee authorizes Licensor to use the DigitalImagery in preparing Exhibit A. Licensee represents and warrants that through a license or otherwise,it has the right to use the Digital Imagery and to permit Licensor to use the Digital Imagery in saidmanner.Article 2. LICENSE FEE. Upon execution of this Agreement, the Licensee shall pay to the Licensor a one-time License Fee of Three Hundred Seventy Three Thousand Seven Hundred Seventy Dollars ($373,770.00). Article 3. TERM. This Agreement shall take effect as of the Effective Date first herein written and shall continue in full force and effect until terminated as provided in the "TERMINATION; REMOVAL OF LICENSEE’S FACILITIES" Section of Exhibit B. Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340 Article 4. LICENSEE'S COMPLIANCE WITH GENERAL TERMS. Licensee represents and warrants that all work on Licensee's Facilities performed by Licensee or its contractors will strictly comply with all terms and conditions set forth herein, including the General Terms and Conditions, attached hereto as Exhibit B and made a part hereof. Article 5. INSURANCE. A.During the term of this Agreement, Licensee shall fully comply or cause its contractor(s) tofully comply with the insurance requirements described in Exhibit C, attached hereto and made a parthereof. Upon request only, Licensee shall send copies of all insurance documentation (e.g., certificates,endorsements, etc.) to Licensor at the address listed in the "NOTICES" Section of this Agreement. B.If Licensee is subject to statute(s) limiting its insurance liability and/or limiting its ability toobtain insurance in compliance with Exhibit C of this Agreement, those statutes shall apply. Article 6. DEFINITION OF LICENSEE. For purposes of this Agreement, all references in this Agreement to Licensee will include Licensee's contractors, subcontractors, officers, agents and employees, and others acting under its or their authority (collectively, a "Contractor"). If a Contractor is hired by Licensee to perform any work on Licensee's Facilities (including initial construction and subsequent relocation, maintenance, and/or repair work), then Licensee shall provide a copy of this Agreement to its Contractor(s) and require its Contractor(s) to comply with all terms and conditions of this Agreement, including the indemnification requirements set forth in the "INDEMNITY" Section of Exhibit B. Licensee shall require any Contractor to release, defend, and indemnify Licensor to the same extent and under the same terms and conditions as Licensee is required to release, defend, and indemnify Licensor herein. Article 7. ATTORNEYS’ FEES, EXPENSES, AND COSTS. If litigation or other court action or similar adjudicatory proceeding is undertaken by Licensee or Licensor to enforce its rights under this Agreement, all fees, costs, and expenses, including, without limitation, reasonable attorneys’ fees and court costs, of the prevailing Party in such action, suit, or proceeding shall be reimbursed or paid by the Party against whose interest the judgment or decision is rendered. The provisions of this Article shall survive the termination of this Agreement. Article 8. WAIVER OF BREACH. The waiver by Licensor of the breach of any condition, covenant or agreement herein contained to be kept, observed and performed by Licensee shall in no way impair the right of Licensor to avail itself of any remedy for any subsequent breach thereof. Article 9. ASSIGNMENT. A.Licensee shall not assign this Agreement, in whole or in part, or any rights herein granted,without the written consent of Licensor, which must be requested in writing by Licensee. Anyassignment or attempted transfer of this Agreement or any of the rights herein granted, whethervoluntary, by operation of law, or otherwise, without Licensor's written consent, will be absolutely voidand may result in Licensor's termination of this Agreement pursuant to the "TERMINATION;REMOVAL OF LICENSEE'S FACILITIES" Section of Exhibit B. B.Upon Licensor's written consent to any assignment, this Agreement will be binding upon andinure to the benefit of the parties thereto, successors, heirs, and assigns, executors, and administrators. Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340 Article 10. SEVERABILITY. Any provision of this Agreement which is determined by a court of competent jurisdiction to be invalid or unenforceable shall be invalid or unenforceable only to the extent of such determination, which shall not invalidate or otherwise render ineffective any other provision of this Agreement. Article 11. NOTICES. Except Licensee's commencement of work notice(s) required under Exhibit B, all other notices required by this Agreement must be in writing, and (i) personally served upon the business address listed below ("Notice Address"), (ii) sent overnight via express delivery by a nationally recognized overnight delivery service such as Federal Express Corporation or United Parcel Service to the Notice Address, or (iii) by certified mail, return receipt requested to the Notice Address. Overnight express delivery notices will be deemed to be given upon receipt. Certified mail notices will be deemed to be given three (3) days after deposit with the United States Postal Service. If to Licensor: Union Pacific Railroad Company Attn: Analyst – Real Estate Utilities (Project No. 0797181) 1400 Douglas Street, MS 1690 Omaha, Nebraska 68179 If to Licensee: Orange County Sanitation District Article 12. 18480 Bandilier CircleFountain Valley, CA 92708 SPECIAL PROVISION – CONSTRUCTION OBSERVATION. Licensor requires Licensee to provide monitoring of tracks and construction observation through Licensor approved observer named below during all construction and installation work. Licensee is to directly coordinate services with the named inspector: Railpros Field Services Email: RP.Utility@railpros.com Phone (682)223-5271 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first herein written. UNION PACIFIC RAILROAD COMPANY By: __________________________________ Thomas Leddy Mgr II Real Estate ORANGE COUNTY SANITATION DISTRICT By: __________________________________ Ryan P. Gallagher Board Chairman Attest: __________________________________ Kelly A. Lore Clerk of the Board Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340 Pipeline Crossing 06/05/18 Form Approved, AVP Law EXHIBIT B GENERAL TERMS AND CONDITIONS Section 1. LIMITATION AND SUBORDINATION OF RIGHTS GRANTED. A. The foregoing grant is subject and subordinate to the prior and continuing right and obligation of Licensor to use and maintain its entire property including the right and power of Licensor to construct, maintain, repair, renew, use, operate, change, modify or relocate railroad tracks, signal, communication, fiber optics, or other wirelines, pipelines and other facilities upon, along or across any or all parts of its property, all or any of which may be freely done at any time or times by Licensor without liability to Licensee or to any other party for compensation or damages. B. The foregoing grant is also subject to all outstanding superior rights (including those in favor of licensees and lessees of Railroad Property) and the right of Licensor to renew and extend the same, and is made without covenant of title or for quiet enjoyment. It shall be Licensee's sole obligation to obtain such additional permission, license and grants necessary on account of any such existing rights. Section 2. ENGINEERING REQUIREMENTS; PERMITS. A. Licensee's Facilities will be designed, constructed, operated, maintained, repaired, renewed, modified, reconstructed, removed, or abandoned in place on Railroad Property by Licensee or its contractor to Licensor's satisfaction and in strict conformity with: (i) Licensor’s current engineering standards and specifications, including those for shoring and cribbing to protect Licensor's railroad operations and facilities ("UP Specifications"), except for variances approved in advance in writing by Licensor’s Assistant Vice President Engineering – Design or its authorized representative ("UP Engineering Representative"); (ii) such other additional safety standards as Licensor, in its sole discretion, elects to require, including, without limitation, American Railway Engineering and Maintenance-of-Way Association ("AREMA") standards and guidelines (collectively, "UP Additional Requirements"); and (iii) all applicable laws, rules, and regulations, including any applicable Federal Railroad Administration and Federal Energy Regulatory Commission regulations and enactments (collectively, "Laws"). If there is any conflict between UP Specifications, UP Additional Requirements, and Laws, the most restrictive will apply. B. Licensee shall keep the soil over Licensee's Facilities thoroughly compacted, and maintain the grade over and around Licensee's Facilities even with the surface of the adjacent ground. C. If needed, Licensee shall secure, at Licensee's sole cost and expense, any and all necessary permits required to perform any work on Licensee's Facilities. Section 3. NOTICE OF COMMENCEMENT OF WORK; EMERGENCIES. A. Licensee and its contractors are strictly prohibited from commencing any work associated with Licensee's Facilities without Licensor's written approval that the work will be in strict compliance with the "ENGINEERING REQUIREMENTS; PERMITS" Section of this Exhibit B. Upon Licensor's approval, Licensee shall contact both of Licensor's field representatives ("Licensor's Field Representatives") at least ten (10) days before commencement of any work on Licensee's Facilities. B. Licensee shall not commence any work until: (1) Licensor has determined whether flagging or other special protective or safety measures ("Safety Measures") are required for performance of the work pursuant to the "FLAGGING" Section of this Exhibit B and provided Licensee written Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340 authorization to commence work; and (2) Licensee has complied with the "PROTECTION OF FIBER OPTIC CABLE SYSTEMS" Section of this Exhibit B. C. If, at any time, an emergency arises involving Licensee's Facilities, Licensee or its contractor shall immediately contact Licensor's Response Management Communications Center at (888) 877-7267. Section 4. FLAGGING. A. Following Licensee's notice to Licensor's Field Representatives required under the "NOTICE OF COMMENCEMENT OF WORK; EMERGENCIES" Section of this Exhibit B, Licensor shall inform Licensee if Safety Measures are required for performance of the work by Licensee or its contractor on Railroad Property. If Safety Measures are required, no work of any kind may be performed by Licensee or its contractor(s) until arrangements for the Safety Measures have been made and scheduled. If no Safety Measures are required, Licensor will give Licensee written authorization to commence work. B. If any Safety Measures are performed or provided by Licensor, including but not limited to flagging, Licensor shall bill Licensee for such expenses incurred by Licensor, unless Licensor and a federal, state, or local governmental entity have agreed that Licensor is to bill such expenses to the federal, state, or local governmental entity. Additional information regarding the submission of such expenses by Licensor and payment thereof by Licensee can be found in the "LICENSEE’S PAYMENT OF EXPENSES" Section of this Exhibit B. If Licensor performs any Safety Measures, Licensee agrees that Licensee is not relieved of any of responsibilities or liabilities set forth in this Agreement. C. For flagging, the rate of pay per hour for each flagger will be the prevailing hourly rate in effect for an eight-hour day for the class of flagmen used during regularly assigned hours and overtime in accordance with Labor Agreements and Schedules in effect at the time the work is performed. In addition to the cost of such labor, a composite charge for vacation, holiday, health and welfare, supplemental sickness, Railroad Retirement and unemployment compensation, supplemental pension, Employees Liability and Property Damage, and Administration will be included, computed on actual payroll. The composite charge will be the prevailing composite charge in effect at the time the work is performed. One and one-half times the current hourly rate is paid for overtime, Saturdays and Sundays, and two and one-half times current hourly rate for holidays. Wage rates are subject to change, at any time, by law or by agreement between Licensor and its employees, and may be retroactive as a result of negotiations or a ruling of an authorized governmental agency. Additional charges on labor are also subject to change. If the wage rate or additional charges are changed, Licensee (or the governmental entity, as applicable) shall pay on the basis of the new rates and charges. D. Reimbursement to Licensor will be required covering the full eight-hour day during which any flagger is furnished, unless the flagger can be assigned to other railroad work during a portion of such day, in which event reimbursement will not be required for the portion of the day during which the flagger is engaged in other railroad work. Reimbursement will also be required for any day not actually worked by the flaggers following the flaggers' assignment to work on the project for which Licensor is required to pay the flaggers and which could not reasonably be avoided by Licensor by assignment of such flaggers to other work, even though Licensee may not be working during such time. When it becomes necessary for Licensor to bulletin and assign an employee to a flagging position in compliance with union collective bargaining agreements, Licensee must provide Licensor a minimum of five (5) days notice prior to the cessation of the need for a flagger. If five (5) days notice of cessation is not given, Licensee will still be required to pay flagging charges for the days the flagger was scheduled, even though flagging is no longer required for that period. An additional ten (10) days notice must then be given to Licensor if flagging services are needed again after such five day cessation notice has been given to Licensor. Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340 Section 5. SAFETY. A. Safety of personnel, property, rail operations and the public is of paramount importance in the prosecution of any work on Railroad Property performed by Licensee or its contractor, and takes precedence over any work on Licensee's Facilities to be performed Licensee or its contractors. Licensee shall be responsible for initiating, maintaining and supervising all safety operations and programs in connection with any work on Licensee's Facilities. Licensee and its contractor shall, at a minimum comply, with Licensor's then current safety standards located at the below web address ("Licensor's Safety Standards") to ensure uniformity with the safety standards followed by Licensor's own forces. As a part of Licensee's safety responsibilities, Licensee shall notify Licensor if it determines that any of Licensor's Safety Standards are contrary to good safety practices. Licensee and its contractor shall furnish copies of Licensor's Safety Standards to each of its employees before they enter Railroad Property. Union Pacific Current Safety Requirements B. Licensee shall keep the job site on Railroad Property free from safety and health hazards and ensure that their employees are competent and adequately trained in all safety and health aspects of the work. C. Licensee represents and warrants that all parts of Licensee's Facilities within and outside of the limits of Railroad Property will not interfere whatsoever with the constant, continuous, and uninterrupted use of the tracks, property, and facilities of Licensor, and nothing shall be done or suffered to be done by Licensee at any time that would in any manner impair the safety thereof. D. Licensor's operations and work performed by Licensor’s personnel may cause delays in Licensee's or its contractor's work on Licensee's Facilities. Licensee accepts this risk and agrees that Licensor shall have no liability to Licensee or any other person or entity for any such delays. Licensee must coordinate any work on Railroad Property by Licensee or any third party with Licensor's Field Representatives in strict compliance with the "NOTICE OF COMMENCEMENT OF WORK; EMERGENCIES" Section of this Exhibit E. Licensor shall have the right, if it so elects, to provide any support it deems necessary for the safety of Licensor's operations and trackage during Licensee's or its contractor's construction, maintenance, repair, renewal, modification, relocation, reconstruction, or removal of Licensee's Facilities. In the event Licensor provides such support, Licensor shall invoice Licensee, and Licensee shall pay Licensor as set forth in the "LICENSEE'S PAYMENT OF EXPENSES" Section of this Exhibit B. F. Licensee may use unmanned aircraft systems ("UAS") to inspect Licensee's Facilities only upon the prior authorization from and under the direction of Licensor's Field Representatives. Licensee represents and warrants that its use of UAS on Railroad Property will comply with Licensor's then-current Unmanned Aerial Systems Policy and all applicable laws, rules and regulations, including any applicable Federal Aviation Administration regulations and enactments pertaining to UAS. Section 6. PROTECTION OF FIBER OPTIC CABLE SYSTEMS. Fiber optic cable systems may be buried on Railroad Property. Protection of the fiber optic cable systems is of extreme importance since any break could disrupt service to users resulting in business interruption and loss of revenue and profits. In addition to the notifications required under the "NOTICE OF COMMENCEMENT OF WORK; EMERGENCIES" Section of this Exhibit B, Licensee shall complete the required form at up.com/CBUD to determine if fiber optic cable is buried anywhere on Railroad Property to be used by Licensee. If it is, Licensee shall telephone the telecommunications company(ies) involved, and arrange for a cable locator, make arrangements for relocation or other protection of the fiber optic cable, all at Licensee’s expense, and will not commence any work on Railroad Property until all such protection or relocation has been completed. Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340 Section 7. LICENSEE'S PAYMENT OF EXPENSES. A. Licensee shall bear the entire cost and expense of the design, construction, maintenance, modification, reconstruction, repair, renewal, revision, relocation, or removal of Licensee's Facilities. B. Licensee shall fully pay for all materials joined, affixed to and labor performed on Railroad Property in connection with the construction, maintenance, modification, reconstruction, repair, renewal, revision, relocation, or removal of Licensee's Facilities, and shall not permit or suffer any mechanic’s or materialman’s lien of any kind or nature to be enforced against the property for any work done or materials furnished thereon at the instance or request or on behalf of Licensee. Licensee shall promptly pay or discharge all taxes, charges, and assessments levied upon, in respect to, or on account of Licensee's Facilities, to prevent the same from becoming a charge or lien upon any property of Licensor, and so that the taxes, charges, and assessments levied upon or in respect to such property shall not be increased because of the location, construction, or maintenance of Licensee's Facilities or any improvement, appliance, or fixture connected therewith placed upon such property, or on account of Licensee’s interest therein. Where such tax, charge, or assessment may not be separately made or assessed to Licensee but shall be included in the assessment of the property of Licensor, then Licensee shall pay to Licensor an equitable proportion of such taxes determined by the value of Licensee’s property upon property of Licensor as compared with the entire value of such property. C. As set forth in the "FLAGGING" Section of this Exhibit B, Licensor shall have the right, if it so elects, to provide any Safety Measures Licensor deems necessary for the safety of Licensor's operations and trackage during Licensee's or its contractor's construction, maintenance, modification, reconstruction, repair, renewal, revision, relocation, or removal of Licensee's Facilities, including, but not limited to supervision, inspection, and flagging services. In the event Licensor provides such Safety Measures, Licensor shall submit an itemized invoice to Licensee's notice recipient listed in the "NOTICES" Article of this Agreement. Licensee shall pay to Licensor the total amount listed on such invoice within thirty (30) days of Licensee's receipt of such invoice. Section 8. MODIFICATIONS TO LICENSEE'S FACILITIES. A. This grant is subject to Licensor's safe and efficient operation of its railroad, and continued use and improvement of Railroad Property (collectively, "Railroad's Use"). Accordingly, Licensee shall, at its sole cost and expense, modify, reconstruct, repair, renew, revise, relocate, or remove (individually, "Modification", or collectively, "Modifications") all or any portion of Licensee's Facilities as Licensor may designate or identify, in its sole discretion, in the furtherance of Railroad's Use. B. Upon any Modification of all or any portion of Licensee's Facilities to another location on Railroad Property, Licensor and Licensee shall execute a Supplemental Agreement to this Pipeline Agreement to document the Modification(s) to Licensee's Facilities on Railroad Property. If the Modifications result in Licensee's Facilities moving off of Railroad Property, this Agreement will terminate upon Licensee's completion of such Modification(s) and all requirements contained within the "TERMINATION; REMOVAL OF LICENSEE’S FACILITIES" Section of this Exhibit B. Any such Modification(s) off of Railroad Property will not release Licensee from any liability or other obligation of Licensee arising prior to and upon completion of any such Modifications to the Licensee's Facilities. Section 9. RESTORATION OF RAILROAD PROPERTY. In the event Licensee, in any manner moves or disturbs any property of Licensor in connection with the construction, maintenance, modification, reconstruction, repair, renewal, revision, relocation, or removal of Licensee's Facilities, then, Licensee shall, as soon as possible and at Licensee’s sole cost Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340 and expense, restore Licensor’s property to the same condition as the same were before such property was moved or disturbed. Section 10. INDEMNITY. A. Definitions. As used in this Section: 1. "Licensor" includes Licensor, its affiliates, its and their officers, directors, agents and employees, and other railroad companies using Railroad Property at or near the location of Licensee’s installation and their officers, directors, agents, and employees. 2. "Licensee" includes Licensee and its agents, contractors, subcontractors, sub- subcontractors, employees, officers, and directors, or any other person or entity acting on its behalf or under its control. 3. "Loss" includes claims, suits, taxes, loss, damages (including punitive damages, statutory damages, and exemplary damages), costs, charges, assessments, judgments, settlements, liens, demands, actions, causes of action, fines, penalties, interest, and expenses of any nature, including court costs, reasonable attorneys’ fees and expenses, investigation costs, and appeal expenses. B. Licensee shall release, defend, indemnify, and hold harmless Licensor from and against any and all Loss, even if groundless, fraudulent, or false, that directly or indirectly arises out of or is related to Licensee’s construction, maintenance, modification, reconstruction, repair, renewal, revision, relocation, removal, presence, use, or operation of Licensee's Facilities, including, but not limited to, any actual or alleged: 1. Bodily harm or personal injury (including any emotional injury or disease) to, or the death of, any person(s), including, but not limited to, Licensee, Licensor, any telecommunications company, or the agents, contractors, subcontractors, sub-subcontractors, or employees of the foregoing; 2. Damage to or the disturbance, loss, movement, or destruction of Railroad Property, including loss of use and diminution in value, including, but not limited to, any telecommunications system(s) or fiber optic cable(s) on or near Railroad Property, any property of Licensee or Licensor, or any property in the care, custody, or control of Licensee or Licensor; 3. Removal of person(s) from Railroad Property; 4. Any delays or interference with track or Railroad’s Use caused by Licensee's activity(ies) on Railroad Property, including without limitation the construction, maintenance, modification, reconstruction, repair, renewal, revision, relocation, or removal of Licensee's Facilities or any part thereof, any activities, labor, materials, equipment, or machinery in conjunction therewith; 5. Right(s) or interest(s) granted pursuant to this Agreement; 6. Contents escaping from Licensee's Facilities, including without limitation any actual or alleged pollution, contamination, breach, or environmental Loss; Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340 7. Licensee’s breach of this Agreement or failure to comply with its provisions, including, but not limited to, any violation or breach by Licensee of any representations and warranties Licensee has made in this Agreement; and 8. Violation by Licensee of any law, statute, ordinance, governmental administrative order, rule, or regulation, including without limitation all applicable Federal Railroad Administration regulations. C. THE FOREGOING OBLIGATIONS SHALL APPLY TO THE FULLEST EXTENT PERMITTED BY LAW FOR THE BENEFIT OF LICENSOR TO LOSSES CAUSED BY, ARISING FROM, RELATING TO, OR RESULTING FROM, IN WHOLE OR IN PART, THE NEGLIGENCE OF LICENSOR, AND SUCH NEGLIGENCE OF LICENSOR SHALL NOT LIMIT, DIMINISH, OR PRECLUDE LICENSEE’S OBLIGATIONS TO LICENSOR IN ANY RESPECT. NOTWITHSTANDING THE FOREGOING, SUCH OBLIGATION TO INDEMNIFY LICENSOR SHALL NOT APPLY TO THE EXTENT THE LOSS IS CAUSED BY THE SOLE, ACTIVE AND DIRECT NEGLIGENCE, GROSS NEGLIGENCE, OR WILLFUL MISCONDUCT OF LICENSOR AS DETERMINED IN A FINAL JUDGMENT BY A COURT OF COMPETENT JURISDICTION. Section 11. TERMINATION; REMOVAL OF LICENSEE'S FACILITIES. A. If Licensee does not use the right herein granted on Licensee's Facilities for one (1) year, or if Licensee continues in default in the performance of any provision of this Agreement for a period of thirty (30) days after written notice from Licensor to Licensee specifying such default, Licensor may, at its sole discretion, terminate this Agreement by written notice to Licensee at the address listed in the "NOTICES" Article of this Agreement. This Agreement will not terminate until Licensee complies with Paragraphs "C" and "D" of this Section found below. B. In addition to the provisions of Paragraph "A" above, this Agreement may be terminated by written notice given by either party, without cause, upon thirty (30) days written notice to the non-terminating party at the address listed in the "NOTICES" Article of this Agreement. This Agreement will not terminate until Licensee complies with Paragraphs "C" and "D" of this Section found below. C. Prior to the effective date of any termination described in this Section, Licensee shall submit an application to Licensor's online Utility Contracts System at this link for Licensee's removal, or if applicable, abandonment in place of Licensee's Facilities located on Railroad Property ("Removal/Abandonment Work"). Upon the UP Engineering Representative's approval of Licensee's application for the Removal/Abandonment Work, Licensor and Licensee shall execute a separate consent document that will govern Licensee's performance of the Removal/Abandonment Work from those portions of Railroad Property not occupied by roadbed and/or trackage ("Consent Document"). Licensee shall then restore the impacted Railroad Property to the same or reasonably similar condition as it was prior to Licensee's installation of Licensee's Facilities. For purposes of this Section, Licensee's (i) performance of the Removal/Abandonment Work, and (ii) restoration work will hereinafter be collectively referred to as the "Restoration Work". D. Following Licensee's completion of the Restoration Work, Licensee shall provide a written certification letter to Licensor at the address listed in the "NOTICES" Article of this Agreement which certifies that the Restoration Work has been completed in accordance with the Consent Document. Licensee shall report to governmental authorities, as required by law, and notify Licensor immediately if any environmental contamination is discovered during Licensee's performance of the Restoration Work. Upon discovery, the Licensee shall initiate any and all removal, remedial and restoration actions that are necessary to restore the property to its original, uncontaminated condition. Licensee shall provide written certification to Licensor at the address listed in the "NOTICES" Article of this Agreement that environmental contamination has been remediated and the property has been Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340 restored in accordance with Licensor's requirements. Upon Licensor's receipt of Licensee's restoration completion certifications, this Agreement will terminate. E. In the event that Licensee fails to complete any of the Restoration Work, Licensor may, but is not obligated, to perform the Restoration Work. Any such work actually performed by Licensor will be at the cost and expense of Licensee. In the event that Licensor performs any of the Restoration Work, Licensee shall release Licensor from any and all Loss (defined in the "INDEMNITY" Section of this Exhibit B) arising out of or related to Licensor's performance of the Restoration Work. F. Termination of this Agreement for any reason will not affect any of rights or obligations of the parties which may have accrued, or liabilities or Loss (defined in the "INDEMNITY" Section of this Exhibit B), accrued or otherwise, which may have arisen prior to such termination. Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340 EXHIBIT C INSURANCE REQUIREMENTS In accordance with Article 5 of this Agreement, Licensee shall (1) procure and maintain at its sole cost and expense, or (2) require its Contractor(s) to procure and maintain, at their sole cost and expense, the following insurance coverage: A. Commercial General Liability Insurance. Commercial general liability (CGL) with a limit of not less than $2,000,000 each occurrence and an aggregate limit of not less than $4,000,000. CGL insurance must be written on ISO occurrence form CG 00 01 12 04 (or a substitute form providing equivalent coverage). The policy must also contain the following endorsement, WHICH MUST BE STATED ON THE CERTIFICATE OF INSURANCE: • Contractual Liability Railroads ISO form CG 24 17 10 01 (or a substitute form providing equivalent coverage) showing "Union Pacific Railroad Company Property" as the Designated Job Site. B. Business Automobile Coverage Insurance. Business auto coverage written on ISO form CA 00 01 10 01 (or a substitute form providing equivalent liability coverage) with a limit of not less $2,000,000 for each accident, and coverage must include liability arising out of any auto (including owned, hired, and non-owned autos). The policy must contain the following endorsements, WHICH MUST BE STATED ON THE CERTIFICATE OF INSURANCE: • "Coverage For Certain Operations In Connection With Railroads" ISO form CA 20 70 10 01 (or a substitute form providing equivalent coverage) showing "Union Pacific Railroad Company Property" as the Designated Job Site. C. Workers' Compensation and Employers' Liability Insurance. Coverage must include but not be limited to: • Licensee’s statutory liability under the workers' compensation laws of the state(s) affected by this Agreement. • Employers' Liability (Part B) with limits of at least $500,000 each accident, $500,000 disease policy limit $500,000 each employee. If Licensee is self-insured, evidence of state approval and excess workers' compensation coverage must be provided. Coverage must include liability arising out of the U. S. Longshoremen's and Harbor Workers' Act, the Jones Act, and the Outer Continental Shelf Land Act, if applicable. D. Environmental Liability Insurance. Environmental Legal Liability Insurance (ELL) applicable to bodily injury, property damage, including loss of use of damaged property or of property that has not been physically injured or destroyed, cleanup costs, and defense, including costs and expenses incurred in the investigation, defense, or settlement of claims, or compliance with statute, all in connection with any loss arising from the insured’s performance under this Agreement. Except with respect to the limits of insurance, and any rights or duties specifically assigned to the first named insured, this insurance must apply as if each named insured were the only named insured; and separately to the additional insured against which claim is made or suit is brought. Coverage shall be maintained in an amount of at least $2,000,000 per loss, with an annual aggregate of at least $4,000,000. Licensee warrants that any retroactive date applicable to ELL insurance coverage under the policy is the same as or precedes the Effective Date of this Agreement, and that continuous coverage Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340 will be maintained for a period of five (5) years beginning from the time the work under this Agreement is completed or if coverage is cancelled for any reason the policies extended discovery period, if any, will be exercised for the maximum time allowed. E. Railroad Protective Liability Insurance. Licensee must maintain for the duration of work "Railroad Protective Liability" insurance written on ISO occurrence form CG 00 35 12 04 (or a substitute form providing equivalent coverage) on behalf of Licensor only as named insured, with a limit of not less than $2,000,000 per occurrence and an aggregate of $6,000,000. The definition of "JOB LOCATION" and "WORK" on the declaration page of the policy shall refer to this Agreement and shall describe all WORK or OPERATIONS performed under this Agreement. Notwithstanding the foregoing, Licensee does not need Railroad Protective Liability Insurance after its initial construction work is complete and all excess materials have been removed from Licensor's property; PROVIDED, however, that Licensee shall procure such coverage for any subsequent maintenance, repair, renewal, modification, reconstruction, or removal work on Licensee's Facilities. F. Umbrella or Excess Insurance. If Licensee utilizes umbrella or excess policies, and these policies must "follow form" and afford no less coverage than the primary policy. Other Requirements G. All policy(ies) required above (except business automobile, workers' compensation and employers' liability) must include Licensor as "Additional Insured" using ISO Additional Insured Endorsement CG 20 26 (or substitute form(s) providing equivalent coverage). The coverage provided to Licensor as additional insured shall not be limited by Licensee’s liability under the indemnity provisions of this Agreement. BOTH LICENSOR AND LICENSEE EXPECT THAT LICENSOR WILL BE PROVIDED WITH THE BROADEST POSSIBLE COVERAGE AVAILABLE BY OPERATION OF LAW UNDER ISO ADDITIONAL INSURED FORM CG 20 26. H. Punitive damages exclusion, if any, must be deleted (and the deletion indicated on the certificate of insurance), unless (a) insurance coverage may not lawfully be obtained for any punitive damages that may arise under this Agreement, or (b) all punitive damages are prohibited by all states in which this Agreement will be performed. I. Licensee waives all rights of recovery, and its insurers also waive all rights of subrogation of damages against Licensor and its agents, officers, directors and employees for damages covered by the workers' compensation and employers' liability or commercial umbrella or excess liability obtained by Licensee required in this Agreement, where permitted by law. This waiver must be stated on the certificate of insurance. J. All insurance policies must be written by a reputable insurance company acceptable to Licensor or with a current Best's Insurance Guide Rating of A- and Class VII or better, and authorized to do business in the state(s) in which the work is to be performed. K. The fact that insurance is obtained by Licensee will not be deemed to release or diminish the liability of Licensee, including, without limitation, liability under the indemnity provisions of this Agreement. Damages recoverable by Licensor from Licensee or any third party will not be limited by the amount of the required insurance coverage. Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fx. (402) 501-0340 March 26, 2025 Project: 0797181 OC SAN RE: Proposed Construction of One (1) Six Thousand Eight Hundred Ninety Foot (6890') Twenty-Four Inch (24") HDPE Temporary Sewer Bypass Pipeline Encroachment Only Between Mile Posts 521.29 and 522.58 on the Santa Ana Industrial Lead Subdivision at or near Santa Ana, Orange County, California. Attached is an original of the agreement covering your use of the Railroad Company’s right of way. Review and return the partially executed agreement via email. Payment, with Project No. 0797181 referenced, in the amount of Three Hundred Seventy Three Thousand Seven Hundred Seventy ($373,770.00) is due and payable to Union Pacific Railroad Company upon your execution of the agreement. If you require formal billing, you may consider this letter as a formal bill. In compliance with the Internal Revenue Service's new policy regarding their Form 1099, I certify that 946001323 is this Corporation’s correct Federal Taxpayer Identification Number. Send Electronic Payments to: Name: Bank of America, Dallas, TX Union Pacific Account = 3752021457 • ACH Routing Number = 1110-0001-2 • Wire Routing Number = 026009593 Mail Checks to: Union Pacific Railroad Company 12567 Collection Center Drive Chicago, IL 60693 • CHECKS ONLY – NO AGREEMENTS UP does not currently offer a credit card option for these payments. Railroad Protective Liability Insurance (RPLI) may be obtained from any insurance company which offers such coverage. Union Pacific has also worked with a national broker, Marsh USA, to make available RPLI to you or your contractor. You can find additional information, premium quotes, and application forms at (uprr.marsh.com). If we have not received the executed document within six months from the date of this letter, this proposed offer of an agreement is withdrawn and becomes null and void. After final approval and processing, the fully-executed agreement will be returned to you via email with instructions for coordinating your work. In no event should you begin work until you have received your counterpart of the fully-executed agreement. If you have any questions, please contact me at tleddy@up.com. Sincerely, Thomas Leddy Mgr II Real Estate OPERATIONS COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4144 Agenda Date:6/4/2025 Agenda Item No:4. FROM:Robert Thompson, General Manager Originator: Mike Dorman, Director of Engineering SUBJECT: ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS, PROJECT NO. J-98 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Receive and file Bid Tabulation and Recommendation for Electrical Power Distribution System Improvements, Project No. J-98; B. Award a Construction Contract Agreement to Shimmick Construction Company, Inc., for Electrical Power Distribution System Improvements, Project No. J-98, for a total amount not to exceed $ 24,352,127; and C. Approve a contingency of $2,435,213 (10%). BACKGROUND The electrical distribution systems at Orange County Sanitation District (OC San)Plant Nos.1 and 2 supply power to all plant facilities and consist of distribution centers,power buildings,and electrical rooms throughout both plants.These facilities use switchgear and automatic transfer switches to distribute power from three different generation sources,Southern California Edison (SCE),Central Generation Facility (CenGen), and standby generators. RELEVANT STANDARDS ·Comply with California Public Contract Code Section 20103.8, award construction contract to lowest responsive, responsible bidder ·24/7/365 treatment plant reliability ·Protect OC San assets PROBLEM During an SCE power outage at Plant No.1,CenGen is not capable of powering the entire plant, resulting in CenGen shutting down and select critical loads being automatically powered by standby generators.The remaining loads required for wastewater treatment will not be powered until the central generation facility is restarted,and electrical maintenance is called out to reconfigure the electrical system.In addition,there is a high arc flash potential at a number of electrical switchgearOrange County Sanitation District Printed on 5/27/2025Page 1 of 4 powered by Legistar™ File #:2025-4144 Agenda Date:6/4/2025 Agenda Item No:4. electrical system.In addition,there is a high arc flash potential at a number of electrical switchgear lineups throughout Plant No. 1. At Plant No.2,the plant power monitoring and control system and arc flash mitigation system were not extended to Distribution Center A and Power Building B due to anticipated demolition at the time of design.The Power Building B 12kV-480V transformers have reached the end of their useful life. The Power Building D generator,automatic transfer switch,and 12kV-480V transformer have reached the end of their useful life.Headworks and Effluent Pump Station Annex (EPSA)standby generator systems do not have connections to easily load test the generators or a grounding system that meets the latest industry standards. PROPOSED SOLUTION Award a construction contract agreement to implement a load shedding system and arc flash mitigation system at Plant No.1 (similar to Project No.J-117B at Plant No.2);extend the plant power monitoring and controls system and arc flash mitigation system to Distribution Center A and Power Building B;replace aged transformers at Power Building B;refeed Power Building D from Distribution Center F;and add portable load bank connections and grounding system improvements at the Headworks and EPSA standby generation facilities. TIMING CONCERNS If the project is delayed,the electrical distribution system may suffer from reduced safety,reduced reliability,increased maintenance costs,and unexpected process facility outages with increased potential for spills. RAMIFICATIONS OF NOT TAKING ACTION Numerous small and large projects would need to be initiated to install,replace,and upgrade the various protective relays,breakers,conductors,and grounding systems.At Plant No.1,the electrical distribution system would continue to have a more time-consuming restoration of power during a loss of SCE power. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION OC San advertised Project No.J-98 for bids on December 12,2024,and four sealed bids were received on March 18, 2025. A summary of the bid opening follows: Engineer’s Estimate $ 13,200,000 Bidder Amount of Bid Shimmick Construction Company, Inc.$ 24,352,127 Helix Electric, Inc.$ 25,700,000 LEED Electric, Inc.$ 27,654,892 Mass Electric Construction Company $ 36,203,000 Orange County Sanitation District Printed on 5/27/2025Page 2 of 4 powered by Legistar™ File #:2025-4144 Agenda Date:6/4/2025 Agenda Item No:4. Engineer’s Estimate $ 13,200,000 Bidder Amount of Bid Shimmick Construction Company, Inc.$ 24,352,127 Helix Electric, Inc.$ 25,700,000 LEED Electric, Inc.$ 27,654,892 Mass Electric Construction Company $ 36,203,000 The bids were evaluated in accordance with the OC San’s policies and procedures.A notice was sent to all bidders on April 24,2025,informing them of the intent of OC San staff to recommend award of the Construction Contract Agreement to Shimmick Construction Company, Inc. OC San received bids from multiple Contractors,three within similar range and all higher than the Engineer’s Estimate.This indicates that the Engineer’s Estimate was significantly lower than the actual project cost. Given the cost difference,OC San issued a clarification request to Shimmick Construction Company, Inc.asking to provide general cost estimates for the work related to site,civil,electrical, instrumentation,and general conditions to closely compare the information against the Engineer’s Estimate and understand the areas where the gaps between the amounts were. Shimmick Construction Company,Inc.bid cost was higher than the Engineer’s Estimate in the following areas:1)site and civil (153%higher);2)Engineer’s Estimate did not include costs for temporary power and shutdowns,and underestimated commissioning costs (90%higher);3) Engineer’s Estimate did not account for the extensive engineering for shop drawing,field verification, and commissioning for the switchgear modifications (84%higher);4)the equipment cost escalation outpaced the cost index rates used in the Engineer’s Estimate for the 2021 and 2023 equipment quotes (44% higher); and 5) General Conditions (77% higher). Based on the three lowest bids and the cost factors identified during the bid review,staff believe the difference between the Engineer’s Estimate and Shimmick Construction Company,Inc.’s price is accounted for and reasonable. Staff recommends awarding a Construction Contract Agreement to the lowest responsive and responsible bidder,Shimmick Construction Company,Inc.,for a total amount not to exceed $ 24,352,127. CEQA The project is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations section 15301.A Notice of Exemption has been filed with the OC Clerk- Recorder. FINANCIAL CONSIDERATIONS This request complies with the authority levels of OC San’s Purchasing Ordinance.This item has been budgeted (Budget FY 2024-25 and 2025-26,Section 8,Page 48,Electrical Power Distribution System Improvements,Project No.J-98)and an increase to the project budget is being requested as part of the annual budget update.The award of this contract will be contingent upon approval of the Orange County Sanitation District Printed on 5/27/2025Page 3 of 4 powered by Legistar™ File #:2025-4144 Agenda Date:6/4/2025 Agenda Item No:4. part of the annual budget update.The award of this contract will be contingent upon approval of the increased project budget as part of the budget update adoption. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Construction Contract Agreement ·Presentation TW:lb Orange County Sanitation District Printed on 5/27/2025Page 4 of 4 powered by Legistar™ C-CA-101424 PART A CONTRACT AGREEMENT C-CA-101424 TABLE OF CONTENTS CONTRACT AGREEMENT SECTION – 1 GENERAL ................................................................................. 1 SECTION – 2 MATERIALS AND LABOR ........................................................ 4 SECTION – 3 PROJECT ................................................................................. 4 SECTION – 4 PLANS AND SPECIFICATIONS ............................................... 5 SECTION – 5 TIME OF COMMENCEMENT AND COMPLETION .................. 5 SECTION – 6 TIME IS OF THE ESSENCE ..................................................... 5 SECTION – 7 EXCUSABLE DELAYS ............................................................. 6 SECTION – 8 EXTRA WORK .......................................................................... 6 SECTION – 9 CHANGES IN PROJECT .......................................................... 7 SECTION – 10 LIQUIDATED DAMAGES FOR DELAY .................................... 7 SECTION – 11 CONTRACT PRICE AND METHOD OF PAYMENT ................. 7 SECTION – 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS .......................................................... 9 SECTION – 13 COMPLETION .......................................................................... 9 SECTION – 14 CONTRACTOR’S EMPLOYEES COMPENSATION .............. 10 SECTION – 15 SURETY BONDS ................................................................... 12 SECTION – 16 INSURANCE ........................................................................... 12 SECTION – 17 RISK AND INDEMNIFICATION .............................................. 21 SECTION – 18 TERMINATION ....................................................................... 21 SECTION – 19 WARRANTY ........................................................................... 21 SECTION – 20 ASSIGNMENT ........................................................................ 22 SECTION – 21 RESOLUTION OF DISPUTES ................................................ 22 SECTION – 22 SAFETY & HEALTH ............................................................... 22 SECTION – 23 CALIFORNIA VOLUNTARY PROTECTION PROGRAM ANNUAL REPORTING REQUIREMENT................................ 23 SECTION – 24 NOTICES ................................................................................ 23 CONFORMED C-CA-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 1 of 25 CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS This CONTRACT AGREEMENT (Contract Agreement) is made and entered into, to be effective, this June 25, 2025, by and between Shimmick Construction Company, Inc., hereinafter referred to as “CONTRACTOR” and the Orange County Sanitation District, hereinafter referred to as “OC SAN”. WITNESSETH That for and in consideration of the promises and agreements hereinafter made and exchanged, OC SAN and CONTRACTOR agree as follows: SECTION – 1 GENERAL CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the Work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR’s investigation of all such matters and is in no way relying upon any opinions or representations of OC SAN. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents are each incorporated into this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the Work covered by this Contract. A. Contract Documents Order of Precedence “Contract Documents” refers to those documents identified in the definition of “Contract Documents” in the General Conditions, “Definitions”. C-CA-101424 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 2 of 25 1. In the event of a conflict between one Contract Document and any of the other Contract Documents, the provisions in the document highest in precedence shall be controlling. The order of precedence of the Contract Documents is as follows: a. Supplemental Agreements – the last in time being the first in precedence b. Addenda issued prior to the date for submittal of Bids – the last in time being the first in precedence c. Contract Agreement d. Permits and other regulatory requirements e. Special Provisions f. General Conditions (GC) g. Notice Inviting Bids and Instruction to Bidders h. Geotechnical Baseline Report (GBR), if attached as a Contract Document i. Plans and Specifications – in these documents the order of precedence shall be: i. Specifications (Divisions 01-17) ii. Plans iii. General Requirements (GR) iv. Standard Drawings and Typical Details j. CONTRACTOR’s Bid 2. In the event of a conflict between terms within an individual Contract Document, the conflict shall be resolved by applying the following principles as appears applicable: a. Figured dimensions on the Contract Documents shall govern. Dimensions not specified shall be as directed by the ENGINEER. Details not shown or specified shall be the same as similar parts that are shown or specified, or as directed. Full-size details shall take precedence over scale Drawings as to CONFORMED C-CA-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 3 of 25 shape and details of construction. Specifications shall govern as to material and workmanship. b. The Contract Documents calling for the higher quality material or workmanship shall prevail. Materials or Work described in words, which so applied, have a well-known technical or trade meaning shall be deemed to refer to such recognized standards. In the event of any discrepancy between any Drawings and the figures thereon, the figures shall be taken as correct. c. Scale Drawings, full-size details, and Specifications are intended to be fully complementary and to agree. Should any discrepancy between Contract Documents come to the CONTRACTOR’s attention, or should an error occur in the efforts of others, which affect the Work, the CONTRACTOR shall notify the ENGINEER, in writing, at once. In the event any doubts or questions arise with respect to the true meaning of the Contract Documents, reference shall be made to the ENGINEER whose written decision shall be final. If the CONTRACTOR proceeds with the Work affected without written instructions from the ENGINEER, the CONTRACTOR shall be fully responsible for any resultant damage or defect. d. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to OC SAN’s ENGINEER, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR’s own risk and expense. The decision of the ENGINEER shall be final. C-CA-101424 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 4 of 25 In all matters relating to the acceptability of material, machinery or plant equipment; classifications of material or Work; the proper execution, progress or sequence of the Work; and quantities interpretation of the Contract Documents, the decision of the ENGINEER shall be final and binding, and shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the Board of Directors. B. Definitions Capitalized terms used in this Contract are defined in the General Conditions, “Definitions”. Additional terms may be defined in the Special Provisions. SECTION – 2 MATERIALS AND LABOR CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR’S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by OC SAN, to construct and complete the Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, OC SAN may settle such claims by making demand upon the Surety to this Contract. In the event of the failure or refusal of the Surety to satisfy said claims, OC SAN may settle them directly and deduct the amount of payments from the Contract Price and any amounts due to CONTRACTOR. In the event OC SAN receives a stop payment notice from any laborer or material supplier alleging non-payment by CONTRACTOR, OC SAN shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees. SECTION – 3 PROJECT The Project is described as: PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS CONFORMED C-CA-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 5 of 25 SECTION – 4 PLANS AND SPECIFICATIONS The Work to be done is shown in a set of Plans and Specifications entitled: PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Said Plans and Specifications and any revision, amendments and addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. SECTION – 5 TIME OF COMMENCEMENT AND COMPLETION CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth in the “Notice to Proceed” sent by OC SAN, unless otherwise specified therein and shall diligently prosecute the Work to completion within one thousand three hundred thirty (1,330) calendar days from the date of the “Notice to Proceed” issued by OC SAN, excluding delays caused or authorized by OC SAN as set forth in Sections 7, 8, and 9 hereof, and applicable provisions in the General Conditions. The time for completion includes twenty (20) calendar days determined by OC SAN likely to be inclement weather when CONTRACTOR will be unable to work. SECTION – 6 TIME IS OF THE ESSENCE Time is of the essence of this Contract. As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR’s Work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the Work covered by this Contract with that of all other contractors, subcontractors and of OC SAN, in a manner that will facilitate the efficient completion of the entire Work and accomplish the required milestone(s), if any, by the applicable deadline(s) in accordance with Section 5 herein. OC SAN shall have the right to assert complete control of the premises on which the Work is to be performed and shall have the right to decide the time or order in which C-CA-101424 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 6 of 25 the various portions of the Work shall be installed or the priority of the work of subcontractors, and, in general, all matters representing the timely and orderly conduct of the Work of CONTRACTOR on the premises. SECTION – 7 EXCUSABLE DELAYS CONTRACTOR shall only be excused for any delay in the prosecution or completion of the Project as specifically provided in General Conditions, “Extension of Time for Delay”, and the General Requirements, “By CONTRACTOR or Others – Unknown Utilities during Contract Work”. Extensions of time and extra compensation arising from such excusable delays will be determined in accordance with the General Conditions, “Extension of Time for Delay” and “Contract Price Adjustments and Payments”, and extensions of time and extra compensation as a result of incurring undisclosed utilities will be determined in accordance with General Requirements, “By CONTRACTOR or Others – Unknown Utilities during Contract Work”. OC SAN’s decision will be conclusive on all parties to this Contract. SECTION – 8 EXTRA WORK The Contract Price as set forth in Section 11, includes compensation for all Work performed by CONTRACTOR, unless CONTRACTOR obtains a Change Order signed by a designated representative of OC SAN specifying the exact nature of the Extra Work and the amount of extra compensation to be paid all as more particularly set forth in Section 9 hereof and the General Conditions, “Request for Change (Changes at CONTRACTOR’s Request)”, “OWNER Initiated Changes”, and “Contract Price Adjustments and Payments”. In the event a Change Order is issued by OC SAN pursuant to the Contract Documents, OC SAN shall extend the time fixed in Section 5 for completion of the Project by the number of days, if any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by OC SAN’s ENGINEER. The decision of the ENGINEER shall be final. CONFORMED C-CA-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 7 of 25 SECTION – 9 CHANGES IN PROJECT OC SAN may at any time, without notice to any Surety, by Change Order, make any changes in the Work within the general scope of the Contract Document, including but not limited to changes: 1. In the Specifications (including Drawings and designs); 2. In the time, method or manner of performance of the Work; 3. In OC SAN-furnished facilities, equipment, materials, services or site; or 4. Directing acceleration in the performance of the Work. No change of period of performance or Contract Price, or any other change in the Contract Documents, shall be binding until the Contract is modified by a fully executed Change Order. All Change Orders shall be issued in accordance with the requirements set forth in the General Conditions, “Request for Change (Changes at CONTRACTOR’s Request)” and “OWNER Initiated Changes”. SECTION – 10 LIQUIDATED DAMAGES FOR DELAY Liquidated Damages shall be payable in the amounts and upon the occurrence of such events or failure to meet such requirements or deadlines as provided in the Special Provisions, “Liquidated Damages and Incentives.” SECTION – 11 CONTRACT PRICE AND METHOD OF PAYMENT A. OC SAN agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in approved Change Orders, the sum of Twenty-Four Million Three Hundred Fifty-Two Thousand One Hundred Twenty-Six Dollars and Seventy Cents ($24,352,126.70) as itemized on the attached Exhibit “A”. C-CA-101424 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 8 of 25 Upon satisfaction of the conditions precedent to payment set forth in the General Requirements, Additional General Requirements, and General Conditions (including but not limited to Sections entitled “Mobilization Payment Requirements” and “Payment Itemized Breakdown of Contract Lump Sum Prices”), there shall be paid to the CONTRACTOR an initial Net Progress Payment for mobilization. OC SAN shall issue at the commencement of the job a schedule which shows: 1. A minimum of one payment to be made to the CONTRACTOR for each successive four (4) week period as the Work progresses, and 2. The due dates for the CONTRACTOR to submit requests for payment to meet the payment schedule. After the initial Net Progress Payment, and provided the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule, the CONTRACTOR shall be paid a Net Progress Payment on the corresponding monthly payment date set forth in the schedule. Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the ENGINEER, stating that the Work for which payment is demanded has been performed in accordance with the terms of the Contract Documents, and that the amount stated in the certificate is due under the terms of the Contract. Payment applications shall also be accompanied with all documentation, records, and releases as required by the Contract; Exhibit A, Schedule of Prices; and General Conditions, “Payment for Work – General”. The Total amount of Progress Payments shall not exceed the actual value of the Work completed as certified by OC SAN’s ENGINEER. The processing of payments shall not be considered as an acceptance of any part of the Work. CONFORMED C-CA-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 9 of 25 B. As used in this Section, the following defined terms shall have the following meanings: 1. “Net Progress Payment” means a sum equal to the Progress Payment less the Retention Amount and other qualified deductions (Liquidated Damages, stop payment notices, etc.). 2. “Progress Payment” means a sum equal to: a. the value of the actual Work completed since the commencement of the Work as determined by OC SAN; b. plus the value of material suitably stored at the worksite, treatment plant or approved storage yards subject to or under the control of OC SAN since the commencement of the Work as determined by OC SAN; c. less all previous Net Progress Payments; d. less all amounts of previously qualified deductions; e. less all amounts previously retained as Retention Amounts. 3. “Retention Amount” for each Progress Payment means the percentage of each Progress Payment to be retained by OC SAN to assure satisfactory completion of the Contract. The amount to be retained from each Progress Payment shall be determined as provided in the General Conditions, “Retained Funds; Substitution of Securities.” SECTION – 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS Pursuant to Public Contract Code Section 22300 et seq., the CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions, “Retained Funds; Substitution of Securities.” SECTION – 13 COMPLETION Final Completion and Final Acceptance shall occur at the time and in the manner specified in the General Conditions, “Final Acceptance and Final Completion”, “Final Payment”; and Exhibit A, Schedule of Prices. C-CA-101424 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 10 of 25 Upon receipt of all documentation, records, and releases as required by the Contract from the CONTRACTOR, OC SAN shall proceed with the Final Acceptance as specified in General Conditions. SECTION – 14 CONTRACTOR’S EMPLOYEES COMPENSATION A. General Prevailing Rate: OC SAN has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime Work in the locality in which the Work is to be performed for each craft or type of Work needed to execute this Contract, and copies of the same are on file in the Office of the ENGINEER of OC SAN. The CONTRACTOR agrees that not less than said prevailing rates shall be paid to workers employed on this public works Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OC SAN will have on file copies of the prevailing rate of per diem wages at its principal office and at each job site, which shall be made available to any interested party upon request. B. Forfeiture for Violation: CONTRACTOR shall, as a penalty to OC SAN, forfeit Two Hundred Dollars ($200.00) for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any Subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the Work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. C. Apprentices: Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the CONTRACTOR CONFORMED C-CA-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 11 of 25 shall comply therewith if the prime contract involves Thirty Thousand Dollars ($30,000.00) or more. D. Workday: In the performance of this Contract, not more than eight (8) hours shall constitute a day’s work, and the CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (B) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 et seq.) of the Labor Code of the State of California and shall forfeit to OC SAN as a penalty, the sum of Twenty-five Dollars ($25.00) for each worker employed in the execution of this Contract by CONTRACTOR or any Subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in any one week in violation of said Article. CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project. E. Registration; Record of Wages; Inspection: CONTRACTOR shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring by the California Department of Industrial Relations. CONTRACTOR shall maintain accurate payroll records and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations Section 16461(e). C-CA-101424 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 12 of 25 SECTION – 15 SURETY BONDS CONTRACTOR shall, before entering upon the performance of this Contract, furnish Bonds approved by OC SAN’s General Counsel – one in the amount of one hundred percent (100%) of the Contract amount, to guarantee the faithful performance of the Work, and the other in the amount of one hundred percent (100%) of the Contract amount to guarantee payment of all claims for labor and materials furnished. As changes to the Contract occur via approved Change Orders, the CONTRACTOR shall assure that the amounts of the Bonds are adjusted to maintain 100% of the Contract Price. This Contract shall not become effective until such Bonds are supplied to and approved by OC SAN. Bonds must be issued by a Surety authorized by the State Insurance Commissioner to do business in California. The Performance Bond shall remain in full force and effect through the warranty period, as specified in Section 19 below. All Bonds required to be submitted relating to this Contract must comply with California Code of Civil Procedure Section 995.630. Each Bond shall be executed in the name of the Surety insurer under penalty of perjury, or the fact of execution of each Bond shall be duly acknowledged before an officer authorized to take and certify acknowledgments, and either one of the following conditions shall be satisfied: A. A copy of the transcript or record of the unrevoked appointment, power of attorney, by- laws, or other instrument, duly certified by the proper authority and attested by the seal of the insurer entitling or authorizing the person who executed the Bond to do so for and on behalf of the insurer, is on file in the Office of the County Clerk of the County of Orange; or B. A copy of a valid power of attorney is attached to the Bond. SECTION – 16 INSURANCE CONTRACTOR shall purchase and maintain, for the duration of the Contract, insurance against claims for injuries to persons, or damages to property which may arise from or in connection with the performance of the Work hereunder, and the results of that Work by CONTRACTOR, CONFORMED C-CA-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 13 of 25 its agents, representatives, employees, or Subcontractors, in amounts equal to the requirements set forth below. CONTRACTOR shall not commence Work under this Contract until all insurance required under this Section is obtained in a form acceptable to OC SAN, nor shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until all insurance required of the Subcontractor has been obtained. CONTRACTOR shall maintain all of the foregoing insurance coverages in force through the point at which the Work under this Contract is fully completed and accepted by OC SAN pursuant to the provisions of the General Conditions, “Final Acceptance and Final Completion”. Furthermore, CONTRACTOR shall maintain all of the foregoing insurance coverages in full force and effect throughout the warranty period, commencing on the date of Final Acceptance. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of OC SAN by CONTRACTOR under Section 17 of this Contract. Notwithstanding nor diminishing the obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for and maintain in full force and effect during the life of this Contract, inclusive of all changes to the Contract Documents made in accordance with the provisions of the General Conditions, “Request for Change (Changes at CONTRACTOR’s Request)” and/or “OWNER Initiated Changes”, the following insurance in amounts not less than the amounts specified. OC SAN reserves the right to amend the required limits of insurance commensurate with the CONTRACTOR’s risk at any time during the course of the Project. No vehicles may enter OC SAN premises/worksite without possessing the required insurance coverage. CONTRACTOR’s insurance shall also comply with all insurance requirements prescribed by agencies from whom permits shall be obtained for the Work and any other third parties from whom third party agreements are necessary to perform the Work (collectively, the “Third Parties”). The Special Provisions may list such requirements and sample forms and requirements from such Third Parties may be included in an attachment to the General C-CA-101424 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 14 of 25 Requirements. CONTRACTOR bears the responsibility to discover and comply with all requirements of Third Parties, including meeting specific insurance requirements, that are necessary for the complete performance of the Work. To the extent there is a conflict between the Third Parties’ insurance requirements and those set forth by OC SAN herein, the requirement(s) providing the more protective coverage for both OC SAN and the Third Parties shall control and be purchased and maintained by CONTRACTOR. If CONTRACTOR maintains higher limits than the minimums shown in this Section, OC SAN requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. Where permitted by law, CONTRACTOR hereby waives all rights of recovery by subrogation because of deductible clauses, inadequacy of limits of any insurance policy, limitations or exclusions of coverage, or any other reason against OC SAN, its or their officers, agents, or employees, performing Work or rendering services on behalf of OC SAN in connection with the planning, development and construction of the Project. In all its insurance coverages (except for Professional Liability/Errors and Omissions coverages, if applicable) related to the Work, CONTRACTOR shall include clauses providing that each insurer shall waive all of its rights of recovery by subrogation against OC SAN, its or their officers, agents, or employees, performing Work or rendering services at the Project. Where permitted by law, CONTRACTOR shall require similar written express waivers and insurance clauses from each of its Subcontractors of every tier. A waiver of subrogation shall be effective as to any individual or entity, even if such individual or entity (a) would otherwise have a duty of indemnification, contractual or otherwise, (b) did not pay the insurance premium, directly or indirectly, and (c) whether or not such individual or entity has an insurable interest in the property damaged. CONFORMED C-CA-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 15 of 25 A. Limits of Insurance 1. General Liability: Five Million Dollars ($5,000,000) per occurrence and a general aggregate limit of Ten Million Dollars ($10,000,000) for bodily injury, personal injury and property damage. If aggregate limits apply separately to this contract (as evidenced by submission of ISO form CG 25 03 or CG 25 04), then the aggregate limit may be equivalent to the per occurrence limit. Coverage shall include each of the following: a. Premises-Operations. b. Products and Completed Operations, with limits of at least Five Million Dollars ($5,000,000) per occurrence and a general aggregate limit of Ten Million Dollars ($10,000,000) which shall be in effect at all times during the warranty period set forth in the Warranty section herein, and as set forth in the General Conditions, “Warranty (CONTRACTOR’s Guarantee)”, plus any additional extension or continuation of time to said warranty period that may be required or authorized by said provisions. If aggregate limits apply separately to this contract (as evidenced by submission of ISO form CG 25 03 or CG 25 04), then the aggregate limit may be equivalent to the per occurrence limit. c. Broad Form Property Damage, expressly including damage arising out of explosion, collapse, or underground damage. d. Contractual Liability, expressly including the indemnity provisions assumed under this Contract. e. Separation of Insured Clause, providing that coverage applies separately to each insured, except with respect to the limits of liability. C-CA-101424 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 16 of 25 f. Independent CONTRACTOR’s Liability. To the extent first dollar coverage, including defense of any claim, is not available to OC SAN or any other additional insured because of any SIR, deductible, or any other form of self insurance, CONTRACTOR is obligated to assume responsibility of insurer until the deductible, SIR or other condition of insurer assuming its defense and/or indemnity has been satisfied. CONTRACTOR shall be responsible to pay any deductible or SIR. g. If a crane will be used, the general liability insurance will be endorsed to add Riggers Liability coverage or its equivalent to cover the usage of the crane and exposures with regard to the crane operators, riggers and others involved in using the crane. h. If divers will be used, the general liability insurance will be endorsed to cover marine liability or its equivalent to cover the usage of divers. 2. Automobile Liability: The CONTRACTOR shall maintain a policy of automobile liability insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limit of liability coverage: combined single limit of One Million Dollars ($1,000,000) for bodily injury, personal injury, and property damage. 3. Umbrella Excess Liability: The minimum limits of general liability and automobile liability insurance required, as set forth above, shall be provided for either in a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automobile liability. CONFORMED C-CA-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 17 of 25 4. Drone Liability Insurance: If a drone will be used, drone liability insurance must be maintained by CONTRACTOR in the amount of One Million Dollars ($1,000,000) in a form acceptable to OC SAN. 5. Workers’ Compensation/Employer’s Liability: CONTRACTOR shall provide such workers’ compensation insurance as required by the Labor Code of the State of California, including employer’s liability with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage with regard to Jones Act claims. B. Deductibles and Self-Insured Retentions Deductibles or self-insured retentions (SIRs) shall not exceed One Million Dollars ($1,000,000) without prior agreement from OCSAN. C. Other Insurance Provisions 1. Each such policy of general liability insurance and automobile liability insurance shall be endorsed to contain, the following provisions: a. OC SAN, its directors, officers, agents, consultants, and employees, and all public agencies from whom permits will be obtained, and their directors, officers, agents, and employees are hereby declared to be additional insureds under the terms of this policy, but only with respect to the operations of CONTRACTOR at or from any of the sites of OC SAN in connection with this Contract, or acts and omissions of the additional insured in connection with its general supervision or inspection of said operations related to this Contract. b. Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by OC SAN shall be excess only and not contributing with insurance provided under this policy. C-CA-101424 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 18 of 25 2. Cancellation and Policy Change Notice. The CONTRACTOR is required to notify OC SAN in writing of any insurance cancellation notice it receives or other knowledge of pending or actual insurance policy cancellation within two (2) working days of receipt of such notice or acquisition of such knowledge. Additionally, the CONTRACTOR is required to notify OC SAN in writing of any change in the terms of insurance, including reduction in coverage or increase in deductible/SIR, within two (2) working days of receipt of such notice or knowledge of same. Said notices shall be mailed to OC SAN at: ORANGE COUNTY SANITATION DISTRICT 18480 Bandilier Circle Fountain Valley, CA 92708 Attention: Contracts, Purchasing & Materials Management Division 3. Coverage shall not extend to any indemnity coverage for the active negligence of any additional insured in any case where an agreement to indemnify the additional insured would be invalid under California Civil Code Section 2782(b). 4. If required by a public agency from whom permit(s) will be obtained, each policy of general liability insurance and automobile liability insurance shall be endorsed to specify by name the public agency and its legislative members, officers, agents, consultants, and employees, to be additional insureds. D. Acceptability of Insurers Insurers must have an “A-“, or better, Policyholder’s Rating, and a Financial Rating of at least Class VIII, or better, in accordance with the most current A.M. Best Rating Guide. OC SAN recognizes that State Compensation Insurance Fund has withdrawn from participation in the A.M. Best Rating Guide process. Nevertheless, OC SAN will accept CONFORMED C-CA-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 19 of 25 State Compensation Insurance Fund for the required policy of worker’s compensation insurance, subject to OC SAN’s option, at any time during the term of this Contract, to require a change in insurer upon twenty (20) days written notice. Further, OC SAN will require CONTRACTOR to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20) days of written notice to CONTRACTOR by OC SAN or its agent. E. Verification of Coverage CONTRACTOR shall furnish OC SAN with original certificates and mandatory endorsements affecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by OC SAN before Work commences. OC SAN reserves the right to require complete, certified copies of all required insurance policies, including endorsements, affecting the coverage required by these Specifications at any time. F. Subcontractors CONTRACTOR shall be responsible to establish insurance requirements for any Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subcontractor’s operations and work. OC SAN and any public agency issuing permits for the Project must be named as “Additional Insured” on any general liability or automobile liability policy obtained by a Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of all Subcontractors’ policies, certificate of liability and mandatory endorsements effecting coverage. Upon request, CONTRACTOR must furnish OC SAN with the above referenced required documents. C-CA-101424 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 20 of 25 G. Required Forms and Endorsements 1. Required ACORD Form a. Certificate of Liability ACORD Form 25 or other equivalent certificate of insurance form 2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are shown, they are Iisted in order of preference) In the event any of the following forms are cancelled by Insurance Services Office, Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied. a. Commercial General Liability Form CG 00 01 b. Additional Insured Including Form CG 20 10 and Products-Completed Operations Form CG 20 37 All other additional insured endorsements must be submitted for approval by OC SAN, and OC SAN may reject alternatives that provide different or less coverage to OC SAN. c. Waiver of Transfer of Rights of Form CG 24 04 Recovery Against Others to Us/ Waiver of Subrogation 3. Required State Compensation Insurance Fund Endorsements a. Waiver of Subrogation Submit workers’ compensation waiver of subrogation endorsement provided by carrier for OC SAN approval. b. Cancellation Notice No endorsement is required. However, CONTRACTOR is responsible for notifying OC SAN of any pending or actual insurance policy cancellation, as described in Article C.2., Cancellation and Policy Change Notice, above. 4. Additional Required Endorsements a. Notice of Policy Termination Manuscript Endorsement CONFORMED C-CA-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 21 of 25 SECTION – 17 RISK AND INDEMNIFICATION All Work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save, indemnify, defend, and keep OC SAN and others harmless as more specifically set forth in General Conditions, “General Indemnification”. SECTION – 18 TERMINATION This Contract may be terminated in whole or in part in writing by OC SAN in the event of substantial failure by the CONTRACTOR to fulfill its obligations under this Contract Agreement, or it may be terminated by OC SAN for its convenience provided that such termination is effectuated in a manner and upon such conditions set forth more particularly in General Conditions, “Termination for Default” and/or “Termination for Convenience”, provided that no termination may be effected unless proper notice is provided to CONTRACTOR at the time and in the manner provided in said General Conditions. If termination for default or convenience is effected by OC SAN, an equitable adjustment in the price provided for in this Contract shall be made at the time and in the manner provided in the General Conditions, “Termination for Default” and “Termination for Convenience”. SECTION – 19 WARRANTY The CONTRACTOR agrees to perform all Work under this Contract in accordance with the Contract Documents, including OC SAN’s designs, Drawings and Specifications. The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final Acceptance of the Work, pursuant to the General Conditions, “Final Acceptance and Final Completion” that the completed Work is free from all defects due to faulty materials, equipment or workmanship and that it shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs of any damage to other parts of the system C-CA-101424 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 22 of 25 resulting from such defects. OC SAN shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, OC SAN may do so and charge the CONTRACTOR the cost incurred. The CONTRACTOR’s warranty shall continue as to any corrected deficiency until the later of (1) the remainder of the original one-year warranty period; or (2) one year after acceptance by OC SAN of the corrected Work. The Performance Bond and the Payment Bond shall remain in full force and effect through the guarantee period. The CONTRACTOR’s obligations under this clause are in addition to the CONTRACTOR’s other express or implied assurances under this Contract, including but not limited to specific manufacturer or other extended warranties specified in the Plans and Specifications, or state law and in no way diminish any other rights that OC SAN may have against the CONTRACTOR for faulty materials, equipment or Work. SECTION – 20 ASSIGNMENT No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be received hereunder, will be recognized by OC SAN unless such assignment has had prior written approval and consent of OC SAN and the Surety. SECTION – 21 RESOLUTION OF DISPUTES OC SAN and the CONTRACTOR shall comply with the provisions of California Public Contract Code Section 20104 et. seq., regarding resolution of construction claims for any Claims which arise between the CONTRACTOR and OC SAN, as well as all applicable dispute and Claims provisions as set forth in the General Conditions and as otherwise required by law. SECTION – 22 SAFETY & HEALTH CONTRACTOR shall comply with all applicable safety and health requirements mandated by federal, state, city and/or public agency codes, permits, ordinances, regulations, and laws, as CONFORMED C-CA-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 23 of 25 well as these Contract Documents, including but not limited to the General Requirements, Section entitled “Safety” and Exhibit B Contractor Safety Standards. OC SAN reserves the right to stop Work for violations of safety and health standards until the hazardous conditions are corrected. The right to stop Work includes the right to remove a contractor or its employees from the worksite. SECTION – 23 CALIFORNIA VOLUNTARY PROTECTION PROGRAM ANNUAL REPORTING REQUIREMENT If CONTRACTOR will potentially work 1,000 combined hours in a quarter, for the term of the Contract Agreement, CONTRACTOR shall provide an annual report detailing its safety and health information, including, but not limited to, its total number of employees, work hours, number of injuries and illnesses, and number of injury and illness cases involving days away from work, restricted work activity and/or job transfer. CONTRACTOR shall furnish this report to OC SAN no later than January 20th each calendar year. Failure to provide this data by the required due date may result in suspension of CONTRACTOR’s services with OC SAN. Any delay arising out of or resulting from such suspension shall be CONTRACTOR’s sole responsibility and considered CONTRACTOR caused delay, which shall not be compensable by OC SAN. SECTION – 24 NOTICES Any notice required or permitted under this Contract shall be served by personal delivery or by certified mail, return receipt requested, at the address set forth below. Unless specified elsewhere in the Contract Documents or otherwise required by law, any notice may alternatively be given by electronic telecommunication to the email address set forth below. Any party whose address changes shall notify the other party in writing. C-CA-101424 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 24 of 25 TO OC SAN: Orange County Sanitation District 18480 Bandilier Circle Fountain Valley, California 92708 Attn: Clerk of the Board ocsanclerk@ocsan.gov Copy to: Orange County Sanitation District 18480 Bandilier Circle Fountain Valley, California 92708 Attn: Construction Manager rcuellar@ocsan.gov Scott C. Smith Best Best & Krieger LLP 18101 Von Karman Avenue, Suite 1000 Irvine, California 92612 scott.smith@bbklaw.com TO CONTRACTOR: Ural Yal, CEO & President Shimmick Construction Company, Inc. 530 Technology Drive, Suite 300 Irvine, CA 92618 cvieux@shimmick.com CONFORMED C-CA-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 25 of 25 IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: Shimmick Construction Company, Inc. 530 Technology Drive, Suite 300 Irvine, CA 92618 By______________________________ Date _________________ ______________________________ Printed Name Its______________________________ CONTRACTOR’s State License No. 594575 (Expiration Date – 5/31/2026) OC SAN: Orange County Sanitation District By______________________________ Date _________________ Ryan P. Gallagher Board Chairman By______________________________ Date _________________ Kelly A. Lore Clerk of the Board By______________________________ Date _________________ Kevin Work Purchasing & Contracts Manager C-EXA-062221 EXHIBIT A SCHEDULE OF PRICES C-EXA-062221 TABLE OF CONTENTS EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION ............................................................................. 1 EXA-2 PROGRESS PAYMENTS .................................................................................. 1 EXA-3 RETENTION AND ESCROW ACCOUNTS ........................................................ 1 EXA-4 STOP PAYMENT NOTICE ................................................................................. 3 EXA-5 PAYMENT TO SUBCONTRACTORS ................................................................ 3 EXA-6 PAYMENT OF TAXES ....................................................................................... 3 EXA-7 FINAL PAYMENT ............................................................................................... 4 EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT ... 5 ATTACHMENT 1 – CERTIFICATION FOR REQUEST FOR PAYMENT ......................... 7 ATTACHMENT 2 – SCHEDULE OF PRICES ................................................................... 8 CONFORMED C-EXA-062221 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 1 of 8 EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION CONTRACTOR will be paid the Contract Price according to the Schedule of Prices, and all other applicable terms and conditions of the Contract Documents. EXA-2 PROGRESS PAYMENTS Progress payments will be made in accordance with all applicable terms and conditions of the Contract Documents, including, but not limited to: 1. Contract Agreement – Section 11 – “Contract Price and Method of Payment;” 2. General Conditions – “Payment – General”; 3. General Conditions – “Payment – Applications for Payment”; 4. General Conditions – “Payment – Mobilization Payment Requirements;” 5. General Conditions – “Payment – Itemized Breakdown of Contract Lump Sum Prices”; 6. General Conditions – "Contract Price Adjustments and Payments”; 7. General Conditions – “Suspension of Payments”; 8. General Conditions – “OC SAN’s Right to Withhold Certain Amounts and Make Application Thereof”; and 9. General Conditions – “Final Payment.” EXA-3 RETENTION AND ESCROW ACCOUNTS A. Retention: OC SAN shall retain a percentage of each progress payment to assure satisfactory completion of the Work. The amount to be retained from each progress payment shall be determined as provided in General Conditions – “Retained Funds; Substitution of Securities”. In all contracts between CONTRACTOR and its Subcontractors and/or Suppliers, the retention may not exceed the percentage specified in the Contract Documents. C-EXA-062221 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 2 of 8 B. Substitution of Securities: CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions – “Retained Funds; Substitution of Securities.” Payment of Escrow Agent: In lieu of substitution of securities as provided above, the CONTRACTOR may request and OC SAN shall make payment of retention earned directly to the escrow agent at the expense of the CONTRACTOR. At the expense of the CONTRACTOR, the CONTRACTOR may direct the investment of the payments into securities consistent with Government Code §16430 and the CONTRACTOR shall receive the interest earned on the investments upon the same terms provided for in this article for securities deposited by the CONTRACTOR. Upon satisfactory completion of the Contract, the CONTRACTOR shall receive from the escrow agent all securities, interest and payments received by the escrow agent from OC SAN, pursuant to the terms of this article. The CONTRACTOR shall pay to each Subcontractor, not later than twenty (20) calendar days after receipt of the payment, the respective amount of interest earned, net of costs attributed to retention withheld from each Subcontractor, on the amount of retention withheld to ensure the performance of the Subcontractor. The escrow agreement used by the escrow agent pursuant to this article shall be substantially similar to the form set forth in §22300 of the California Public Contract Code. C. Release of Retention: Upon Final Acceptance of the Work, the CONTRACTOR shall submit an invoice for release of retention in accordance with the terms of the Contract. D. Additional Deductibles: In addition to the retentions described above, OC SAN may deduct from each progress payment any or all of the following: 1. Liquidated Damages that have occurred as of the date of the application for progress payment; 2. Deductions from previous progress payments already paid, due to OC SAN’s discovery of deficiencies in the Work or non-compliance with the Specifications or any other requirement of the Contract; 3. Sums expended by OC SAN in performing any of the CONTRACTOR’S obligations under the Contract that the CONTRACTOR has failed to perform, and; 4. Other sums that OC SAN is entitled to recover from the CONTRACTOR under the terms of the Contract, including without limitation insurance deductibles and assessments. CONFORMED C-EXA-062221 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 3 of 8 The failure of OC SAN to deduct any of the above-identified sums from a progress payment shall not constitute a waiver of OC SAN’s right to such sums or to deduct them from a later progress payment. EXA-4 STOP PAYMENT NOTICE In addition to other amounts properly withheld under this article or under other provisions of the Contract, OC SAN shall retain from progress payments otherwise due the CONTRACTOR an amount equal to one hundred twenty-five percent (125%) of the amount claimed under any stop payment notice under Civil Code §9350 et. seq. or other lien filed against the CONTRACTOR for labor, materials, supplies, equipment, and any other thing of value claimed to have been furnished to and/or incorporated into the Work; or for any other alleged contribution thereto. In addition to the foregoing and in accordance with Civil Code §9358 OC SAN may also satisfy its duty to withhold funds for stop payment notices by refusing to release funds held in escrow pursuant to public receipt of a release of stop payment notice executed by a stop payment notice claimant, a stop payment notice release bond, an order of a court of competent jurisdiction, or other evidence satisfactory to OC SAN that the CONTRACTOR has resolved such claim by settlement. EXA-5 PAYMENT TO SUBCONTRACTORS Requirements 1. The CONTRACTOR shall pay all Subcontractors for and on account of Work performed by such Subcontractors, not later than seven (7) days after receipt of each progress payment as required by the California Business and Professions Code §7108.5. Such payments to Subcontractors shall be based on the measurements and estimates made pursuant to article progress payments provided herein. 2. Except as specifically provided by law, the CONTRACTOR shall pay all Subcontractors any and all retention due and owing for and on account of Work performed by such Subcontractors not later than seven (7) days after CONTRACTOR’S receipt of said retention proceeds from OC SAN as required by the California Public Contract Code §7107. EXA-6 PAYMENT OF TAXES Unless otherwise specifically provided in this Contract, the Contract Price includes full compensation to the CONTRACTOR for all taxes. The CONTRACTOR shall pay all federal, state, and local taxes, and duties applicable to and assessable against any Work, including but not limited to retail sales and use, transportation, export, import, business, and special taxes. The CONTRACTOR shall ascertain and pay the taxes when due. The CONTRACTOR will maintain auditable records, subject to OC SAN reviews, confirming that tax payments are current at all times. C-EXA-062221 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 4 of 8 EXA-7 FINAL PAYMENT After Final Acceptance of the Work, as more particularly set forth in the General Conditions, “Final Acceptance and Final Completion”, and after Resolution of the Board authorizing final payment and satisfaction of the requirements as more particularly set forth in General Conditions – “Final Payment”, a final payment will be made as follows: 1. Prior to Final Acceptance, the CONTRACTOR shall prepare and submit an application for Final Payment to OC SAN, including: a. The proposed total amount due the CONTRACTOR, segregated by items on the payment schedule, amendments, Change Orders, and other bases for payment; b. Deductions for prior progress payments; c. Amounts retained; d. A conditional waiver and release on final payment for each Subcontractor (per Civil Code Section 8136); e. A conditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code Section 8136); f. List of Claims the CONTRACTOR intends to file at that time or a statement that no Claims will be filed, g. List of pending unsettled claims, stating claimed amounts, and copies of any and all complaints and/or demands for arbitration received by the CONTRACTOR; and h. For each and every claim that resulted in litigation or arbitration which the CONTRACTOR has settled, a conformed copy of the Request for Dismissal with prejudice or other satisfactory evidence the arbitration is resolved. 2. The application for Final Payment shall include complete and legally effective releases or waivers of liens and stop payment notices satisfactory to OC SAN, arising out of or filed in connection with the Work. Prior progress payments shall be subject to correction in OC SAN’s review of the application for Final Payment. Claims filed with the application for Final Payment must be otherwise timely under the Contract and applicable law. 3. Within a reasonable time, OC SAN will review the CONTRACTOR’S application for Final Payment. Any recommended changes or corrections will then be forwarded to the CONTRACTOR. Within ten (10) calendar days after receipt of recommended changes from OC SAN, the CONTRACTOR will make the changes, or list Claims that will be filed as a result of the changes, and shall submit the revised application for Final Payment. Upon CONFORMED C-EXA-062221 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 5 of 8 acceptance by OC SAN, the revised application for Final Payment will become the approved application for Final Payment. 4. If no Claims have been filed with the initial or any revised application for Final Payment, and no Claims remain unsettled within thirty-five (35) calendar days after Final Acceptance of the Work by OC SAN, and agreements are reached on all issues regarding the application for Final Payment, OC SAN, in exchange for an executed release, satisfactory in form and substance to OC SAN, will pay the entire sum found due on the approved application for Final Payment, including the amount, if any, allowed on settled Claims. 5. The release from the CONTRACTOR shall be from any and all Claims arising under the Contract, except for Claims that with the concurrence of OC SAN are specifically reserved, and shall release and waive all unreserved Claims against OC SAN and its officers, directors, employees and authorized representatives. The release shall be accompanied by a certification by the CONTRACTOR that: a. It has resolved all Subcontractors, Suppliers and other Claims that are related to the settled Claims included in the Final Payment; b. It has no reason to believe that any party has a valid claim against the CONTRACTOR or OC SAN which has not been communicated in writing by the CONTRACTOR to OC SAN as of the date of the certificate; c. All warranties are in full force and effect, and; d. The releases and the warranties shall survive Final Payment. 6. If any claims remain open, OC SAN may make Final Payment subject to resolution of those claims. OC SAN may withhold from the Final Payment an amount not to exceed one hundred fifty percent (150%) of the sum of the amounts of the open claims, and one hundred twenty-five percent (125%) of the amounts of open stop payment notices referred to in article entitled stop payment notices herein. 7. The CONTRACTOR shall provide an unconditional waiver and release on final payment from each Subcontractor and Supplier providing Work under the Contract (per Civil Code Section 8138) and an unconditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code Section 8138) within thirty (30) days of receipt of Final Payment. EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT Notwithstanding OC SAN’s acceptance of the application for Final Payment and irrespective of whether it is before or after Final Payment has been made, OC SAN shall not be precluded from subsequently showing that: 1. The true and correct amount payable for the Work is different from that previously accepted; C-EXA-062221 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 6 of 8 2. The previously accepted Work did not in fact conform to the Contract requirements, or; 3. A previous payment or portion thereof for Work was improperly made. OC SAN also shall not be stopped from demanding and recovering damages from the CONTRACTOR, as appropriate, under any of the foregoing circumstances as permitted under the Contract or applicable law. CONFORMED C-EXA-062221 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 7 of 8 ATTACHMENT 1 – CERTIFICATION FOR REQUEST FOR PAYMENT I hereby certify under penalty of perjury as follows: That the claim for payment is in all respects true, correct; that the services mentioned herein were actually rendered and/or supplies delivered to OC SAN in accordance with the Contract. I understand that it is a violation of both the federal and California False Claims Acts to knowingly present or cause to be presented to OC SAN a false claim for payment or approval. A claim includes a demand or request for money. It is also a violation of the False Claims Acts to knowingly make use of a false record or statement to get a false claim paid. The term "knowingly" includes either actual knowledge of the information, deliberate ignorance of the truth or falsity of the information, or reckless disregard for the truth or falsity of the information. Proof of specific intent to defraud is not necessary under the False Claims Acts. I understand that the penalties under the Federal False Claims Act and State of California False Claims Act are non-exclusive, and are in addition to any other remedies which OC SAN may have either under contract or law. I hereby further certify, to the best of my knowledge and belief, that: 1. The amounts requested are only for performance in accordance with the Specifications, terms, and conditions of the Contract; 2. Payments to Subcontractors and Suppliers have been made from previous payments received under the Contract, and timely payments will be made from the proceeds of the payment covered by this certification; 3. This request for progress payments does not include any amounts which the prime CONTRACTOR intends to withhold or retain from a Subcontractor or Supplier in accordance with the terms and conditions of the subcontract; and 4. This certification is not to be construed as Final Acceptance of a Subcontractor’s performance. _________________________________________ Name _________________________________________ Title _________________________________________ Date C-EXA-062221 CONFORMED PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 8 of 8 ATTACHMENT 2 – SCHEDULE OF PRICES See next pages from the Bid Submittal Forms (Shimmick Construction Company, Inc.) BF-14 Schedule of Prices, Pages 1-2 Bid Submitted By: Shimmick Construction Company, Inc. (Name of Firm) BF-14 SCHEDULE OF PRICES INSTRUCTIONS A. B. General For Unit Prices, it is understood that the following quantities are approximate only and are solely for the purpose of estimating for the comparison of Bids and that the actual value of Work will be computed based upon the actual quantities in the completed Work, whether they be more or less than those shown. CONTRACTOR'S compensation for the Work under the Contract Documents will be computed based upon the lump sum amount of the Contract at time of award, plus any additional or deleted costs approved by OC SAN via approved Change Orders, pursuant to the Contract Documents. Bidder shall separately price and accurately reflect costs associated with each line item, leaving no blanks. Any and all modifications to the Bid must be initialed by an authorized representative of the Bidder in accordance with the Instructions to Bidders, Preparation of Bid. Bidders are reminded of section entitled Discrepancies in Bid Items in the Instructions to Bidders, which, in summary, provides that the total price for each item shall be based on the Unit Price listed for each item multiplied by the quantity; and the correct Total Price for each item shall be totaled to determine the Total Amount of Bid. All applicable costs including overhead and profit shall be reflected in the respective unit costs and the TOTAL AMOUNT OF BID. The BicLpnce^hali include all costs to complete the Work, including profit, overhead, etc., unless otherwise specified in the Contract Documents. All applicable sales taxes, state and/or federal taxes, and any other special taxes, patent rights, or royalties shall be included in the prices Quoted in this Bid. Basis of Award AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST RESPONSIVE AND RESPONSIBLE BID. Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials, equipment, and services for the construction of the Project per the Contract Documents. BF-14 SCHEDULE OF PRICES C-BF-101424 PROJECT NO. J-98 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 1 of 2 DO~n 4 ^^mas0-n5Iw .?%K > s , N ) I1 m^aII^II t 11 § I l l ^ g K I>0c 0- n "0 1w0- nI \ w s N3 CO .° 3 s ^ j l i l a 2 . § ^ 0 0 T3 S ° , 9 I l l o - 5 ^ . 0 s 3 g- U1 ^ ^ 0 U1 s, 3 T3 0; : " ^ 3 = : Q) -< 3 ? a ; a . ^ ^ - s g (D 0 0 s. Crt 3 0 (D ST . c g. ^ . § Is - ' 3 -0^ § - 8 3<D ° . 3 0 -5 ? i =a 3 03 s- 55 - 1 ^ 1 cn " . N- 3 (D ° - f Q - s. Q) g 0 CT> a - 0- =3 0 ) = : • d 0 s- s w Q< Q ^ ^ 3 2. (D 03 a?w 3 = h (/ > CD (D 3 a a. 1 3: Q . m. 3 a . <D 6 ^ 0 a 5 ' - o T3 3: w a 0 0 Q 03 (D (D 0 (D 0 0. 1 5 •o (Q c 0 s. (D eg 3 c (D 0 0 "! 3 - o ' a . ?.. CD u> 3. 5 <LT w a . =1 3 2 3 § 8 ^ (D 5T n (D s. B) 0) =- . 5 3 ' o - - < oa a . 9, -0 Q: 0 - ' 3 3 <D EB U) 0 (U Q. — 3 (D 0 s- a . n =t l 3. 03 c 0 0 (D - 3 3 3 3 Q) a Q. f f Cfl 03 =* . (D T3 CD ^ - i 0 0 cn 0) ST 3 c ? 03 cn ^ 3 ^ 3 s' 03 c Q . W <D - 0 T3 u g - a s- 01 Q) 0 01 §. < 3 ' ? 0- =i CD (D Q . 01 =3 g= - ^ o °, 3 3 3 Q . s 0 ) a (D S ? ( D -0 s- Q - w 3 a? . w = 3 a : U) 03 3 c c 3 3 c 3 T3 -0 •u 3 0) 03 a> s, 3 c c 3 3 3 5 > e ? ^ s m c3.7 s II II w w> « ) u U1 U1 p p 0 0 0 0 0 0 0 B:70 ' <B ^0 ) m TOa^[ "wis - IiI I t f l 1 0 I I |m1 0 1 c Is | 0 l" n 1" 0 1^ 3 | o |m10 ) z | i l S< 1 3 1 I I sQ . II <<^= T 33 7 T p0= 3 ^I I 3p0 I I t <30 5/27/2025 1 Electrical Power Distribution System Improvements, Project No. J-98 Presented by: Mike Dorman, Director of Engineering Operations Committee June 4, 2025 Construction Contract Award Plant No. 1 - Normal Power 2 Utility Primary Treatment Preliminary Treatment Water Solids Secondary Treatment Digesters Thickening & Dewatering Truck Loading Trickling Filters Activated Sludge Normal Power CenGen: 5MW Plant Load: 11MW CenGen 1 2 5/27/2025 2 Plant No. 1 - Loss of Utility 3 Utility Primary Treatment Preliminary Treatment Water Solids Secondary Treatment Digesters Thickening & Dewatering Truck Loading Trickling Filters Activated Sludge CenGen: 5MW Plant Load: 11MW CenGen will be overloaded and shut downNormal Power CenGen Plant No. 1 - Loss of Utility 4 Utility Primary Treatment Preliminary Treatment Water Solids Secondary Treatment Digesters Thickening & Dewatering Truck Loading Trickling Filters Standby Generators Activated Sludge CenGen: 5MW Plant Load: 11MW CenGen will be overloaded and shut down Standby Power CenGen 3 4 5/27/2025 3 Plant No. 1 - Loss of Utility 5 Utility Primary Treatment Preliminary Treatment Water Solids Secondary Treatment Digesters Thickening & Dewatering Truck Loading Trickling Filters Standby Generators Activated Sludge CenGen Power Standby Power CenGen:7.5MW Plant Load: 11MW CenGen Arc Flash Reduction •Arc Flash can occur if equipment has a fault •Arc Flash Reduction: •Enhance O&M safety •Equipment protection ARC-FLASH PROTECTION SYSTEM MEDIUM-VOLTAGE SWITCHGEAR 12KV-480V TRANSFORMER LOW-VOLTAGE SWITCHGEAR 6 Reduce trip time to reduce arc flash energy 5 6 5/27/2025 4 •Plant-wide load shedding system with a substationnetwork •Plant-wide arc flash reduction •Speakers and strobes to warn staff of breaker switching •Surge protection devices in 19 existing switchgear and motor control centers Plant No. 1 Improvements 7 Replace aged and obsolete protective relays Plant No. 2 Improvements 8 Distribution Center A •Monitoring and control •Replace relays Power Building B •Monitoring and control •Replace relays •Arc flash mitigation •Replace aged transformers EPSA and Headworks Standby Power Buildings: •Upgrade existing grounding system •Add portable load bank connections Power Building D •Demo transformer, generator,fuel tank and automatic transfer switch •Feed from new adjacent Distribution Center F EPSA = Effluent Pump Station Annex 7 8 5/27/2025 5 Standby Generator Load Testing 9 Load Bank Multiple 2,000kW Standby Generators 12kV Switchgear 12kV-480V Transformer Portable Equipment Needed for Generator Load Testing Standby Generator Load Testing 10 Load Bank Multiple 2,000kW Standby Generators 12kV Switchgear 12kV-480V Transformer Portable Cable Connection Cabinet Portable Equipment Needed for Generator Load Testing 9 10 5/27/2025 6 Bid Results 11 $ 13,200,000Engineer’s Estimate AmountBidder $ 24,352,127Shimmick Construction Company, Inc. $ 25,700,000Helix Electric, Inc. $ 27,654,892LEED Electric, Inc. $ 36,203,000Mass Electric Construction Company Lowest 3 bids within 13% of each other Engineer’s Estimate Difference 12 84%Total Percent Difference % DifferenceDescription 153%Site and Civil 90%Electrical and Instrumentation 84%Switchgear Modifications 44%Electrical Equipment 77%General Conditions 11 12 5/27/2025 7 Recommendation 13 Recommend to the Board of Directors to: A. Receive and file Bid Tabulation and Recommendation for Electrical Power Distribution System Improvements, Project No. J-98; B. Award a Construction Contract Agreement to Shimmick Construction Company, Inc., for Electrical Power Distribution System Improvements, Project No. J-98, for a total amount not to exceed $24,352,127; and C. Approve a contingency of $2,435,213 (10%). Questions? 14 13 14 OPERATIONS COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4150 Agenda Date:6/4/2025 Agenda Item No:5. FROM:Robert Thompson, General Manager Originator: Mike Dorman, Director of Engineering SUBJECT: ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS, PROJECT NO. J-98 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a Professional Construction Services Agreement with Brown and Caldwell to provide construction support services for Electrical Power Distribution System Improvements, Project No. J-98, for a total amount not to exceed $2,667,874; and B. Approve a contingency of $266,787 (10%). BACKGROUND Brown and Caldwell were selected as part of a competitive,qualifications-based solicitation process to design Electrical Power Distribution System Improvements,Project No.J-98.At the time of the solicitation,the Orange County Sanitation District (OC San)documented its intent to award a subsequent agreement to the design consultant for continuation of engineering services during construction. This project will implement a load shedding system and arc flash mitigation system at Plant No.1 (similar to Project No.J-117B at Plant No.2),to extend the load shedding system and arc flash mitigation system to Distribution Center A at Plant No.2 and provide electrical power monitoring and control improvements,add portable load bank connections and grounding system improvements at the Headworks and Effluent Pump Station Annex (EPSA)standby generation facilities,and replace aged transformers at Power Building B. RELEVANT STANDARDS ·Comply with California Government Code Section 4526 to engage the best qualified firm “on the basis of demonstrated competence and qualifications”and “negotiate fair and reasonable fees” ·24/7/365 treatment plant reliability ·Ensure the public’s money is wisely spent Orange County Sanitation District Printed on 5/28/2025Page 1 of 3 powered by Legistar™ File #:2025-4150 Agenda Date:6/4/2025 Agenda Item No:5. PROBLEM This project requires the design consultant to provide as-needed services during construction including submittal review,responding to the Contractor’s requests for information,reviewing construction change orders,participating in meetings,attending site visits,preparation of standard operating procedures, providing startup assistance, and preparing record drawings PROPOSED SOLUTION Approve a Professional Construction Services Agreement with the design consultant,Brown and Caldwell, to provide engineering support services during construction. TIMING CONCERNS Engineering support services will be required at the start of construction.Construction is anticipated to start in July 2025. RAMIFICATIONS OF NOT TAKING ACTION The engineering support services needed to facilitate and review construction activities would not be available from the Engineer of Record, which may negatively impact the contract execution. PRIOR COMMITTEE/BOARD ACTIONS February 2020 -Approved a Professional Design Services Agreement with Brown and Caldwell to provide engineering services for the Electrical Power Distribution System Improvements,Project No. J-98, for an amount not to exceed $2,240,000 and approved a contingency of $224,000 (10%). ADDITIONAL INFORMATION Brown and Caldwell have successfully furnished engineering services for the design of this project and their support services during construction will provide continuity through the completion of the project. Staff negotiated with Brown and Caldwell for these support services in accordance with OC San’s adopted policies and procedures.A review of the proposed price was conducted using estimated quantities of requests for information,submittals,meetings,site visits,change order review,and design revisions, as well as the level of effort for preparing record drawings. Based on this review,staff determined the negotiated fee to be fair and reasonable for these services.Staff are requesting a 10 percent contingency in case unanticipated professional services are needed during construction. CEQA The project is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations section 15301.A Notice of Exemption has been filed with the OC Clerk- Recorder. Orange County Sanitation District Printed on 5/28/2025Page 2 of 3 powered by Legistar™ File #:2025-4150 Agenda Date:6/4/2025 Agenda Item No:5. FINANCIAL CONSIDERATIONS This request complies with the authority levels of OC San’s Purchasing Ordinance.This item has been budgeted (Budget FY 2024-25 and 2025-26,Section 8,Page 48,Electrical Power Distribution System Improvements,Project No.J-98)and an increase to the project budget is being requested as part of the annual budget update.The approval of this agreement will be contingent upon approval of the increased project budget as part of the budget update adoption. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Professional Construction Services Agreement ·Presentation TW:lb Orange County Sanitation District Printed on 5/28/2025Page 3 of 3 powered by Legistar™ PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 1 of 20 PROFESSIONAL CONSTRUCTION SERVICES AGREEMENT This PROFESSIONAL CONSTRUCTION SERVICES AGREEMENT, (hereinafter referred to as “Agreement”), is made and entered into to be effective the 25th day of June, 2025 by and between the ORANGE COUNTY SANITATION DISTRICT, (hereinafter referred to as "OC SAN"), and BROWN AND CALDWELL, (hereinafter referred to as "CONSULTANT"). WITNESSETH: WHEREAS, OC SAN desires to engage CONSULTANT to provide construction support services for ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS, PROJECT NO. J-98 (Construction Support Services); and WHEREAS, CONSULTANT is qualified to provide the necessary services for the Construction Support Services in connection with these requirements; and WHEREAS, OC SAN has adopted procedures in accordance with OC SAN’s current Purchasing Ordinance, Section 4.03(B), for the continuation of services and has proceeded in accordance with said procedures to perform the Construction Support Services; and WHEREAS, at its regular meeting on June 25, 2025 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee or Director of Engineering and General Manager pursuant to OC SAN’s current Purchasing Ordinance to approve this Agreement. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this Agreement, it is mutually agreed as follows: 1. SCOPE OF WORK CONSULTANT agrees to furnish necessary professional and technical services to accomplish those project elements outlined in the Scope of Work attached hereto as "Attachment A", and by this reference made a part of this Agreement. A. The CONSULTANT shall be responsible for the professional quality, technical accuracy, completeness, and coordination of all design, drawings, specifications, and other services furnished by the CONSULTANT under this Agreement, including the work performed by its subconsultants (Subconsultants). Where approval by OC SAN is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all laws, codes, industry standards and liability for damages caused by errors, omissions, noncompliance with industry standards, and/or negligence on the part of the CONSULTANT or its Subconsultants. B. CONSULTANT is responsible for the quality of work prepared under this Agreement and shall perform its work in accordance with generally accepted engineering standards in effect for clarity, uniformity, and completeness. PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 2 of 20 C. In the event that work is not performed to the satisfaction of OC SAN and does not conform to the requirements of this Agreement or any applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its designs, drawings, specifications, or other services within the timeframe specified by the Project Engineer/Project Manager. OC SAN may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. All CADD drawings, figures, and other work shall be produced by CONSULTANTS and Subconsultants using OC SAN standard software. Conversion of CADD work from any other non-standard CADD format to OC SAN format shall not be acceptable in lieu of this requirement. Electronic files shall be subject to an acceptance period of thirty (30) calendar days during which OC SAN shall perform appropriate acceptance tests. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to OC SAN. E. All professional services performed by the CONSULTANT, including but not limited to all drafts, data, correspondence, proposals, reports, and estimates compiled or composed by the CONSULTANT, pursuant to this Agreement, are for the sole use of OC SAN, its agents and employees. Neither the documents nor their contents shall be released to any third party without the prior written consent of OC SAN. This provision does not apply to information that (a) was publicly known, or otherwise known to the CONSULTANT, at the time that it was disclosed to the CONSULTANT by OC SAN, (b) subsequently becomes publicly known to the CONSULTANT other than through disclosure by OC SAN. F. OC SAN shall furnish to the CONSULTANT available studies, reports, and other data pertinent to the CONSULTANT’s services; obtain or authorize the CONSULTANT to obtain or provide additional reports and data as required; and furnish to the CONSULTANT services of others required for the performance of the CONSULTANT’s services hereunder. The CONSULTANT shall be entitled to use and rely upon all such information and services provided by OC SAN or others in performing the CONSULTANT’s services under this Agreement. G. Neither OC SAN nor CONSULTANT shall not be considered in default of this Agreement for delays in performance caused by circumstances beyond it’s the reasonable control of the non-performing party. For purposes of this Agreement, such circumstances include, but are not limited to, (1) strikes, lockouts, work slowdowns or stoppages, or accidents, and (2) acts of God. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 2. COMPENSATION Total compensation shall be paid to CONSULTANT for the Construction Support Services in accordance with the following provisions: PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 3 of 20 A. Total Compensation Total compensation shall be in an amount not to exceed Two Million Six Hundred Sixty-Seven Thousand Eight Hundred Seventy-Four Dollars ($2,667,874). Total compensation to CONSULTANT including burdened labor (salaries plus benefits), overhead, profit, direct costs, and Subconsultant(s) fees and costs shall not exceed the sum set forth in Attachment “E” - Fee Proposal. B. Labor As a portion of the total compensation to be paid to CONSULTANT, OC SAN shall pay to CONSULTANT a sum equal to the burdened salaries (salaries plus benefits) actually paid by CONSULTANT charged on an hourly-rate basis to this project and paid to the personnel of CONSULTANT. Upon request of OC SAN, CONSULTANT shall provide OC SAN with certified payroll records of all employees’ work that is charged to this project. C. Overhead As a portion of the total compensation to be paid to CONSULTANT, OC SAN shall compensate CONSULTANT and Subconsultants for overhead at the rate equal to the percentage of burdened labor as specified in Attachment “E” - Fee Proposal. D. Profit Profit for CONSULTANT and Subconsultants shall be a percentage of consulting services fees (Burdened Labor and Overhead). When the consulting or subconsulting services amount is $250,000 or less, the maximum Profit shall be 10%. Between $250,000 and $2,500,000, the maximum Profit shall be limited by a straight declining percentage between 10% and 5%. For consulting or subconsulting services fees with a value greater than $2,500,000, the maximum Profit shall be 5%. Addenda shall be governed by the same maximum Profit percentage after adding consulting services fees. As a portion of the total compensation to be paid to CONSULTANT and Subconsultants, OC SAN shall pay profit for all services rendered by CONSULTANT and Subconsultants for this project according to Attachment “E” - Fee Proposal. E. Subconsultants For any Subconsultant whose fees for services are greater than or equal to $100,000 (excluding out-of-pocket costs), CONSULTANT shall pay to Subconsultant total compensation in accordance with the Subconsultant amount specified in Attachment “E” - Fee Proposal. For any Subconsultant whose fees for services are less than $100,000, CONSULTANT may pay to Subconsultant total compensation on an hourly rate PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 4 of 20 basis and as specified in the Scope of Work. OC SAN shall pay to CONSULTANT the actual costs of Subconsultant fees and charges in an amount not to exceed the sum set forth in Attachment “E” - Fee Proposal. F. Direct Costs OC SAN shall pay to CONSULTANT and Subconsultants the actual costs of permits and associated fees, travel and licenses for an amount not to exceed the sum set forth in Attachment “E” - Fee Proposal. OC SAN shall also pay to CONSULTANT actual costs for equipment rentals, leases or purchases with prior approval of OC SAN. Upon request, CONSULTANT shall provide to OC SAN receipts and other documentary records to support CONSULTANT’s request for reimbursement of these amounts, see Attachment “D” – Allowable Direct Costs. All incidental expenses shall be included in overhead pursuant to Section 2 - COMPENSATION above. G. Other Direct Costs Other Direct Costs incurred by CONSULTANT and its Contractor due to modifications to the Scope of Work resulting from field investigations and field work required by the Agreement. These items may include special equipment, test equipment and tooling and other materials and services not previously identified. Refer to attachment “D” Allowable Direct Costs for payment information. H. Reimbursable Direct Costs OC SAN will reimburse the CONSULTANT for reasonable travel and business expenses as described in this section and further described in Attachment “D” - Allowable Direct Costs to this Agreement. The reimbursement of the above-mentioned expenses will be based on an “accountable plan” as considered by Internal Revenue Service (IRS). The plan includes a combination of reimbursements based upon receipts and a “per diem” component approved by IRS. The most recent schedule of the per diem rates utilized by OC SAN can be found on the U.S. General Service Administration website at https://www.gsa.gov/travel/plan-book/per-diem-rates. The CONSULTANT shall be responsible for the most economical and practical means of management of reimbursable costs inclusive but not limited to travel, lodging and meals arrangements. OC SAN shall apply the most economic and practical method of reimbursement which may include reimbursements based upon receipts and/or “per diem” as deemed the most practical. CONSULTANT shall be responsible for returning to OC SAN any excess reimbursements after the reimbursement has been paid by OC SAN. Travel and travel arrangements – Any travel involving airfare, overnight stays or multiple day attendance must be approved by OC SAN in advance. PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 5 of 20 Local Travel is considered travel by the CONSULTANT within OC SAN general geographical area which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties. Automobile mileage is reimbursable if CONSULTANT is required to utilize personal vehicle for local travel. Lodging – Overnight stays will not be approved by OC SAN for local travel. However, under certain circumstances overnight stay may be allowed at the discretion of OC SAN based on reasonableness of meeting schedules and the amount of time required for travel by the CONSULTANT. Such determination will be made on a case-by-case basis and at the discretion of OC SAN. Travel Meals – Per-diem rates as approved by IRS shall be utilized for travel meals reimbursements. Per-diem rates shall be applied to meals that are appropriate for travel times. Receipts are not required for the approved meals. Additional details related to the reimbursement of the allowable direct costs are provided in the Attachment “D” - Allowable Direct Costs of this Agreement. I. Limitation of Costs If, at any time, CONSULTANT estimates the cost of performing the services described in CONSULTANT’s Proposal will exceed the not-to-exceed amount of the Agreement, including approved additional compensation, CONSULTANT shall notify OC SAN immediately, and in writing. This written notice shall indicate the additional amount necessary to complete the services. Any cost incurred in excess of the approved not-to-exceed amount, without the express written consent of OC SAN’s authorized representative shall be at CONSULTANT’s own risk. This written notice shall be provided separately from, and in addition to any notification requirements contained in the CONSULTANT’s invoice and monthly progress report. Failure to notify OC SAN that the services cannot be completed within the authorized not-to-exceed amount is a material breach of this Agreement. 3. REALLOCATION OF TOTAL COMPENSATION OC SAN, by its Director of Engineering, shall have the right to approve a reallocation of the incremental amounts constituting the total compensation, provided that the total compensation is not increased. 4. PAYMENT A. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed breakdown of costs associated with the performance of any corrections or revisions of the work for that invoicing period. CONSULTANT shall allocate costs in the same manner as it would for payment requests as described in this Section of the Agreement. CONSULTANT shall warrant and certify the accuracy of these costs and understand that submitted costs are subject to Section 11 - AUDIT PROVISIONS. PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 6 of 20 B. CONSULTANT may submit monthly or periodic statements requesting payment for those items included in Section 2 - COMPENSATION hereof in the format as required by OC SAN. Such requests shall be based upon the amount and value of the work and services performed by CONSULTANT under this Agreement and shall be prepared by CONSULTANT and accompanied by such supporting data, including a detailed breakdown of all costs incurred and work performed during the period covered by the statement, as may be required by OC SAN. Upon approval of such payment request by OC SAN, payment shall be made to CONSULTANT as soon as practicable of one hundred percent (100%) of the invoiced amount on a per task basis. If OC SAN determines that the work under this Agreement, or any specified task hereunder, is incomplete and that the amount of payment is in excess of: i. The amount considered by OC SAN’s Director of Engineering to be adequate for the protection of OC SAN; or ii. The percentage of the work accomplished for each task. OC SAN may, at the discretion of the Director of Engineering, retain an amount equal to that which ensures that the total amount paid to that date does not exceed the percentage of the completed work for each task or the project in its entirety. C. CONSULTANT may submit periodic payment requests for each 30-day period of this Agreement for the profit as set forth in Section 2 - COMPENSATION above. Said profit payment request shall be proportionate to the work actually accomplished to date on a per task basis. In the event OC SAN's Director of Engineering determines that no satisfactory progress has been made since the prior payment, or in the event of a delay in the work progress for any reason, OC SAN shall have the right to withhold any scheduled proportionate profit payment. D. Upon satisfactory completion by CONSULTANT of the work called for under the terms of this Agreement, and upon acceptance of such work by OC SAN, CONSULTANT will be paid the unpaid balance of any money due for such work, including any retained percentages relating to this portion of the work. E. Upon satisfactory completion of the work performed hereunder and prior to final payment under this Agreement for such work, or prior settlement upon termination of this Agreement, and as a condition precedent thereto, CONSULTANT shall execute and deliver to OC SAN a release of all claims against OC SAN arising under or by virtue of this Agreement other than such claims, if any, as may be specifically exempted by CONSULTANT from the operation of the release in stated amounts to be set forth therein. F. Pursuant to the California False Claims Act (Government Code Sections 12650-12655), any CONSULTANT that knowingly submits a false claim to OC SAN for compensation under the terms of this Agreement may be held liable for treble damages and up to a ten thousand dollars ($10,000) civil penalty for each false claim submitted. This Section shall also be binding on all Subconsultants. PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 7 of 20 A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: a) knowingly presents or causes to be presented to an officer or employee of OC SAN a false claim or request for payment or approval; b) knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by OC SAN; c) conspires to defraud OC SAN by getting a false claim allowed or paid by OC SAN; d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to OC SAN; or e) is a beneficiary of an inadvertent submission of a false claim to OC SAN, and fails to disclose the false claim to OC SAN within a reasonable time after discovery of the false claim. 5. CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) REGISTRATION AND RECORD OF WAGES A. To the extent CONSULTANT's employees and/or Subconsultants who will perform work during the design and preconstruction phases of a construction contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 et seq, CONSULTANT and Subconsultants shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to compliance monitoring and enforcement by the DIR. B. The CONSULTANT and Subconsultants shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a) (3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. C. Pursuant to Labor Code Section 1776, the CONSULTANT and Subconsultants shall furnish a copy of all certified payroll records to OC SAN and/or general public upon request, provided the public request is made through OC SAN, the Division of Apprenticeship Standards or the Division of Labor Enforcement of the Department of Industrial Relations. D. The CONSULTANT and Subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 6. DOCUMENT OWNERSHIP – SUBSEQUENT CHANGES TO PLANS AND SPECIFICATIONS A. Ownership of Documents for the Construction Support Services performed. All documents, including but not limited to, original plans, studies, sketches, drawings, computer printouts and disk files, and specifications prepared in connection with or related to the Scope of Work or Construction Support Services, shall be the property of OC SAN. OC SAN’s ownership of these PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 8 of 20 documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. OC SAN ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT’s Construction Support Services are terminated: a) by the completion of the Agreement, or b) in accordance with other provisions of this Agreement. Notwithstanding any other provision of this paragraph or Agreement, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the plans or specifications, where the subsequent changes or uses are not authorized or approved by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate cause of the damage. 7. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to OC SAN. ii. Insurers must have an “A-” Policyholder’s Rating, or better, and Financial Rating of at least Class VIII, or better, in accordance with the most current A.M. Best’s Guide Rating. However, OC SAN will accept State Compensation Insurance Fund, for the required policy of Workers’ Compensation Insurance subject to OC SAN’s option to require a change in insurer in the event the State Fund financial rating is decreased below “B”. Further, OC SAN will require CONSULTANT to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20) days of written notice to CONSULTANT, by OC SAN or its agent. iii. Coverage shall be in effect prior to the commencement of any work under this Agreement. B. General Liability The CONSULTANT shall maintain during the life of this Agreement, including the period of warranty, commercial general liability insurance written on an occurrence basis providing the following minimum limits of liability coverage: One Million Dollars ($1,000,000) per occurrence with Two Million Dollars ($2,000,000) aggregate. If aggregate limits apply separately to this contract (as evidenced by submission of ISO form CG 25 03 or 25 04), then the aggregate limit may be equivalent to the per occurrence limit. Said insurance shall include coverage for the following hazards: premises-operations, products liability/completed operations (including any product manufactured or assembled), broad form property damage, contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, vicarious PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 9 of 20 liability, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by OC SAN and applicable, XCU coverage (Explosion, Collapse and Underground) must be included in the general liability policy and coverage must be reflected on the submitted certificate of insurance. Where permitted by law, CONSULTANT hereby waives all rights of recovery by subrogation because of deductible clauses, inadequacy of limits of any insurance policy, limitations or exclusions of coverage, or any other reason against OC SAN, its or their officers, agents, or employees, and any other consultant, contractor, or subcontractor performing work or rendering services on behalf of OC SAN in connection with the planning, development, and construction of the project. In all its insurance coverages related to the work, (except Errors and Omissions/Professional Liability), CONSULTANT shall include clauses providing that each insurer shall waive all of its rights of recovery by subrogation against OC SAN, its or their officers, agents, or employees, or any other consultant, contractor, or subcontractor performing work or rendering services at the project. Where permitted by law, CONSULTANT shall require similar written express waivers and insurance clauses from each of its Subconsultants of every tier. A waiver of subrogation shall be effective as to any individual or entity, even if such individual or entity (a) would otherwise have a duty of indemnification, contractual or otherwise, (b) did not pay the insurance premium, directly or indirectly, and (c) whether or not such individual or entity has an insurable interest in the property damaged. C. Umbrella Excess Liability The minimum limits of general liability and automobile liability insurance required, as set forth herein, shall be provided for through either a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Umbrella excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automobile liability. D. Automobile/Vehicle Liability Insurance The CONSULTANT shall maintain a policy of automobile liability insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limit of liability coverage: combined single limit of Five Hundred Thousand Dollars ($500,000). A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement. E. Drone Liability Insurance If a drone will be used, drone liability insurance must be maintained by CONSULTANT in the amount of one million dollars ($1,000,000) in form acceptable to OC SAN. PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 10 of 20 F. Workers’ Compensation Insurance The CONSULTANT shall provide such workers’ compensation insurance as required by the Labor Code of the State of California in the amount of the statutory limit, including employer’s liability insurance with a minimum limit of One Million Dollars ($1,000,000) per occurrence. Such workers’ compensation insurance shall be endorsed to provide for a waiver of subrogation in favor of OC SAN. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless the insurance carrier is State of California Insurance Fund and the identifier “SCIF” and endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage for Jones Act claims. G. Errors and Omissions/Professional Liability CONSULTANT shall maintain in full force and effect, throughout the term of this Agreement, standard industry form professional negligence errors and omissions insurance coverage in an amount of not less than Five Million Dollars ($5,000,000) with limits in accordance with the provisions of this paragraph. If the policy of insurance is written on a “claims made” basis, said policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of five (5) years from the date of the completion of the services hereunder. In the event of termination of said policy during this period, CONSULTANT shall obtain continuing insurance coverage for the prior acts or omissions of CONSULTANT during the course of performing services under the term of this Agreement. Said coverage shall be evidenced by either a new policy evidencing no gap in coverage or by separate extended “tail” coverage with the present or new carrier. In the event the present policy of insurance is written on an “occurrence” basis, said policy shall be continued in full force and effect during the term of this Agreement or until completion of the services provided for in this Agreement, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts of CONSULTANT during the course of performing services under the term of this Agreement. CONSULTANT shall provide to OC SAN a certificate of insurance in a form acceptable to OC SAN indicating the deductible or self-retention amounts and the expiration date of said policy and shall provide renewal certificates not less than ten (10) days prior to the expiration of each policy term. H. Proof of Coverage The CONSULTANT shall furnish OC SAN with original certificates and amendatory endorsements effecting coverage. Said certificates and endorsements shall conform to the requirements herein stated. All certificates PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 11 of 20 and endorsements are to be received and approved by OC SAN before work commences. CONSULTANT shall provide OC SAN with copies of its insurance certificates and amendatory endorsements affecting coverage. Confidential information may be redacted from said policies, provided that verification of coverage and name of carriers and agent/broker may not be redacted. Said policies and endorsements shall conform to the requirements herein stated. The following are approved forms that must be submitted as proof of coverage: • Certificate of Insurance ACORD Form or other equivalent certificate of insurance form • Additional Insurance (General Liability) The combination of (ISO Forms) CG 20 10 and CG 20 37 or equivalent All other additional insured endorsements must be submitted for approval by OC SAN, and OC SAN may reject alternatives that provide different or less coverage to OC SAN. • Additional Insured (Automobile Liability) Submit endorsement provided by carrier for OC SAN approval. • Waiver of Subrogation Submit workers’ compensation waiver of subrogation endorsement provided by carrier for OC SAN approval. • Cancellation Notice No endorsement is required. However, CONSULTANT is responsible for notifying OC SAN of any pending or actual insurance policy cancellation, as described in Article I. Cancellation and Policy Change Notice, below. I. Cancellation and Policy Change Notice The CONSULTANT is required to notify OC SAN in writing of any insurance cancellation notice it receives or other knowledge of pending or actual insurance policy cancellation, within two (2) working days of receipt of such notice or acquisition of such knowledge. Additionally, the CONSULTANT is required to notify OC SAN in writing of any material change in the terms of insurance, including reduction in coverage, within two (2) working days of receipt of such notice or knowledge of same. Said notices shall be mailed to OC SAN at: ORANGE COUNTY SANITATION DISTRICT 18480 Bandilier Circle Fountain Valley, CA 92708 Attention: Contracts, Purchasing & Materials Management Division PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 12 of 20 J. Primary Insurance The general and automobile liability policies shall contain a “Primary and Non-Contributory” clause. Any other insurance maintained by OC SAN shall be excess and not contributing with the insurance provided by CONSULTANT. K. Separation of Insured The general and automobile liability policies shall contain a “Separation of Insureds” clause. L. Non-Limiting (if applicable) Nothing in this document shall be construed as limiting in any way, nor shall it limit the indemnification provision contained in this Agreement, or the extent to which CONSULTANT may be held responsible for payment of damages to persons or property. M. Deductibles and Self-Insured Retentions Any deductible and/or self-insured retention must be declared to OC SAN on the certificate of insurance. All deductibles and/or self-insured retentions require approval by OC SAN. At the option of OC SAN, either: the insurer shall reduce or eliminate such deductible or self-insured retention as respects OC SAN; or the CONSULTANT shall provide a financial guarantee satisfactory to OC SAN guaranteeing payment of losses and related investigations, claim administration and defense expenses. OC SAN will not invoke the option expressed in this paragraph unless it has reasonable cause to question CONSULTANT’s financial strength. N. Defense Costs The general and automobile liability policies shall have a provision that defense costs for all insureds and additional insureds are paid in addition to and do not deplete any policy limits. O. Subconsultants The CONSULTANT shall be responsible to establish insurance requirements for any Subconsultant hired by the CONSULTANT. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subconsultant’s operations and work. P. Limits Are Minimums If the CONSULTANT maintains higher limits than any minimums shown above, then OC SAN requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. Nothing in this section, however, requires CONSULTANT in the absence of litigation to reveal its Errors and Omissions/Professional Liability limits beyond that required above in Section 7. PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 13 of 20 8. SCOPE CHANGES In the event of a change in the Scope of Work or other terms in the Agreement, as requested by OC SAN, the parties hereto shall execute an Amendment to this Agreement setting forth with particularity all terms of the new Agreement, including, but not limited to, any additional CONSULTANT's fees. CONSULTANT hereby agrees to use any and all procedures, programs, and systems required by OC SAN to process and execute such Amendment(s), including, but not limited to, computer programs and systems. 9. PROJECT TEAM AND SUBCONSULTANTS CONSULTANT shall provide to OC SAN, prior to execution of this Agreement, the names and full description of all Subconsultants and CONSULTANT’s project team members anticipated to be used on this project by CONSULTANT. CONSULTANT shall include a description of the scope of work to be done by each Subconsultant and each CONSULTANT’s project team member. CONSULTANT shall include the respective compensation amounts for CONSULTANT and each Subconsultant on a per task basis, broken down as indicated in Section 2 -COMPENSATION. There shall be no substitution of the listed Subconsultants and CONSULTANT’s project team members without prior written approval by OC SAN. 10. ENGINEERING REGISTRATION The CONSULTANT’s personnel are comprised of registered engineers and a staff of specialists and draftsmen in each department. The firm itself is not a registered engineer but represents and agrees that wherever in the performance of this Agreement requires the services of a registered engineer, such services hereunder will be performed under the direct supervision of registered engineers. 11. AUDIT PROVISIONS A. OC SAN retains the reasonable right to access, review, examine, and audit, any and all books, records, documents and any other evidence of procedures and practices that OC SAN determines are necessary to discover and verify that the CONSULTANT is in compliance with all requirements under this Agreement. The CONSULTANT shall include OC SAN’s right as described above, in any and all of their subcontracts, and shall ensure that these rights are binding upon all Subconsultants. B. OC SAN retains the right to examine CONSULTANT’s books, records, documents and any other evidence of procedures and practices that OC SAN determines are necessary to discover and verify all direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred or to ensure CONSULTANT’s compliance with all requirements under this Agreement during the term of this Agreement and for a period of three (3) years after its termination. PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 14 of 20 C. CONSULTANT shall maintain complete and accurate records in accordance with Generally Accepted Accounting Principles (GAAP). The CONSULTANT shall make available to OC SAN for review and audit, all project related accounting records and documents, and any other financial data within 15 days after receipt of notice from OC SAN. Upon OC SAN’s request, the CONSULTANT shall submit exact duplicates of originals of all requested records to OC SAN. If an audit is performed, CONSULTANT shall ensure that a qualified employee of the CONSULTANT will be available to assist OC SAN’s auditor in obtaining all project related accounting records and documents, and any other financial data. 12. LEGAL RELATIONSHIP BETWEEN PARTIES The legal relationship between the parties hereto is that of an independent contractor and nothing herein shall be deemed to make CONSULTANT an employee of OC SAN. 13. NOTICES All notices hereunder and communications regarding the interpretation of the terms of this Agreement, or changes thereto, shall be effected by delivery of said notices in person or by depositing said notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid. Notices shall be mailed to OC SAN at: ORANGE COUNTY SANITATION DISTRICT 18480 Bandilier Circle Fountain Valley, CA 92708 Attention: Wai Chan, Senior Contracts Administrator Copy: Todd Waltz, Project Manager Notices shall be mailed to CONSULTANT at: BROWN AND CALDWELL 18500 Von Karman Avenue, Suite 800 Irvine, CA 92612 Attention: Cherylle Barrido, PE Copy: Mike Puccio, PE All communication regarding the Scope of Work, will be addressed to the Project Manager. Direction from other OC SAN’s staff must be approved in writing by OC SAN’s Project Manager prior to action from the CONSULTANT. 14. TERMINATION OC SAN may terminate this Agreement at any time, without cause, upon giving thirty (30) days written notice to CONSULTANT. In the event of such termination, CONSULTANT shall be entitled to compensation for work performed on a prorated basis through and including the effective date of termination. OC SAN may also terminate this Agreement for cause but only after providing CONSULTANT written notice of the breach and a period of ten (10) days to cure. PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 15 of 20 CONSULTANT shall be permitted to terminate this Agreement upon thirty (30) days written notice only if CONSULTANT is not compensated for billed amounts in accordance with the provisions of this Agreement, when the same are due. Notice of termination shall be mailed to OC SAN and/or CONSULTANT in accordance with Section 13 - NOTICES. 15. DOCUMENTS AND STUDY MATERIALS The documents and study materials for this project shall become the property of OC SAN upon the termination or completion of the work. CONSULTANT agrees to furnish to OC SAN copies of all memoranda, correspondence, computation, and study materials in its files pertaining to the work described in this Agreement, which is requested in writing by OC SAN. 16. COMPLIANCE A. Labor CONSULTANT certifies by the execution of this Agreement that it pays employees not less than the minimum wage as defined by law, and that it does not discriminate in its employment with regard to race, color, religion, sex or national origin; that it is in compliance with all federal, state and local directives and executive orders regarding non-discrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. B. Air Pollution CONSULTANT and its subconsultants and subcontractors shall comply with all applicable federal, state and local air pollution control laws and regulations. C. Iran Contracting Act CONSULTANT and its subconsultants and subcontractors shall comply with the Iran Contracting Act of 2010 (Public Contract Code sections 2200-2208). D. California Air Resources Board Mobile Source Regulations CONSULTANT and its subconsultants and subcontractors shall comply with the following California Air Resources Board Mobile Source Regulations: • Advanced Clean Fleet (ACF): 13 CCR 2013-2013.4; 13 CCR 2015-2015.6 • Truck & Bus Regulation (T&B): 13 CCR 2025 • Clean Truck Check (CTC): 13 CCR 2195-2199.1 • Off-Road Diesel Amendments (ORD): 13 CCR 2449-2449.2 PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 16 of 20 17. AGREEMENT EXECUTION AUTHORIZATION Both OC SAN and CONSULTANT do covenant that each individual executing this document by and on behalf of each party is a person duly authorized to execute agreements for that party. 18. DISPUTE RESOLUTION In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service (“JAMS”), or similar organization or entity conducting alternate dispute resolution services. 19. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which it may be entitled. 20. PROGRESS REPORTS Monthly progress reports shall be submitted for review by the tenth day of the following month and must include as a minimum: 1) current activities, 2) future activities, 3) potential items that are not included in the Scope of Work, 4) concerns and possible delays, 5) percentage of completion, and 6) budget status. 21. WARRANTY CONSULTANT shall perform its services in accordance with generally accepted industry and professional standards. If, within the 12-month period following completion of its services, OC SAN informs CONSULTANT that any part of the services fails to meet those standards, CONSULTANT shall, within the time prescribed by OC SAN, take all such actions as are necessary to correct or complete the noted deficiency(ies). 22. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT’s sole cost and expense and with legal counsel approved by OC SAN, which approval shall not be unreasonably withheld), protect and hold harmless OC SAN and all of OC SAN’s officers, directors, employees, consultants, and agents (collectively the “Indemnified Parties”), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses, judgments, fines, penalties, costs and expenses including without limitation, attorneys’ fees, disbursements and court costs, and all other professional, expert or consultants fees and costs and OC SAN’s general and administrative expenses (individually, a “Claim”, or collectively, “Claims”) which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 17 of 20 CONSULTANT’s suppliers, consultants, subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising from: (A) the sole or active negligence or willful misconduct of the Indemnified Parties; or (B) a natural disaster or other act of God, such as an earthquake; or (C) the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, officer, agent, employee, nor CONSULTANT’s supplier, consultant, subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. Exceptions (A) through (B) above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. CONSULTANT’s liability for indemnification hereunder is in addition to any liability CONSULTANT may have to OC SAN for a breach by CONSULTANT of any of the provisions of this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit CONSULTANT’s indemnification obligation or other liability hereunder. The terms of this Agreement are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. 23. DUTY TO DEFEND The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of CONSULTANT and shall be consistent with Civil Code Section 2782.8. Such defense obligation shall arise immediately upon presentation of a Claim by any person if, without regard to the merit of the Claim, such Claim could potentially result in an obligation to indemnify one or more Indemnified Parties, and upon written notice of such Claim being provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party’s rights to indemnification hereunder. In the event a final judgment, arbitration, award, order, settlement, or other final resolution expressly determines that the claim did not arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent, then OC SAN will reimburse CONSULTANT for the reasonable costs of defending the Indemnified Parties against such claims. Additionally, in no event shall the cost to defend charged to CONSULTANT exceed CONSULTANT’s proportionate percentage of fault. PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 18 of 20 CONSULTANT’s indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until such time as action against the Indemnified Parties for such matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 24. CONSULTANT PERFORMANCE The CONSULTANT’s performance shall be evaluated by OC SAN. A copy of the evaluation shall be sent to the CONSULTANT for comment. The evaluation, together with the comments, shall be retained by OC SAN and may be considered in future CONSULTANT selection processes. 25. COMPLIANCE WITH OC SAN POLICIES AND PROCEDURES CONSULTANT shall comply with all OC SAN policies and procedures, including, but not limited to, the Contractor Safety Standards, as applicable, and Human Resources Policies, all as may be amended from time to time. 26. CLOSEOUT When OC SAN determines that all work authorized under the Agreement is fully complete and that OC SAN requires no further work from CONSULTANT, or the Agreement is otherwise terminated or expires in accordance with the terms of the Agreement, OC SAN shall give the Consultant written notice that the Agreement will be closed out. CONSULTANT shall submit all outstanding billings, work submittals, deliverables, reports or similarly related documents as required under the Agreement within thirty (30) days of receipt of notice of Agreement closeout. Upon receipt of CONSULTANT’s submittals, OC SAN shall commence a closeout audit of the Agreement and will either: i. Give the CONSULTANT a final Agreement Acceptance: or ii. Advise the CONSULTANT in writing of any outstanding item or items which must be furnished, completed, or corrected at the CONSULTANT’s cost. CONSULTANT shall be required to provide adequate resources to fully support any administrative closeout efforts identified in this Agreement. Such support must be provided within the timeframe requested by OC SAN. Notwithstanding the final Agreement Acceptance the CONSULTANT will not be relieved of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to complete any portions of the work, the non-completion of which were not disclosed to OC SAN (regardless of whether such nondisclosures were fraudulent, negligent, or otherwise); and the CONSULTANT shall remain obligated under all those provisions of the Agreement which expressly or by their nature extend beyond and survive final Agreement Acceptance. PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 19 of 20 Any failure by OC SAN to reject the work or to reject the CONSULTANT’s request for final Agreement Acceptance as set forth above shall not be deemed to be acceptance of the work by OC SAN for any purpose nor imply acceptance of, or agreement with, the CONSULTANT’s request for final Agreement Acceptance. 27. CONSULTANT’S OPINION OF COSTS: OC SAN acknowledges that construction estimates, financial analyses and feasibility projections are subject to many influences including, but not limited to, price of labor and materials, unknown or latent conditions of existing equipment or structures, and time or quality of performance by third parties. OC SAN acknowledges that such influences may not be precisely forecasted and are beyond the control of CONSULTANT and that actual costs incurred may vary substantially from the estimates prepared by CONSULTANT. CONSULTANT does not warrant or guarantee the accuracy of construction or development cost estimates. 28. ENTIRE AGREEMENT This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. PCSA PROJECT NO. J-98 Revised 030525 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 20 of 20 IN WITNESS WHEREOF, this Agreement has been executed in the name of OC SAN and CONSULTANT by their respective duly authorized officers as of the day and year first written above. CONSULTANT: BROWN AND CALDWELL By __________________________________________________ Date __________________________________________________ Printed Name & Title ORANGE COUNTY SANITATION DISTRICT By __________________________________________________ Ryan P. Gallagher Date Board Chairman By __________________________________________________ Kelly A. Lore Date Clerk of the Board By __________________________________________________ Kevin Work Date Purchasing & Contracts Manager Attachments: Attachment “A” – Scope of Work Attachment “B” – Not Used Attachment “C” – Not Used Attachment “D” – Allowable Direct Costs Attachment “E” – Fee Proposal Attachment “F” – Not Used Attachment “G” – Not Attached Attachment “H” – Not Used Attachment “I” – Cost Matrix and Summary Attachment “J” – Not Used Attachment “K” – Not Used Attachment “L” – Contractor Safety Standards Attachment “M” – Not Attached Attachment “N” – Not Attached Attachment “O” – Human Resources Policies WC:ms SCOPE OF WORK PROJECT NO. J-98 PCSA Page 1 of 16 ATTACHMENT “A” SCOPE OF WORK ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS PROJECT NO. J-98 PROFESSIONAL CONSTRUCTION SERVICES AGREEMENT SCOPE OF WORK PROJECT NO. J-98 PCSA Page 2 of 16 TABLE OF CONTENTS I. SUMMARY..................................................................................................................................... 3 II. PROJECT SCHEDULE .................................................................................................................. 3 III. PROJECT IMPLEMENTATION....................................................................................................... 3 IV. PHASE 4 – CONSTRUCTION AND INSTALLATION SERVICES .................................................... 3 TASK 4.1 – PROJECT MANAGEMENT .................................................................................................. 3 4.1.1 – PMWeb Procedures (NOT USED) ................................................................................................ 5 TASK 4.2 – INITIAL PROJECT MEETINGS ............................................................................................ 5 4.2.1 – Construction Hand Off Workshop ................................................................................................. 5 4.2.2 – PMWeb and Submittal Review Procedures Meeting ...................................................................... 6 4.2.3 – Preconstruction Conference ......................................................................................................... 6 4.2.4 – Pre-Submittal Review Meetings and Workshops ........................................................................... 6 4.2.5 – Other Meetings and Workshops ................................................................................................... 6 TASK 4.3 – SUBMITTAL REVIEWS ........................................................................................................ 7 TASK 4.4 – REQUEST FOR INFORMATION .......................................................................................... 7 TASK 4.5 – CONTRACT DOCUMENT MODIFICATIONS, DESIGN CHANGES AND CHANGE ORDERS 8 TASK 4.6 – CONSTRUCTION PROGRESS MEETINGS AND SITE VISITS ............................................. 8 TASK 4.7 – STRUCTURAL ENGINEERING SERVICES .......................................................................... 9 TASK 4.8 – CONSULTANT LED TRAINING ........................................................................................... 9 TASK 4.9 – CONFORMED DOCUMENT PREPARATION ....................................................................... 9 V. PHASE 5 – COMMISSIONING SERVICES ..................................................................................... 9 TASK 5.1 – COMMISSIONING TEAM MEETINGS .................................................................................. 9 TASK 5.2 – FACILITY RECORDS DELIVERY SCHEDULE ................................................................... 10 TASK 5.3 – COMMISSIONING SUPPORT ............................................................................................ 11 TASK 5.4 – OPERATIONS AND MAINTENANCE MANUALS ............................................................... 12 TASK 5.5 – STANDARD OPERATING PROCEDURES (SOPS) ............................................................ 12 TASK 5.6 – REDLINE P&IDS AND SINGLE LINE DIAGRAMS (SLD) .................................................... 13 VI. PHASE 6 - CLOSEOUT ................................................................................................................ 14 TASK 6.1 – FINAL INSPECTION AND PUNCH LISTS .......................................................................... 14 TASK 6.2 – RECORD DRAWINGS ....................................................................................................... 14 TASK 6.3 – PROJECT MANAGEMENT ................................................................................................ 15 VII. STAFF ASSISTANCE .................................................................................................................. 16 VIII. QUANTITATIVE ASSUMPTIONS ................................................................................................. 16 SCOPE OF WORK PROJECT NO. J-98 PCSA Page 3 of 16 I. SUMMARY Provide construction engineering support services for the construction and installation, and closeout phases of this project. II. PROJECT SCHEDULE The schedule for the services specified in this Scope of Work (SOW) shall be provided per the construction contract schedule, and the schedule constraints as described in this Scope of Work. III. PROJECT IMPLEMENTATION All Orange County Sanitation District (OC SAN) projects are divided into six phases. The CONSULTANT shall provide engineering support services for Phase 4 Construction and Installation Services, Phase 5 Commissioning Services and Phase 6 Closeout. • Phase 1 – Project Development – Completed • Phase 2 – Preliminary Design – Completed • Phase 3 – Final Design – Completed • Phase 4 – Construction and Installation Services • Phase 5 – Commissioning Services • Phase 6 – Closeout IV. PHASE 4 – CONSTRUCTION AND INSTALLATION SERVICES OC SAN will administer and provide field inspection for the construction contract. Construction engineering support services shall be provided by the CONSULTANT as requested by OC SAN. The CONSULTANT shall provide the key project personnel as described in its proposal for this project. The CONSULTANT shall not reassign the key project personnel without prior approval of OC SAN. OC SAN may request reassignment of any of the CONSULTANT’s or its subconsultant’s personnel, based on poor performance. For all services, the CONSULTANT shall refer to the Engineering Design Guidelines, Chapter 01 for detailed requirements. Quality Assurance/Quality Control (QA/QC): The CONSULTANT shall administer a program of QA/QC procedures for producing quality work and shall effectively manage and control the work. Specific procedures shall include but not be limited to planning, coordination, tracking, checking, reviewing, and scheduling the work. The CONSULTANT shall subject all work products prepared by the CONSULTANT to the CONSULTANT’s in-house QA/QC procedures prior to submittal to OC SAN. QA/QC hours and costs shall be incorporated into other tasks within this SOW. TASK 4.1 – PROJECT MANAGEMENT A. The CONSULTANT shall be responsible for detailed management of the work, including managing its subconsultant’s, and shall keep OC SAN apprised of the status of the work. SCOPE OF WORK PROJECT NO. J-98 PCSA Page 4 of 16 B. The CONSULTANT shall conduct monthly project management meetings with OC SAN. These meetings shall be attended by OC SAN’s Project Manager and the CONSULTANT’s Project Manager at a mutually agreeable time. The purpose of the meetings shall be to review the CONSULTANT’s Project Manager’s progress report and the status of the SOW, budget, and any issues which may affect completion of the work. Meetings should be arranged so that the progress report can be submitted three days before each meeting. C. The CONSULTANT shall prepare and submit monthly invoices to OC SAN no later than the second Wednesday of the following month. The invoices shall document the hours and billing rate for each person that works on the project for each task in the work breakdown structure (WBS). Overhead, profit, and any direct costs shall also be shown for each task. As part of the summary section of the invoice, the CONSULTANT shall also include the following information: • Budget • Current billing period invoicing • Previous billing period “total invoiced to date” • Budget amount remaining • Current billing period “total percent invoice to date” • Current billing period “total percent completed to date” The monthly progress report shall be submitted with the invoice as part of the monthly request for payment. The monthly progress report shall include the following: • Work completed in the billing period • Outstanding project issues • Status and issues impacting project scope and budget • Percent complete, tabulated based on listed Part V. Quantitative Assumptions • Cost to complete, tabulated on a per task basis (ETC only needed when requested. Not monthly) • Overall project budget, tabulated on a per task basis • Travel and site visit summary • Log documenting work completed to date on requests for information (RFIs), submittal reviews, Master Document Index (MDI), and change order preparation • Log identifying and determining status of project risks • Out of scope items log D. The CONSULTANT shall also provide the percent budget spent for each of OC SAN’s WBS cost codes (i.e. by work package and phase). OC SAN will provide a list of cost codes by phase to the CONSULTANT. E. The CONSULTANT shall also provide a summary of progress and expenditures to date. F. OC SAN will provide a sample invoice structure to the CONSULTANT after the issuance of the Notice to Proceed (NTP) for this SOW. SCOPE OF WORK PROJECT NO. J-98 PCSA Page 5 of 16 4.1.1 – PMWeb Procedures (NOT USED) TASK 4.2 – INITIAL PROJECT MEETINGS 4.2.1 – Construction Hand Off Workshop A. The CONSULTANT shall participate in a two-hour construction hand-off workshop. The purpose of the workshop is for the CONSULTANT and the OC SAN design team to transfer project-specific knowledge to the OC SAN construction management and inspection staff who will be managing and monitoring construction. Agenda to be used at the meet is below: 1. General Project Overview a. Summary of Work and Project Elements b. Work Sequence c. Work Restrictions d. Schedule/Milestones 2. Project Risks (for example) a. Tricky construction b. Areas where extra care needs to be taken c. Submittals that need to be completed early due to lead time 3. Key decision log items (i.e. any key items/decisions discussed during design that cannot change, and we do not want to entertain proposals from the Contractor to change?) 4. Long lead time equipment submittals (timely processing required to avoid delays) a. Electrical control panels b. Transformers c. Special equipment d. Other project risk items 5. Project Team a. OC SAN Engineering Team b. CONSULTANT Team - involvement in Submittals & RFIs. c. Stakeholders- O&M-personnel 6. Contractor a. Subs b. Bid price issues (e.g., did they bid anything suspiciously low) c. Past Contractor performance at OC SAN d. Strengths e. Weaknesses 7. LDs 8. Status of PMWeb Submittals List and set up SCOPE OF WORK PROJECT NO. J-98 PCSA Page 6 of 16 B. The workshop will be led by OC SAN’s Project Manager and Project Engineer and the CONSULTANT’s Project Manager and Project Engineer. 4.2.2 – PMWeb and Submittal Review Procedures Meeting A. The CONSULTANT shall participate in a two-hour PMWeb procedure meeting and submittal procedure meeting. The purpose of this meeting is to review the roles and logistics for review and acceptance of construction contract documents and Contractor submittals. The CONSULTANT’s Project Manager and Project Engineer shall attend. This meeting will be led by the OC SAN Resident Engineer and will be more specific to this contract than the overall PMWeb training identified in Section 4.1.1. B. The project will utilize PMWeb for submittal reviews, project communication, tracking, and management. When required by OC SAN, paper documents shall also be provided. C. The CONSULTANT shall develop the Construction Submittal Items List in accordance with EXHIBIT 4 - MASTER PMWEB SCHEDULE OF SUBMITTALS TEMPLATE prior to the Contractor’s NTP. The CONSULTANT shall participate in (1) two-hour PMWeb Submittal List creation meeting. The purpose of this meeting is to review the submittal list template and the process of creating a project specific submittal list. The CONSULTANT shall account for (2) additional one-hour meetings to review their progress with OC SAN. 4.2.3 – Preconstruction Conference A. The CONSULTANT shall participate in a two-hour preconstruction conference attended by OC SAN staff, the CONSULTANT, the Contractor, subcontractors, and vendors. This meeting will be scheduled and presided over by OC SAN. In this meeting, OC SAN’s Resident Engineer will describe the CONSULTANT’s role in the project as the Design Engineer and the services the CONSULTANT shall provide during construction. OC SAN will prepare meeting minutes, and the CONSULTANT shall review and comment on the minutes. Only the Project Manager and Lead Project Engineer shall attend. 4.2.4 – Pre-Submittal Review Meetings and Workshops A. The CONSULTANT shall attend pre-submittal review meetings (2-hour virtual meetings unless noted otherwise) specified for the following specification sections: • 01120, Work Sequence • 01140, Work Restrictions • 01810, Commissioning • 16340, Medium Voltage Switchgear • 16430, Low Voltage Switchgear • 16850, Load Shed and Substation Local Area Network Hardware • Additional pre-submittal meetings (2 meetings @ 2-hour each) OC SAN will prepare the agenda and meeting minutes, and the CONSULTANT shall review and comment on the minutes. The CONSULTANT’s Project Manager, Project Engineer, and technical lead shall attend in-person. 4.2.5 – Other Meetings and Workshops SCOPE OF WORK PROJECT NO. J-98 PCSA Page 7 of 16 Risk Workshops: The CONSULTANT shall facilitate two workshops (3 hours each) to review project risks with OC SAN construction staff and Contractor. The first Risk Workshop will include: identification of construction risks and reviewing risk triggers. The second Risk Workshop will include strategies for mitigating risks. CONSULTANT shall prepare workshop meeting materials, agenda and draft/final minutes. The deliverable of the workshops is a risk management plan to be implemented by the OC SAN Resident Engineer through the course of the project. TASK 4.3 – SUBMITTAL REVIEWS OC SAN will receive all submittals from the Contractor through PMWeb. OC SAN will forward submittals requiring the CONSULTANT’s review to the CONSULTANT via PMWeb. The CONSULTANT shall review the submittals for conformance with the requirements of the Contract Documents and provide review comments to OC SAN through PMWeb within ten (10) calendar days after receipt of a submittal. When a submittal is of a complete system, complex piece of equipment, or deemed necessary by the CONSULTANT, the CONSULTANT may request that OC SAN extend the CONSULTANT’S submittal review period. The CONSULTANT shall return comments to OC SAN allowing enough time for OC SAN to incorporate all comments into a combined review comment set that OC SAN will return to the Contractor. The CONSULTANT shall accommodate occasional expedited reviews for time-sensitive submittals. Submittals shall include but not be limited to shop drawings, vendor tests, certifications, and test reports. All submittals will be made available electronically (PDF) through PMWeb. If the CONSULTANT has staff other than the assigned technical lead review submittals, the CONSULTANT's technical lead shall review all submittal comments prior to returning them to OC SAN. For all submittals reviewed by the CONSULTANT, the CONSULTANT shall assume that they are the only reviewer for that submittal review and shall not rely on supplemental OC SAN comments. If a deviation is requested in the submittal, CONSULTANT shall review the deviation against the design and provide a response as to compliance of the submitted item. CONSULTANT shall not defer the review or decision to OC SAN. See Section V - Quantitative Assumptions in this SOW for the estimated number of submittals. TASK 4.4 – REQUEST FOR INFORMATION OC SAN will forward to the CONSULTANT certain Requests for Information (RFIs) generated by the Contractor or OC SAN. The CONSULTANT shall return written responses to OC SAN as soon as possible or within three (3) business days of receipt of the RFIs, clarifying the requirements of the Contract Documents. The CONSULTANT shall generate necessary sketches, figures, and modifications to the drawings for clarification. When required to avoid schedule delay or additional construction-related costs, the CONSULTANT shall expedite the review of time sensitive RFIs. If any changes to the Contract Documents are required, the CONSULTANT shall prepare these documents and submit them as PDF files to OC SAN. The CONSULTANT shall update all AutoCAD drawings and specifications upon OC SAN acceptance of any changes resulting from RFIs and change orders. SCOPE OF WORK PROJECT NO. J-98 PCSA Page 8 of 16 See Section V- Quantitative Assumptions in this SOW for the estimated number of RFIs. TASK 4.5 – CONTRACT DOCUMENT MODIFICATIONS, DESIGN CHANGES AND CHANGE ORDERS If the Contract Documents require modifications due to changed conditions, OC SAN requested changes, omissions, or design errors; the CONSULTANT shall prepare preliminary change order documents and forward them to OC SAN, as needed. OC SAN shall review the preliminary change order documents and request the CONSULTANT to incorporate any changes. OC SAN will issue the change order documents in a formal Request for Proposal (RFP) or Field Change Order (FCO) to the Contractor. The CONSULTANT shall forward design calculations and other design backup documents as necessary to OC SAN. Any Contract Document that requires changes shall be identified with the date of change and reference (RFI number, RFP number, FCO number, etc.) shown on the document. Changes shown on the drawings shall be clearly marked and “clouded” for accurate identification of the scope of the change to the Contractor and inspection staff. The CONSULTANT shall maintain up-to-date Contract Documents. When a change is required on a Contract Drawing that has previously undergone a change, the updated drawing showing the previous change shall be used as the base document to identify new changes. The CONSULTANT shall submit complete change documentation to OC SAN for use in RFIs, RFPs, and FCOs. This change documentation shall include drawings, schematics, details, schedules, and specifications, as required. The CONSULTANT shall prepare cost estimates for the changes by OC SAN. The CONSULTANT shall provide details, description and justification for the change. The CONSULTANT shall maintain a Master Document Index (MDI) to track all changes issued on the project. The MDI shall be updated monthly and located in PMWeb. See Section V- Quantitative Assumptions in this SOW for the estimated number of hours. TASK 4.6 – CONSTRUCTION PROGRESS MEETINGS AND SITE VISITS The CONSULTANT shall attend construction progress meetings, as requested by OC SAN’s Resident Engineer. The CONSULTANT’s Project Manager and Project Engineer shall attend. The scope shall include the time for travel, follow-up, and review of meeting minutes. Construction progress meeting minutes will be prepared by OC SAN. The CONSULTANT shall attend or be available by phone for one-hour weekly construction progress meetings. The CONSULTANT shall make field visits to assist in field problem resolution and design clarification/verification to help resolve construction issues as they arise and as requested by OC SAN. The CONSULTANT shall report the nature of the field site visits, the problem resolved and identify staff requesting the site visit in the CONSULTANT’s monthly project report. The CONSULTANT shall assume 150 field visits are needed. OC SAN will provide project inspection, except as required in other sections of this SOW. SCOPE OF WORK PROJECT NO. J-98 PCSA Page 9 of 16 See Section V- Quantitative Assumptions in this SOW for the estimated number of hours. TASK 4.7 – STRUCTURAL ENGINEERING SERVICES The CONSULTANT shall have the structural engineer of record conduct field visits, as requested by OC SAN’s Resident Engineer, to provide expert opinion in review of observation of the structural work associated with the project. California Building Code requires the structural engineer of record to perform structural inspections during construction. TASK 4.8 – CONSULTANT LED TRAINING CONSULTANT shall lead trainings to cover the modifications and additions completed by the project. The training material should include items such as project overview, the design intent/purpose, SCADA use, process parameters, critical maintenance tasks, operational philosophy, and different modes of operation. The preferred platform to conduct these trainings is in Microsoft Teams (one class session should be recorded). In-person classes maybe coordinated depending on the topic/needs. Assume 3 training classes, 2 sessions (on different days) for each class, for the following areas: 1. Low Voltage Switchgear Modifications 2. Medium Voltage Switchgear Modifications 3. Local Shed and Substation LAN Systems All training shall be completed prior to the start of the Contractor RATS. A draft training agenda, draft presentation slides and any handouts shall be submitted to OC SAN not less than 60-days prior to the required training date. OC SAN will schedule the training with the required OC SAN staff. Within 30-days of all trainings being completed, the CONSULTANT shall submit all final training materials and video recordings to the Maintenance Department and the PM Optimization group. TASK 4.9 – CONFORMED DOCUMENT PREPARATION Within four (4) weeks of notice to proceed, prepare conformed documents set (drawings, databases, specifications, and other required materials) that incorporates all addenda. See Engineering Design Guidelines, Chapter 01, Design Guidelines – General Requirements, Section 1.5 “Preparation of Project Deliverables” for requirements as modified in Section V of this Scope of Work, “Project-Specific Deviations from OCSD Design Guidelines” and the requirements of the CAD Manual). V. PHASE 5 – COMMISSIONING SERVICES TASK 5.1 – COMMISSIONING TEAM MEETINGS The CONSULTANT shall attend Commissioning Team meetings at OC SAN’s request. The scope includes time for meeting preparation, follow-up, and review of meeting minutes. Commissioning team meeting minutes shall be prepared by OC SAN. The CONSULTANT will review and comment on OC SAN’s prepared meeting minutes. See SCOPE OF WORK PROJECT NO. J-98 PCSA Page 10 of 16 Section V- “Quantitative Assumptions” in this Scope of Work for the number of meetings. TASK 5.2 – FACILITY RECORDS DELIVERY SCHEDULE The CONSULTANT shall provide the facility records highlighted in green in the table below. These facility records are organized by when they are due to OC SAN O&M. All other facility records are by Contractor. For all Facility Records that originate in CAD format, the Contractor may choose to markup changes in using CAD software. Under this condition, assume they will not adhere to OC SAN CAD standards. CONSULTANT shall convert the changes to meet OC SAN CAD standards when making the updates. Construction NTP Pre-commissioning Beneficial Occupancy Final Completion After Final Completion ESM (draft individual) ESM (final individual) ESM (as-built individual) EID (conformed to bid) EID (final) SCOPE OF WORK PROJECT NO. J-98 PCSA Page 11 of 16 Construction NTP Pre-commissioning Beneficial Occupancy Final Completion After Final Completion SLD (conformed to bid) SLD (redline for baseline) P&ID (conformed to bid) P&ID (redline for baseline) O&M Manual (draft) O&M Manual1 SOPs (draft photos and graphics) SOPs (final photos and graphics)1 CONSULTANT training and training manuals Vendor training and training manuals PCI training Spare parts and tools Loop drawings Completed commissioning procedures Test results Electronic CAD files Electronic config. files All remaining facility records Record Drawings 1. Documents should be submitted as draft at least six weeks prior to Contractor’s scheduled Beneficial Occupancy. Final documents shall be available at Beneficial Occupancy. TASK 5.3 – COMMISSIONING SUPPORT The CONSULTANT shall provide assistance to OC SAN for the commissioning of all systems within the scope of this project. Prior to the commissioning of a system, the SCOPE OF WORK PROJECT NO. J-98 PCSA Page 12 of 16 CONSULTANT shall meet with OC SAN commissioning staff to review the design and the commissioning procedures. The CONSULTANT shall be available to help troubleshoot during commissioning, during RAT, and to prepare operation manuals. This may require the preparation of scope for change requests, RFI responses. And submittal reviews that result from commissioning preparation and startup. The CONSULTANT services shall consist of a series of on-site visits to participate in the development of the commissioning procedures. The CONSULTANT shall witness the testing of the existing functionality of the switchgear protection and transfer schemes prior to retrofitting of the existing switchgears. The CONSULTANT shall witness the ORT, FAT and RAT and document any deviations from the prepared procedures, failures, and anomalies during the testing, and report any activities negatively impacting the operation of equipment to OC SAN. See Section V- “Quantitative Assumptions” in this SOW for the estimated number of site visits. TASK 5.4 – OPERATIONS AND MAINTENANCE MANUALS The CONSULTANT shall review existing OC SAN Operations and Maintenance (O&M) Manuals and determine which require replacement or modification. The CONSULTANT shall develop the new and revised O&M Manuals as required. The format will be based on previous O&M Manuals with content additions and revisions as defined in Exhibit 1, “OC SAN Revised O&M Manual TOC” spreadsheet. This spreadsheet includes a corresponding reference to the P2-66 O&M Manual for a content example. When an example is not provided, that indicates that new content has been added to the table of contents. The Equipment Controls portion of the O&M Manual has been revised to include a Shutdowns and Alarms Table versus separate paragraphs for interlocks and alarms. Exhibit 2, “P2-66 Ch05 Influent Pump Station (Revised)” Word document provides an example of these changes. Exhibit 3, “O&M Manual, Equipment Controls - Shutdowns and Alarms Tables” spreadsheet can be used to develop these tables in Excel and then transfer them into the Word documents. The O&M Manual shall be illustrated with photos, tables, diagrams and schematics as appropriate. The draft O&M Manuals shall be submitted to OC SAN for review at least 45 days prior to commencement of the CONSULTANT led training. This assumes a 30-day OC SAN review period, at which point OC SAN 's comments shall be forwarded to the CONSULTANT. The CONSULTANT shall incorporate the necessary changes into the Draft O&M Manual for startup. During startup and testing the Draft O&M Manual shall be considered a "living document", with changes being recorded by the CONSULTANT and OC SAN, based on operating experience. The Final O&M Manual shall be submitted with Beneficial Occupancy. TASK 5.5 – STANDARD OPERATING PROCEDURES (SOPS) The CONSULTANT shall develop four (4) new and revise twelve (12) existing SOPs for switchgear to be modified or installed, and the new load bank connections. The CONSULTANT shall present the finalized SOPs to OC SAN Operation and Maintenance staff prior to RAT. During the RAT process, SOPs might be modified based on comments from OC SAN. SCOPE OF WORK PROJECT NO. J-98 PCSA Page 13 of 16 Draft SOPs shall be submitted to OC SAN prior to the start of ORT and the final SOPs shall be submitted with beneficial occupancy of each facility. Allow for one additional revision after the Draft SOP. The SOPS shall be submitted to OC SAN as MS Word files, and OC SAN will configure SharePoint where the Word files and Vendor Manuals are managed. The following existing SOPs will require revisions (12 total): Plant 1 1. ESC 2. CenGen 3. Blower Building 1 4. Blower Building 2 5. Power Building 6 6. Power Building 7 7. Power Building 8 8. Power Building 9 9. Steve Anderson Lift Station 10. Thickening and Dewatering Plant 2 1. Distribution Center A 2. Power Building B TASK 5.6 – REDLINE P&IDS AND SINGLE LINE DIAGRAMS (SLD) The CONSULTANT shall develop interim redline P&IDs and SLDs for OC SAN to use as an interim facility baseline during construction and includes up to approximately 46 SLDs and 90 P&IDs. The redline drawings shall include all changes made during construction and shall represent the as-built condition of the facilities. OC SAN will transmit to the CONSULTANT the Contractor’s markups of these documents. CONSULTANT shall utilize Contractor markups for RFIs, Change Orders, Contractor Submittals, Contractor loop check, and inspector markups to create the redline P&IDs and SLDs. For changes to existing facilities, OC SAN will provide the CONSULTANT a copy of the most recent Facility Record drawing to redline at the start of commissioning. Redline shall be accomplished using a PDF markup program, such as Bluebeam or AutoCAD and redline markups shall resemble the look and feel of the as-built P&ID. Summary notes describing the changes, images of RFI responses, or other such markups will not be accepted. Each redline drawing shall include a stamp containing “INTERIM CONSTRUCTION UPDATE” information (Project #, Date, Inspector Name, Phone, and Email) in RED. Below is an example of the stamp. SCOPE OF WORK PROJECT NO. J-98 PCSA Page 14 of 16 The CONSULTANT shall submit the redline P&IDs and SLDs with beneficial occupancy of each facility. This interim deliverable does not relieve the CONSULANT from providing the as-built P&IDs and SLDs with the Final Record Drawings, see Task 6.2. VI. PHASE 6 - CLOSEOUT Closeout tasks include completion of punch list work by the Contractor, final inspection, completion of Record Drawings, and electronic data. The CONSULTANT shall submit a final invoice at the completion of the project. TASK 6.1 – FINAL INSPECTION AND PUNCH LISTS The CONSULTANT’s Project Engineer, and discipline leads shall attend the final inspection job walk with the Contractor and OC SAN staff. The CONSULTANT shall make recommendations on the completion of the work including, but not limited to, completion of punch list items, site cleanup, and SWPPP. The CONSULTANT shall assist OC SAN in developing punch lists of items required to be completed prior to final acceptance of the project by OC SAN. See Section V- Quantitative Assumptions in this SOW for the estimated number of hours. TASK 6.2 – RECORD DRAWINGS Draft Record Drawings (total of 343 Record Drawings) shall be submitted to OC SAN within 60 workdays of receipt from OC SAN of the approved Contractor’s As-Built Drawings. The final Record Drawings shall be submitted within 21 workdays of receipt of OC SAN’s comments on the Draft Record Drawings. When requested by OC SAN, the CONSULTANT shall attend preliminary as-built meetings with OC SAN and the Contractor to inspect the Contractor’s draft as-built drawings to verify that the Contractor has included all relevant information from approved change orders and RFIs. As part of the review process, the CONSULTANT shall verify that the Contractor’s draft as-built drawings correctly reflect the information included in the approved shop drawings, RFIs, approved FCOs, plan clarifications, plan changes, and other deviations from the conformed Contract Documents, and that the information in the as-built drawings is complete. Based on the findings, the CONSULTANT shall prepare a written report on the completeness of the field markup set. The CONSULTANT shall allow for three meetings/visits to review the Contractor’s in progress as-built drawings, it is anticipated these meetings will occur when the first RAT is completed, when the construction is 75% complete and before the draft final as- built set. SCOPE OF WORK PROJECT NO. J-98 PCSA Page 15 of 16 The CONSULTANT shall independently keep a CAD ready set of draft as-built drawings throughout the project. After each meeting with the Contractor, the CONSULTANT shall transpose the Contractor’s information to the CONSULTANT’s draft CAD ready as-built drawings. The CONSULTANT shall be responsible for marking-up any differences between the Contractor’s draft as-built drawings and the CONSULTANT’s set. After final completion of the project, OC SAN will transmit to the CONSULTANT the Contractor’s final as-built drawings. At that time, the CONSULTANT shall meet with OC SAN’s inspectors and Resident Engineer to receive and review the Contractor’s final as- built drawings for completeness. The CONSULTANT shall prepare Draft Record Drawings based on the final as-built drawings for all drawings in accordance with the requirements in the CAD Manual. Traffic control plans and temporary bracing of shoring will not be updated. The CONSULTANT shall submit the Draft Record Drawings to the OC SAN Resident Engineer. The Draft Record Drawings will be reviewed for content and CAD compliance by OC SAN staff. A comment log will be returned to the CONSULTANT and, if any comments are generated, the CONSULTANT shall revise the Record Drawings and resubmit to the OC SAN Resident Engineer for review of the changes and acceptance of the Record Drawings. When no additional comments are identified, the CONSULTANT shall prepare the Final Record Drawings and submit them in accordance with the OC SAN CAD Manual Chapter 12. All hard copies of the Contractor’s final as-built drawings shall be returned to OC SAN at this same time. All Record Drawings shall contain a stamp indicating: The stamp shall be placed in the title block and may be included by x-ref. In addition, a note shall be placed over the engineer’s seal stating that “This drawing was originally approved for construction by [name of engineer] on [date] and sealed by [name of engineer] a licensed professional engineer in the State of California No. [License number] “. The CONSULTANT shall submit an electronic copy of the Record Drawings to OC SAN for review and acceptance. The acceptance of the Record Drawings shall be deemed a condition precedent for completion of the services provided in Phase 6 - Closeout. The Contractor-generated as-built drawings described in the Engineering Design Guidelines and the shop drawings will not be updated by the CONSULTANT. The format and quantities for delivery of the submittals shall be as listed below: Contents Draft Record Drawings Final Record Drawings Hard Copy Sets None None All related electronic files, including CAD and compiled PDFs Transmit Electronic Files to OC SAN Transmit Electronic Files to OC SAN TASK 6.3 – PROJECT MANAGEMENT The CONSULTANT shall also include project management support man-hours related to “Record Drawings These record drawings have been prepared based on information provided by others. The Engineer has not verified the accuracy of this information and shall not be responsible for any errors or omissions which may be herein as a result.” SCOPE OF WORK PROJECT NO. J-98 PCSA Page 16 of 16 closeout activities per requirements stated in Phase 4, Project Management Task. VII. STAFF ASSISTANCE The OC SAN staff member or designee assigned to work with the CONSULTANT on the construction phase of this project is Todd Waltz at (714) 593-7117, email to: twaltz@ocsan.gov. VIII. QUANTITATIVE ASSUMPTIONS The assumptions listed in the following table below shall be the basis for the assumed level of effort. Task Description Assumption 4.1 Project Management 47 months duration from the effective date of the NTP for this SOW (44 months in Phases 4 and 5 and 3 months in Phase 6) 4.1.1 PMWeb Procedures Meeting Prep and attend one (1) 2-hour meeting 4.2.1 Construction Hand-off Meeting PM + PE: Prep and attend one (1) 2-hour meeting 4.2.2 PMWeb Submittal Procedures Meeting PM+PE: Attend one (1) 2-hour meeting Construction Submittal Items List: Attend one (1) 2-hour + (2) 1-hour meetings 4.2.3 Preconstruction Conference PM + PE: Attend one (1) 2-hour meeting 4.2.4 Pre-Submittal Review Meetings and Workshops PM + PE+ Technical Lead: Attend eight (8) 2-hour meetings 4.2.5 Risk Workshops PM + PE : Attend two (2) 3-hour workshops 4.3 Submittals 150 – Original submittals items1 120 – Resubmittal items 80 – 3rd and later resubmittal items 4.4 Requests for Information 320 RFIs 4.5 Contract Document Modifications, Design Changes and Change Orders 900 hours 4.6 Construction Progress Meetings Site Visits During Construction 176 Progress Meetings @ 1 hour each 88 Site Visits @ 2 hours each 5.1 Commissioning Team Meetings 50 meetings of 2-hour duration each 5.3 Commissioning Support 500 hours 6.1 Final Inspection & Punch Lists 200 hours 1Note that each submittal set includes multiple submittal items which may be individually submitted by the Contractor. The counts listed in this table are considering the individual submittal items. The level of effort should assume these all are received individually. 5/28/2025 1 Electrical Power Distribution System Improvements, Project No. J-98 Presented by: Mike Dorman, Director of Engineering Operations Committee June 4, 2025 Professional Construction Services Agreement Award Construction Support Services: •Submittals reviews •Request for information (RFIs) •Construction meetings and site visits •Field changes •OC San training •Record drawings Additional Support Services: •O&M Manual •Standard Operating Procedures (SOPs) •Redline single line diagrams and instrumentation drawings (P&IDs) Construction Support Services 2 1 2 5/28/2025 2 Recommend to the Board of Directors to: A.Approve a Professional Construction Services Agreement with Brown and Caldwell to provide construction support services for Electrical Power Distribution System Improvements, Project No. J-98, for a total amount not to exceed $2,667,874; and B. Approve a contingency of $266,787 (10%). Recommendation 3 Questions? 4 3 4 OPERATIONS COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4072 Agenda Date:6/4/2025 Agenda Item No:6. FROM:Robert Thompson, General Manager Originator: Riaz Moinuddin, Director of Operations & Maintenance SUBJECT: OC SAN - OPERATIONS & MAINTENANCE WASTEWATER 101 PART 2: COLLECTIONS GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Information Item. BACKGROUND Each month, staff provides an informational presentation on topics of interest to the Board of Directors. This month’s topic: Orange County Sanitation District Wastewater Collections. RELEVANT STANDARDS ·24/7/365 treatment plant reliability ·Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting ·Listen to and seriously consider community input on environmental concerns ·Build brand, trust, and support with policy makers and community leaders ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Presentation Orange County Sanitation District Printed on 5/28/2025Page 1 of 1 powered by Legistar™ 5/28/2025 1 Operations & Maintenance Wastewater 101 Part 2: Collections Presented by: Nicholas Oswald Collections Manager Operations Committee Meeting June 4, 2025 479 square miles ~190 million gallons per day 2.6 million population 20 cities 4 special districts unincorporated parts of County of Orange Our Service Area 388 miles of sewers 2 reclamation plants P1 P215 pump stations 2 1 2 5/28/2025 2 3 •Various pipe materials •Trunks, interconnections, reliefs •Inverted siphons •Diversions Gravity Sewers Pipeline Maintenance Responsibilities: •Private Lateral Home/Business Owner •Local Sewer The City or Local Agency •Regional TrunklineWastewater Agency Private Lateral 4 inch diameter Local Sewer 4-12 inch diameter OC San Regional Trunkline up to 10 ft diameter Comparing Sewer Pipelines 4 3 4 5/28/2025 3 5 Inverted Siphon 6 Pressure Systems Pump Stations 5 6 5/28/2025 4 7 •Flush work •Grit removal •Spill prevenƟon •Tire cleaning •Grit removal •Spill prevenƟon •Line proofing Line Cleaning Types 8 Line Flushing 7 8 5/28/2025 5 9 Mechanical Cleaning - Tire 10 Mechanical Cleaning - Tire 9 10 5/28/2025 6 11 Smart Manhole Covers 12 •State Enforcement •Damage Prevention •Other entity request •Centralized system through state: •Dig-Alert system •Field locating and marking Underground Line Location 11 12 5/28/2025 7 13 Regional Odor Control 14 CCTV •Asset inspecƟon •Structural degradation and cleaning •Project scoping •Spill prevention 13 14 5/28/2025 8 Questions? 15 15 OPERATIONS COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4249 Agenda Date:6/4/2025 Agenda Item No:7. FROM:Robert Thompson, General Manager SUBJECT: STRATEGIC PLAN: LEVELS OF SERVICE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Information Item. BACKGROUND The Orange County Sanitation District’s (OC San)Strategic Plan consists of various elements including the Levels of Service (LOS).OC San’s LOS are the commitments made to our ratepayers, regulators,employees,and the Board of Directors on our operational efforts.The LOS were updated in 2023 and were designed to better align with the Strategic Plan and showcase how the initiatives are being implemented and monitored.As part of the 2025 Strategic Plan update,the LOS are being updated once again to address improvements made.The LOS consists of four categories which coincide with the Strategic Plan policy areas:Environmental Stewardship,Wastewater Management, Business Principles, and Workplace Environment. Environmental Stewardship Levels of Service OC San will protect public health and the environment. Compliance with Ocean Discharge Permit 100% Dry weather urban runoff collected and treated Up to 10 MGD Major non-conformance audit findings <5 per permit per audit Respond to corrective actions within regulatory timeline for air, solids, and water compliance audits 100% Comply with Fleet Air Emission Regulations 100% Number of odor complaints under normal operations < 10 events for the treatment plants < 12 events for the collection system Sanitary Sewer Spills per 100 miles <2.1 Compliance with core industrial pretreatment requirements 100% OC San’s effluent, solids and biogas will be recycled. Provide specification effluent to Groundwater Replenishment System 100% Beneficially reuse biosolids during normal operations 100% Orange County Sanitation District Printed on 5/23/2025Page 1 of 3 powered by Legistar™ File #:2025-4249 Agenda Date:6/4/2025 Agenda Item No:7. OC San’s effluent, solids and biogas will be recycled. Provide specification effluent to Groundwater Replenishment System 100% Beneficially reuse biosolids during normal operations 100% Wastewater Management OC San will be a good neighbor and will be responsive to its customers. Respond to collection system spills within 1 hour of notification 100% Respond to odor complaints Within 1 hour in plants Within 24 hours in collections Respond to public complaints or inquiries regarding construction within 24 hours 100% Respond to biosolids contractor violations within one week of violation notice 100% Respond to Public Records Act requests within the statutory requirements <=10 days Dig alert response within 2 business days 100% OC San will manage its assets to ensure reliability and security. Respond to all cybersecurity events and incidents to mitigate risks and maintain an overall cyber health rating according to security operations standards. >90% Annual real property assessments/inspections 20% of the properties Annual Inspection, documentation, and evaluation of collection system 70 miles of sewers 880 manholes Business Principles OC San will exercise sound financial management. Annual user fees sufficient to cover 100% of O&M Budget 100% Collection, treatment, and disposal costs per million gallons Within 10% of budget Maintain Credit Rating (Moody’s, Fitch, S&P)AAA Workplace Environment OC San will provide a safe, productive workplace. Employee injury incident rate per 100 employees <4.2 Annual days away from work, restricted activity, or job transfer resulting from a work-related injury <3.2 Annual training hours per employee <=40 Each quarter,a section of the LOS’s is reported in the General Manager’s Monthly Report,providing a high-level overview of OC San’s performance. Orange County Sanitation District Printed on 5/23/2025Page 2 of 3 powered by Legistar™ File #:2025-4249 Agenda Date:6/4/2025 Agenda Item No:7. RELEVANT STANDARDS ·Build brand, trust, and support with policy makers and community leaders ·Make it easy for people to understand OC San’s roles and value to the community PROBLEM The Strategic Plan needs to be updated to ensure its relevancy. PROPOSED SOLUTION Solicit and incorporate the Board of Directors’input in the development of the proposed Strategic Plan. PRIOR COMMITTEE/BOARD ACTIONS November 2023 - Adopted the OC San Strategic Plan 2023. ADDITIONAL INFORMATION The adopted Strategic Plan for 2025 will be the basis of Fiscal Year 2026-27 and 2027-28 budget development. CEQA N/A ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·OC San Strategic Plan 2023 ·General Manager’s Fiscal Year 2024-2025 Work Plan ·Presentation Orange County Sanitation District Printed on 5/23/2025Page 3 of 3 powered by Legistar™ STRATEGIC PLAN — 2023 | 1 StrategicPlan’23 ORANGE COUNTY SANITATION DISTRICT 2 | STRATEGIC PLAN — 2023 STRATEGIC PLAN — 2023 | 3 Table of Contents Board of Directors 4 Message from the General Manager 5 Executive Summary 6 Our Mission and Vision 8 Core Values 9 Levels of Service 10 Risk Register 12 Policy Areas 13 Appendix Business Principles Budget Control and Fiscal Discipline Policy 23 Asset Management Policy 29 Cybersecurity Policy 32 Property Management Policy 34 Organizational Advocacy and Outreach Policy 35 Environmental Stewardship Energy Independence Policy 40 Climate and Catastrophic Event Resilience Policy 43 Food Waste Treatment Policy 46 Water Reuse Policy 50 Environmental Water Quality, Stormwater Management, and Urban Runoff Policy 52 Wastewater Management Chemical Sustainability Policy 56 Biosolids Management Policy 60 Constituents of Emerging Concern Policy 63 Workforce Environment Resilient Staffing Policy 68 Safety and Physical Security Policy 73 4 | STRATEGIC PLAN — 2023 City Active Director Anaheim Stephen Faessel Brea Christine Marick Buena Park Susan Sonne Cypress Scott Minikus Fountain Valley Glenn Grandis Fullerton Bruce Whitaker Garden Grove Stephanie Klopfenstein Huntington Beach Pat Burns Irvine Farrah N. Khan La Habra Rose Espinoza La Palma Marshall Goodman Los Alamitos Jordan Nefulda Newport Beach Brad Avery Orange Jon Dumitru Placentia Chad Wanke (Chairperson) Santa Ana Johnathan Ryan Hernandez Seal Beach Schelly Sustarsic Stanton David Shawver Tustin Ryan Gallagher (Vice Chairperson) Villa Park Robbie Pitts AGENCIES Costa Mesa Sanitary District Robert Ooten Midway City Sanitary District Andrew Nguyen Irvine Ranch Water District John Withers Yorba Linda Water District Phil Hawkins Member of the Board of Supervisors Doug Chaffee Board of Directors STRATEGIC PLAN — 2023 | 5 Message from the General Manager The Orange County Sanitation District (OC San) serves a critical mission for 2.6 million residents in North Central Orange County, “To protect public health and the environment by providing effective wastewater collection, treatment, and recycling.” To achieve this mission in an ever-changing world, OC San must adjust the level of service it delivers and the methods of delivering those services. The creation of a new Strategic Plan every two years is the first step in a comprehensive planning process at OC San. By understanding the risks it is facing, shifts in the regulatory environment, opportunities in the business climate, and the condition of its assets, OC San is able to balance its services defined by fifteen policy areas and levels of service provided to our customers. This adopted Strategic Plan, along with the annual Asset Management Plan, will serve as the basis for staff to develop a new two-year budget which will be adopted by the Board of Directors in June 2024. The General Manager’s Work Plan is developed annually to deliver tangible progress toward the goals in the Strategic Plan within the parameters of the budget. The planning process for OC San is key for creating unity. The Board of Directors experience significant turnover every two years due to term limits and changing representation as decided by the twenty-five agencies we serve. This biennial process allows each Board of Directors to make the plan their own, while at the same time continuing to develop and extend the vision of the prior Boards. Having a clear, written Strategic Plan allows staff to align itself with this direction and continue to be high achieving. I would like to thank our former Board Members for their vision and guidance that sets the expectations we are delivering today and our current Board Members who have improved the plan to meet our new and evolving challenges and opportunities. Staff are committed to innovating our service delivery to meet the expectations of this Strategic Plan. Sincerely, Robert Thompson General Manager 6 | STRATEGIC PLAN — 2023 Executive Summary The Orange County Sanitation District (OC San) is a resource recovery agency focused on providing reliable and cost-effective public services. OC San uses a two-year, four-step management process that creates and maintains vision alignment between the Board of Directors, staff, and the public we serve. It all begins with a Strategic Plan developed by the Board with input from staff that provides guidance and direction for long-term financial, capital, and operational efforts. The four steps of the strategic planning process are: 1. Defining OC San’s ability to have people and assets in place to meet its agreed upon mission. 2. Developing the budget which lays out the tactical planning and resource allocation based on the adopted Strategic Plan. 3. Implementing the budget which is the day in and day out delivery of services to the public we serve. 4. Reporting on our level of service delivery and goal attainment. These four steps are repeated every two years to maintain alignment and are adjusted based on the Board of Directors input, legal and regulatory changes, and the needs of the communities we serve. This management system is intended to carry on over the course of transitioning Board Members and staff to deliver resilient daily services and morph our facilities and systems over time to meet new challenges facing Orange County. The policy areas from the 2021 Strategic Plan were evaluated and determined to be relevant today, with modifications made to address new findings or continue to advance the original goal with new initiatives. We are continuing with four broad categories with 15 policy areas that define our role in the wastewater environment for Orange County. The areas are: Business Principles • Budget Control and Fiscal Discipline • Asset Management • Cybersecurity • Property Management • Organizational Advocacy and Outreach Environmental Stewardship • Energy Independence • Climate and Catastrophic Event Resiliency • Food Waste Treatment • Water Reuse • Environmental Water Quality, Stormwater Management and Urban Runoff Wastewater Management • Chemical Sustainability • Biosolids Management • Constituents of Emerging Concern STRATEGIC PLAN — 2023 | 7 Workplace Environment • Resilient Staffing • Safety and Physical Security Collaboration and engagement with the Board of Directors and our employees took place over the course of the year to update the Board of Directors on the elements that make up the Strategic Plan. The updates began with a review of the policy areas and the specific policy topics and initiatives. Feedback and recommendations were made by the Board leading to revisions of some of the proposed initiatives for each area. The 15 policy topics include a policy statement, background, the current situation, and updated initiatives to meet the policy goal. The policy topics and initiatives will be incorporated into supporting documents such as the Budget and General Manager’s Work Plan. The work plan is where we will note measurable results of each goal and the supporting initiatives. Subsequent updates to the Board of Directors consisted of a presentation on the Levels of Service (LOS), the Core Values, and the Risk Register. Our Levels of Service are our commitment to our various stakeholders, that includes the public, regulators, our Board, and our employees. As regulations change, technology advances, and expectations change, so must our service to the public. Our LOS remain unchanged from the previous plan as they align with the current Strategic Plan. The Core Values are intended to reflect and guide the culture practiced at OC San and how we are able to achieve the LOS. OC San’s Risk Register captures the appropriate areas of concern as well as our action plan to mitigate those risks. STRATEGIC PLANNING PROCESS 2021 2022 2023 2024 2025 2026 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Strategic PlanDevelopment Budget Development General Manager Work Plan General Manager Work PlanBudget Update General Manager Work Plan General Manager Work PlanBudget UpdateFive Year Rate Study Prop218 Strategic PlanDevelopment Budget Development Strategic PlanDevelopment Budget Development 8 | STRATEGIC PLAN — 2023 Our Mission “To protect public health and the environment by providing effective wastewater collection, treatment, and recycling.” Our Vision ORANGE COUNTY SANITATION DISTRICT WILL BE A LEADER IN: • Providing reliable, responsive, and affordable services in line with customer needs and expectations. • Protecting public health and the environment utilizing all practical and effective means for wastewater, energy, and solids resource recovery. • Continually seeking efficiencies to ensure that the public’s money is wisely spent. • Communicating our mission and strategies with those we serve and all other stakeholders. • Partnering with others to benefit our customers, this region, and our industry. • Creating the best possible workforce in terms of safety, productivity, customer service, and training. STRATEGIC PLAN — 2023 | 9 Core Values OC San’s Core Values support the Mission and Vision Statements by expressing the values, beliefs, and philosophy that guides the agency’s daily actions. They help form the framework of the organization and reinforce a professional work ethic. These Core Values accurately express the philosophy and practice of OC San’s workforce. Integrity, Inclusion, Honesty, and Respect We aspire to the highest degree of integrity, inclusion, honesty, and respect in our interaction with each other, our suppliers, our customers, and our community. We strive to demonstrate these values in our actions, commitments, and service. Leadership, Teamwork, and Problem Solving We lead by example, acknowledging the value of our resources and using them wisely to achieve our mission. We strive to reach OC San goals through cooperative efforts and collaboration with each other and our constituencies. We work to solve problems in a creative, cost-effective, and safe manner, and we acknowledge team and individual efforts. Customer Service, Transparency, and Accountability We are committed to acting in a timely, accurate, accessible, and transparent manner through excellent customer service. We are committed to act in the best interest of our internal and external stakeholders. Resiliency, Innovation, and Learning We continuously develop ourselves, enhancing our talents, skills, and abilities. We recognize that only through personal growth and development will we progress as an agency and as individuals. Safety We are committed to providing a safe work environment. We will demonstrate leadership, promote individual accountability, and participate actively in the advancement of our health and safety practices. 10 | STRATEGIC PLAN — 2023 Levels of Service OC San’s Levels of Service (LOS) are the commitment made to our rate payers, regulators, employees, and the Board of Directors on our operational efforts. The LOS align with the Strategic Plan and showcase how the initiatives are being implemented and monitored. ENVIRONMENTAL STEWARDSHIP LEVELS OF SERVICE OC San will protect public health and the environment. • Compliance with Ocean Discharge Permit 100% • Dry weather urban runoff collected and treated Up to 10 MGD • Major non-conformance audit findings <5 per permit per audit • Respond to corrective actions within regulatory timeline for air, solids, and water compliance audits 100% • Comply with Fleet Air Emission Regulations 100% • Number of odor complaints under normal operations < 5 per events per treatment plant < 12 per events for collection system • Sanitary Sewer Spills per 100 miles <2.1 • Compliance with core industrial pretreatment requirements 100% OC San’s effluent, solids and biogas will be recycled. • Provide specification effluent to Groundwater Replenishment System 100% • Beneficially reuse biosolids during normal operations 100% WASTEWATER MANAGEMENT OC San will be a good neighbor and will be responsive to its customers. • Respond to collection system spills within 1 hour of notification 100% • Respond to odor complaints Within 1 hour in plants Within 24-hours in collection system • Respond to public complaints or inquiries regarding construction within 24 hours 100% • Respond to biosolids contractor violations within one week of violation notice 100% • Respond to Public Records Act requests within the statutory requirements <=10 days • Dig alert response within 48 hours 100% OC San will manage its assets to ensure reliability and security. • Cybersecurity event monitoring and incident handling, percent successful >87% • Annual real property assessments/inspections 25% of the properties • Annual Inspection, documentation, and evaluation of collection system 70 miles of sewers 880 manholes STRATEGIC PLAN — 2023 | 11 BUSINESS PRINCIPLES OC San will exercise sound financial management. • Annual user fees sufficient to cover 100% of O&M Budget 100% • Collection, treatment, and disposal costs per million gallons Within 10% of budget • Maintain Credit Rating (Moody’s, Fitch, S&P)AAA WORKPLACE ENVIRONMENT OC San will provide a safe, productive workplace. • Employee injury incident rate per 100 employees <4.4 • Annual days away from work, restricted activity, or job transfer resulting from a work-related injury <2.5 • Annual training hours per employee 45 hours 12 | STRATEGIC PLAN — 2023 Risk Register The Risk Register is a collection of the various risks facing OC San for the annual review by management. The findings from this assessment are utilized in the development of the Strategic Plan and the General Manager’s Work Plan to ensure OC San’s operations are not affected. The analysis allows management to identify solutions and prioritize the concerns in a manner that is efficient and effective. The risks analyzed range from staffing, to cybersecurity, to operational concerns. The 2023 Risk Register is a tool used by management to keep OC San in a forward moving position while considering the risks identified. STRATEGIC PLAN — 2023 | 13 Policy Areas The Strategic Plan is divided into four categories with 15 topic areas. Below are the policy statements and corresponding initiatives to achieve the goals of the plan. The complete policy papers can be found in the appendix. BUSINESS PRINCIPLES Budget Control and Fiscal Discipline Policy Statement OC San has practices and safeguards in place to ensure its long-term fiscal stability. These provide direction so that OC San’s finances are managed in a manner that will continue to support the daily collection and treatment of wastewater; meet the mission of the organization; maintain our AAA Bond Rating; ensure a responsible budget, consisting of Revenues, Operating Expenditures, Capital Improvement Program (CIP), Debt Service; and establish reserves necessary to meet known and unknown future obligations. OC San has established Fiscal Policies and Reserve Criteria, which are included in the budget, and separately adopted Investment and Debt Policies. Initiatives • Use established resources, along with developing and implementing additional resources to assist OC San staff in tracking and monitoring expenditures to ensure smooth business operations while maintaining budgetary control. • Maintain a fiscally responsible financial plan that is based on long-term planning which supports stable rate setting and a pay-as-you-go philosophy for operating and capital expenditures. • Leverage the centralized training program to provide targeted training opportunities for employees to remain current with financial best practices and OC San fiscal policies and procedures. • Monitor the long-term debt program and continually assess market conditions to identify possible opportunities to reduce outstanding debt balance and term, while maintaining a AAA rating. Maintain reserve levels within policy guidelines, while optimizing the use of available funds to finance capital programs and ensure a balanced budget. Asset Management Policy Statement OC San will assess and manage the collection and treatment plant systems and assets to improve resilience and reliability while lowering lifecycle costs. This will be accomplished through adaptive operation, coordinated maintenance and condition assessment, and planned capital investment. Staff will balance maintenance, refurbishment, and replacement strategies to maximize useful life, system availability and efficiency. Initiatives • Continue developing an annual Asset Management Plan documenting the condition of the collection system and treatment plants, and upcoming maintenance or capital projects. • Coordinate the efforts of operations, collections, mechanical maintenance, electrical maintenance, instrument maintenance and engineering through process teams to assure OC San’s resources are focused on the high priority work functions. • Identify critical collections and plant assets that have long lead times for parts and replacement and mitigate procurement risks and impacts to collections and plant resiliency based on market conditions. 14 | STRATEGIC PLAN — 2023 • Maintain a 20-year forecast of all CIP projects needed to maintain or upgrade OC San’s $12.6 billion in assets on a prioritized risk basis to establish rate structures. Cybersecurity Policy Statement OC San must maintain adequate cybersecurity (information technology security) techniques that protect computer assets, networks, programs, data, and industrial control equipment from unauthorized access, denial of service, or attacks that are aimed for exploitation. Initiatives • Conduct various tabletop exercises to determine the organization’s ability to respond to a targeted cyberattack and to improve the quality of the response, should an attack occur. • Evaluate, enhance, and monitor network security including activities to protect the usability, reliability, integrity, and safety of the network by developing Security Operations Center capabilities that support continuous monitoring and is responsible for the continuous threat protection process. • Conduct a comprehensive third-party cybersecurity operations assessment (Red Team). A thorough Red Team engagement will expose vulnerabilities and risks regarding: o Technology — Networks, applications, routers, switches, appliances, etc. o People — Staff, independent contractors, departments, business partners, etc. o Physical — Offices, warehouses, substations, data centers, buildings, etc. Property Management Policy Statement OC San owns and operates assets throughout its service area located in property owned in fee, through easements, and in the public right-of-way. OC San will identify and protect all of its property rights to assure that its assets are not encumbered or encroached upon so that the facilities may be properly operated, maintained, upgraded, and replaced. Initiatives • Leverage technology to review property rights and identify encroachments or encumbrances that restrict operation, maintenance, inspection, or emergency repair access to remove encroachments or encumbrances. • Collaborate with Engineering to obtain property, easements, and right-of-way in a timely manner for capital projects. • Augment OC San resources with contracted specialized real estate services to limit the need for additional staffing. Organizational Advocacy and Outreach Policy Statement OC San will create and disseminate information to our stakeholders with an end goal to educate, inform, and garner support for the services provided thus allowing us to operate in a more efficient and effective manner. OC San will deliver messages that are accurate, transparent, and designed to foster public trust and confidence. Additionally, legislative activity will ensure OC San’s interests are explained and considered. Initiatives • Develop an educational display in the Headquarters building to illustrate OC San’s reuse and recycling efforts in support of the environment and public health. Display to be revealed when new building is unveiled. Phase 2 of the hands-on educational display will consist of content on STRATEGIC PLAN — 2023 | 15 the exterior of the building to create a complete experience from walking up to OC San to entering the building. • Implement a multipronged outreach strategy that will include industry and media coverage for the Supercritical Water Oxidation project. • Develop and implement a Local Government Affairs Outreach Program to enhance OC San business goals and build local relationships that benefit OC San, cities we serve, member agencies and officials. • Engage a local lobbyist to assist in advancing strategic initiatives as identified with the Strategic Plan. • Actively monitor and engage in regulatory and legislative activity across California and Washington, D.C., and take appropriate action in support of, or opposition to, legislative and regulatory initiatives affecting OC San and the wastewater industry. This includes using Monitoring and Analysis, Advocacy Days, Position letters and Funding Requests (as deemed suitable). 16 | STRATEGIC PLAN — 2023 ENVIRONMENTAL STEWARDSHIP Energy Independence Policy Statement OC San will strive to be energy neutral. Electrical, thermal, and methane gas generation will be maximized. Energy utilization will be minimized using sound engineering and financial principles. Initiatives • Maximize the anaerobic digestion conversion of organics to methane through receipt of food waste and operational techniques. • Investigate and install energy storage and photovoltaic systems where practical to achieve energy independence/resilience. • Investigate the treatment and sale of biogas to external users. • Continue to support the conversion of biomethane into electricity and heat for process use. Improve systems as necessary to comply with air regulations. • Pursue technology innovation to reduce energy use, reduce transportation energy impacts, and reduce greenhouse gas impacts. • Investigate the optimum wastewater influent flow split between Plant No. 1 and Plant No. 2 that satisfies OCWD specification water requirements and energy efficiency. Climate and Catastrophic Event Resilience Policy Policy Statement OC San aims to design, maintain, and operate valuable wastewater assets that withstand or adapt to adverse conditions in a reasonable manner that is both cost-effective and sustainable for present and future generations. These adverse conditions include drought, heavy rains, flooding, sea level rise, earthquakes, tsunamis, extreme heat, wildfires, pandemic, and electrical grid interruptions. Initiatives • Evaluate the seismic vulnerabilities of Plant No. 2 flow processes (primary clarifiers, activated sludge facility, and ocean outfall piping) within the plant. Determine the required improvements to maintain dry weather flow capacity after a seismic event. Incorporate necessary upgrades into future capital improvement projects. • Complete the biannual high flow exercise to assure readiness for a high flow event. Maintain a higher level of readiness October 15 through March 15 and in advance of predicted significant rain events. Food Waste Treatment Policy Statement The State of California limits the volume of organic waste that is diverted to landfills. OC San will collaborate with the County of Orange, other local agencies, and waste haulers to find ways to beneficially reuse food waste, a type of organic waste to assist cities in our service area in meeting their diversion requirements while increasing OC San’s energy production. Initiatives • OC San will accept a preprocessed food waste slurry from an in-county partner that is compatible with its existing anaerobic digesters. OC San will charge a tipping fee to offset its costs for capital construction, operations, handling, maintenance, and biosolids disposal. STRATEGIC PLAN — 2023 | 17 • Design, build, and operate a food waste receiving station. Utilize a county-wide specification for food waste slurry and contract with OCWR to receive and co-digest food waste slurry. Water Reuse Policy Statement OC San will seek to beneficially reuse all reclaimable water for potable, industrial, irrigation and environmental uses. Initiatives • Support Groundwater Replenishment System and maximize reclaimable wastewater availability to OCWD. • Support Green Acres project water production to provide reclaimed water for industrial and irrigation uses. • Conduct a Dry Weather Urban Runoff Optimization Study in collaboration with OCWD and OCPW to identify additional opportunity to accept up to 10 MGD of dry weather urban runoff. Environmental Water Quality, Stormwater Management and Urban Runoff Policy Statement OC San will collaborate with regional stakeholders to accept up to ten (10) million gallons per day of dry weather urban runoff at no cost to the dischargers through its permit-based Dry Weather Urban Runoff Diversion Program. The primary objective of this program is to improve water quality in streams, rivers, and beaches in OC San’s service area without adversely impacting the OC San occupational safety, collection and treatment systems, reuse initiatives, or permit compliance. Unauthorized discharge of urban runoff to OC San is strictly prohibited. Initiatives • Issue dry weather urban runoff connection permits to accept up to a total of ten million gallons per day of controlled discharge of dry weather urban runoff where existing conveyance capacity exists, and the constituents within the flow will not adversely impact OC San. • Safeguard OC San’s sanitary sewer system against uncontrolled and unregulated discharge by supporting responsible industry practices for flow management and urban runoff pollutant reduction at the source. Utilize OC San’s pretreatment expertise to support effective urban runoff best management practices and special purpose discharge requests among OC San’s regional stakeholders. • Support responsible and practicable urban runoff management and reuse legislations and regulations. 18 | STRATEGIC PLAN — 2023 WASTEWATER MANAGEMENT Chemical Sustainability Policy Statement OC San has a need to use chemicals in its treatment process to improve plant performance, reduce odor and corrosion potential, and meet its regulatory requirements. These commodity chemicals are provided by outside vendors through the purchasing process. Some of these chemicals are subject to price swings due to market condition changes such as energy cost impacts, raw material cost changes, commercial competition changes, and transportation cost volatility. OC San will identify chemicals key to its operation, investigate the market risks for those chemicals and devise strategies to mitigate identified risks to availability and pricing. Initiative • Reduce the exclusive reliance on particular chemicals and individual vendors to establish flexibility to utilize other chemicals/processes to accomplish operational objectives. Biosolids Management Policy Statement OC San will remain committed to a sustainable biosolids program and will continue the beneficial reuse of biosolids in accordance with Resolution No. OC San 13-03 and the 2017 Biosolids Master Plan. Initiatives • Proceed with implementation of new thermophilic biosolids facilities at Plant No. 2 to improve OC San’s operational resiliency against seismic events while enhancing biosolids quality and marketability. • Engage with local, state, and federal agencies to ensure that biosolids will continue to be safely and legally used as a soil amendment. • Refresh both short- and long-term hauling and management options to ensure reliability and availability of failsafe options, promote local biosolids management options, and enable compliance with Advance Clean Fleet and Greenhouse Gas reduction regulations. • Stay abreast of new biosolids management options, technologies, and biosolids recycling and renewable energy partnerships in Southern California, with special emphasis on technologies that address the removal, sequestration, and destruction of contaminants of emerging concern, such as Supercritical Water Oxidation. Constituents of Emerging Concern Policy Statement OC San will partner with other agencies, associations, and institutions to support the use of sound science to inform policy and regulatory decisions on constituents or contaminants of emerging concern (CECs) at the federal, state, and regional levels. Staff will obtain and maintain current knowledge on CECs under regulatory consideration, including occurrence, analytical methods, regulations, and treatment to support OC San’s mission and regulatory compliance. Initiatives • OC San will continue to actively engage water and wastewater stakeholders to stay abreast of the scientific progress and any potential operational and financial impacts of CECs and provide timely briefings to OC San’s Executive Management Team and Board of Directors to facilitate informed decision making. STRATEGIC PLAN — 2023 | 19 • OC San will continue to develop capacity to identify, detect, quantify, and characterize CEC sources throughout the service area and treatment process to promote source reduction, treatment effectiveness, communication of credible risks, and responsible reuse and disposal. • OC San will proactively establish internal expertise and develop laboratory capability to research the potential impact of CECs on beneficial reuse of water and biosolids. OC San will use science- based knowledge to help shape CEC legislation and regulations to protect the public health and environment. • In the absence of promulgated regulatory limits for specific CECs, OC San will work with regulatory agencies to establish interim source control measures to safeguard its water and biosolids reuse initiatives and ocean discharge against potential adverse impacts. 20 | STRATEGIC PLAN — 2023 WORKPLACE ENVIRONMENT Resilient Staffing Policy Statement OC San has comprehensive programs in place to attract, develop and retain high-quality talent to support its mission of protecting public health and the environment. Some of these programs include training and development, employee recognition, diversity and inclusion, recruitment and selection, and competitive benefits and compensation, which help promote employee engagement and productivity and make OC San an employer of choice. Initiatives • OC San’s employee training programs and activities will be transitioned from individual departments and centralized in the Human Resources department over a two-year period. The centralized approach will streamline processes, ensure legal compliance, and provide greater consistency, transparency, and access for all employees, while also being responsive to the needs of the organization. • Maintain and enhance workforce planning initiatives to efficiently and effectively identify, develop and select the next generation of prepared, capable, and engaged employees through: o Vocational/Professional Student Internship Programs o Workforce Vulnerability Assessments o Talent Readiness Assessments o Orange County Sanitation District University (OC San “U”) • Continue to build the OC San “U” program and evaluate various options to partner with member agencies to share content and interactive development opportunities. Safety and Physical Security Policy Statement OC San will ensure the safety, health, and security of employees, contractors and the public through industry best practices, policies, and procedures that support a safe and secure environment, provide an appropriate level of security and safeguard OC San’s property and physical assets. Initiatives Safety • Identify regulatory gaps and opportunities to continually improve OC San’s safety and health management system to participate in the Cal/OSHA Voluntary Protection Program (VPP). • Continue to foster a culture where employees are accountable for their safety, as well as the safety of others. Emergency Management • Support facility and countywide emergency preparedness, response, and recovery efforts by partnering with entities such as, the Water Emergency Response Organization of Orange County (WEROC), Orange County Sherriff Department, and local fire departments to plan and conduct disaster preparedness exercises and drills. • Train new employees or retrain existing employees who staff OC San’s Emergency Operation Center (EOC) on the Incident Command System (ICS) and emergency disaster forms. Security • Identify and assess security vulnerabilities and improve physical security systems such as CCTV monitoring, access control systems, physical key management systems, and physical patrols of occupied buildings and plant facilities. STRATEGIC PLAN — 2023 | 21 22 | STRATEGIC PLAN — 2023 STRATEGIC PLAN — 2023 | 23 Appendix BusinessPrinciples 24 | STRATEGIC PLAN — 2023 Budget Control and Fiscal Discipline Policy Summary Policy Statement The Orange County Sanitation District (OC San) has practices and safeguards in place to ensure its long-term fiscal stability. These provide direction so that OC San’s finances are managed in a manner that will continue to support the daily collection and treatment of wastewater; meet the mission of the organization; maintain our AAA Bond Rating; ensure a responsible budget consisting of Revenues, Operating Expenditures, Capital Improvement Program (CIP), and Debt Service; and establish reserves necessary to meet known and unknown future obligations. OC San has established Fiscal Policies and Reserve Criteria, which are included in the budget, and separately adopted Investment and Debt Policies. These policies set the guidelines for planning the cashflow of OC San and have helped to stabilize the rates that our residents pay. Background OC San’s annual budget for Operating, Capital, and Debt Service expenses is approximately $600 million. OC San maintains all physical assets at a level adequate to meet its mission, protect OC San’s capital investment and to minimize future maintenance and replacement costs. OC San strives to maintain budgetary and accounting procedures that balance the budget in the current cycle, rather than through future budgets. These efforts are supported by OC San’s pay-as-you-go policy for its capital projects and expenditures. OC San focuses its fiscal policy around seven distinct areas, (1) Revenues, (2) Operating Budget, (3) CIP, (4) Long-Term Debt, (5) Reserves, (6) Investments, and (7) Accounting, Auditing, and Financial Reporting. These areas are reviewed, updated annually, and described as follows: 1) Revenues OC San’s revenues come from three general areas: Fees and Charges, Property Taxes, and other smaller revenue sources. Because revenues are sensitive to both local and regional economic conditions, revenue estimates are conservative. Staff estimates annual revenues by an objective, analytical process that utilizes trend, judgment, and statistical analysis as appropriate. Property tax revenues of OC San are first dedicated to debt service. OC San sets fees and user charges at a level that fully supports the total direct and indirect costs of operations, capital improvements, and debt service requirements not covered by property taxes and reserves. 2) Operating Budget The budget is used as a fiscal control device as well as a financial plan. Budget preparation and monitoring are performed by each division within OC San at the organizational level to ensure accountability and control. An annual operating budget is developed by Financial Management and the respective divisions, conservatively projecting expenditures for the current and forthcoming fiscal years. During the annual budget development process, the existing programs are examined to assure removal or reduction of any services or programs that could be eliminated or reduced in cost. Annual budgets provide for adequate repair and maintenance of facilities and equipment. Current operating expenditures are supported by current revenues. 3) Capital Improvement Program OC San makes all capital improvements in accordance with an adopted and funded CIP. OC San maintains a current Asset Management Plan and a twenty-year plan for capital improvements, including design, construction, and OC San staff costs. All capital projects approved in the annual STRATEGIC PLAN — 2023 | 25 budget are approved for the budgeted amounts through the completion of the project. The Board of Directors approves both the individual project total budget and the projected cash outlays for all capital projects. Staff identifies which capital projects may have a significant impact to on-going operating and maintenance costs, staffing impacts and estimates the impact as the project is developed. Staff coordinates development of the CIP budget with the development of the operating budget. All operations and maintenance resources required to implement the CIP have been considered and appropriately reflected in the operating budget for the year the project is to be implemented. Cost tracking for components of the project is updated quarterly to ensure project completion against budget and established timelines. 4) Long-Term Debt OC San maintains a Board of Directors adopted Debt Policy. Before any new debt is issued, the impact of debt service payments on total annual fixed costs is analyzed. Proceeds from long- term debt cannot be used for current on-going operations. OC San maintains a AAA credit rating from Moody’s, S&P, and Fitch. 5) Reserves OC San has a Board of Directors Reserve Policy which governs the establishment of our reserve level and the use of those funds. To ensure an adequate and diverse reserve policy, we have established seven different criteria. These criteria ensure that OC San will have sufficient funds for debt covenants, operating expenditures, and debt service payments prior to receiving our revenue from the county, operating contingency, rehabilitations and refurbishment, CIP contingency, and self-insurance for catastrophic loss. Any amounts in excess of these criteria are used to fund capital projects on a pay-as-you-go basis. 6) Investments OC San annually submits an investment policy to the Board of Directors for review and adoption. The investment policy emphasizes safety and liquidity before yield. OC San contracts with an Investment Manager to manage its portfolio in accordance with State Code and the investment policy. 7) Accounting, Auditing, and Financial Reporting OC San’s accounting and financial reporting systems are maintained in conformance with accepted accounting principles. Quarterly financial reports are submitted to the Board of Directors and made available to the public. Monthly Operating Budget Reports are compiled, analyzed, and distributed to each division. An annual audit is performed by an independent public accounting firm with the subsequent issue of an official Annual Comprehensive Financial Report, including an audit opinion and a management letter. Various internal audits are undertaken each year under the direction of the Audit Ad Hoc Committee to ensure adherence to policies, processes, and procedures. Current Situation 1) Revenues Most of OC San’s revenue is generated by user fees and charges. This category accounts for approximately 70 percent of OC San revenue in a year. Currently, OC San fees are in the lower third of its comparison agencies. After completing a rate study, a new five-year rate schedule was adopted by the Board of Directors in March 2023. 26 | STRATEGIC PLAN — 2023 OC San receives a share of the basic property tax levy proportionate to what was received in the 1976 to 1978 period, less $3.5 million allocated to school districts. These funds make up approximately 22 percent of the total revenue for the year. Other Revenue includes Interest Earnings, Intra-District Transfers, and small revenue sources that make up the remaining eight percent of the annual revenue. Budget Expenditures OC San adopts a biennial budget with an update in the second year of the adopted budget. The annual budgeted expenditures are approximately $600 million. This document lays out the framework of OC San’s activities during the upcoming fiscal year and serves as a source of information for the Board of Directors, our ratepayers, investors, and our employees. This budget includes the operational, capital and debt service expenditures necessary to cost-effectively support our mission and execute the Strategic Plan adopted by our Board of Directors. OC San has received the Government Finance Officers Association Distinguished Budget Presentation Award for the last 27 years. 2) Operating Budget OC San’s Operating Budget is the financial plan and fiscal control mechanism for the 25 divisions that comprise the six departments. The Operating Budget accounts for the costs to operate, maintain, and manage OC San’s two treatment plants, 15 pump stations, and 388 miles of collection systems. Outside of salaries and benefits, the largest expenditure categories are repairs and maintenance and operating supplies. The budget preparation process is collaborative among the divisions, departments, Finance, and upper management. The General Manager and Assistant General Manager met with each of the departments to ensure their budget proposals were prudent and cost-effective. This process assists to develop a comprehensive budget for OC San that meets the needs of the organization and is fiscally responsible. 3) CIP OC San’s CIP has evolved over time. It began by focusing on creating the initial infrastructure of the collections and treatment system, shifted to expanding capacity, and now our focus is on aging infrastructure, incorporating climate resiliency, seismic risk, and maximizing resource recovery in every project we execute. There are $3.1 billion in planned capital projects over the next ten years. The CIP is supported by the Asset Management Plan, which is updated annually and provides a comprehensive analysis of the condition and capacity of OC San’s wastewater infrastructure. The Asset Management Program continuously validates and updates the projects that are within the CIP. Current and near-term future projects are validated annually to ensure accurate schedule, scope, and budget. 4) Long-Term Debt OC San’s long-term debt fiscal policy restricts long-term borrowing to capital improvements that cannot be financed from current revenue. Before any new debt is issued, the impact of debt service payments on total annual fixed costs will be analyzed. OC San has $790 million in outstanding debt. No new money debt issuances are planned. The debt issuances are regularly reviewed and evaluated for potential savings through refinancing. All existing debt is scheduled to be paid off by 2044. STRATEGIC PLAN — 2023 | 27 5) Reserves OC San conducted an in-depth review of the agency’s reserve policies. This review included a survey of the reserve policies of 23 other public agencies and is periodically updated. It serves as a tool to assist in the evaluation of the underlying economic reasons supporting OC San’s reserve policies. There are seven distinct reserve criterion which together comprise OC San’s reserve fund target. These criteria are cash flow, operating contingency, capital improvement, catastrophic loss/self-insurance, replacement and refurbishment, debt service, and accumulated funds. Collectively, these individual criteria require a minimum average reserve amount of approximately $580 million a year over the current ten-year cash flow forecast. This reserve amount, while significant, totals less than five percent of the replacement value of our $12.6 billion in assets. 6) Investments OC San invests public funds in a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating expenditure needs, achieving a reasonable rate of return, and conforming to all state and local statutes governing the investment of public funds. OC San uses a bank checking account and sweep account for its daily transactions. Liquidity needs are met through funds invested with the Local Agency Investment Fund managed by the State Treasurer’s Office. Most of OC San’s investments are separated into two distinct portfolios, Long-term and Short-term, with a primary focus on the Long-term portfolio, which are managed by an outside investment manager. Monthly, quarterly, and annual reporting and review mechanisms are in place. 7) Accounting, Auditing, and Financial Reporting An audit of the books, financial records, and transactions of OC San is conducted annually by independent certified public accountants. The Annual Comprehensive Financial Report includes the financial position and activity of the organization and is prepared by the Financial Management Division. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with OC San. The auditor’s report on OC San’s basic financial statements and supplementary information renders an unmodified opinion on OC San’s basic financial statements for the year ended June 30, 2022. OC San has been awarded the Government Finance Officers Association Certificate of Achievement in Financial Reporting for 28 consecutive years. Along with monthly budget reviews and quarterly reporting to the Board, OC San’s internal accounting controls adequately safeguard assets and provide for proper recording of financial transactions. Budget Control Resources OC San has various structures, procedures, and resources in place to help assist with project and operating budget controls. Several software systems such as PM Web, Request to Purchase, JDE reports, and monthly operating budget reports provide information and have controls in place to be able to restrict purchases to budgeted amounts and monitor overall spending per division. Contract structures have also been optimized to fix costs over longer periods to ensure controlled and predictable expenditures for goods, services, and labor. Future Policy Statement OC San will maintain and enhance the sound fiscal condition of the organization by regularly updating and following the individual policies that provide guidelines for OC San’s day-to-day financial affairs. The scope of these policies includes, accounting, purchasing, auditing, financial 28 | STRATEGIC PLAN — 2023 reporting, internal controls, operating and capital budgeting, pay-as-you-go for capital expenditures, revenue management, cash and investment management, expenditure control, debt management, and planning concepts. OC San will actively monitor budget expenditures, be transparent, submit quarterly financial reports to the Board, have financial information available to the public, and follow industry best practices. OC San’s accounting and financial reporting systems will be maintained in conformance with generally accepted accounting principles and standards promulgated by the Governmental Accounting Standards Board. Initiatives to Support Progress Toward the Policy Goal • Use established resources, along with developing and implementing additional resources to assist OC San staff in tracking and monitoring expenditures to ensure smooth business operations while maintaining budgetary control. • Maintain a fiscally responsible financial plan that is based on long-term planning which supports stable rate setting and a pay-as-you-go philosophy for operating and capital expenditures. • Leverage the centralized training program to provide targeted training opportunities for employees to remain current with financial best practices and OC San fiscal policies and procedures. • Monitor the long-term debt program and continually assess market conditions to identify possible opportunities to reduce outstanding debt balance and term, while maintaining a AAA rating. Maintain reserve levels within policy guidelines, while optimizing the use of available funds to finance capital programs and ensure a balanced budget. STRATEGIC PLAN — 2023 | 29 Asset Management Policy Summary Policy Statement The Orange County Sanitation District (OC San) will assess and manage the collection and treatment plant systems and assets to improve resilience and reliability while lowering lifecycle costs. This will be accomplished through adaptive operation, coordinated maintenance and condition assessment, and planned capital investment. Staff will balance maintenance, refurbishment, and replacement strategies to maximize useful life, system availability, and efficiency. Background OC San is a regional governmental agency principally chartered to protect the public health through collection and treatment of wastewater. The governing Board of Directors has defined this role to include the recovery and utilization of resources from wastewater for the public good as a part of that mission. The environmental impact mitigation of the human activity of 2.6 million people and the natural drainage of the 479 square miles OC San serves is our principal concern. OC San owns and operates extensive facilities to achieve its mission. OC San estimates the replacement value of the civil, mechanical, and electrical assets in its collection system, Plant No. 1 in Fountain Valley, and Plant No. 2 in Huntington Beach to be $12.6 billion. OC San has been building the piping, pumping, and treatment infrastructure it utilizes for nearly 70 years. It is necessary to expand, renew, replace, demolish, and rebuild components of the system to deal with wear and tear and meet new challenges. The early years for OC San were characterized mostly by capacity expansion to meet the challenges of increased flows as the county grew. The late 1970s to the 2000s were more defined by improved levels of treatment. The last ten years have been focused on increasing the level of recycling while rehabilitating and replacing facilities to maintain reliable operations. One of the key success factors for OC San has been the ability to maximize the life of our facilities, through cost-effective maintenance and long-range planning to ensure reliable systems. Current Situation OC San is a highly planned, forward-looking organization. The collection system and each of the treatment plants are broken down into granular functional parts. Each part is well defined and future requirements are routinely updated within the annual asset management plan. This plan may also be supplemented with detailed planning studies to optimize the timing and extent of upcoming projects. OC San has a detailed understanding of what is owned, what condition it is in, and how it is capable of performing. The collection system is made up of independent pipe networks that were installed by the former independent sanitation districts to deliver flow to the joint treatment works. The natural watershed drainages in the service area are served by major trunk sewer systems. OC San has worked with member agency staff to understand future development plans, flow estimates, and has collected historical inflow and infiltration rates during wet weather events to assure adequate flow carrying capability exists in each trunk sewer system. OC San also factors in the effects of drought and lower domestic water usage rates to make sure the sewers operate properly at low-flow rates. Detailed modeling efforts are used to determine when upgrades are required. The treatment plants are broken down into the discrete process units. Each plant has preliminary treatment to remove debris and grit, primary treatment for gravity settling solids, multiple biological 30 | STRATEGIC PLAN — 2023 secondary treatment systems, solids handling and dewatering, power generation and distribution utilities, water and air system utilities, and an outfall system to release treated water to the ocean. Each plant can treat 320 million gallons per day of wet weather flow, but only 185 million gallons total on average is treated by both plants. OC San must always maintain the ability to treat both the average flow and peak wet weather flow. OC San understands that every asset has an expected life. Electrical systems with electronics are generally limited by component obsolescence to 20 years of life and electrical distribution equipment is limited to 30 to 40 years of life. Mechanical and coating systems are also generally limited by erosion, corrosion, and wear to 20 years of life. Civil structures and pipes are generally limited to 60 to 80 years of life if maintained on a regular basis. Generally, process facilities are renewed about every 25 years. OC San has created a Facilities Master Plan that plans to renew or replace facilities on this regular basis. Collection system projects are driven by growth projections or condition findings. Pipes are upsized or renewed based on flow projections, corrosion observation, or coating system failure. The 15 regional pump stations are renewed about every 25 years due to the mechanical wear and tear, and electrical component obsolescence needs. The master plan for the treatment plants is much more dynamic. In addition to the electrical, mechanical, and civil asset considerations, there is also the need to meet new requirements. The new requirements are driven by regulatory requirements or by the Board of Directors to change a discretionary level of service. Examples include capacity demands (more water, more solids), lower discharge requirements (lower BOD/TSS to the outfall, lower nutrients to the ocean), more water for reclamation, better energy conversion of solids. The 2017 Facilities Master Plan took a snapshot in time looking at the anticipated needs and levels of service to lay out a detailed project plan to morph OC San infrastructure over time to meet the expectation. Renewal or replacement projects with costs and schedules were laid out for each individual unit of the treatment plants to address capacity, condition, level of service, and anticipated new regulatory drivers. Future Policy Statement OC San will continue to invest in the infrastructure necessary to meet its mission. OC San will seek to provide its required level of service at the minimum lifecycle cost for its collection and treatment systems. The 2017 Facilities Master Plan was the snapshot basis of the Capital Improvement Program (CIP), but the annual Asset Management Plan is the means to update and modify the CIP to meet new requirements and conditions as time goes by. OC San will understand in a transparent way: what it owns, the condition of those assets, the capacity of collections and treatment required, the level of service required by its regulators and Board of Directors and will anticipate new regulations that may require system improvement. This understanding will drive coherent operations, targeted maintenance, and capital investment strategies to assure resilient, lowest lifecycle cost compliance with the requirements. Operations is committed to optimizing the operation of the systems to extend equipment life and minimize energy and chemical utilization, while meeting all regulatory and level-of-service requirements. Staff is committed to maintain the installed assets in a ready state for operations. Maintenance will seek to balance individual component preventive maintenance, repair, and renewal in harmony with the CIP. The CIP is based on the annual Asset Management Plan, and will execute the projects to install, renew, or replace trunk sewers and treatment plant units on a scheduled basis. STRATEGIC PLAN — 2023 | 31 Asset Management at OC San is the living management of the operation strategies, maintenance plans, and implementation of the CIP. OC San will find creative ways to maximize asset life and meet capacity or level of service goals through operations and maintenance. OC San will annually reassess its condition, capacity, level of service, and regulatory conditions to drive operations and maintenance practices and modify the CIP. Initiatives to Support Progress Toward the Policy Goal • Continue developing an annual Asset Management Plan documenting the condition of the collection system and treatment plants, and upcoming maintenance or capital projects. • Coordinate the efforts of operations, collections, mechanical maintenance, electrical maintenance, instrument maintenance and engineering through process teams to assure OC San’s resources are focused on the high priority work functions. • Identify critical collections and plant assets that have long lead times for parts and replacement and mitigate procurement risks and impacts to collections and plant resiliency based on market conditions. • Maintain a 20-year forecast of all CIP projects needed to maintain or upgrade OC San’s $12.6 billion in assets on a prioritized risk basis to establish rate structures. 32 | STRATEGIC PLAN — 2023 Cybersecurity Policy Summary Policy Statement The Orange County Sanitation District (OC San) must maintain adequate cybersecurity (information technology security) techniques that protect computer assets, networks, programs, data, and industrial control equipment from unauthorized access, denial of service, or attacks that are aimed for exploitation. Background Developing an effective, sustainable cybersecurity program is a pressing challenge for organizations of all sizes. The reasons behind the scope of the challenge are many. Cyber risk continues to grow at an exponential rate with routine attacks from nation states, criminal elements, hacktivists, and insider threats. The bottom line is cybercrime pays. The booming cybercrime economy is productizing malware and making cybercrime as easy as shopping at Amazon. With this easy access to cybercriminal tools and services, enterprises are experiencing rapid increases in the volume, scale, and sophistication of cyberattacks. Complex and dynamic information security disciplines are subject to continuous changes in the business, technology, and threat environments. Many organizations will struggle to implement security programs that support continuous improvements in this challenging environment. Current Situation OC San has evolved over recent years from dedicating less than half of a position towards cybersecurity, to one position, to currently two full-time positions. OC San’s cybersecurity portfolio consists of strategic policy management, defense in depth practices, periodic risk assessments, ongoing awareness communication and operational (e.g., security monitoring and incident response, threat and vulnerability management, user provisioning) processes. For example: • Cybersecurity Awareness and Training Program - OC San understands that our employees are our best line of defense in protecting and defending our enterprise from attack. We have built a comprehensive security awareness program by focusing on four critical functions: phishing attack simulations and reporting, quarterly education requirements, targeted training for IT developers and SCADA engineers, and pervasive communications utilizing internal communication tools. • Vulnerability Management - IT staff subscribe to and monitor security advisories and threat bulletins from Microsoft, US-CERT, ICS-CERT, KnowBe4, Cisco, and other vendors to understand and manage new vulnerabilities. All internet accessible servers and applications are scanned weekly for vulnerabilities and remediated, as necessary. Microsoft operating system and application patches are deployed monthly while third party updates are deployed weekly. We use a vulnerability platform for continuous assessment of our security and compliance posture. • Intrusion Detection and Response - We have implemented several security solutions to be able to detect, prevent and respond to malicious network activity. These include firewalls, intrusion prevention systems, web security gateways, and next-generation anti-malware. In addition, we also have user behavior analysis tools to identify insider threats and ransomware activity. • Privileged Access Management Program - We use a privileged access management solution to remove and manage local administrative rights on workstations/servers to prevent lateral movement. The solution is also used to protect, control, and monitor privileged access across files and systems. STRATEGIC PLAN — 2023 | 33 • Backup and Restore Capabilities - IT practices a 3-2-1 backup strategy: 3 – Keep three copies of critical data 2 – Have your data on two types of media 1 – One copy must be offsite and offline Restores are performed on at least a weekly basis in response to customer incidents. Disaster Recovery Testing is performed monthly by selecting a major system and testing restore capabilities of that system to our secondary treatment facility. We isolate the restores and provide access to our application subject matter experts to conduct application specific testing. These tests are logged and kept for auditing and management purposes. • Security Incident Response – A security incident response plan is an organized approach to handle a cyberattack. We have developed an incident response plan, playbooks, and procedures for various attacks as well as trained IT security staff. In addition, there are external contacts we can call for assistance including the Federal Bureau of Investigation, Department of Homeland Security and organizations that specialize in incident response like Mandiant, Cylance, and Microsoft. • Security Assessments - The purpose of a security assessment is to identify the current security posture of a system, network, or organization. The assessment provides recommendations to improve the security posture by mitigating identified risks. Our goal is to do one or two security assessments per year. Future Policy Statement The main objective of our information security program is the establishment of a continuous, iterative regimen of planning, building, running, and governing security capabilities that are derived from business requirements. Our security program cannot be a static entity. It must be adapted and continuously refined to keep pace with the ever-changing threat environment and changes in how OC San adopts digital business practices. Cybersecurity incidents are inevitable. Mistakes and/or a lack of preparation in the response can have serious repercussions. The ability of an organization to respond effectively to a security incident is a direct result of the time spent preparing for such an eventuality. If you fail to prepare, then you effectively prepare to fail. OC San will be prepared. This will be accomplished by the following proposed initiatives. Initiatives to Support Progress Toward the Policy Goal • Conduct various tabletop exercises to determine the organization’s ability to respond to a targeted cyberattack and to improve the quality of the response, should an attack occur. • Evaluate, enhance, and monitor network security including activities to protect the usability, reliability, integrity, and safety of the network by developing Security Operations Center capabilities that support continuous monitoring and is responsible for the continuous threat protection process. • Conduct a comprehensive third-party cybersecurity operations assessment (Red Team). A thorough Red Team engagement will expose vulnerabilities and risks regarding: o Technology — Networks, applications, routers, switches, appliances, etc. o People — Staff, independent contractors, departments, business partners, etc. o Physical — Offices, warehouses, substations, data centers, buildings, etc. 34 | STRATEGIC PLAN — 2023 Property Management Policy Summary Policy Statement The Orange County Sanitation District (OC San) owns and operates assets throughout our service area located in property owned in fee, through easements, and in the public right-of-way. OC San will identify and protect all its property rights to assure that our assets are not encumbered or encroached upon so that the facilities may be properly operated, maintained, upgraded, and replaced. Background OC San owns and operates $12.6 billion in assets. A portion of those assets include buildings, easements, rights-of-way, and other encroachments. OC San has a real property analyst that serves as a resource in support of OC San’s real property assets. The position acts as project leader and/or technical expert for real property matters, including purchase, sale, lease, rent, acquisition, disposition, appraisal, inspection, title, right-of-way, easements, permits, licenses, contracts, agreements, relocation, property and space management, and other related activities. Periodically, OC San sells and purchases property to support its efforts. Since these transactions are limited and not core to OC San, it has been determined that it is more cost effective to augment OC San resources with contracted specialized real estate services. Current Situation OC San manages its physical property and property rights in support of Reclamation Plant No. 1, Treatment Plant No. 2, fifteen pump stations, and 388 miles of trunk sewer lines in the Collection System. The real property analyst works closely with Operations and Maintenance staff to ensure that OC San has the necessary easements and rights-of-way for operations along with unencumbered access for repairs and maintenance. Staff works with Engineering to obtain property, easements, and rights-of-way to facilitate the completion of projects for our Capital Improvement Program (CIP). Additionally, OC San manages landscaping, building maintenance, and security for its facilities. Future Policy Statement OC San will effectively manage its property assets and actively maintain all encroachments, encumbrances, easements, and rights-of-way. When prudent, OC San will augment resources with contracted specialized real estate and property management services. OC San staff will work to support the property needs of Operations and Maintenance and the CIP. Initiatives to Support Progress Toward the Policy Goal • Leverage technology to review property rights and identify encroachments or encumbrances that restrict operation, maintenance, inspection, or emergency repair access to remove encroachments or encumbrances. • Collaborate with Engineering to obtain property, easements, and rights-of-way in a timely manner for capital projects. • Augment OC San resources with contracted specialized real estate services to limit the need for additional staffing. STRATEGIC PLAN — 2023 | 35 Organizational Advocacy and Outreach Policy Paper Summary Policy Statement The Orange County Sanitation District (OC San) will create and disseminate information to our stakeholders with an end goal to educate, inform, and garner support for the services provided, thus allowing us to operate in a more efficient and effective manner. OC San will deliver messages that are accurate, transparent, and designed to foster public trust and confidence. Additionally, following legislative activity will ensure OC San’s interests are explained and considered. Background OC San provides regional sewer service for 2.6 million people living, working, and commuting in central and northwest Orange County. The various stakeholders include over 600 employees, 50 local elected officials appointed to our Board of Directors, regulators, policy makers, and the public. It is critical for OC San to have a multi-pronged outreach program to reach the intended audiences and to gain support for OC San’s mission. OC San provides services and tools to effectively communicate about the various programs that help achieve its mission. These programs include: • Student Educational Outreach OC San is interested in promoting and educating the youth within our service area on OC San’s mission and the essential services we provide. Reaching out to students allows for future generations to be aware of the environmental impact we each make and what we can accomplish working together. This knowledge will help our future generations to act and make positive changes. It also introduces them to an industry that they may be unaware of as a career choice. We do this through programs such as Inside the Outdoors which goes directly into classrooms to teach the wastewater treatment process; school-based plant tours that give them an inside view into a treatment plant and how the system works; events such as the Children’s Water Festival, which provides an opportunity to reach thousands of local children in a short amount of time with clear and direct messaging; our partnership with the Heritage Museum, and contests such as the Public Service Announcement which is an incentive for students to get involved in developing messages for environmental issues. • Infrastructure Outreach OC San has $12.6 billion in infrastructure that must be designed, operated, maintained, replaced, and enhanced to continue providing the essential service of protecting public health and the environment. Forming a positive presence in the community prior to the start of construction projects or maintenance activities is imperative to build trust, understanding, and support for the necessary construction. This is done through an extensive outreach program that develops and implements communication tools to engage the communities affected by OC San construction projects. This includes dedicated community liaisons, construction webpages, collateral material, presentations, etc. Over the next fiscal year, about two dozen projects will be in construction with various degrees of public impacts. • Employee Engagement Open and honest communication with our employees creates a positive and trusting environment which can result in a more engaged workforce and ambassadors for our agency. OC San creates employee engagement by utilizing various communication methods to share agency-wide 36 | STRATEGIC PLAN — 2023 messages. A diverse toolkit of communication pieces allows messages to be delivered to over 600 staff with various professional backgrounds, work shifts, work locations, and access to online materials. This toolkit of communication pieces includes The San Box (intranet), Pipeline Newsletter, Three Things to Know email, etc. • Brand Recognition As an industry leader, OC San must ensure its brand and image are portrayed accurately and positively. A cohesive voice, message, look, and feel are critical to maintaining a positive public perception and the trust granted to us by the community we serve and the stakeholders we work with. To build and maintain a positive image, we engage in general outreach efforts such as plant tours; community newsletters; a Speakers Bureau Program (which allows us to go into the community and meet with various groups to inform them of who we are and what we do); an informative and educational website, an active social media presence; and the development of programs such as Wastewater 101 Academy which provides an opportunity to showcase OC San’s operations and initiatives for our ratepayers, fellow agencies, and influential public. • Regulatory and Legislative Advocacy OC San also recognizes the need for an active regulatory and legislative advocacy program at the local, state, and federal levels to ensure that the interests of the rate payers and the Board of Directors are communicated, understood, and supported. Towards this end, the legislative and regulatory team actively monitors and engages officials across California and in Washington, D.C., and takes appropriate action in support of, or opposition to, legislative and regulatory initiatives. Current Situation OC San is an industry leader involved in innovative and significant programs. However, it is most often seen as a silent utility due to its consistent attainment of its mission. News coverage for a wastewater resource recovery agency is most often about a mission failure. People tend not to think about their wastewater or where it goes until a beach is closed or a spill occurs. In addition, OC San has no direct connection to its ratepayers. User fees are paid via property tax bills thus eliminating an opportunity to reach our customers directly. This ultimately results in a limited understanding of OC San, what we do, and the important service provided to the community. OC San’s outreach efforts are imperative to positively inform and educate the public we serve about the value we provide, including policy makers and regulators. OC San actively works with other public agencies in its service area to develop opportunities to provide additional value from the assets we own and operate to the ratepayers we serve. Initiatives like dry weather urban runoff diversion, conversion of food waste to energy and compost, and full reclamation of wastewater to potable water are examples of public-to-public partnerships. Future Policy Statement OC San will creatively and effectively develop communication tools and tactics to inform and educate our various stakeholders. As a silent utility, is it imperative that OC San connect with the public we serve in a clear and transparent way to create a bank of trust, and garner support for the programs that allow us to continue protecting the public health and the environment. OC San will maintain an active legislative and regulatory outreach program to help inform and guide leaders to ensure the wastewater industry is able to protect the public health and environment in a cost-effective way. STRATEGIC PLAN — 2023 | 37 OC San will engage with other local government entities and nonprofit organizations to coordinate our existing messaging and services; and will search for new and innovative ways to add more value from our assets and operations. Initiatives to Support Progress Toward the Policy Goal • Develop an educational display in the Headquarters building to illustrate OC San’s reuse and recycling efforts in support of the environment and public health. Display to be revealed when new building is unveiled. Phase 2 of the hands-on educational display will consist of content on the exterior of the building to create a complete experience from walking up to OC San to entering the building. • Implement a multipronged outreach strategy that will include industry and media coverage for the Supercritical Water Oxidation project. • Develop and implement a Local Government Affairs Outreach Program to enhance OC San business goals and build local relationships that benefit OC San, cities we serve, member agencies, and officials. • Engage a local lobbyist to assist in advancing strategic initiatives as identified within the Strategic Plan. • Actively monitor and engage in regulatory and legislative activity across California and Washington, D.C., and take appropriate action in support of, or opposition to, legislative and regulatory initiatives affecting OC San and the wastewater industry. This includes using Monitoring and Analysis, Advocacy Days, Position letters and Funding Requests (as deemed suitable). 38 | STRATEGIC PLAN — 2023 STRATEGIC PLAN — 2023 | 39 EnvironmentalStewardship 40 | STRATEGIC PLAN — 2023 Energy Independence Policy Summary Policy Statement The Orange County Sanitation District (OC San) will strive to be energy neutral. Electrical, thermal, and methane gas generation will be maximized. Energy utilization will be minimized using sound engineering and financial principles. Background OC San strives to maximize the positive impacts of its operation between land, air, and water. For example, as an agency dedicated to protecting public health and the environment, OC San is an industry leader in protecting ocean health and providing a drought-proof and reliable local water supply through the Groundwater Replenishment System, which is currently the world’s largest potable reuse project. A natural result of wastewater treatment is the separation and concentration of solid and gaseous materials which provide opportunities to create sustainable and renewable energy and reduce greenhouse gas emissions. OC San is also committed to be a good neighbor. As such, significant amounts of energy are spent capturing and converting odorous air and vapor streams. OC San has pursued a comprehensive program to cover and seal its liquid and solid processes. Air streams are ducted to large fans which move thousands of cubic feet of foul air per minute through chemical, biological, and activated carbon beds to scrub the air of odorants that are regulated or may be perceived as a nuisance by the community. OC San has utilized an anaerobic digestion process that relies on biological conversion of solid organic material to methane and carbon dioxide gas or biogas. The biogas is converted to electrical and heat energy in power plants for internal use. OC San’s secondary treatment system is another example of using energy to convert water impacts to air emissions. Approximately 23 percent of OC San’s energy usage within the treatment process is devoted to aerating water so biological agents can convert soluble organic material to nitrogen and carbon dioxide. The generation of energy itself creates an impact on the environment in air and thermal emissions. Current Situation The potential exists to further shift environmental impacts between land, air, and water through the utilization of energy. OC San is an environmental steward that seeks to maximize the harvesting of energy available in the incoming wastewater. On the energy use side of the ledger, OC San invests prudently in lifecycle energy efficiency to minimize the use of energy to achieve its mission. Pumping systems to lift water and move material are at premium efficiency. Thermal energy is harvested from power production for use in the process and to heat and cool occupied buildings. Aeration compressors and diffusers are selected by overall efficiency. Lighting systems are upgraded over time to more efficient technologies and lighting levels are balanced between safety and security needs versus energy utilization and light pollution concerns. Facility designers and operators make careful choices regarding the utilization of every watt of electricity, BTU of heat, and therm of gas consumed. On the energy generation side of the ledger, OC San seeks to maximize the internal creation of energy. The primary source of energy creation is in biogas. Organic solids collected and concentrated in the water treatment processes are converted biologically to biogas composed of 65 percent methane, 34 percent carbon dioxide, and other trace constituents. OC San has been STRATEGIC PLAN — 2023 | 41 using this technology since the 1950s. Research has been ongoing since that time to maximize the production of digester gas. Some of the areas of research include improved mixing and heating; improved feeding; chemical addition to limit trace pollutant production; introduction of food waste; injection of fats, oils, grease; cell lysing; and microaeration to minimize hydrogen sulfide production. OC San cleans the biogas and converts this biogas into electricity, heat, and exhaust gas. The exhaust gas is regulated even more tightly for nitrogen compounds, carbon monoxide, particulates, and volatile organic compounds which require costly and performance degrading engine control technologies. This is another example of an air impact/energy trade off. These internal systems of energy harvesting provide roughly 66 percent of OC San’s electrical demand and 92 percent of OC San’s thermal demand in the treatment plants. OC San can shift the digester gas between treatment plants via an interplant pipeline and has roughly 11 MW of additional generation capacity if more gas is produced. The additional capacity was originally designed to provide standby to the large outfall pumping system during an electric utility power outage using natural gas. In addition, OC San has a 5 MW, 32 MWh electrical battery storage system at Plant No. 1. The operation of this system is scheduled by Southern California Edison to offset plant loads and reduce the demand on the electric utility grid for during peak demand times in the early evening hours when solar produces little to no energy. Future Policy Statement OC San seeks to be energy independent by self-generating all the electrical and thermal energy necessary to sustain its operations. This will be accomplished by economically minimizing its utilization requirements and maximizing energy harvested from the wastewater it receives. Energy independence will improve OC San’s environmental impact and improve its operational reliability and resiliency. The Plant No. 1 electricity imports vary between 1 MW and 6 MW, based on the time of day and if the battery storage system is charging or discharging. Currently, the Plant No. 2 load is close to zero on average. OC San will also study and use photovoltaic cells in non-process areas where it makes economic sense. For example, the new Headquarters Building will include photovoltaic panels linked to the treatment plant. Staff will also investigate the installation of photovoltaic arrays over OC San owned property between the treatment plants with additional battery storage systems. OC San will also investigate the treatment and sale of biogas to external users. The State of California has set goals for renewable energy utilization for electrical production and hydrogen transportation fuels. OC San’s biogas is viewed favorably in these industries to meet the State of California targets. OC San is working very diligently and creatively to maximize the production of gas and reduce its own energy needs. The selling of biogas would require additional natural gas or electricity to offset the loss of electricity generated using biogas. Staff recommends that innovative research continue to maximize energy harvesting and to minimize energy usage to make OC San energy independent in the most basic mission of protecting the public health and the environment. Supercritical Water Oxidation and other biosolids thermal conversion technologies offer some exciting opportunities to cut power use, reduce diesel fueled transportation, and create useful energy. 42 | STRATEGIC PLAN — 2023 Initiatives to Support Progress Toward the Policy Goal • Maximize the anaerobic digestion conversion of organics to methane through receipt of food waste and operational techniques. • Investigate and install energy storage and photovoltaic systems where practical to achieve energy independence/resilience. • Investigate the treatment and sale of biogas to external users. • Continue to support the conversion of biomethane into electricity and heat for process use. Improve systems as necessary to comply with air regulations. • Pursue technology innovation to reduce energy use, reduce transportation energy impacts, and reduce greenhouse gas impacts. • Investigate the optimum wastewater influent flow split between Plant No. 1 and Plant No. 2 that satisfies the Orange County Water District specification water requirements and energy efficiency. STRATEGIC PLAN — 2023 | 43 Climate and Catastrophic Event Resilience Policy Summary Policy Statement The Orange County Sanitation District (OC San) aims to design, maintain, and operate valuable wastewater assets that withstand or adapt to adverse conditions in a reasonable manner that is both cost-effective and sustainable for present and future generations. These adverse conditions include drought, heavy rains, flooding, sea level rise, earthquakes, tsunamis, extreme heat, wildfires, pandemic, and electrical grid interruptions. Background OC San owns and operates extensive wastewater collection and treatment facilities valued at $12.6 billion. OC San’s service area faces special challenges because of the geographic location of its facilities. These challenges include: its position on and near seismic risk factors, its proximity to the Pacific Coast, adjacency of its treatment facilities to the Santa Ana River, and being served by increasingly fragile energy utilities. OC San’s facilities are situated on or near several seismic risk factors. Plant No. 2 is located directly on top of the Newport-Inglewood fault. Both plants and the collection system are influenced by many adjacent major and minor faults capable of delivering damaging energy. Both of our treatment plants and most of our collection system sit on top of silty, alluvial soils that can have the effect of amplifying the earth motion and risk liquefaction during a seismic event. OC San has invested significantly over the last 50 years to improve the soils, foundations, and structures to mitigate these seismic risks. As geotechnical and structural knowledge and building codes progress, upgrades and facility replacements will be necessary. Another seismic risk associated with having a treatment plant and several pump stations located on the Pacific Coast is the risk of tsunami inundation. OC San has been working with and reviewing the plans of the City of Huntington Beach and the City of Newport Beach to understand and quantify this risk. The American Society of Civil Engineers (ASCE) has created a new standard, ASCE 7-22, to layout design parameters for lateral forces and inundation zone associated with potential tsunamis. OC San understands that climactic factors we face change widely over time. OC San’s systems must perform in extreme wet weather situations (atmospheric rivers), extreme dry weather conditions (drought), extreme tidal conditions (king tides, rising sea levels), and high and low temperature extremes. OC San generally designs for historical and expected “average conditions” for optimal performance but must also assure operations for extreme weather events. OC San serves a critical public health role. Its operations must be reliable 24 hours per day, 365 days a year. Electricity, and to a lesser extent natural gas, are necessary for pumping and treatment operations. Both electricity and natural gas supplies have become increasingly vulnerable to interruption. Electricity deliveries are more vulnerable due to wildfire outage criteria, loss of local generation assets, aging infrastructure, and extreme weather events. Natural gas supplies are more vulnerable due to the loss of local storage capacity, aging infrastructure, line corrosion, and more stringent regulatory requirements. OC San has significant capacity to self-supply critical energy requirement for extended periods. Current Situation OC San has spent considerable effort quantifying its seismic, climate, and utility supply risks. Several key studies were completed over the past several years. The most acute risk factor faced by OC San is seismic risk. Climate and utility supply risks are more accurately described as chronic risks. 44 | STRATEGIC PLAN — 2023 Seismic risk factors include ground shaking, liquefaction, lateral spreading, and fault rupture. Both treatment plants are situated in historic riverbed with poor soil conditions. The collection system is vulnerable to failures during seismic events. State of the art seismic design has changed greatly over OC San’s history and will continue to do so. Many of our critical structures were designed or installed prior to the advancements that occurred because of the various earthquakes of the 1990s. Significant effort has been expended to better characterize the soil conditions under our treatment plants and pump stations. Projects to replace existing unit processes will be scoped and budgeted to provide seismic resilience. These measures include soil mixing to stiffen the soil, various foundation designs, and building structure improvements. For refurbished facilities, the cost to provide soil improvements for existing structures to mitigate liquefaction will be evaluated based on the importance of the structure and the associated impact on pumping and treatment plant operations during dry weather conditions. Tsunami resilience and flooding protection can go hand in hand. Tsunami protection requires a more robust wall footing and wall structure. To a great extent, these two risk factors can be mitigated in the same way. The tsunami guidelines for inundation in ASCE 7-22 are a reasonable peer reviewed standard. By complying with this standard for Huntington Beach and Newport Beach, OC San will be reasonably prepared for flooding caused by extreme storm events and conservative sea level rise estimates at Plant No. 2 and pump stations in the City of Newport Beach. A tsunami wall has been designed for a large portion of the southern perimeter wall of Plant No. 2. A future project will construct the remaining portion of the tsunami wall. OC San has also expended significant effort to prepare for the effects of weather extremes on its operations. Extreme wet weather impacts operations. Inflow and infiltration during intense storm activity have multiplied average dry weather flow rate by up to three times in past years. During recent storms, peak wet weather flows have exhibited fewer extreme peaks due to inflow and infiltration improvements throughout the collections system. OC San has significant wet weather capacity and will continue to maintain a 640 million gallon per day influent and outfall capacity which is roughly 3.5 times our average dry weather flow. Historically, high rains as seen in 1863, 1938, 2017, and 2023 will push our systems to the limit. Recently we are seeing king-tides higher than previously anticipated which is impacting our coastal pump stations. OC San has also adapted its systems to perform in extreme dry weather. OC San, in cooperation with the Orange County Water District, operates the largest potable water reuse system in the world. This is made possible by replumbing our treatment plants and adding new smaller pump stations to deal with extreme low outfall flow rates during dry weather conditions. OC San can also shift significant influent flow from Plant No. 1 to Plant No. 2 through the interplant line and a portion of the flow from Plant No. 2 to Plant No. 1, which creates additional resilience for risk factors. Finally, on the topic of utility supply, OC San built redundant supplies for its most critical needs: electricity, natural gas, and water. OC San has maintained three sources of electricity supply for more than 25 years. The treatment plants can be supplied with power from Southern California Edison, OC San’s Central Generation Plants, or onsite diesel generation systems to maintain basic operation to protect public health. In terms of natural gas, OC San has been producing bio- methane through anaerobic digestion since the 1950s with enough capacity to provide electricity for half of the loads at Plant No. 1, all the loads at Plant No. 2, heating and cooling loads at Plant No. 1, and heating loads at Plant No. 2. Select pump stations are provided with standby generators and 24 hours of fuel for pump stations that require response in two hours or less during a power supply failure. Portable generator connections are being installed at the pump stations to provide increased reliability and maintain pump station operation in the event the onsite standby generators fail or there is an electrical fault. STRATEGIC PLAN — 2023 | 45 Future Policy Statement OC San will continue to build and improve its facilities to meet the seismic, climate and energy infrastructure risks that it faces with a long-term, planned approach. Acute life-safety risks that are identified or facilities that are damaged or fail in a catastrophic event will be addressed very quickly. However, it is not practical to update $12.6 billion in facilities every time a code is updated, or a new climate change estimate is released. OC San will stay abreast of code and climate change estimates as they occur and will implement improvements or replacements to facilities on a long-term basis in line with its asset management practices. OC San generally plans to refurbish or replace its mechanical and electrical assets every 20 to 25 years with an average capital improvement investment of $300 million per year over the next 10 years. OC San facilities are designed to meet industry codes. As time goes on and codes are updated, it is not required to upgrade existing facilities to meet those latest codes unless there is a mandate to do so, or an unacceptable risk in not doing so is recognized. OC San will accept some incremental risk in having some facilities that are not necessarily compliant with latest building codes until a project to rehabilitate or replace these facilities is developed. All of OC San’s facilities have a planned life span with two to three refurbishment cycles. Identified seismic or flooding vulnerabilities may drive a replacement versus refurbishment decision in the normal capital planning process. OC San will continue to aspire to energy independence which will help mitigate vulnerabilities to loss of electrical and gas utilities. In addition, OC San will continue to maintain third level, diesel generator, electrical supply capability for critical loads. Onsite diesel storage will provide up to 48 hours of fuel to power the plants. Pump stations diesel generation will be site specific in its design based on flow risks, hydraulic storage capacity, and site constraints. Either onsite generation or quickly deployable mobile generators will provide standby power. Initiatives to Support Progress Toward the Policy Goal: • Evaluate the seismic vulnerabilities of Plant No. 2 flow processes (primary clarifiers, activated sludge facility, and ocean outfall piping) within the plant. Determine the required improvements to maintain dry weather flow capacity after a seismic event. Incorporate necessary upgrades into future capital improvement projects. • Complete the biannual high flow exercise to assure readiness for a high flow event. Maintain a higher level of readiness October 15 through March 15 and in advance of predicted significant rain events. 46 | STRATEGIC PLAN — 2023 Food Waste Treatment Policy Summary Policy Statement The State of California limits the volume of organic waste that is diverted to landfills. The Orange County Sanitation District (OC San) will collaborate with the County of Orange, other local agencies, and waste haulers to find ways to beneficially reuse food waste, a type of organic waste to assist cities in our service area in meeting their diversion requirements while increasing OC San’s energy production. Background Whether supplying secondary treated wastewater for the Groundwater Replenishment System, creating renewable energy in the form of biogas from anaerobic digestion to produce electricity, or benefiting from the use of biosolids as a soil amendment, OC San is a resource recovery agency committed to providing resilient and reliable wastewater treatment service while protecting the public health and the environment. In recent years, there has been a significant change in the regulatory landscape regarding the management of organics in California. This encompasses a range of materials including food, green waste, wood, paper, biosolids, digestate, and sludges, all of which are typically disposed of in the landfills. Currently, much of the state’s diverted organics undergo composting or serve as alternative daily cover on landfills. In response to the impending phaseout of organics as alternative daily cover, a regulatory shift is creating an organics market within the wastewater sector that is providing a solution to manage organics such as food waste by way of co-digestion. Co-digestion is the mixing of sewage solids and food waste in an anerobic digester to create biogas. There is an opportunity for OC San to produce additional biogas, reducing the reliance to purchase electricity from local utilities. Anaerobic digestion is currently at the nexus of important mandates within California, namely: (1) organics diversion from landfills (AB 1826 and SB 1383), and (2) increased renewable energy and fuels generation (SB 32 and SB 100). The primary alternatives for organics management are anaerobic digestion and composting — of which anaerobic digestion is the only process offering energy recovery potential. Over the next few years, California’s cities and counties, along with municipal solid waste haulers, material recovery facilities, and landfills will need to develop collection, processing, and energy recovery infrastructure to address new state legislation and goals. In this context, existing wastewater treatment plants such as OC San are uniquely positioned to play a role in the new organics’ marketplace since solid waste management facilities do not typically have anaerobic digesters, the energy recovery infrastructure in place, or experience regarding the management of biosolids for beneficial use. In 2017, OC San completed a comprehensive Biosolids Master Plan (Plan) that provides a roadmap and framework for sustainable and cost-effective biosolids management options and future capital facilities improvement over a 20-year planning horizon. Considering the timeliness of the regulatory mandates requiring organic diversion from landfills and increased renewable energy, the Plan evaluated the feasibility of implementing a high strength organic waste receiving program involving the co-digestion of preprocessed food waste. While food waste digestion appears to be feasible, OC San’s existing infrastructure is not well suited or permitted for receiving, handling, or digesting green waste. Current digester feed, mixing, heating, dewatering and truck loading facilities aren’t designed to deal with cellulosic products in green waste. The highly fibrous material does not readily break down and clogs the various STRATEGIC PLAN — 2023 | 47 systems optimized for sewage sludge treatment. In addition, there are legal hurdles specified in the California Health and Safety Code, Section 4700, that must be addressed before OC San could operate a solid waste refuse transfer facility. Current Situation Project Viability OC San’s Plan concluded that the costs to construct and operate a food waste receiving facility could be offset by tipping fees charged to food waste processors/haulers and by additional power generated from the increased digester gas production. The Plan recommended that OC San build an interim food waste receiving station immediately to take advantage of existing digestion and power generation capacity of approximately 150-250 wet tons per day at Plant No. 2. OC San will construct a more permanent facility in the future to utilize OC San’s available capacity. Based on these recommendations, in 2018, OC San’s Board approved a project (P2-124) to construct an interim (10 to 15-year service life) food waste facility to receive, store, and feed preprocessed food waste slurry to the digester complex at Plant No. 2 to generate additional digester gas. The facility is designed to accept approximately 150 wet tons per day of preprocessed food waste and will produce approximately 15 percent more methane gas for on-site energy production, resulting in a greenhouse gas reduction of approximately 10,800 metric tons of carbon dioxide which is equivalent to the annual greenhouse gases generated by approximately 2,000 passenger vehicles. This is consistent with OC San’s Energy Independence Policy which is to strive to be energy neutral by minimizing energy utilization and maximizing useful energy recovery from the wastewater it receives. The final biosolids product currently produced by OC San is anticipated to be largely unaffected by the addition of food waste slurry. Pilot testing conducted by OC San indicates that there will be increased gas production due to mixing sewage sludge and food waste feed stock, but the final biosolids product will remain largely unchanged. A draft Preliminary Design Report was issued in June 2019 for the interim receiving facility which included a viability evaluation concluding that the project is economically justifiable based on project costs and anticipated tipping fees. Final design of the interim food waste receiving station is complete and ready to bid for construction. The 2019-2020 tipping fee was established by the Board of Directors and the food waste slurry specifications were developed by OC San staff. Between 2020 and early 2023, OC San hosted quarterly check-in meetings with several large municipal solid waste haulers to discuss procuring pre-processed food waste slurry. Although most haulers expressed interest in working with OC San, none were willing to meet OC San’s food waste slurry specifications. In spring 2023, OC San initiated a series of meetings with Orange County wastewater digester owners and Orange County Waste and Recycling (OCWR) to discuss partnership opportunities for in-county food waste preprocessing, co-digestion, composting, biosolids management, and biogas production. The meetings were highly productive, and as of August 2023, the parties have agreed to assess the feasibility of constructing a centralized food waste pre-processing facility at an OCWR landfill to provide high-quality food waste slurry for co-digestion at in-county wastewater treatment plants. Future Policy Statement Food Waste Slurry OC San will only accept a preprocessed food waste slurry. We do not have land or air permits to handle, sort, and process solid or green waste. OC San will work with other regional partners to 48 | STRATEGIC PLAN — 2023 develop a county-wide standard for food waste slurry that specifies water, organic, metal, plastic, and glass content requirements. A common specification for slurry will help all parties make investment decisions. Food Waste Volume OC San plans to construct a permanent food waste facility based on the lessons learned from the interim system and the anticipated availability of food waste feedstock. The permanent facility will be able to accept up to 300 wet tons per day and utilize the total available capacity of the existing digesters and gas compressors. OC San also has at least 6 MW of installed electrical generation capacity that can convert the produced digester gas to electricity and heat. OC San believes that the full implementation of the current regulations will create a food waste slurry market significantly greater than 500 wet tons per day in Southern California. Tipping Fee Basis The acceptance of food waste has the opportunity to more fully utilize the system capacity that already exists for the benefit of OC San’s rate payers. OC San staff will develop an updated base tipping fee rate schedule for Board of Directors’ approval that meets the following criteria: • Recover all capital costs to construct facilities within ten years (this will allow OC San and waste haulers to properly invest in processing facilities). • Recover all on-going costs including operating cost, maintenance cost, electricity usage, biosolids dewatering, and reuse costs. • Food waste will not be operated “for profit” but rather a cost recovered service with tipping fees offsetting costs to not impact OC San’s wastewater service fee structure. Food waste generated and processed within the service area will be charged the base rate and will be prioritized over food waste from outside the service area. This is justified by the fact that the underlying infrastructure of OC San is already owned by service area rate payers. OC San contracts with service area waste haulers must provide for a pass-through savings to OC San ratepayers. That means waste haulers may charge for collection and processing of food waste but must disclose OC San’s tipping fees and negotiate pricing adjustments as necessary with City or Special District franchise partners. If additional capacity exists, but isn’t utilized by in-service area users, then that capacity may be contracted by out-of-service area users at a premium to help offset the cost of the underlying infrastructure necessary to process the food waste. OC San will pursue grant opportunities to the extent possible to reduce the overall capital and operating cost basis for the program to reduce the tipping fee base rate. Initiatives to Support Progress Toward the Policy Goal • OC San will accept a preprocessed food waste slurry from an in-county partner that is compatible with its existing anaerobic digesters. OC San will charge a tipping fee to offset its costs for capital construction, operations, handling, maintenance, and biosolids disposal. • Design, build, and operate a food waste receiving station. Utilize a county-wide specification for food waste slurry and contract with OCWR to receive and co-digest food waste slurry. STRATEGIC PLAN — 2023 | 49 50 | STRATEGIC PLAN — 2023 Water Reuse Policy Summary Policy Statement The Orange County Sanitation District (OC San) will seek to beneficially reuse all reclaimable water for potable, industrial, irrigation and environmental uses. Background For over 40 years, OC San and the Orange County Water District (OCWD) have partnered to beneficially reuse treated wastewater from OC San. OCWD, which serves roughly the same service area as OC San, manages and replenishes the groundwater basin in northern and central Orange County, ensures water reliability and quality, prevents seawater intrusion, and protects Orange County’s rights to Santa Ana River water. Beginning in 1975, OC San contributed treated wastewater from its Plant No. 1 to OCWD for the operation of Water Factory 21, which reclaimed the treated wastewater and injected it along with deep well water into the groundwater basin to prevent seawater intrusion. In the mid-1990s, OCWD needed to expand Water Factory 21. At the same time, OC San faced the challenge of having to build a second ocean outfall pipe to discharge treated wastewater into the Pacific Ocean. Both agencies collaborated to build an advanced water purification facility to resolve these challenges. This state-of-the-art facility, known as the Groundwater Replenishment System (GWRS), took the place of Water Factory 21, and began operation in 2008. The GWRS further treats secondary treated wastewater from OC San Plant Nos. 1 and 2 to drinking water standards and uses the purified water for both injection and percolation, through injection wells and recharge basins, as source water to replenish the groundwater basin’s drinking water supplies. With approximately 75 percent of the water demand in northern and central Orange County cities coming from the groundwater basin, GWRS supplements existing water supplies by providing a new, reliable, high-quality source of water. OC San made a considerable investment to improve its level of treatment and source control to support the GWRS partnership. The upgrade to full secondary treatment and shifting the source control regulations, testing, and enforcement from a focus on ocean discharge to drinking water supply was very significant. While the original GWRS facility was initially constructed to supply up to 70 million gallons per day (MGD) of purified water, the facility was designed for an ultimate treatment and conveyance capacity of 130 MGD. The Final Expansion of GWRS was completed in December 2022 and can produce a maximum capacity of 130 MGD. In addition to providing treated wastewater to the GWRS, OC San also provides treated water to OCWD’s Green Acres Project and OC San uses treated effluent within the treatment plants to offset potable water use. The Green Acres Project provides recycled water for landscape irrigation at parks, schools, and golf courses; industrial uses, such as carpet dying; toilet flushing; and power generation cooling. OC San uses nearly 10 MGD of treated effluent, called Plant Water, within the treatment plants for engine and equipment cooling, polymer make-down, equipment flushing and washdown, and other uses. Current Situation The GWRS currently produces up to 130 MGD of purified water – enough water for 1 million people. All of OC San’s Plant No. 1 secondary effluent and Plant No. 2 secondary reclaimable effluent is made available to OCWD for the GWRS and Green Acres Project. Non-reclaimable secondary effluent from OC San’s Plant No. 2, such as discharges from inland desalters, GWRS’s reverse STRATEGIC PLAN — 2023 | 51 osmosis process, and OC San’s process sidestreams, are appropriately treated and released into the ocean. Future Policy Statement The treated effluent produced from OC San’s Plant Nos. 1 and 2 is a valuable resource that can help boost local water resources, improve groundwater quality, and reduce dependence on imported water, while reducing the volume of effluent discharged to the ocean. OC San will continue to support GWRS by providing secondary effluent as source water free of charge; allowing OCWD to discharge brine via OC San’s ocean outfall free of charge; leasing approximately 10 acres of land to OCWD at $1 per year for GWRS; and allowing OCWD to discharge North and South Basin extraction well flows to OC San sewers. OC San will continue to maximize the delivery of secondary effluent available to GWRS and the Green Acres Project to maximize full production of purified recycled water for indirect potable reuse, and industrial and irrigational uses. The two agencies regularly communicate and coordinate on operations and construction projects, regulatory compliance, and source water quality to sustain reliable GWRS operation. OC San has adequate flow to maximize the production of the GWRS. OC San, OCWD, and Orange County Public Works (OCPW) are currently studying opportunities to utilize the available 10 MGD sewer capacity allocated to dry weather urban runoff under OC San’s Urban Runoff Resolution No. OCSD 13-09. Urban runoff diversions will be utilized during dry weather conditions and jointly monitored by the dischargers and OC San to avoid surcharges in the collection system and introduction of contaminants that may compromise OC San’s water and biosolids reuse initiative. Initiatives to Support Progress Toward the Policy Goal • Support Groundwater Replenishment System and maximize reclaimable wastewater availability to OCWD. • Support Green Acres project water production to provide reclaimed water for industrial and irrigation uses. • Conduct a Dry Weather Urban Runoff Optimization Study in collaboration with OCWD and OCPW to identify additional opportunity to accept up to 10 MGD of dry weather urban runoff. 52 | STRATEGIC PLAN — 2023 Environmental Water Quality, Stormwater Management, and Urban Runoff Policy Summary Policy Statement The Orange County Sanitation District (OC San) will collaborate with regional stakeholders to accept up to ten (10) million gallons per day of dry weather urban runoff at no cost to the dischargers through its permit-based Dry Weather Urban Runoff Diversion Program (DWURD Program). The primary objective of the DWURD Program is to improve water quality in streams, rivers, and beaches in OC San’s service area without adversely impacting OC San’s occupational safety, collection and treatment systems, reuse initiatives, or permit compliance. Unauthorized discharge of urban runoff to OC San is strictly prohibited. Background OC San is a regional governmental agency principally chartered to protect public health and the environment through an extensive regional sanitary sewer system and a highly effective wastewater treatment operation. The governing Board of Directors (Board) has refined this role to include the recovery and utilization of resources from wastewater for the public good. In addition to beneficial reuse of biosolids and responsible ocean discharge, OC San delivers high-quality treated wastewater to Orange County Water District’s (OCWD) Groundwater Replenishment System (GWRS) for advance treatment and purification followed by storage in the Orange County groundwater basin. OC San operates its regional wastewater collection system in accordance with its Sewer System Management Plan, which was developed in compliance with the California Statewide General Waste Discharge Requirements for Sanitary Sewer Systems, Water Quality Order No. WQ 2022- 0103-DWQ. The Board periodically updates OC San’s Wastewater Discharge Regulations Ordinance (Ordinance) to set uniform requirements for all users of OC San’s system and enables OC San to comply with all applicable state and federal regulations. The Ordinance establishes limits on all wastewater discharges which may adversely affect OC San’s system and includes language that prohibits sewer users from discharging groundwater, stormwater, surface runoff, or subsurface drainage to the sewer without written authorization or a valid permit. Uncontrolled discharge of any type is strictly prohibited and any person who violates any provision of the Ordinance is subject to administrative, civil, and criminal penalties. Most of the local sanitary sewer systems within OC San’s highly urbanized service area are owned and operated by cities, water districts, or sanitary districts. These local systems are designed to transport wastewater from homes and businesses to OC San’s regional sewers. These local and regional wastewater systems are designed to be wholly separate from Orange County’s Municipal Separate Stormwater Sewer System (MS4), which is a system of conveyances that includes roads, streets, catch basins, curbs, gutters, ditches, man-made channels, or storm drains that carry surface runoff into receiving waters and is regulated by the Santa Ana Regional Water Quality Control Board. Throughout the year, dry and wet weather urban runoff are collected through the MS4 and discharged along the coastline. During wet weather, the vast majority of urban runoff is comprised of stormwater from rainfall that either travels at a flow rate that does not allow enough time to soak into the ground or whose volume has exceeded the ability of the soil to hold any more moisture. In communities with a high percentage of covered or impervious surfaces, the runoff volume and velocity can be considerably greater when compared to rural areas. Additionally, sheets of runoff in these communities can pick up pollutants and debris from transportation, construction, industrial, and residential sources as they travel by gravity toward storm drains or other low points. Stormwater runoff carries trash, STRATEGIC PLAN — 2023 | 53 debris, bacteria, chemicals, oil, silt, sediments, microplastics, and other common and emerging contaminants, and is the responsibility of MS4 permittees, who typically have jurisdiction over land use practices and flood control. During wet weather, the volume of surface runoff is well beyond the capacity of OC San’s conveyance and treatment systems. Inflow and infiltration into the sanitary sewer system during storm events can strain the hydraulic capacity of OC San to its limit of under 1,000 cubic feet per second. In addition, storm flow runoff also contains a much greater debris load that would compromise the sanitary sewer system. During dry weather, OC San has the capacity normally reserved for inflow and infiltration to accept urban runoff. The Best Management Practices (BMPs) required of MS4 permit holders such as screening, street sweeping, spill prevention, and waste reduction campaigns help to effectively remove trash, silt, and other debris which help make these relatively small flows more compatible with the sanitary sewer. However, pollutants and pathogens that are not removed by the BMPs are carried by runoff from sources such as excess outdoor irrigation into storm drains which is discharged along the coastline. In response to the significant and persistent adverse impacts from urban runoff to coastal beaches and waters, OC San sought support from the California legislature to accept controlled discharge of surface urban runoff into its wastewater system and was authorized in April 2000 to initiate a permit-based DWURD Program to accept up to three (3) million gallons of dry weather flow per day. OC San Board Resolution No. 00-04 allowed local agencies to apply for a Dry Weather Urban Runoff (DWUR) Permit where there was not an economically or practically feasible alternative and permittees are subject to requirements of the Ordinance. Since its inception, the DWURD Program has significantly improved beach water quality throughout OC San’s service area as evidenced by excellent ratings in Heal the Bay’s Annual Beach Report Cards and a notable decrease in water quality-based beach closures. In June 2013, OC San modified the Dry Weather Urban Runoff Policy (Resolution No. 13-09) to cap discharges received to ten (10) million gallons per day (MGD) and waived fees associated with the program until discharges exceeded 10 MGD, or until the policy is revised. The Board established an action threshold of 9 MGD to trigger revisiting the policy. In addition to DWURD Permits, OC San’s Ordinance allows for normally prohibited wastes such as groundwater, stormwater, surface runoff, and subsurface drainage to be discharged to OC San through a Special Purpose Discharge Permit (SPDP) or written authorization from OC San when no alternate method of disposal is reasonably available to mitigate an environmental risk or health hazard. Both DWURD and Special Purpose Discharge permits carry strict wet weather shut-off and debris limiting provisions to protect the sanitary sewer system from hydraulic overload and the associated sewer spills. These permits also require flow monitoring and constituent sampling so that OC San can assure that water reused, water discharged to the ocean, and biosolids reused for agriculture are safe and fit for their greater environmental and resource recovery programs. Current Situation As of August 2023, OC San is administering 21 DWURD Permits for diversions that are owned and operated by the City of Huntington Beach, the City of Newport Beach, OC Public Works, Irvine Ranch Water District, and an LLC responsible for the areas in and around Pelican Point community. Since the program’s inception in 2000, the Dry Weather Urban Runoff Program has treated over 10 billion gallons of urban runoff. For the July 2022 through June 2023 reporting period, OC San received on average 1.55 MGD from these facilities, which is well below the current 10 MGD policy cap and nine MGD action threshold. 54 | STRATEGIC PLAN — 2023 Under special circumstances, OC San may also accept runoff on a limited-term and limited-volume basis through the SPDP or direct authorization process if there is adequate capacity, the runoff/ wastewater meets applicable effluent discharge standards, there is no practical alternative method of disposal, and the runoff/wastewater is captured and held until it can be safely discharged to OC San. In combination, these practices have enabled responsible management of persistent urban runoff challenges in OC San’s service area and support a thriving and healthy local economy. Key Issues for the Future Since the inception of OC San’s DWURD Program, the program success has depended on collaboration among stakeholders to improve beach water quality and urban runoff diversion water quality, coordinate flow management, and minimize any potential adverse impact on OC San’s ocean discharge, biosolids management, and potable reuse. OC San’s enhanced source control program and vigilant operations provide a solid foundation for GWRS water’s safety and reliability. Much of the current urban runoff diversion is attributable to Plant No. 2 in Huntington Beach which now provides source water for OCWD. OC San is keenly aware of the critical role of source water quality and the need for a region-wide commitment to prevent Constituents of Emerging Concern from entering OC San’s system. Although OC San will continue to accept controlled discharge from DWURDs in accordance with Resolution No. 13-09, which supports long-term integrated regional water management, OC San recognizes that urban runoff is a well-established carrier for surface contaminants. The best available scientific studies continue to highlight the need for enhanced surveillance and best management practice for pollution control prior to discharge to OC San consistent with MS4 permit requirements of diversion owners. For example, a 2020 study by the San Francisco Estuary Institute showed that runoff into San Francisco contained over 300 times the amount of microplastics when compared with treated wastewater. A 2021 study that was co-authored by the Southern California Coastal Research Project showed that tire debris in urban runoff released a rubber preservative (6-PPD) that is highly toxic to aquatic life in the Pacific Northwest. As residents within OC San’s service area continue to reduce their indoor water use, there is increasing interest in utilizing dry weather urban runoff as a new source of water for the GWRS. Coupled with the completion of GWRS Final Expansion, the need to reassess available sewer capacity for accepting dry weather urban runoff was recognized by OC San. A feasibility study was initiated in 2023 by OC San in collaboration with OCWD and Orange County Public Works to identity opportunities to optimize dry weather urban runoff to sewer to augment local water supply. Initiatives to Support Progress Toward the Policy Goal: • Issue dry weather urban runoff connection permits to accept up to a total of ten million gallons per day of controlled discharge of dry weather urban runoff where existing conveyance capacity exists, and the constituents within the flow will not adversely impact OC San. • Safeguard OC San’s sanitary sewer system against uncontrolled and unregulated discharge by supporting responsible industry practices for flow management and urban runoff pollutant reduction at the source. Utilize OC San’s pretreatment expertise to support effective urban runoff best management practices and special purpose discharge requests among OC San’s regional stakeholders. • Support responsible and practicable urban runoff management and reuse legislations and regulations. WastewaterManagement STRATEGIC PLAN — 2023 | 55 56 | STRATEGIC PLAN — 2023 Chemical Sustainability Policy Summary Policy Statement The Orange County Sanitation District (OC San) has a need to use chemicals in its treatment process to improve plant performance, reduce odor and corrosion potential, and meet its regulatory requirements. These commodity chemicals are provided by outside vendors through the purchasing process. Some of these chemicals are subject to price swings due to market condition changes such as energy cost impacts, raw material cost changes, commercial competition changes, and transportation cost volatility. OC San will identify chemicals key to its operation, investigate the market risks for those chemicals and devise strategies to mitigate identified risks to availability and pricing. Background OC San’s treatment plants and collection system use several bulk chemicals. A sustainable supply of these chemicals is critical to maintaining an acceptable level of treatment and for ensuring compliance with all regulatory requirements. OC San spends about $24 million annually on the procurement of eight key chemicals which generally can be broken down into four categories: coagulants, odor/corrosion control, disinfection, and boiler water treatment. Boiler water treatment chemicals are low volume and readily available and will not be considered here. Coagulant Chemicals Coagulant chemicals include ferric chloride, anionic polymer, and cationic polymer. These chemicals are the workhorses of the sewage treatment process. Coagulant chemicals work to clump together organic material so it can more readily be separated from water. Ferric chloride is the first chemical added in the treatment process. It is a powerful settling agent that causes organics to clump together and settle to the bottom of primary basins. It is a double-duty chemical in that it also controls the formation of hydrogen sulfide gas, which is a major odorant, by binding to suspended sulphur compounds and causing them to settle before they can be converted by natural bacterial processes to hydrogen sulfide. Ferric chloride is an iron salt that is produced by reacting iron with hydrochloric acid. It is generally a byproduct of steel treatment, a leftover pickling agent. Ferric chloride is commonly used in the water and wastewater industries. Historically, this chemical has been the subject of a limited supplier base in Southern California. OC San has been actively splitting supply contracts to multiple vendors to ensure multiple vendors are available. On-site generation of the chemical is impractical due to the hazardous nature of the manufacturing process and acid handling, the bulk steel handing logistics, and waste products disposal. Anionic polymer works with ferric chloride to further aid in the coagulation or settling of organic compounds in the primary treatment process. These long-chain molecules are designed to be negatively charged to attract or collect positively charged ferric chloride induced organic clumps or flocculant. The use of ferric chloride and anionic polymer is called Chemically Enhanced Primary Treatment or CEPT. OC San has been using CEPT for more than thirty years. Anionic polymers are specially designed chains with many potential variants and multiple vendors. Part of the purchasing process for polymers involves polymer trials to document the efficacy of different products from different vendors to get the best cost-performance balance. Cationic polymer is generally used to thicken sludge or biosolids in centrifuges or dissolved air floatation thickeners (DAFT). These long-chained, positively charged molecules are essential to the proper operation of centrifuges and DAFT units. Part of the purchasing process for these polymers STRATEGIC PLAN — 2023 | 57 also involves polymer trials to document the efficacy of different products from different vendors to get the best cost-performance balance. It is important to note that it is entirely possible that four different cationic polymers will be used to optimize the performance of Plant No. 1 dewatering centrifuges, Plant No. 1 thickening centrifuges, Plant No. 2 dewatering centrifuges, and Plant No. 2 DAFTs, because the performance can vary greatly depending on the equipment or process. Each process will have its own polymer trial to determine the cost-performance balance for each application. Odor Control Chemicals OC San uses several chemicals in the collection system and the treatment plant to reduce the odors normally attributed to sewage and sewage treatment. These chemicals can either prevent the formation of odor causing compounds, called odorants, or they can destroy odorants that already exist. Chemicals that prevent the formation of odorants include ferrous chloride, calcium nitrate, magnesium hydroxide, and caustic. Chemicals used in the collection systems tend to be more benign than chemicals used in the treatment plants due to their proximity to the public. Ferrous chloride is closely related to Ferric chloride as described above. It is a powerful settling agent that prevents the formation of hydrogen sulfide by tying up and settling sulfide compounds in the collection system. It is a preferred chemical because of its dual role, but it is not as benign as other choices. Calcium nitrate is another choice for collection system odor control. It works in a different way. Calcium nitrate alters the biological equilibrium in sewage. Generally, bacteria that live by respirating oxygen are the most robust organisms, followed by nitrogen respirating bacteria, and finally sulfur respirating bacteria. Adding calcium nitrate to sewage creates an environment where sulfur loving bacteria do not thrive or create hydrogen sulfide. Magnesium hydroxide is a third choice for collection system odor control. It works primarily by raising the pH of sewage to a point that is not conducive for odor causing bacteria to thrive. Magnesium hydroxide is the most benign of the chemical choices as it is the main ingredient in Milk of Magnesia. All three of these chemicals are continuously fed into sewer systems at different points to consistently control the formation of odorants in the system. Where OC San does not have the ability to site a chemical dosing station and persistent odors are being experienced, there is the option to utilize caustic slug dosing. Caustic slug dosing involves using tanker trucks to discharge up to 6,000 gallons of sodium hydroxide into a sewer manhole structure. The very high pH has the effect of killing the bioslime layer on sewer pipes that creates hydrogen sulfide. This treatment has an instant benefit that reduces hydrogen sulfide production for days to weeks depending on system conditions. The final major odor fighting chemical is bleach. Bleach is used in treatment plant chemical scrubbers to oxidize odorants in air scrubber units. Bleach is an effective neutralizer of hydrogen sulfide, methyl mercaptan, methyl disulfide, dimethyl disulfide, and many others. Disinfection After a significant amount of work with the regulators, and noticeable degradation of the ocean environment, OC San successfully discontinued disinfection of its effluent to the long outfall in 2012. This means that thousands of gallons of bleach and sodium bisulfate are no longer required to be purchased or discharged to the ocean. However, in the event of a discharge to the short outfall or river overflow, disinfection by bleach will be required. Significant on-site storage of bleach and dechlorination chemical, sodium bisulfite, is necessary for this emergency contingency. Bleach 58 | STRATEGIC PLAN — 2023 does have a shelf life of about six months. OC San rotates its disinfection supply to its odor control and plant water treatment systems to prevent product waste. Process Specific Chemicals OC San uses pure oxygen to support its activated sludge secondary treatment process for Plant No. 2. OC San previously self-generated pure oxygen using a cryogenic oxygen plant rated at 70 tons per day. This plant was removed because it was inefficient at the current average utilization of 35 tons per day and was at the end of its useful life. OC San contracts for delivery of liquid oxygen and uses a vaporization system to deliver pure gaseous oxygen to the activated sludge process. Chemical Supply — Purchase vs. Make OC San has relied on purchasing bulk commodity chemicals for its treatment plants and collection system. This has proven to be an effective strategy for operational flexibility and to allow concentration on core business. Operationally, the types and volume of chemicals change over time. Over time the types of polymers that are most efficient change. The volume and dosing of chemicals is based on sewage flow rates, sewage composition, and flow splits between plants. Managing the generation of specialized chemicals using hazardous materials imposes a significant training burden on staff, increases the regulatory oversight and requirements, and increases overall risk to the organization. OC San maintains a policy to split the volume of orders between two vendors to assure competition exists in the marketplace for ferric chloride. While OC San generally cooperates with other public agencies to pool purchasing power to secure the lowest possible cost through high volume purchasing, some specialty chemicals like ferric chloride require split orders to maintain competitive market forces. Current Situation OC San is constantly changing and improving its facilities to meet new challenges. Each of the facility changes offer new opportunities to reconsider how OC San operates its processes and how chemicals are used. The best chemical stability outcome is to cost-effectively eliminate the use of the chemical. This is the strategy behind cessation of bleach disinfection of the outfall effluent. Staff is studying the potential to operate the treatment plants differently to minimize or eliminate use of selected chemicals. Facilities like centrifuge sludge thickening provide new opportunities to adjust ferric chloride and anionic polymer usage. Opportunities for substitute chemicals will be explored to understand overall cost and efficiency savings potential. This includes iron vs. aluminum coagulant studies, anionic polymer trials, cationic polymer trials, and microaeration of anaerobic digesters to reduce hydrogen sulfide production. Staff also evaluates operating parameters such as in-basin sludge co-thickening, primary basin sludge blanket level parameters, as well as the greater loading of the secondary treatment systems. Future Policy Statement OC San will thoroughly understand its treatment processes, the potential modes of operation, and the benefit and cost of chemicals to improve or stabilize its process. OC San will maintain a list of necessary chemicals for optimal treatment operations which will consider chemical cost, chemical availability, treatment stability, energy utilization, energy creation, nuisance odor control, biosolids generation/cost, and regulatory permit compliance risks. Chemicals that are deemed most beneficial will be procured at the lowest overall cost from market STRATEGIC PLAN — 2023 | 59 providers to the extent possible. Where there are market stability concerns, the purchasing division will devise procurement strategies to mitigate procurement risks. Where procurement risk cannot be satisfactorily mitigated, technical staff will evaluate alternatives such as alternate operating methods, substitute chemical usage, or on-site generation of a chemical if feasible. Initiatives to Support Progress Toward the Policy Goal • Reduce the exclusive reliance on particular chemicals and individual vendors to establish flexibility to utilize other chemicals/processes to accomplish operational objectives. 60 | STRATEGIC PLAN — 2023 Biosolids Management Policy Summary Policy Statement The Orange County Sanitation District (OC San) will remain committed to a sustainable biosolids program and will continue the beneficial reuse of biosolids in accordance with Resolution No. OC San 13-03 and the 2017 Biosolids Master Plan. Background Wastewater solids at both our treatment plants are separated, thickened, digested, and dewatered before being recycled offsite by contractors for composting and land application. Biogas generated from the digesters offsets electricity needs, minimizing the need to purchase power from a local utility. Prior to 2019, OC San produced an average of 800 wet tons per day (~20 percent solids) of Class B biosolids that were dewatered by belt presses. Following the commissioning of the co-thickening sludge and dewatering centrifuge system in 2019, OC San has been producing approximately 500-600 wet tons per day (23-28 percent solids), which resulted in an approximately $4 million per year reduction of biosolids hauling costs. OC San’s biosolids program is developed in compliance with federal, state, and local regulations, OC San’s biosolids policy (Board Resolution 13-03), biosolids management system, and the 2017 Biosolids Master Plan (Plan). OC San’s adaptive and highly effective biosolids program emphasizes diversification of beneficial reuse options and markets for biosolids. Although cost is a key consideration, the incorporation of failsafe options is considered paramount. These principles align with the policy and Plan and provide a framework for identifying and adopting reliable and sustainable biosolids management options while minimizing cost. Moreover, through innovation and continuous improvements in its biosolids management practice, OC San has been well- positioned to sustain regulatory compliance and its commitment to beneficially reuse biosolids. Currently, about 54 percent is used to produce Class A compost in California, and about 46 percent is used for Class B land application in Arizona. The Plan forecasted future capital improvement projects needed to sustain responsible and cost- effective biosolids management over a 20-year planning horizon. As an example, OC San has initiated a project at Plant No. 2 to construct new thermophilic digesters and batch holding tanks that will generate Class A biosolids beginning in 2030. These new digesters are needed to increase operational resiliency against seismic events and biosolids reuse options. Plant No. 1 will continue to produce Class B biosolids. According to the Plan, upon commissioning the new thermophilic digesters, future biosolids management options may include: • Emerging markets: Management options and technologies that become available following the adoption of the Plan, such as mine and fire reclamation, gasification, pyrolysis, supercritical water oxidation, fluidized bed combustion, and cement kiln drying. • Soil blending: Partner with local soil blenders to deliver and blend Class A biosolids with soil to produce a high-quality soil amendment that can be used in a larger variety of markets than current Class A compost such as construction back-fill. • California land application: While Class A compost and granules are currently land-applied in California, land application of Class A biosolids is still restricted in most counties. However, with the recent implementation of California’s organics diversion regulations and planned enforcement in 2022, stringent local ordinances that unreasonably restrict land application of biosolids are prohibited. STRATEGIC PLAN — 2023 | 61 • Arizona land application: Land application in Arizona will continue to be a part of OC San’s overall biosolids program and serves as a large-capacity outlet for biosolids management. Current Situation The legislative and regulatory landscapes in California are changing regarding organics management. Since 2003, direct land application of Class B biosolids in Southern California has largely been prohibited due to strict ordinances and conditional use requirements that preempted state recycling laws. However, in recent years there has been a greater focus on healthy soils, renewable energy, organics diversion from landfills, and reduction of Greenhouse Gases (GHGs), which are reflected in several bills and initiatives that have been adopted: • AB 1826 (2014) - Mandatory Organics Recycling for Businesses. • SB 1383 (2016) - 50% organics diversion from landfill by 2020 and 75% by 2025, which includes biosolids and mandatory organics procurement (compost and biogas) for impacted jurisdiction. • SB 32 (2016) - 40% Reduction of GHG below 1990 levels by 2030. • SB 100 (2018) – 50% renewable resources (i.e., anaerobic co-digestion of food waste) target by December 31, 2026, and to achieve a 60% target by December 31, 2030. • Increasing soil carbon and carbon sequestration under the Healthy Soils Initiative and Forest Carbon Plan. In combination, these measures are expanding the “organic waste markets”, thereby stimulating interest in siting more composting facilities and organic waste-to-energy projects. It will also support soil blending and direct land application of biosolids and create opportunities for wastewater agencies to innovate. Agencies such as the State Water Resources Control Board (SWRCB), CalRecycle, California Department of Food and Agriculture, California Air Resources Board, and California Energy Commission are developing regulations to implement the new laws. Throughout the rulemaking process, OC San has been actively involved through the California Association of Sanitation Agencies (CASA) and the Clean Water SoCal (formerly Southern California Alliance of POTWS, SCAP) to encourage regulators to open more biosolids management options in California. In particular, the recently adopted regulations for SB 1383 require jurisdictions such as cities and counties to procure recycled organics like compost and biogas for localized beneficial reuse. In addition, CASA, in coordination with CalRecycle, has met with counties in California to restrict enforcement of local ordinances on land application of biosolids that are unreasonably restrictive or prohibitive, thus paving the way for more local biosolids management options. It is worth noting that, while there is growing interest in California for enhanced organics management, there has also been a rising concern from the regulatory community regarding emerging contaminants such as polyfluoroalkyl substances (PFAS) and microplastics. These ubiquitous, often household compounds have been detected in the wastewater pathway and biosolids, and OC San has been actively monitoring the development of the science and regulations across all water, wastewater, air, and soil sectors. To date, PFAS regulations have been established for drinking water and a series of phased investigative orders were issued by the SWRCB to examine the fate and transport of PFAS. OC San was among 249 wastewater treatment plants that participated in Phase 3 of the investigative order and is actively participating in collaborative studies to evaluate the potential impact of PFAS on beneficial reuse of biosolids. Future Policy Statement As California’s evolving environmental regulations influence the organic waste markets, OC San will continue to leverage its memberships with various professional/industry associations to encourage 62 | STRATEGIC PLAN — 2023 local, state, and federal agencies to promote the beneficial reuse of biosolids. OC San will also continue to monitor the development of regulations for constituents of emerging concern that may impact the beneficial reuse of biosolids. OC San’s long-standing leadership role in key professional organizations will continue to ensure timely and meaningful engagement on key regional, state, and national biosolids management policies. OC San will continue to stay abreast of new biosolids management options, technologies, and regional biosolids recycling and renewable energy partnerships within Southern California, especially those that address the removal, sequestration, and destruction of constituents of emerging concern. Based on the findings from the above mentioned pyrolysis PFAS demonstration project and any regulations that are developed in the coming years, staff will update OC San’s biosolids strategy to account for emerging contaminant management. Consistent with the Plan, staff will work with OC Waste and Recycling (OCWR) to explore regional biosolids management opportunities as well as local solutions to meet SB 1383’s organics diversion mandates, with emphasis on in-county biosolids utilization, composting, food waste co- digestion, and biogas production. Initiatives to Support Progress Toward the Policy Goal • Proceed with implementation of new thermophilic biosolids facilities at Plant No. 2 to improve OC San’s operational resiliency against seismic events while enhancing biosolids quality and marketability. • Engage with local, state, and federal agencies to ensure that biosolids will continue to be safely and legally used as a soil amendment. • Refresh both short and long-term hauling and management options to ensure reliability and availability of failsafe options, promote local biosolids management options, and enable compliance with Advanced Clean Fleets and Greenhouse Gas reduction regulations. • Stay abreast of new biosolids management options, technologies, and biosolids recycling and renewable energy partnerships in Southern California, with special emphasis on technologies that address the removal, sequestration, and destruction of contaminants of emerging concern, such as Supercritical Water Oxidation. STRATEGIC PLAN — 2023 | 63 Constituents of Emerging Concern Policy Summary Policy Statement The Orange County Sanitation District (OC San) will partner with other agencies, associations, and institutions to support the use of sound science to inform policy and regulatory decisions on constituents (or contaminants) of emerging concern (CECs) at the federal, state, and regional levels. Staff will obtain and maintain current knowledge on CECs under regulatory consideration, including occurrence, analytical methods, regulations, and treatment to support OC San’s mission and regulatory compliance. Background CECs are pollutants that are not necessarily subject to existing regulations but have the potential to pose significant risk to public health and/or the environment. Wastewater treatment systems are generally not designed to remove or destroy CECs but can serve as a pathway for persistent CECs such as per- and polyfluoroalkyl substances (PFAS, commonly known as the “Forever Compound”) and microplastics that enter the system from sources such as residential dwellings, commercial establishments, industrial facilities, dry weather urban runoff diversions, and special purpose discharges. In fact, certain CECs have the potential to compromise wastewater treatment and reuse operations, if found at levels that impair OC San’s biological treatment systems, digester gas utilization, or advanced water purification at the Groundwater Replenishment System. As with most pollutants, reduction of CECs at the source is by far the most effective means of safeguarding public health and the environment. However, since the full range of adverse effects associated with each CEC is often unknown until contamination has become wide-spread, OC San routinely coordinates with environmental regulators, industry partners, and community stakeholders to maintain up-to-date scientific knowledge, technological developments, and relevant regulatory and legislative initiatives. It is worth noting that some of today’s regulated pollutants were once considered CECs, such as 1,4-dioxane and polychlorinated biphenyls (PCBs), and OC San is engaged in multiple regional collaborations to continuously increase our collective understanding of pollutant fate and transport and develop integrated water quality improvement strategies. With steadfast support from the OC San Board of Directors, multiple generations of staff have acquired and conveyed considerable institutional knowledge and experience with identifying, monitoring, and reducing CECs through a combination of source control, treatment optimization, analytical innovations, outreach, and responsible reuse and disposal. A key takeaway from OC San’s decades-long experience with CECs is that there is no such thing as ‘away’ for some pollutants. Thus, we must consider CEC management in every facet of OC San operation, with special emphasis on advance planning for source control, beneficial reuse, and responsible ocean discharge. Current Situation OC San has prioritized CEC source control to prevent potential adverse impacts to its mission of protecting public health and the environment. Industrial and certain non-domestic discharges are regulated by OC San’s Pre-treatment Program through a permitting and source control inspection program that enforces OC San’s Waste Discharge Ordinance and federal, state, and local mandates. For CECs that are undergoing regulatory development, OC San may choose to utilize interim guidelines and recommended thresholds from federal, state, and local regulatory agencies to safeguard our ocean discharge and beneficial reuse of water and biosolids. 64 | STRATEGIC PLAN — 2023 Specifically, OC San has worked with regulators at the federal, state, and local levels in advance of CEC regulations to develop special projects that can be incorporated into its National Pollutant Discharge Elimination System (NPDES) Permit to evaluate the presence and quantity of CECs in our final discharge to the ocean and the background levels in the receiving environment. OC San’s current CEC monitoring program includes constituents in the following category: Hormones (8), Industrial Endocrine Disrupting Compounds (7), Pharmaceuticals and Personal Care Products (13), and Flame Retardants (9). Data from OC San’s ongoing CEC program were reviewed by the regulatory and natural resource agencies during the recent NPDES permit renewal consultations, and additional CECs have been added to the 2021 NPDES permit. Over time, OC San’s source control program has been enhanced and updated to meet the needs of the Groundwater Replenishment System (GWRS) as it underwent expansion to increase water supply reliability for north-central Orange County. Through formal agreements and staff-level coordination, OC San and the Orange County Water District (OCWD) have forged a world-class partnership that currently produces up to 130 million gallons per day (MGD) of purified water. To safeguard this potable reuse effort against CECs and other pollutants that are not removed by conventional wastewater treatment systems, OC San and OCWD established a response plan that is activated whenever a pollutant or pollutant precursor becomes a concern to either agency. Where the source can be identified, the plan organizes responsive actions from OC San and OCWD for industrial and commercial facilities. A typical response could include source investigation by OC San that begins with data review, accelerated sampling, laboratory analysis, and result in inspections and enforcement actions. CECs from suspected domestic and residential sources are typically addressed by way of educational outreach to the public. However, OC San’s Board of Directors have also authorized financial and in-kind services to support targeted research at academic institutions that investigate CECs from domestic and residential origins. CECs that are not removed through the treatment process can also be found in biosolids. At high concentrations, CECs may preclude beneficial reuse of biosolids as soil amendments for non-food crop and force OC San to dispose of biosolids in landfills or pursue costly means of destruction. Thus, responsible legislations and regulations that reduce the production and use of CECs, encourage substitution with less toxic materials, and promote adaptive source control programs are essential for sustaining OC San’s mission and commitments to the community. If source control, education and outreach, or legislative and regulatory efforts are not successful, OC San may be required to implement a technological or operational process change/investment to address a CEC. Future Policy Statement OC San shall align its resources to manage CECs throughout its service area and treatment process to comply with existing and anticipated regulatory requirements and sustain beneficial reuse of treated effluent and biosolids. OC San shall acquire and maintain a high level of subject matter expertise and engagement across the wastewater, water, water reuse, air quality, ocean monitoring, and biosolids sectors to monitor the environmental, operational, and financial threats posed by CECs. OC San shall continue to work with other agencies and professional organizations to develop robust analytical methods and routinely monitor its local limits to shape and comply with regulation to protect public health and the environment. OC San shall continue to implement and update the GWRS Response Plan to sustain effective water reuse and prepare for next-generation CECs and emerging regulatory obligations. STRATEGIC PLAN — 2023 | 65 Initiatives to Support Progress Toward the Policy Goal • OC San will continue to actively engage water and wastewater stakeholders to stay abreast of the scientific progress and any potential operational and financial impacts of CECs and provide timely briefings to OC San’s Executive Management Team and Board of Directors to facilitate informed decision making. • OC San will continue to develop capacity to identify, detect, quantify, and characterize CEC sources throughout the service area and treatment process to promote source reduction, treatment effectiveness, communication of credible risks, and responsible reuse and disposal. • OC San will proactively establish internal expertise and develop laboratory capability to research the potential impact of CECs on beneficial reuse of water and biosolids. OC San will use science- based knowledge to help shape CEC legislation and regulations to protect the public health and environment. • In the absence of promulgated regulatory limits for specific CECs, OC San will work with regulatory agencies to establish interim source control measures to safeguard its water and biosolids reuse initiatives and ocean discharge against potential adverse impacts. 66 | STRATEGIC PLAN — 2023 Workforce Environment STRATEGIC PLAN — 2023 | 67 68 | STRATEGIC PLAN — 2023 Resilient Staffing Policy Summary Policy Statement The Orange County Sanitation District (OC San) has comprehensive programs in place to attract, develop, and retain high-quality talent to support its mission of protecting public health and the environment. Some of these programs include training and development, employee recognition, diversity and inclusion, recruitment and selection, and competitive benefits and compensation, which help promote employee engagement and productivity and make OC San an employer of choice. Background At OC San, employees are the organization’s most valuable resource. OC San employs over 600 highly skilled and dedicated individuals committed to providing outstanding service to the community, and whose collective efforts make OC San an industry leader. OC San invests in its employees by providing targeted educational and training opportunities, resulting in a highly skilled and educated workforce tasked with carrying out our mission. OC San has a diverse workforce and a wide range of expertise with approximately 70 percent of positions requiring a degree, certification, and/or license. Occupations include scientists, engineers, environmental and regulatory specialists, operators, mechanics, construction inspectors, as well as professionals in public affairs, finance, contracts, IT, safety, and human resources. Effective strategic workforce planning allows management to project the loss of institutional knowledge and experience caused by employee turnover. OC San utilizes a variety of methods to ensure we have access to internal talent pools through effective performance management, talent assessments and training, development plans, and external talent pools by actively sourcing for passive candidates and leveraging social media outlets and career fairs. OC San has a competitive recruitment process that prioritizes hiring the best candidate for any given position based on qualifications and merit. Human Resources utilizes an objective multi- hurdle recruitment and selection process which includes assessment centers and skills testing, screening for minimum qualifications, secondary screening of applications by the hiring manager, panel interviews (for technical skills and fit), and a full background investigation and reference check of the selected candidate. OC San utilizes several strategies to attract, retain, and develop highly skilled staff for key positions. These include fostering a strong values-based culture, being intentional with our hiring practices, promoting employees’ growth and development, supporting a healthy work/life balance, rewarding and recognizing exemplary achievements, and maintaining a competitive benefits and compensation philosophy, in addition to the following: • Equal Opportunity Employer As an Equal Opportunity Employer, OC San advertises vacant positions to all segments of the public providing a fair opportunity to all. Jobs are generally advertised on the Internet, e-mailed to employees, and posted on social media and other internet sites, and in trade magazines or on trade-specific websites for hard-to-fill, specialized, or technical positions. Recruiters also utilize LinkedIn and other platforms to reach active and passive candidates in the market. • Vocational/Professional Student Internship Programs Vocational students from the Water Utility Science Program at Santiago Canyon College and Los Angeles Trade Technical College work 28 hours a week and rotate through five technical trades for 52 weeks in our Operations and Maintenance Department. OC San has experienced success through the program with 23 of the participants hiring on full-time since the program’s inception. STRATEGIC PLAN — 2023 | 69 OC San also offers a Professional Student Internship Program that allows students at local Universities an opportunity to work within the professional ranks while attending college full- time for a one-year maximum duration. OC San partners with Cal State Fullerton, Cal State Long Beach, Cal Poly Pomona, Chapman University, and UC Irvine, among others in Southern California. • Employee Training and Development Program In addition to providing all legally mandated training, OC San provides training and development opportunities to increase job knowledge and maximize skill sets in employees’ current positions, and to prepare them for future opportunities. Comprehensive training programs include legally mandated training, and technical training through industry-specific associations or groups, local schools, and professional associations, including informal on the job training. Employee development is profiled and tracked to ensure compliance with legally mandated training as well as requirements for licenses and certifications. Staff obtains targeted job-related training necessary to keep OC San current with industry best practices and developments in their respective fields of expertise and are eligible to receive Development Pay for job-related licenses and certifications. OC San also promotes professional development through its tuition and certification reimbursement programs for courses completed toward obtaining an associate’s, bachelor’s or master’s degree at accredited colleges, universities, or other institutions or industry-specific certifications. • Orange County Sanitation District University (OC San “U”) OC San has a comprehensive employee development program called OC San “U” that offers learning opportunities that increase knowledge, skills, abilities, and enhance organizational awareness. The elective training courses are focused on leadership, technology, communication, OC San business systems, and partnerships for the future. The program is designed to address knowledge transfer as attrition occurs and to develop employees from within the organization for succession management and business continuity. Human Resources oversees the program with volunteers from across the organization serving as program ambassadors. Under this program, employees may also apply to participate in the Cal State Fullerton 14-week Leadership Academy for Public Agencies. • Workforce Vulnerability Assessments OC San management conducts a systematic assessment of its workforce to forecast staffing requirements and identify key and vulnerable positions based on three criteria: criticality, retention, and difficulty to fill. Human Resources facilitates annual workforce vulnerability assessments and works closely with departments to identify potential gaps and develop action plans to respond to future staffing needs. • Talent Readiness Assessments OC San evaluates staff readiness for key positions on a regular basis and focuses its employee development efforts based on identified gaps. Key positions and feeder roles are also identified along with the knowledge, skills, and abilities needed to perform these jobs to create Individual Development Plans (IDP) for employees to prepare to compete for future job opportunities and ensure seamless movement of talent within the organization. Additionally, there are employees who are active members of various professional associations, serve on a Board, or volunteer in various capacities within the wastewater industry. OC San is regularly invited to present and teach others about resource recovery and succession management efforts. Recruiters attend job fairs, and work closely with universities, professional organizations, and serve on advisory committees for career planning, bringing awareness to the organization and reinforcing OC San’s image as an industry leader. 70 | STRATEGIC PLAN — 2023 To remain competitive in the labor market and ensure retention of top talent, OC San conducts Classification & Compensation studies to ensure job classifications accurately reflect the work being performed, set compensation levels accordingly, and stay abreast of market benefit and salary data. The process includes feedback from multiple stakeholders including employees, management, bargaining groups, legal counsel, and Human Resources. Current Situation Currently, 42 percent of OC San’s executives and managers are eligible for retirement. In the next five years, the number of eligible management increases to 68 percent. For trades and professional occupations, 26 percent are currently eligible to retire, and that increases to 44 percent by 2028. OC San has many long-term employees with vast knowledge in their respective areas of expertise. The average years of service is nine years with some employees having been a part of the OC San family for over 35 years. Looking at OC San’s total attrition over the last five years, we have lost 4,780 years of knowledge and experience by 292 individuals leaving the agency since July 2018. In 2010, OC San proactively implemented a second retirement benefit formula (“classic open plan”) ahead of the Public Employee Pension Reform Act, which offered candidates moving from other public sector agencies to OC San a retirement benefit of 2.43 percent at 65, with zero employer paid member contribution. Based on OC San’s classic open retirement plan, competing for experienced and highly skilled talent from surrounding municipalities, who offer a more attractive retirement benefit of 2.5 percent or 2.7 percent at 55 in addition to paying for a portion of the employees’ contribution, has been challenging. In the last five years, approximately 35 percent of new hires come from other public sector agencies which limits our ability to hire already trained and experienced staff which can be particularly difficult for technical, scientific, and management positions. OC San has had recent experience in competing with the private sector labor market, as well as with public sector candidates withdrawing from the process or declining job offers once they learn of the impact to their retirement benefit formula. Given the legal restrictions which bind OC San to the classic open retirement formula, it is critical that OC San focus its efforts on retaining current staff, attracting qualified and experienced candidates, and investing in developing and growing employees’ knowledge, skills, and abilities for the future, to address any potential talent shortages. Future Policy Statement OC San will continue to implement strategic workforce planning processes to ensure workforce capabilities match the work required to meet OC San’s current and future needs. OC San will continue to proactively monitor the changing work environment, labor market, and legal landscape to ensure human resources programs are compliant, relevant, competitive, and help facilitate the behaviors, culture and competencies needed to achieve organizational goals. Initiatives to Support Progress Toward the Policy Goal • OC San’s employee training programs and activities will be transitioned from individual departments and centralized in Human Resources department over a two-year period. The centralized approach will streamline processes, ensure legal compliance, and provide greater consistency, transparency, and access for all employees, while also being responsive to the needs of the organization. STRATEGIC PLAN — 2023 | 71 • Maintain and enhance workforce planning initiatives to efficiently and effectively identify, develop, and select the next generation of prepared, capable, and engaged employees through: o Vocational/Professional Student Internship Programs o Workforce Vulnerability Assessments o Talent Readiness Assessments o Orange County Sanitation District University (OC San “U”) • Continue to build the OC San “U” program and evaluate various options to partner with member agencies to share content and interactive development opportunities. 72 | STRATEGIC PLAN — 2023 STRATEGIC PLAN — 2023 | 73 Safety and Physical Security Summary Policy Statement The Orange County Sanitation District (OC San) will ensure the safety, health, and security of employees, contractors, and the public through industry best practices, policies, and procedures that support a safe and secure environment, provide an appropriate level of security, and safeguard OC San’s property and physical assets. Background Safety and Health In California, employers must furnish employees with a place of employment free from known or recognized hazards that cause serious physical harm or death, that is compliant with all legal requirements, and aligns with industry best practices. OC San is committed to identifying all hazards through regular inspection, with the goal of eliminating the hazard or providing an acceptable engineering control, implementing administrative controls such as safe work procedures and training, as well as provision of personal protective equipment. Our safety programs have proven effective in ensuring the safety of OC San’s workforce, contractors, and members of the public. Emergency Management OC San must be prepared to control risks to the organization, and routinely recognize, evaluate, and prepare for emergencies. An emergency can include an explosion, fire, verified bomb threat, civil disorder, active shooter, or uncontrolled hazardous materials release which interrupts OC San’s ability to provide safe and environmentally responsible wastewater treatment. OC San’s protocol to control and respond to emergencies is contained within the Integrated Emergency Response Plan (IERP). The IERP identifies and assesses hazards regarding emergency events which OC San may be confronted with. It contains policies, plans, and procedures for preparing and responding to emergencies. When OC San cannot effectively respond to an emergency under routine operations, the Emergency Operations Center (EOC) is activated. OC San’s EOC adheres to the National Incident Management System (NIMS) Incident Command System (ICS) framework, which is a standardized approach to command, control, and coordinate emergency response for incidents of any size. Once the immediate emergency has been controlled, then OC San must resume normal operations. In the event of a prolonged emergency state, the return to normal operations is guided by OC San’s Continuity of Operations Plan (COOP). In May 2018, a COOP was completed with all divisions contributing to its development. The IERP and COOP programs are updated annually at a minimum, or more frequently, based on emergency response exercises, or due to changes in plant processes or personnel. OC San collaborates, and has mutual aid agreements in place, with other Orange County agencies to ensure available resources are identified and engaged in the event of an emergency. OC San is a member and funding agency of the Water Emergency Response Organization of Orange County (WEROC), which is administered by the Municipal Water District of Orange County (MWDOC). WEROC supports and manages countywide emergency preparedness, planning, response, and recovery efforts among Orange County water and wastewater utilities. Physical Security The Department of Homeland Security (DHS) has designated 16 critical infrastructure sectors, which includes water and wastewater systems. Wastewater systems are vulnerable to a variety 74 | STRATEGIC PLAN — 2023 of attacks, including acts of terrorism, contamination with deadly agents, physical attacks, and cyberattacks. In addition, DHS indicates that the average time it takes for a critical incident to take place is up to 12 minutes while the average police response time can be up to 11 minutes, and that time could increase should there be a natural disaster. Additional security concerns include physical violence, vandalism, theft, and trespassers. With a footprint of approximately 100 acres at each plant, and over 600 employees, contractors, and members of the public onsite for tours and meetings, it is essential to maintain a security presence that can respond to security threats promptly. OC San contracts with a security firm that includes armed guards to provide round the clock security monitoring of plant access, doors, cameras, and patrolling the perimeter at both plants. Current Situation Risk Management identifies potential risks to the organization and provides solutions for mitigation or reduction of the risk to acceptable levels. Through this process, the Risk Management Division will create a safe, healthy, and secure environment for OC San employees, contractors, and members of the public. Risk Management partners with management and employees to take ownership of identifying risks and mitigating risks within their sphere of control. Risk Management, managers, and staff collaborate to develop written procedures (e.g., policies) that are used for eliminating and controlling hazards at OC San; thus, ensuring compliance with occupational health and safety standards and laws. Safety OC San strives to achieve safety excellence and continually advance our safety and health culture and associated programs. This is exemplified by our pursuit of the California Voluntary Protection Program (Cal/VPP) designation, which is recognized as a higher level of protection for the workplace. The Cal/VPP is a program created by Cal/OSHA to recognize organizations that have implemented safety and health programs that effectively prevent and control occupational hazards. A Cal/VPP workplace is expected to continually improve its safety program, which means a safe workplace for all. A reduction in injuries and illness has been documented at sites that have committed to the VPP approach. In June of 2020, OC San submitted its application to Cal/OSHA for the Cal/VPP program. In October of 2020, the Cal/VPP Manager confirmed through a preliminary site inspection that OC San’s Plant No. 1 was eligible, and a subsequent program audit was delayed because of the COVID-19 pandemic. On May 22, 2023, Cal/OSHA completed a weeklong audit of Plant No. 1’s safety and health management system, which included physical walkthroughs, employee interviews, as well as a review of our safety programs and procedures. OC San anticipates a decision regarding its Cal/ VPP application in the last quarter of 2023. OC San updated its Safety Incentive Program in December 2022 to a user friendly, virtual point- based platform that makes recognition more transparent, flexible, and meaningful to employees. OC San’s Safety Incentive Program recognizes and rewards employees for their improvement of safe work practices, resolving unsafe working conditions, and achieving safety excellence in job performance. The new program provides a broader selection of awards, ranging from OC San apparel to an assortment of sanctioned products. OC San continues to conduct third party annual comprehensive surveys. The goal of the surveys is to identify regulatory gaps in safety, health, industrial hygiene, and emergency management. Opportunities for improvement that are identified as part of the survey process are tracked to completion. STRATEGIC PLAN — 2023 | 75 Emergency Management OC San partners with local agencies to ensure available resources are identified and engaged in the event of an emergency. In 2023, OC San conducted plant-wide building evacuations and a multi-agency tabletop exercise that included a shelter-in-place drill. These simulation exercises are an instrument to train for, assess, and evaluate OC San’s emergency response performance and test our employee notification capabilities. Security The designation of wastewater systems as critical infrastructure by the Department of Homeland Security requires OC San to be diligent in protecting people and property from security breaches. OC San seeks to continually improve the security program. On May 11, 2023, OC San partnered with the Cybersecurity & Infrastructure Security Agency (CISA) to complete a Cyber Tabletop Exercise to examine OC San’s ability to identify, protect against, detect, and respond to a significant cyber incident affecting plant processes. The exercise examined internal and external information sharing, notifications, incident response, analysis of procedures, roles and responsibilities, and the ability of plant operations to operate equipment without use of computer systems. OC San will issue a Request for Proposal (RFP) in late 2023 for Security Services, which will include the expansion of security services for OC San’s new Headquarters Complex. As part of the RFP evaluation, OC San will review procedural and technical enhancements and innovations that may improve the existing program. OC San’s Security Committee, which includes stakeholders from a cross-section of the organization, continues to meet quarterly to collect input and assess physical and cyber security concerns and suggestions. Responsibilities of the committee include, but are not limited to, reviewing security orders and policies, reviewing security incident reports, and planning drills. Future Policy Statement Risk Management will continue to implement strategic initiatives that will ensure the safety, health, and security of its workforce, and proactively plan for emergencies to ensure continuity of operations. Staff is dedicated to proactively monitoring the changing work environment and requirements to implement programs now that address future vulnerabilities. Assessments of changes in business needs, plant processes, and legal requirements are necessary to ensure a safe and secure work environment. The results of improvement will be measured using leading metric indicators and reported to the workforce to foster employee engagement. Initiatives to Support Progress Toward the Policy Goal Safety • Identify regulatory gaps and opportunities to continually improve OC San’s safety and health management system to participate in the Cal/OSHA Voluntary Protection Program (VPP). • Continue to foster a culture where employees are accountable for their safety, as well as the safety of others. 76 | STRATEGIC PLAN — 2023 Emergency Management • Support facility and countywide emergency preparedness, response, and recovery efforts by partnering with entities, such as, the Water Emergency Response Organization of Orange County (WEROC), Orange County Sherriff Department, and local fire departments to plan and conduct disaster preparedness exercises and drills. • Train new employees or retrain existing employees who staff OC San’s Emergency Operation Center (EOC) on the Incident Command System (ICS) and emergency disaster forms. Security • Identify and assess security vulnerabilities and improve physical security systems such as CCTV monitoring, access control systems, physical key management systems, and physical patrols of occupied buildings and plant facilities. STRATEGIC PLAN — 2023 | 77 Reclamation Plant No. 1 (Administration Offices) 10844 Ellis Avenue Fountain Valley, California 92708 714.962.2411 Treatment Plant No. 2 22212 Brookhurst Street Huntington Beach, California 92646 For more information Email: ForInformation@ocsan.gov Phone: 714.962.2411 www.ocsan.gov 10/2023 June 26, 2024 TO: Members of the Steering Committee FROM: Robert C. Thompson General Manager SUBJECT: General Manager’s FY 2024-2025 Work Plan I am pleased to present my Work Plan for Fiscal Year 2024-2025. The plan has been developed to support the Strategic Plan and is organized under four Strategic Planning categories: Business Principles, Environmental Stewardship, Wastewater Management, and Workplace Environment. The 21 goals for next year include two goals from the previous year as well as new goals that will ensure our operations are safe and efficient. In addition, we will continue leading the way in innovation, financial management, and work force while maintaining the level of service we have committed to. 1. Business Principles • Asset Management Plan – Implement a siphon cleaning program by June 30, 2025. • Progressive Design-Build – Select an Owner Advisor for Progressive Design- Build by March 31, 2025. Develop Progressive Design-Build contract templates by June 30, 2025. • Earned Value – Review Engineering’s earned value processes for project reporting and compare with industry best practices by June 30, 2025. • NPDES Permitting Legal Support – Secure legal and technical resources for 2026 NPDES permit renewal by March 31, 2025. • Permit Fees – Complete analysis of the current Capital Facilities Capacity Charge program to identify deficiencies for the member agencies and provide program improvement recommendation by December 31, 2024. Create a customer portal for online submission and payment of fees by June 30, 2025. • Headquarters Educational Display – (Carried over from FY 23/24) Develop a Board approved design for the hands-on educational display for the outdoor patio by June 30, 2025. General Manager’s FY 2024-2025 Work Plan June 26, 2024 Page 2 of 3 • Regional Sewer Spill Training – Conduct regional sanitary sewer spill training for the collections system by June 30, 2025. 2. Environmental Stewardship • Plant No. 2 Process Facilities Seismic Resilience – Select a consultant for the Plant No. 2 Process Facilities Seismic Resiliency Study by December 31, 2024. • Urban Runoff Optimization Study – Receive draft Urban Runoff Study identifying opportunities within Orange County Water District, County of Orange, and OC San’s services area for additional dry weather urban runoff by June 30, 2025. • Enforcement Response Plan – Update pretreatment/source control enforcement response plan in alignment with State of California’s 2024 water quality enforcement guidance document for legal review by June 30, 2025. • Pretreatment Management – Expand OC San’s Pretreatment Honor Roll program to include wastehaulers by June 30, 2025. • Food Waste – Finalize Memo of Understanding with Orange County Waste and Recycling by December 31, 2024. Agree on deal points for a cooperative agreement and make go/no-go decision to move forward by June 30, 2025. 3. Wastewater Management • Plant No. 1 Distributed Control System Human Machine Interface (HMI) – Complete the conversion of the Plant No. 1 HMI system from CRISP to ABB by June 30, 2025. • Deep Well Injection – Evaluate the initial feasibility of deep well injection of biosolids. Issue and evaluate Request for Information for potential deep well injection design-build-operate vendors and review permitting requirement by June 30, 2025. • Supercritical Water Oxidization – (Carried over from FY 23/24) Complete the commissioning and begin demonstration of the pilot project by March 31, 2025, subject to regulatory permitting. Publicize project status. General Manager’s FY 2024-2025 Work Plan June 26, 2024 Page 3 of 3 • Property Management – Complete a physical assessment of all current OC San easements and rights-of-way. Document the assessment in written and visual forms as part of the OC San easement management program. Complete the assessment and report by June 30, 2025. 4. Workplace Environment • Staff Training – Create development plans for each employee with associated training plans by June 30, 2025. • Scanning and Paper Reduction – Complete Scope of Work for Phase III, issue a Purchase Order Agreement Request for Proposal and award the contract for implementation of the trusted system, Phase III for Environmental Services. Complete Phase III by June 30, 2025. • Labor Agreements – Complete all labor agreements for all labor groups by June 30, 2025. • OSHA Voluntary Protection Program (VPP) certification for Plant No. 2 – Apply for VPP certification for Plant No. 2 by June 30, 2025. • Employee Engagement Survey – Conduct an employee engagement survey by June 30, 2025 to gather feedback on workplace environment satisfaction, communication effectiveness, recognition programs, and professional development opportunities. Utilize survey results to identify areas for improvement and develop action plans aimed at enhancing employee engagement and satisfaction levels. RCT:clr 5/23/2025 1 Operations Committee June 4, 2025 Strategic Plan: Levels of Service Rob Thompson General Manager 2 The Process 1 2 5/23/2025 2 3 Timeline March 19 Strategic Plan Workshop #1 April 16 Strategic Plan Workshop #2 April 30 EMT Planning Session May Core Values June 25Levels of ServiceProposed & Yr End GM Work Plan July 23Risk RegisterAdopt GM Work PlanNew Policy Paper August Strategic Plan Development September 24 Draft Strategic Plan Presented to the Board November 19 Final Strategic Plan Presented to the Board 4 OC San’s Policy Areas Business Principles •Budget Control and Fiscal Discipline •Asset Management •Cybersecurity •Property Management •Organizational Advocacy and Outreach Environmental Stewardship •Energy Independence •Climate and Catastrophic Event Resilience •Food Waste Treatment •Water Reuse •Environmental Water Quality, Stormwater Management and Urban Runoff Wastewater Management •Chemical Sustainability •Biosolids Management •Constituents of Emerging Concern Workplace Environment •Resilient Staffing •Safety and Physical Security •POTABLE WATER SALINITY CONTROL DEEP WELL INJECTION ARTIFICIAL INTELLIGENCE 3 4 5/23/2025 3 5 Our Commitment to… •Ratepayers •Regulators •Employees •Board of Directors Levels of Service Levels of Service OC San’s Levels of Service (LOS) are the commitment made to our ratepayers, regulators, employees, and the Board of Directors on our operational efforts. The LOS align with the Strategic Plan and showcase how the initiatives are being implemented and monitored. 6 Environmental Stewardship LOS OC San will protect public health and the environment 100%Compliance with Ocean Discharge Permit Up to 10MGDDry weather urban runoff collected and treated <5 per permit per auditMajor non-conformance audit findings 100% Respond to corrective actions within regulatory timeline for air, solids, and water compliance audits 100% Comply with Fleet Air Emission Regulations <510 events for the treatment plants <12 events for the collection system Number of odor complaints under normal operations <2.1 Sanitary Sewer Spills per 100 miles 100% Compliance with core industrial pretreatment requirements 5 6 5/23/2025 4 7 LOS OC San’s effluent, solids and biogas will be recycled 100%Provide specification effluent to Groundwater Replenishment System 100% Beneficially reuse biosolids during normal operations Environmental Stewardship – Cont. 8 LOS OC San will be a good neighbor and will be responsive to its customers 100%Respond to collection system spills within 1 hour of notification Within 1 hour in Plants Within 24 hours in collections Respond to odor complaints 100% Respond to public complaints or inquiries regarding construction within 24 hours 100% Respond to biosolids contractor violations within one week of violation notice <=10 days Respond to Public Records Act requests within the statutory requirements 100% Dig alert response within 48 hours 2 business days Wastewater Management 7 8 5/23/2025 5 9 LOS OC San will manage its assets to ensure reliability and security >87% >90% Cybersecurity event monitoring and incident handling, percent successful Respond to all cybersecurity events and incidents to mitigate risks and maintain an overall cyber health rating according to security operations standards 20% of the properties Annual real property assessments/inspections 70 miles of sewers 880 manholes Annual inspection, documentation, and evaluation of collection system Wastewater Management – Cont. 10 LOS OC San will exercise sound financial management 100% Annual user fees sufficient to cover 100% of O&M Budget within 10% of budget Collection, treatment, and disposal costs per million gallons AAA Maintain Credit Rating (Moody’s, Fitch, S&P) Business Principles 9 10 5/23/2025 6 11 LOS OC San will provide a safe, productive workplace <4.4 <4.2 Employee injury incident rate per 100 employees <2.5 <3.2 Annual days away from work, restricted activity, or job transfer resulting from a work-related injury 45 hours <=40 hours Annual training hours per employee Workplace Environment Questions? 12 11 12 OPERATIONS COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4078 Agenda Date:6/4/2025 Agenda Item No:8. FROM:Robert Thompson, General Manager Originator: Wally Ritchie, Director of Finance SUBJECT: FY 2025-26 BUDGET UPDATE PRESENTATION GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Information Item. BACKGROUND Staff will provide an overview of the FY 2025-26 Budget Update, including Orange County Sanitation District Revenues, Capital Improvement and Operating expenditures, and long-term liabilities. The budget update will be proposed for adoption at the June 25, 2025 Board of Directors meeting. RELEVANT STANDARDS ·Produce appropriate financial reporting - annual financial report & audit letter and Ops & CIP budgets every two years, with annual update ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: N/A Orange County Sanitation District Printed on 5/28/2025Page 1 of 1 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.