Orange County Sanitation District Wednesday, February 26, 2014 Regular Meeting of the 6:30 P.M. Board of Directors Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7130

AGENDA

INVOCATION AND PLEDGE OF ALLEGIANCE: (Scott Nelson, City of Placentia)

DECLARATION OF QUORUM:

ROLL CALL:

1. Receive and file Minute Excerpts of member agencies relating to appointments to the Orange County Sanitation District Board, as follows:

City / Agency Active Director Alternate Director Buena Park Fred Smith Steve Berry Villa Park Brad Reese Greg Mills Costa Mesa Sanitary District James Ferryman Bob Ooten

PUBLIC COMMENTS: If you wish to speak, please complete a Speaker’s Form (located at the table outside of the Board Room) and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes.

REPORTS: The Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors.

CLAIMS: DIRECTORS: Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party seeking a contract with OCSD. This requires that you identify the contributor by name. Further, you may not participate in the decision making process to award a contract to such party. For reference, you are directed to the Register of Warrants as to all current contractors/vendors with OCSD. For the specifics of Government Code Section 84308, please see your Director’s Handbook or call the office of General Counsel.

02/26/14 OCSD Board of Directors’ Agenda Page 1 of 6 2. Ratify payment of claims of the District, by roll call vote, as follows:

Claims Paid for the Period Ending: 01/15/14 01/31/14 Totals $11,108,214.24 $12,652,327.51

CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Board of Directors, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business.

3. Receive and file the updated Orange County Sanitation District Directors’ Committee Assignments for 2014.

4. Approve minutes for the Regular Board Meeting held on January 22, 2014.

5. Adopt Resolution No. OCSD 14-02, a Resolution of the Board of Directors of the Orange County Sanitation District commending John Anderson for his outstanding contributions and dedication to public service as Vice-Chair of the Orange County Sanitation District Board of Directors.

6. A. Approve a sole source agreement with Charles P. Crowley Co., for the purchase and installation support of pump station equipment to support Newport Force Main Rehabilitation, Project No. 5-60, for an amount not to exceed $340,000; and

B. Approve a contingency of $34,000 (10%).

7. Items A – K:

A. Approve Plans and Specifications for Landscaping and Miscellaneous Improvements Along Ellis Ave Corridor, Project No. FE10-19; and

B. Approve Addendum No. 1 to the plans and specifications; and

C. Receive and file bid tabulation and recommendation; and

D. Receive and file Award Protest from Green Building Corporation dated January 27, 2014 concerning the award to ACE CD, Inc.; and

E. Receive and file Orange County Sanitation District’s determination letter dated January 29, 2014 to Green Building Corporation responding to Award Protest; and

F. Deny Award Protest filed by Green Building Corporation; and

G. Receive and file Appeal Letter from Lax & Stevens representing Green Building Corporation dated February 4, 2014 concerning the award protest determination; and

02/26/14 OCSD Board of Directors’ Agenda Page 2 of 6 H. Receive and file Response Letter from ACE CD, Inc. dated February 11, 2014 concerning the Appeal Letter from Lax & Stevens; and

I. Receive and file Orange County Sanitation District’s determination letter dated February 11, 2014 to Green Building Corporation responding to Appeal Letter; and

J. Award a construction contract to ACE CD, Inc. for the Landscaping and Miscellaneous Improvements along Ellis Ave Corridor, Project No. FE10- 19, for a total amount not to exceed $403,650; and

K. Approve a contingency of $40,365 (10%).

OPERATIONS COMMITTEE:

8. Approve minutes for the Committee Meeting held on February 5, 2014.

9. A. Authorize the General Manager to competitively bid and subsequently award a contract to the lowest responsive and responsible bidder, for the Replacement of Valves at Bay Bridge Valve Vault, Project No. FR10-018, for an amount not to exceed $170,000; and

B. Approve a contingency of $34,000 (20%).

10. A. Award a contract to the lowest responsive and responsible bidder, Power Testing and Energization, for Electrical Relay Testing and Calibration, Specification No. S-2013-574-R2, for a total amount not to exceed $296,990; and

B. Approve a contingency of $59,000 (20%).

ADMINISTRATION COMMITTEE:

11. Approve minutes for the Committee Meeting held on February 19, 2014.

12. A. Advertise a request for proposal for managing the District’s Investment Program that includes making the investment decisions and execution of the investment transactions; and

B. Advertise a request for proposal for an investment advisor to assist with the selection process of an investment management firm in an amount not to exceed $40,000.

02/26/14 OCSD Board of Directors’ Agenda Page 3 of 6 13. Approve the budget assumptions to be used for the preparation of the FY 2014- 15 and FY 2015-16 two-year budget.

NON-CONSENT:

14. A. Approve agreement with East Orange County Water District (EOCWD), to transfer ownership of local sewers in Service Area 7, and the appropriate reserve balances, and

B. Authorize the General Manager to provide EOCWD with technical and financial information to assist with its submittal of a reorganization application to the Orange County Local Area Formation Commission (OC LAFCO) to facilitate the transfer of ownership of the local sewers and agreed assets; and

C. Authorize the General Manager to draft and execute a letter of support to OC LAFCO in favor of EOCWD’s reorganization application, subject to and contingent upon OC LAFCO’s acceptance of the terms and conditions of transfer agreed upon by OCSD and EOCWD; and

D. Approve an agreement with EOCWD to reimburse OCSD for staff support requested during an agreed transition period.

STEERING COMMITTEE:

15. Approve minutes for the Steering Committee Meeting held on January 22, 2014.

16. International Water Summit Trip Report (Information Only)

LEGISLATIVE AND PUBLIC AFFAIRS SPECIAL COMMITTEE:

17. Receive and file the minutes of the February 10, 2014 meeting of the Legislative and Public Affairs Special Committee.

CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted.

Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information.

Convene in closed session. 02/26/14 OCSD Board of Directors’ Agenda Page 4 of 6 (1) CONFER WITH LABOR NEGOTIATORS (Government Code Section 54957.6)

Agency Designated Representatives: Steve Filarsky, James Ruth, James Herberg, Robert Ghirelli, Jeff Reed, and Richard Spencer.

Employee Organizations: 4

• Orange County Employees Association (OCEA); • International Union of Operating Engineers, Local 501; • Supervisor Group; and • Professional Group

(2) PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code Section 54957(b)(1))

Number of Employees: 1

• General Counsel

Reconvene in regular session.

Consideration of action, if any, on matters considered in closed session.

OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY:

ADJOURNMENT:

Adjourn the Board meeting until the next Regular Board Meeting on March 26, 2014, at 6:30 p.m.

02/26/14 OCSD Board of Directors’ Agenda Page 5 of 6 Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board’s office at (714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested.

Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District’s Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board.

NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Maria E. Ayala Clerk of the Board (714) 593-7130 [email protected]

For any questions on the agenda, Committee members may contact staff at: General Manager Jim Herberg (714) 593-7300 [email protected] Assistant General Manager Bob Ghirelli (714) 593-7400 [email protected] Director of Engineering Nick Kanetis (714) 593-7310 [email protected] Director of Facility Support Services Nick Arhontes (714) 593-7210 [email protected] Director of Finance and Lorenzo Tyner (714) 593-7550 [email protected] Administrative Services Director of Human Resources Jeff Reed (714) 593-7144 [email protected] Director of Operations & Maintenance Ed Torres (714) 593-7080 [email protected]

02/26/14 OCSD Board of Directors’ Agenda Page 6 of 6 Meeting Date To Bd. of Dir. BOARD OF DIRECTORS -- 02/26/14 Item Number Item Number AGENDA REPORT -- 2 Orange County Sanitation District

FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services

SUBJECT: PAYMENT OF CLAIMS OF THE ORANGE COUNTY SANITATION DISTRICT

GENERAL MANAGER'S RECOMMENDATION

Ratify Payment of Claims of the District by Roll Call Vote.

CONFLICT OF INTEREST NOTIFICATION

Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving the Orange County Sanitation District. Further, you may not participate in the decision making process to award a contract to such party.

For reference, you are directed to the Register of Warrants as to all current contractors/vendors with the District.

In general, you must disclose the basis of the conflict by identifying the name of the firm or individual who was the contributor.

For the specifics of Government Code Section 84308, please see your Director’s Handbook or call the office of General Counsel.

PRIOR COMMITTEE/BOARD ACTIONS

N/A

ADDITIONAL INFORMATION

N/A

ATTACHMENTS The following attachment(s) are attached in hard copy and may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package and attachments:

1. Copies of Claims Paid reports from 1/1/14 – 1/15/14 and 1/16/14 – 1/31/14

Page 1 of 1 Return to Agenda Report

Claims Paid From 1/1/14 to 1/15/14

Vendor Warrant No. Amount Description

Accounts Payable Warrants 1000BULBS.COM 61874 60.48 Electrical/Electronic Equipment, Parts & Repairs 24 Carrots 61875 692.82 Professional Organizations Meeting/Training/Membership Abel Scale, Inc. 61877 870.00 Repair & Maintenance Services and/or Supplies Absolute Standards, Inc. 62028 205.00 Laboratory Services & Supplies Absolute Standards, Inc. 62170 415.00 Laboratory Services & Supplies ACCU Sludge 61878 1,065.20 Laboratory Services & Supplies AccuStandard 62171 91.21 Laboratory Services & Supplies A-Check America, Inc. 1524 653.00 Human Resources Services AECOM Technical Services, Inc. 61879 19,141.54 Professional Services/Engineering Design Services AECOM Technical Services, Inc. 62172 9,768.80 Professional Services/Engineering Design Services AEGON USA Realty Advisors, Inc 62029 6,943.92 Sewer Fee Rebate Aerotek 62030 817.50 Professional Services/Temporary Services Agilent Technologies, Inc. 61880 1,048.35 Laboratory Services & Supplies Ago IndustriesDBA So-Cal Sweeping 62122 980.00 Street Sweeping Services Ago IndustriesDBA So-Cal Sweeping 62275 980.00 Street Sweeping Services AICI, LLC 62173 3,006.70 Sewer Fee Rebate Air Liquide America Corp. 61881 3,154.62 Laboratory Services & Supplies Air Liquide America Specialty Gases LLC 61882 8,377.00 Laboratory Services & Supplies Air Liquide America Specialty Gases LLC 62174 252.22 Laboratory Services & Supplies Air Liquide Industrial U.S., LP 61883 5,946.38 Laboratory Services & Supplies Air Liquide Industrial U.S., LP 62031 19,035.13 Laboratory Services & Supplies Air Liquide Industrial U.S., LP 62175 11,103.58 Laboratory Services & Supplies Airgas Safety, Inc. 1498 11,652.82 Safety, Security, Health Equipment, Supplies, and Services Airgas Safety, Inc. 1509 514.06 Safety, Security, Health Equipment, Supplies, and Services Airgas Safety, Inc. 1525 902.66 Safety, Security, Health Equipment, Supplies, and Services Airgas USA, LLC 1510 1,089.30 Laboratory Services & Supplies Airgas USA, LLC 1526 692.63 Laboratory Services & Supplies Alan D. Ralph 62011 732.09 Meeting/Training Expense Reimbursement Albertson's Inc 62159 25,200.88 Sewer Service Fee Rebate Albertson's Inc #48300 62176 3,949.14 Sewer Fee Rebate Albertson's Inc. #6585 62177 6,957.60 Sewer Fee Rebate Allan P. Krippner 62237 214.13 Meeting/Training Expense Reimbursement Allied Packing & Rubber, Inc. 62178 112.06 Repair & Maintenance Services and/or Supplies American Integrated Services, Inc. 62013 50,977.75 Grit & Screenings Disposal Amtech Elevator Services 62032 1,035.00 Miscellaneous Services ANAHEIM CORPORATE OFFICE PLAZA 62179 4,208.75 Sewer Fee Rebate Ann Le 62240 3,624.07 Sewer Fee Rebate AON Risk Insurance Services West 62160 37,711.18 Insurance (Owner Controlled Insurance Program) AppleOne Employment Service 1527 1,449.60 Professional Services/Temporary Services Applied Industrial Technology 61884 306.22 Repair & Maintenance Services and/or Supplies APT US&C 62180 100.00 Professional Organizations Meeting/Training/Membership Arizona Instruments, L.L.C. 61885 164.06 Electrical/Electronic Equipment, Parts & Repairs ARS Enterprises, Inc. 62182 400.00 Laboratory Services & Supplies ASCE 62034 280.00 Professional Organizations Meeting/Training/Membership ASCE 62183 280.00 Professional Organizations Meeting/Training/Membership ASM 62184 675.00 Professional Organizations Meeting/Training/Membership AT & T 61876 187.66 Telecommunications AT & T Mobility II, L.L.C. 61886 7,500.51 Telecommunications AT & T Mobility II, L.L.C. 62036 233.73 Telecommunications AT & T Universal Biller 62035 2,822.32 Telecommunications Atkins North America 61887 23,473.76 Professional Services/Engineering Design Services Atkins North America 62037 21,787.23 Professional Services/Engineering Design Services ATM AA, Inc. 62038 2,940.00 Lab Services Awards & Trophies Company 61888 95.04 Awards and Framing Services Awards & Trophies Company 62185 10.24 Awards and Framing Services EXHIBIT A fin/210/lr Page 1 of 10 2/5/2014 Claims Paid From 1/1/14 to 1/15/14

Vendor Warrant No. Amount Description

AWWA 62039 244.00 Professional Organizations Meeting/Training/Membership Ayala Engineering 62186 10,250.00 Repair & Maintenance Services and/or Supplies Barnes & Thornburg 62040 10,500.00 Professional Services - Legal Battery Specialties 61889 2,090.67 Batteries, Various Battery Systems, Inc. 61890 64.80 Repair & Maintenance Services and/or Supplies Bavco 61891 250.10 Repair & Maintenance Services and/or Supplies Beach Wire and Cable 61892 610.35 Telecommunications BHI Management Consulting 61893 2,300.00 Professional Services/Strategic Planning BioMerieux Vitek, Inc. 61894 3,161.80 Laboratory Services & Supplies Black & Veatch Corporation 61895 1,290.70 Professional Services/Engineering Design Services Black Box Corporation 61896 478.81 Computers, Software/Hardware Blair-Martin Co., Inc. 61897 1,359.94 Repair & Maintenance Services and/or Supplies BLX Group 61899 1,000.00 Professional Financial Services BNP Group Inc 62187 1,813.44 Sewer Fee Rebate BNSF Railway Company 62188 600.00 Professional Services 2-41-04 BOARD OF CERTIFIED PROFESSIONALS 62189 60.00 Professional Organizations Meeting/Training/Membership Brenntag Pacific, Inc. 62041 5,072.81 Chemicals, Water/Wastewater Treatment Brenntag Pacific, Inc. 62190 11,583.64 Chemicals, Water/Wastewater Treatment Brian J. Tafolla 62155 640.00 Meeting/Training Expense Reimbursement Bristol Central, LP 62191 1,554.55 Sewer Fee Rebate Brown & Caldwell 61860 54,623.59 Professional Services/Engineering Design Services Brown & Caldwell 62042 13,738.23 Professional Services/Engineering Design Services Bruker Daltonics Inc 61900 269.41 Laboratory Equipment - Gas Chromatograph Bureau Veritas North America, Inc. 1528 1,300.00 Industrial Hygiene Services Burlington Safety Laboratory of CA, Inc. 61901 130.19 Safety, Security, Health Equipment, Supplies, and Services Caleb Wheatley 62156 350.00 Meeting/Training Expense Reimbursement California Dept. of Child Support 62043 2,455.35 Judgments Payable California Recreation Company 1511 3,579.60 Boat Slip Rental - Nerissa Ocean Monitoring Vessel California Relocation Services, Inc. 62192 360.00 Miscellaneous Services - Moving/Relocation California Water Technologies 62014 44,163.00 Chemicals Callan Associates, Inc. 62044 4,358.50 Investment Advisory Services Cambridge Isotope Labs 61902 397.29 Laboratory Services & Supplies Capitol Advantage, LLC 62045 59.00 Books & Publications CAPITOL IMAGE, INC. 62046 8,316.69 Electrical/Electronic Equipment, Parts & Repairs Careers In Government, Inc. 62193 1,380.00 Notices & Ads Cemtek Environmental, Inc. 62047 4,291.67 CEMS Maintenance Agreement Centre for Organization Effectiveness 62287 3,500.00 Professional Services - Cultural Assessment & Organizational Improvement Project Charles King Company, Inc. 61868 439,899.64 Construction CIRCOR dba HOKE INC. 62228 1,132.27 Valves City Clerk's Association of California 62048 40.00 Professional Organizations Meeting/Training/Membership City of Fountain Valley 62162 49,868.46 Water Use City of Huntington Beach 61929 10,811.38 Water Use City of Huntington Beach 62230 11.45 Water Use City of Tustin 61861 26,000.00 Water Use City of Tustin 62049 60.00 Water Use City of Westminster 62050 2.42 Water Use Clean Harbors Environmental Services 1521 34,303.22 Grit & Screenings; Hazard Waste Disposal CMAA 62194 1,200.00 Professional Organizations Meeting/Training/Membership Consolidated Electrical Distributors 61903 815.48 Electrical/Electronic Equipment, Parts & Repairs Consolidated Electrical Distributors 62051 2,216.16 Electrical/Electronic Equipment, Parts & Repairs Constellation Newenergy Gas Division LLC 62052 9,775.24 Natural Gas Consumers Pipe & Supply Co. 1499 5,086.60 Repair & Maintenance Services and/or Supplies Consumers Pipe & Supply Co. 1512 2,283.89 Repair & Maintenance Services and/or Supplies Consumers Pipe & Supply Co. 1529 115.71 Repair & Maintenance Services and/or Supplies Control Concepts Corp 61928 267.44 Electrical Parts & Supplies Controlled Motion Solutions 61904 372.10 Repair & Maintenance Services and/or Supplies EXHIBIT A fin/210/lr Page 2 of 10 2/5/2014 Return to Agenda Report

Claims Paid From 1/1/14 to 1/15/14

Vendor Warrant No. Amount Description

Converse Consultants 61905 996.00 Professional Services/Materials & Geotechnical Testing Cooperative Personnel Services 62197 2,217.85 Human Resources Services Corner Bakery Café (CBC) 62053 264.30 Catering Services Corporate Image Maintenance, Inc. 62015 37,500.00 Janitor & Household Service & Supplies CORRPRO Companies, Inc. 62016 38,304.00 Professional Services/Temporary Services Cortech Engineering 61907 5,754.89 Repair & Maintenance Services and/or Supplies County of Orange Auditor Controller 61908 750.00 Governmental Agency Fees & Charges County of Orange Auditor Controller 62054 465.00 Governmental Agency Fees & Charges County of Orange Auditor Controller 62055 2,640.00 Governmental Agency Fees & Charges County of Orange Auditor Controller 62195 585.00 Governmental Agency Fees & Charges County Wholesale Electric Co. 61909 1,182.05 Electrical/Electronic Equipment, Parts & Repairs County Wholesale Electric Co. 62196 10,556.02 Electrical/Electronic Equipment, Parts & Repairs Court Order 62086 2,179.38 Judgments Payable Court Order 62112 108.00 Judgments Payable Court Order 62153 912.50 Judgments Payable CS-AMSCO 61910 1,554.54 Repair & Maintenance Services and/or Supplies CS-AMSCO 62198 3,632.04 Repair & Maintenance Services and/or Supplies Culligan of Orange County 62199 117.10 Repair & Maintenance Services and/or Supplies CWEA Membership 62200 888.00 Professional Organizations Meeting/Training/Membership Dale Carnegie Training Of Orange County 62056 1,795.00 Professional Organizations Meeting/Training/Membership Dale O. Henderson 62304 386.74 Meeting/Training Expense Reimbursement Dan's Machine Tool, Inc. 61911 9,070.00 Autos, Trucks & Marine Equipment, Parts, Accessories & Services David Wheeler Pest Control, Inc. 62057 950.00 Pest Control Services DDB Engineering, Inc. 62058 165.00 Professional Services - Advocacy Desert Pumps & Parts, Inc. 61912 6,095.77 Repair & Maintenance Services and/or Supplies Designer Stitch Embroidery 61913 935.45 Public Outreach Supplies DSA Properites, LP 62201 10,901.43 Sewer Service Fee Rebate Dudek & Associates, Inc. 62017 28,501.46 Professional Services/Engineering Design Services Dudek & Associates, Inc. 62202 5,827.36 Professional Services/Engineering Design Services Dunn-Edwards Corporation 61914 60.27 Facilities, Maintenance, Services & Supplies Dunn-Edwards Corporation 62059 240.53 Facilities, Maintenance, Services & Supplies Dunn-Edwards Corporation 62203 172.71 Facilities, Maintenance, Services & Supplies Elect Air 62060 12,648.30 Instrument Parts & Supplies ELEMENT MATERIALS TECHNOLOGY 62204 550.00 Trickling Filter Pump Replacement Employee Benefits Specialists, Inc. 62061 10,867.04 Reimbursed Prepaid Employee Medical & Dependent Care Employee Benefits Specialists, Inc. 62206 753.50 Reimbursed Prepaid Employee Medical & Dependent Care ENFOTECH & CONSULTING, INC. 61862 109,074.77 Software Environ Strategy Consultants, Inc. 62207 2,000.00 Professional Services - Quarterly Sampling of Groundwater Monitoring Wells in the Auto Shop area Environmental Express, Inc. 62208 3,345.72 Laboratory Services & Supplies Environmental Resource Associates 62209 2,581.52 Laboratory Services & Supplies Environmental Sampling Supply 61915 260.36 Laboratory Services & Supplies Environmental Water Solutions, Inc. 62062 2,646.00 Repair & Maintenance Services and/or Supplies Envirosupply & Service, Inc 62063 9,000.00 Laboratory Services & Supplies EPIC LAND SOLUTIONS, INC. 62210 6,600.32 Professional Services - Easmement & Title Search Ewing Irrigation 61916 4,093.09 Irrigation Repair & Maintenance Services and/or Supplies Excel Door & Gate Co., Inc. 62064 3,159.37 Repair & Maintenance Services and/or Supplies Excel Door & Gate Co., Inc. 62211 3,510.00 Repair & Maintenance Services and/or Supplies Executive Plaza - Campus LP 62212 518.65 Sewer Service Fee Rebate Express Lens Lab 1530 1,366.85 Safety, Security, Health Equipment, Supplies, and Services Facility Process Solutions Consulting 62213 4,712.20 Professional Services/Biotrickling Filter Inspection Services Fedex Corporation 61917 152.32 Freight Services Fedex Corporation 62214 49.12 Freight Services First American Corelogic 61906 123.90 Software Maintenance Agreement Fisher Scientific 61918 3,764.87 Laboratory Services & Supplies Fisher Scientific 62065 1,874.39 Laboratory Services & Supplies Fisher Scientific 62215 310.42 Laboratory Services & Supplies EXHIBIT A fin/210/lr Page 3 of 10 2/5/2014 Claims Paid From 1/1/14 to 1/15/14

Vendor Warrant No. Amount Description

Five Star Metals, Inc. 62066 1,680.00 Miscellaneous Parts and Supplies Flat & Vertical, Inc. 62216 840.00 Repair & Maintenance Services and/or Supplies FLEX-A-SEAL, INC. 62067 4,315.84 Repair & Maintenance Services and/or Supplies Fountain Valley AAA Auto Spa 62217 602.46 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Fountain Valley Paints, Inc. 61919 133.10 Facilities, Maintenance, Services & Supplies Fountain Valley School District 62218 964.58 Sewer Fee Rebate Franchise Tax Board 62068 631.93 Judgments Payable Franchise Tax Board 62157 17,522.25 Judgments Payable Franklin Covey 61920 111.84 Office Supplies Franklin Covey 62219 34.52 Office Supplies Frys Electronics 62069 151.17 Computers, Software/Hardware Garratt Callahan Company 62220 1,819.40 Chemicals, Water/Wastewater Treatment Geary Pacific Supply 62070 4,585.27 Repair & Maintenance Services and/or Supplies George Yardley Co. 62071 1,813.62 Repair & Maintenance Services and/or Supplies George Yardley Co. 62221 3,335.42 Repair & Maintenance Services and/or Supplies GHD 61921 22,567.50 Professional Services/Engineering Design Services GHD 62072 11,334.38 Professional Services/Engineering Design Services Glens Alignment & Brake Service 62222 129.00 Autos, Trucks & Marine Equipment, Parts, Accessories & Services GMF Sound, Inc. 61922 352.32 Professional Services Golden State Overnight Delivery Service 61923 214.74 Courier Services Golden State Overnight Delivery Service 62073 78.68 Courier Services Golden State Overnight Delivery Service 62223 33.72 Courier Services Golden State Water Company 62074 125.95 Water Use Golden West Window Service 62224 10,466.78 Facilities, Maintenance, Services & Supplies Grainger, Inc. 61924 2,368.22 Repair & Maintenance Services and/or Supplies Grainger, Inc. 62075 1,453.75 Repair & Maintenance Services and/or Supplies Grainger, Inc. 62225 152.38 Repair & Maintenance Services and/or Supplies Graybar Electric Company 61925 1,990.04 Electrical/Electronic Equipment, Parts & Repairs Graybar Electric Company 62076 5,949.93 Electrical/Electronic Equipment, Parts & Repairs Graybar Electric Company 62226 745.84 Electrical/Electronic Equipment, Parts & Repairs Greatland Corporation 62077 436.08 Office Supplies Hach c/o Ponton Industries 62018 40,699.04 Laboratory Services & Supplies Hach Company 62227 219.73 Laboratory Services & Supplies Hardy Diagnostics 62078 1,005.11 Laboratory Services & Supplies Hazen And Sawyer, P.C. 61926 9,546.87 Professional Services/Oxygen Plant Demolition HDR Engineering, Inc. 62019 217,878.64 Professional Services/Engineering Design Services Hershey Technologies 62079 4,535.73 Professional Services/Information Technology Hill Brothers 1494 90,298.86 Chemicals, Water/Wastewater Treatment Hill Brothers 1506 119,857.51 Chemicals, Water/Wastewater Treatment Hill Brothers 1522 46,713.33 Chemicals, Water/Wastewater Treatment Home Depot 61927 63.59 Miscellaneous Parts and Supplies Home Depot 62229 571.21 Miscellaneous Parts and Supplies HVAC Mechanalysis, Inc. 62231 750.00 Professional Services - Mechanical Vibration Field Analysis at Maint St. Pump Sta. IDS Group 62080 7,685.00 Professional Services/Engineering Design Services INDOFF INC. 61930 537.17 Office Furniture Industrial Distribution Group 62081 123.82 Repair & Maintenance Services and/or Supplies Industrial Metal Supply 61931 1,306.86 Repair & Maintenance Services and/or Supplies Industrial Threaded Products, Inc. 1500 3,755.15 Repair & Maintenance Services and/or Supplies Infrastructure Engineering Corp. 62082 1,179.00 Professional Services Inorganic Ventures, Inc. 62232 160.04 Laboratory Services & Supplies Insite Instrument Group, Inc. 61932 2,788.00 Electrical/Electronic Equipment, Parts & Repairs Integrated Process Technologies, Inc. 62083 903.01 Repair & Maintenance Services and/or Supplies Intl. Union of Oper. Eng. AFL CIO Local 62084 4,649.30 Dues Deductions Irvine Ranch Water District 61933 61.47 Water Use IT Vizion, Inc. 61934 7,140.00 Professional Services/Reports Design Ocean Monitoring Program J F Shea Construction, Inc. 61869 611,175.85 Construction EXHIBIT A fin/210/lr Page 4 of 10 2/5/2014 Return to Agenda Report

Claims Paid From 1/1/14 to 1/15/14

Vendor Warrant No. Amount Description

J I Solutions, Inc. 62233 984.89 Laboratory Services & Supplies J R Filanc Construction 62169 408,292.54 Construction J.L. Wingert Co. - Remit to: 61936 320.71 Repair & Maintenance Services and/or Supplies JACOBS PROJECT MANAGEMENT CO. 62020 88,396.83 Professional Services/Temporary Services JACOBS PROJECT MANAGEMENT CO. 62163 116,453.97 Professional Services/Temporary Services James D. Ruth 62012 1,100.00 Professional Services/Consultant Jays Catering 61935 658.26 Catering Services Jensen Instrument Co. 62234 1,633.37 Electrical/Electronic Equipment, Parts & Repairs Johnstone Supply 62085 249.71 Repair & Maintenance Services and/or Supplies Karcher Insulation, Inc. 61937 4,672.00 Repair & Maintenance Services and/or Supplies Kemira Water Solutions 1495 40,021.69 Chemicals, Water/Wastewater Treatment Kemira Water Solutions 1507 41,071.89 Chemicals, Water/Wastewater Treatment Kemira Water Solutions 1523 35,461.32 Chemicals, Water/Wastewater Treatment Kingsley Management 62235 446.21 Sewer Fee Rebate KOMAL LLC, DBA LITTLE INN BY THE BAY 62158 5,000.00 Sewer Fee Rebate Koury Engineering and Testing, Inc. 62236 2,705.00 Professional Services/Engineering Design Services Kreinkamp, Dale F. 62087 3,624.07 Sewer Fee Rebate Kroll Cyber Security, Inc. 62238 1,303.62 Human Resource Services L. Johnson Painting 62239 1,885.00 Facilities, Maintenance, Services & Supplies Lee & Ro, Inc. 62088 1,325.96 Professional Services/Engineering Design Services Letner Roofing Co. 62164 93,412.00 Repair & Maintenance - Roof Repair and/or Replacement Liebert Cassidy 61938 445.00 Professional Services/Employee Relations Lindsay Engineering Services 61939 2,011.88 Professional Services LJL Enterpirses 62241 1,562.19 Sewer Fee Rebate Lorman Education Services 62242 339.00 Professional Organizations Meeting/Training/Membership Mag Trol, Inc. 61940 131.55 Electrical Parts & Supplies Magnus Pacific Corporation 61870 570,285.00 Construction Mail Dispatch, LLC 62243 314.70 Mail Delivery Service Malcolm Pirnie Inc. 62161 41,594.37 Construction Mallory Safety And Supply, LLC 61863 227,147.70 Small Tools Marcus G. Lambertz 62306 148.00 Employee Computer Loan Program Mark A. Kibby 62305 717.19 Meeting/Training Expense Reimbursement Mark Melby 62307 440.00 Meeting/Training Expense Reimbursement Martin Enterprises 62245 1,163.33 Sewer User Refund Martin Investment Co. 62089 1,175.77 Sewer User Refund Marvac Electronics 61941 55.52 Electrical/Electronic Equipment, Parts & Repairs McMaster-Carr Supply Co. 61942 104.32 Repair & Maintenance Services and/or Supplies McMaster-Carr Supply Co. 62090 274.10 Repair & Maintenance Services and/or Supplies Mesa Consolidated Water District 62246 29.45 Water Use Mesa Laboratories, Inc. 62091 344.00 Lab Instruments & Supplies Michael N. Morey 62308 232.53 Meeting/Training Expense Reimbursement Mid-West Associates, Inc. 61943 76.00 Repair & Maintenance Services and/or Supplies Mid-West Associates, Inc. 62092 248.86 Repair & Maintenance Services and/or Supplies Mike Bubalo Construction Co., Inc. 61871 354,280.65 Construction Mine Safety Appliance 1513 2,522.51 Electrical/Electronic Equipment, Parts & Repairs Mission Abrasive & Janitorial Supplies 62093 652.39 Janitorial & Household Services & Supplies Morrow Meadows Corp. 62027 55,494.00 Construction MOSS ADAMS, LLP 62247 2,142.20 Security Computer Assessment Services Motorola, Inc. 62248 1,026.00 Radios & Accessories MTM Recognition Corporation 61944 725.60 Service Awards MWH Americas, Inc. 61864 48,209.63 Professional Services/Engineering Design Services Nancy J. Wheatley 61945 1,804.20 Professional Services - Legal National Institute of Standards & Tech-R 61946 674.00 Laboratory Services & Supplies National Notary Association 62095 33.00 Professional Organizations Meeting/Training/Membership National Notary Association - remit to 61947 442.05 Professional Organization National Notary Association - remit to 62094 99.00 Professional Organization EXHIBIT A fin/210/lr Page 5 of 10 2/5/2014 Claims Paid From 1/1/14 to 1/15/14

Vendor Warrant No. Amount Description

National Tax Search 62249 1,508.00 Sewer User Refund Neal Supply Co. 61948 1,916.33 Repair & Maintenance Services and/or Supplies NetworkFleet, Inc. 61949 3,141.14 Software Maintenance Agreement Newport Harbor Montessori Center 62250 321.58 Sewer Fee Rebate Northeast Laboratory Services, Inc. 61950 558.25 Laboratory Services & Supplies Northern Tool & Equipment 61898 989.99 Electrical Parts & Supplies OCB Reprographics 62033 154.52 Printing/Reprographics Services OCB Reprographics 62181 1,941.58 Printing/Reprographics Services OCEA 62096 653.25 Dues Deductible Office Depot 61951 1,979.83 Office Supplies Office Depot 62097 15.53 Office Supplies Office Depot 62251 212.05 Office Supplies Office Team 61952 1,603.22 Professional Services/Temporary Services Office Team 62252 1,318.74 Professional Services/Temporary Services Olin Corporation 61953 13,910.92 Chemicals, Water/Wastewater Treatment Olin Corporation 62098 6,872.69 Chemicals, Water/Wastewater Treatment Olin Corporation 62253 6,886.71 Chemicals, Water/Wastewater Treatment Omega Industrial Supply, Inc. 62099 2,375.42 Janitor & Household Service & Supplies OneSource Distributors, Inc. 61954 13,310.38 Electrical/Electronic Equipment, Parts & Repairs OneSource Distributors, Inc. 62100 53.99 Electrical/Electronic Equipment, Parts & Repairs OneSource Distributors, Inc. 62254 1,982.79 Electrical/Electronic Equipment, Parts & Repairs Orange County Auto Parts 62101 189.48 Truck Supplies Orange County Sheriff 62102 787.05 Judgments Payable Orange County United Way 62103 40.00 Employee Contributions Orange County Water District 62104 24,832.18 GAP Water Pacific Mechanical Supply 1501 7,334.80 Repair & Maintenance Services and/or Supplies Pacific Mechanical Supply 1514 56.10 Repair & Maintenance Services and/or Supplies Pacific Mechanical Supply 1531 154.21 Repair & Maintenance Services and/or Supplies Parker Supply Company 1502 3,328.30 Miscellaneous Parts and Supplies Parker Supply Company 1515 1,445.82 Miscellaneous Parts and Supplies Parkhouse Tire, Inc. 61955 244.41 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Parkson Corporation 61956 6,698.83 Mechanical Parts & Supplies PCS Express, Inc. 62105 450.80 Courier Services Peace Officers Council of CA 62106 2,012.50 Dues Deductions, Supervisors & Professionals Peerless Wiping Materials Co. 61957 1,191.02 Janitor & Household Service & Supplies Pencco, Inc. 62107 16,135.74 Chemicals Performance Pipeline Technologies 61865 30,540.98 Professional Services/CCTV Inspection/Sewerline Cleaning Performance Pipeline Technologies 62021 27,090.07 Professional Services/CCTV Inspection/Sewerline Cleaning Performance Pipeline Technologies 62256 7,861.34 Professional Services/CCTV Inspection/Sewerline Cleaning PL Hawn Company, Inc. 61958 1,550.99 Repair & Maintenance Services and/or Supplies Plumbers Depot, Inc. 61959 8,592.70 Repair & Maintenance Services and/or Supplies Polydyne, Inc. 1496 66,790.15 Chemicals, Water/Wastewater Treatment Polydyne, Inc. 1508 47,325.57 Chemicals, Water/Wastewater Treatment Ponton Industries, Inc. 61960 4,180.22 Laboratory Services & Supplies Ponton Industries, Inc. 62257 1,312.15 Laboratory Services & Supplies Praxair Distribution, Inc. 62258 33.77 Laboratory Services & Supplies Precision Digital Corporation 61961 788.54 Repair & Maintenance Services and/or Supplies Primrose Ice Co., Inc. 62108 131.25 Water & Ice Services Professional Services/Core Ocean Monitor 62244 10,450.00 Marine Taxonomic Services, Ltd. Projects Partners 61962 15,862.11 Professional Services/Temporary Employment Services Projects Partners 62109 7,952.00 Professional Services/Temporary Employment Services Propipe Professional Pipe Services 1538 5,911.40 Professional Services/CCTV Sewerline Inspections Prudential Cleanroom Services 61963 464.58 Uniforms Prudential Cleanroom Services 62259 641.18 Uniforms Prudential Overall Supply 1503 1,498.23 Uniforms Prudential Overall Supply 1516 6,100.03 Uniforms EXHIBIT A fin/210/lr Page 6 of 10 2/5/2014 Return to Agenda Report

Claims Paid From 1/1/14 to 1/15/14

Vendor Warrant No. Amount Description

Psomas 62110 11,677.83 Professional Services - Geographic Information System Pump Action 61964 978.81 Oil Filters Pyramid Fence Company, Inc. 62111 635.00 Facilities, Maintenance, Services & Supplies Rabobank, Escrow Acct# 272295573 61872 50,950.60 Construction Rainbow Disposal Co. 62260 3,499.00 Waste Disposal RBF Consulting 62113 1,193.31 Professional Services/Engineering Design Services Realty Associates Fund VII 62261 187.89 Reconciliation User Fee Refund Program Realty Associates Fund VIII LP 62262 3,089.12 Sewer User Refund Regents of the University of Calif. 62114 11,077.11 Meeting/Training Registration Restek Corp. 1517 156.96 Laboratory Services & Supplies RMC Water and Environment 62263 10,632.73 Professional Services RMS Engineering & Design, Inc. 62264 3,900.00 Engineering Services Robert M. Taylor Corp 62265 964.58 Sewer Fee Rebate Rosemount Analytical Inc. - Remit 62115 2,828.96 Electrical/Electronic Equipment, Parts & Repairs Royale Cleaners 62116 25.90 Miscellaneous Services Royale Cleaners 62266 20.80 Miscellaneous Services Rutan & Tucker, L.L.P. 62117 540.38 Legal Services Saddleback Materials Co., Inc. 61965 380.44 Miscellaneous Parts and Supplies Safeway Inc. 62267 8,546.60 Sewer Fee Rebate San Diego/Orange Fluid System Technologi 62118 488.89 Repair & Maintenance Services and/or Supplies Sancon Engineering, Inc. 62022 55,664.00 Repair & Maintenance Services and/or Supplies Santa Grove Self Storage LP 62268 304.82 Sewer Fee Rebate Sartorius 61966 4,499.95 Repair & Maintenance Services and/or Supplies SC Field Technical Services 61967 5,599.36 Repair & Maintenance Services and/or Supplies SC Fuels 61968 5,732.32 Fuel and Lubricants Scientific Services Plus, LLC 61969 906.06 Laboratory Services & Supplies SCOTT-MARRIN, INC. 62269 916.66 Repair & Maintenance Services and/or Supplies Securitas Security Services USA, Inc. 62165 121,122.63 Safety, Security, Health Equipment, Supplies, and Services Sequoia Consultants, Inc. 61970 13,538.00 Professional Services/Engineering Design Services Sequoia Consultants, Inc. 62119 368.00 Professional Services/Engineering Design Services Sequoia Consultants, Inc. 62270 5,386.00 Professional Services/Engineering Design Services Sewer Equipment Company of America 62120 1,149.47 Repair & Maintenance Services and/or Supplies SGS Testcom, Inc. 61971 5.17 Computer Hardware and Services Shamrock Supply Co., Inc. 61972 6,108.41 Repair & Maintenance Services and/or Supplies Shamrock Supply Co., Inc. 62121 4,875.24 Repair & Maintenance Services and/or Supplies Shamrock Supply Co., Inc. 62271 2,411.98 Repair & Maintenance Services and/or Supplies SHI International Corp 62023 33,069.41 Computer Applications & Services Shureluck Sales & Engineering 61973 626.83 Repair & Maintenance Services and/or Supplies Shureluck Sales & Engineering 62272 58.32 Repair & Maintenance Services and/or Supplies SIDEPATH INC. 61974 4,992.00 Software Siemens Technology 61975 1,435.88 Air Conditioner Automation System SIERRA TRANSPORT INC. 62273 13,160.21 Professional Service - Biosolids Management Skalar, Inc. 61976 465.17 Laboratory Services & Supplies SKC West, Inc. 61977 5,572.91 Laboratory Services & Supplies So. Cal Gas Company 62274 20,580.14 Utilities Society for Human Resource Management 62276 180.00 Professional Organizations Meeting/Training/Membership Solar Turbines, Inc. 62277 2,093.00 Mechanical Parts & Supplies Source Graphics 62278 34.56 Computer Applications & Services South Coast Air Quality Management Dist. 61978 2,824.03 Governmental Agency Fees & Charges BOILER INC 61979 1,699.89 Repairs & Maintenance Materials Southern California Edison 61866 76,910.13 Utilities Southern California Edison 62123 313.56 Utilities Southern California Edison 62279 1,884.92 Utilities Southern California Water Committee 61980 850.00 Professional Organizations Meeting/Training/Membership Southern Counties Lubricants 61981 6,473.39 Fuel and Lubricants Sparklett-Dallas 61982 1,020.56 Miscellaneous Services EXHIBIT A fin/210/lr Page 7 of 10 2/5/2014 Claims Paid From 1/1/14 to 1/15/14

Vendor Warrant No. Amount Description

Sparling Instruments, Inc. 61983 2,944.32 Instrument Parts & Supplies SPEX Certiprep, Inc. 61984 116.21 Laboratory Services & Supplies SPEX Certiprep, Inc. 62124 742.83 Laboratory Services & Supplies St. Croix Sensory, Inc. 61985 1,060.00 Olfactometry Testing Services Staheli Trenchless Consultants, Inc. 61986 11,465.61 Construction Standard Automation and Control 61987 21,838.32 Computer Applications & Services Standard Automation and Control 62280 19,682.26 Computer Applications & Services Staples 62125 1,500.59 Office Supplies State Bar of California 62126 380.00 Professional Organizations Meeting/Training/Membership State Board of Equalization 62281 327.00 Governmental Agency Fees & Charges State of California 62127 1,025.00 Governmental Agency Fees & Charges STRAHMAN VALVES, INC. 62128 3,008.22 Repair & Maintenance Services and/or Supplies Sunset Industrial Parts 61988 19.89 Repair & Maintenance Services and/or Supplies Super Chem Corporation 61989 538.40 Repair & Maintenance Services and/or Supplies Synagro West, Inc. 62282 7,667.28 Biosolids Management 62283 3,475.55 Reconciliation User Fee Refund Program Target Corporation 62284 1,337.85 Reconciliation User Fee Refund Program Target Corporation 62285 4,374.58 Reconciliation User Fee Refund Program TCH Associates, Inc. 62129 12,378.84 Laboratory Services & Supplies TestAmerica Ontario 1518 4,379.50 Laboratory Services & Supplies TestAmerica Ontario 1532 11,276.50 Laboratory Services & Supplies Tetra Tech, Inc. 62130 1,004.42 Professional Services/Engineering Design ServicesS Thatcher Company Of California 62131 11,324.76 Chemicals, Water/Wastewater Treatment The Automotive Training Group, Inc. 62132 199.00 Professional Organizations Meeting/Training/Membership The Cei Group, Inc. 61990 2,841.48 Repair & Maintenance Services and/or Supplies The Cei Group, Inc. 62286 13,622.80 Repair & Maintenance Services and/or Supplies The Crab Cooker of Newport Beach 62288 2,011.90 Sewer Fee Rebate The Orange County Register 62255 7,344.00 Notices & Ads The Orange County Register 62309 204.98 Notices & Ads The Standard Insurance Company 62289 2,363.90 Disability Insurance The Unisource Corporation 61995 2,050.39 Paper & Office Supplies Thermo Electron North America, L.L.C. 1533 15,502.00 Laboratory Services & Supplies Thomas Cain Inc. 61991 861.68 Laboratory Services & Supplies-Automated Digestion System Thompson Industrial Supply, Inc. 1497 26,354.97 Repair & Maintenance Services and/or Supplies Time Warner Communications 62133 123.44 Telecommunications Titus Industrial Group, Inc. 61992 4,378.42 Repair & Maintenance Services and Supplies Tony's Lock & Safe Service & Sales 62134 38.88 Repair & Maintenance Services and/or Supplies Toshiba Business Solutions USA Inc. 62135 3,432.77 Computers, Software/Hardware & Managed Services Townsend Public Affairs 62290 7,500.00 Professional Services - State Legislative Advocacy Trane U.S. Inc 61993 963.31 Repair & Maintenance Services and/or Supplies Transcat 1519 791.28 Repair & Maintenance Services and/or Supplies Transcat 1534 2,249.77 Repair & Maintenance Services and/or Supplies Tranter PHE Inc 62291 7,120.00 Repair & Maintenance Services and/or Supplies Tremco Incorporated 1535 660.00 Repair & Maintenance Services and/or Supplies Tropical Plaza Nursery, Inc. 62166 25,755.00 Landscape Maintenance Services Tule Ranch/Magan Farms 62024 275,459.90 Biosolids Management Tule Ranch/Magan Farms 62167 283,310.72 Biosolids Management TW Telecom Holdings, Inc. 62136 9,320.25 Telecommunications Ultra Scientific 61994 627.47 Laboratory Services & Supplies Ultra Scientific 62137 83.05 Laboratory Services & Supplies Ultra Scientific 62292 1,205.95 Laboratory Services & Supplies Union Bank of California 62138 1,780.00 Annual Administrative Fee for Series 2007A Certificates of Participation United Parcel Service 61996 247.41 Freight Services United Parcel Service 62139 379.57 Freight Services United Parcel Service 62293 90.90 Freight Services United Rentals, Inc. 62025 42,602.76 Pallet Jack Rental EXHIBIT A fin/210/lr Page 8 of 10 2/5/2014 Return to Agenda Report

Claims Paid From 1/1/14 to 1/15/14

Vendor Warrant No. Amount Description

United States Department Of The Treasury 62140 399.86 Judgments Payable United States Plastic Corp. 61997 29.92 Miscellaneous Parts and Supplies Univar USA Inc 1520 6,070.71 Chemicals, Water/Wastewater Treatment UPS Ground Freight, Inc. 62141 300.45 Freight Services US Commposting Council 62294 500.00 Professional Organizations Meeting/Training/Membership US Peroxide, L.L.C. 62026 64,561.89 Chemicals, Water/Wastewater Treatment US Peroxide, L.L.C. 62295 17,217.26 Chemicals, Water/Wastewater Treatment Valin Corporation 1504 7,841.30 Repair & Maintenance Services and/or Supplies Valin Corporation 1536 543.53 Repair & Maintenance Services and/or Supplies Valley Power Systems, Inc. 61998 182.91 Repair & Maintenance Services and/or Supplies Valve Automation & Controls 61999 9,609.29 Repair & Maintenance Services and/or Supplies Vapex Products, Inc. 61867 29,970.91 Electrical/Electronic Equipment, Parts & Repairs Vapex Products, Inc. 62142 7,442.81 Electrical/Electronic Equipment, Parts & Repairs Verbal Ink 62296 2,629.25 Human Resources Services Verizon California 62143 642.42 Telecommunications Verizon Wireless 62144 1,285.64 Telecommunications Verizon Wireless 62297 47.11 Telecommunications Verne's Plumbing 62145 2,389.94 Plumbing Services & Supplies Vertech Industrial Systems, Llc 62000 19,004.48 Professional Services/Construction Consulting Services Veterinary Pet Insurance Company 62001 815.73 Employee Voluntary Benefits Village Nurseries 62146 313.96 Repair & Maintenance Services and/or Supplies Vision Internet Providers, Inc 62147 350.00 Professional Services/Web Design Services Voyager Fleet Systems, Inc. 62298 18,858.60 Autos, Trucks & Marine Equipment, Parts, Accessories & Services VWR Scientific Products 62002 7,826.50 Laboratory Services & Supplies W.M. Lyles Co. 61873 968,061.40 Construction Waiwit Choompoo 62299 1,510.83 Sewer Fee Rebate Wastewater Technology Trainers 62300 1,830.00 Professional Organizations Meeting/Training/Membership Water Environment Federation 62003 249.00 Professional Organizations Meeting/Training/Membership Water Environment Federation 62148 477.00 Professional Organizations Meeting/Training/Membership Water Environment Federation 62301 202.00 Professional Organizations Meeting/Training/Membership WateReuse Association 62004 500.00 Professional Organizations Meeting/Training/Membership Waxie Sanitary Supply 62005 678.32 Janitor & Household Service & Supplies Wesley G. Bauer, II 62154 270.00 Meeting/Training Expense Reimbursement West Coast Arborists, Inc. 62006 3,600.00 Landscape Maintenance Services West Lite Supply Company, Inc. 62007 5,041.12 Electrical/Electronic Equipment, Parts & Repairs Western Analytical Laboratories, Inc. 62149 5,240.00 Outside Laboratory Services Western Enterprises, LLC 62302 427.30 Sewer Fee Rebate White Star Pools 62150 310.00 Repair & Maintenance Services and/or Supplies Wilmington Instrument Co., Inc. 62151 1,154.30 Instrument Parts & Supplies Wilson Supply Inc. 62152 1,683.07 Repair & Maintenance Services and/or Supplies Winwards Investment LLC 62303 3,573.44 Sewer Fee Rebate Woodruff Spradlin & Smart 62168 205,139.72 Professional Services - Legal Xerox Corporation 1505 129.43 Computers, Software/Hardware & Managed Services Xerox Corporation 1537 506.07 Computers, Software/Hardware & Managed Services Xylem Water Solutions 62008 1,358.65 Repair & Maintenance Services and/or Supplies Yale/Chase Materials Handling, Inc. 62009 485.38 Electrical/Electronic Equipment, & Electric Cart Parts & Repairs YIN LIN 62010 511.62 Beneficiary Payout Total Accounts Payable - Warrants $ 8,036,940.66

Payroll Disbursements Employee Paychecks 52433 - 52455 $ 3,886.33 Interim Payroll - ARBA (1/2/14) Employee Paychecks 52456 - 52498 83,225.56 Biweekly Payroll (1/8/14) Employee Paychecks 52499 3,699.43 Retirement (1/2/14) Employee Paychecks 52500 9,192.79 Interim Payroll - Retirements (1/2/14) Employee Paychecks 52501 - 52632 317,734.50 Accrued Leave Payouts (1/9/14) Employee Paychecks 52633 1,665.10 Accrued Leave Payouts (1/9/14) EXHIBIT A fin/210/lr Page 9 of 10 2/5/2014 Claims Paid From 1/1/14 to 1/15/14

Vendor Warrant No. Amount Description

Employee Paychecks 52534 - 52650 17,086.29 EMT & Mgr IIS L/S Payment (1/9/14) Employee Paychecks 52651 - 52652 3,083.29 Tuition Reimbursement (1/13/14) Direct Deposit Statements 348208 - 348390 32,008.50 Interim Payroll - ARBA (1/2/14) Direct Deposit Statements 348391 - 348966 1,425,628.84 Biweekly Payroll (1/8/14) Total Payroll Disbursements $ 1,897,210.63

Wire Transfer Payments OCSD Payroll Taxes & Contributions $ 1,107,073.55 Biweekly Payroll (1/8/14) Union Bank of California 66,989.40 Workers' Compensation Services (1/9/14) Total Wire Transfer Payments $ 1,174,062.95

Total Claims Paid 1/1/14 - 1/15/14 $ 11,108,214.24

EXHIBIT A fin/210/lr Page 10 of 10 2/5/2014 Return to Agenda Report

Claims Paid From 1/16/14 to 1/31/14

Vendor Warrant No. Amount Description

Accounts Payable Warrants 1120 N. Tustin street (C55) 62469 2,560.12 Sewer Fee Rebate 14311 Newport Ave. #C32 62470 1,387.88 Sewer Fee Rebate AECOM Technical Services, Inc. 62323 10,281.18 Professional Services/Engineering Design Services Aerotek 62471 52.50 Professional Services/Temporary Services Agilent Technologies, Inc. 62472 121.44 Laboratory Services & Supplies Air Liquide Industrial U.S., LP 62324 7,687.89 Laboratory Services & Supplies Air Liquide Industrial U.S., LP 62473 14,657.02 Laboratory Services & Supplies Airgas Safety, Inc. 1539 2,535.62 Safety, Security, Health Equipment, Supplies, and Services Airgas Safety, Inc. 1550 6,467.82 Safety, Security, Health Equipment, Supplies, and Services Airgas USA, LLC 1540 630.83 Laboratory Services & Supplies Airgas USA, LLC 1551 2,477.50 Laboratory Services & Supplies Alfa-Laval Inc. 62474 4,955.40 Repair & Maintenance Services and/or Supplies Amazing Tents & Events 62326 365.00 Event Supplies AMBER BOOTH INC. 62419 114.73 Repair & Maintenance Services and/or Supplies American Chemical Society 62634 154.00 Professional Organizations Meeting/Training/Membership American Express TVL Related Svcs Co., I 62475 2,613.11 Purchasing Card Program for Miscellaneous Travel Expenses American Integrated Services, Inc. 62448 50,239.55 Grit & Screenings Disposal AMS Acoustical material Services 62327 643.10 Repair & Maintenance Services and/or Supplies Anaheim Town Square 62328 8,304.70 Sewer user rebate AppleOne Employment Service 1552 724.80 Professional Services/Temporary Services Applied Industrial Technology 62329 1,958.04 Repair & Maintenance Services and/or Supplies Applied Industrial Technology 62476 271.61 Repair & Maintenance Services and/or Supplies Aquatic Biosystems, Inc. 62477 319.50 Laboratory Services & Supplies Argus-Hazco 62479 1,557.24 Repair & Maintenance Services and/or Supplies ASCE 62480 28.00 Meeting/Training Registration AT & T Long Distance. 62330 33.46 Telecommunications AT & T Mobility II, L.L.C. 62481 233.72 Telecommunications AT&T Teleconference Services 62331 268.68 Telecommunications AW Associates Inc. 62483 300.00 Repair & Maintenance Services and/or Supplies AWSI 62484 268.00 Professional Services - DOT Program Administration Bakersfield Pipe & Supply, Inc. 62485 109.44 Repair & Maintenance Services and/or Supplies Bank of New York Mellon Trust 62449 27,394.50 Professional Services - Financial Battery Specialties 62486 234.06 Batteries, Various Battery Systems, Inc. 62487 220.46 Repair & Maintenance Services and/or Supplies BC Wire Rope & Rigging 62332 150.78 Tools & Supplies Beach Wire and Cable 62488 477.99 Telecommunications BEC-Building Electronic Controls, Inc 62489 24,000.00 Electrical/Electronic Equipment, Parts & Repairs BIOREM ENVIRONMENTAL, INC. 62333 19,399.98 Biosorben Media Removal & Replacement Boston Market Corp. 62490 1,057.93 Sewer Fee Rebate Boston Market Corp. 62491 2,421.36 Sewer Fee Rebate Brand Scaffold Rental & Erection Inc 62334 710.44 Miscellaneous Services Brea 9 Owner LLC 62492 2,500.00 Miscellaneous Services Brenntag Pacific, Inc. 62335 5,085.98 Chemicals, Water/Wastewater Treatment Brenntag Pacific, Inc. 62493 13,270.61 Chemicals, Water/Wastewater Treatment Brown & Caldwell 62311 252,837.70 Professional Services/Engineering Design Services Brown & Caldwell 62450 458,731.89 Professional Services/Engineering Design Services Bryan Industrial Properties, Inc. 62494 261.44 Reconciliation User Fee Refund Program Bryan Industrial Properties, Inc. 62495 847.39 Reconciliation User Fee Refund Program Bureau Veritas North America, Inc. 1541 850.00 Industrial Hygiene Services C.A. Short Company 62336 54.00 Safety, Security, Health Equipment, Supplies, and Services C.D. Daly 62496 1,165.36 Sewer Fee Rebate

EXHIBIT B fin/210/lr Page 1 of 8 2/5/2014 Claims Paid From 1/16/14 to 1/31/14

Vendor Warrant No. Amount Description

C.S.M.F.O 62513 30.00 Professional Organizations Meeting/Training/Membership California Bank & Trust #201037519 62633 4,784.50 Construction California Dept. of Child Support 62337 2,455.35 Judgments Payable California Water Technologies 62338 9,834.55 Chemicals California Water Technologies 62451 43,788.01 Chemicals CANNON SUNFLOWER PROPERTIES, LLC 62445 1,675.00 Construction Project Easement Agreement Carollo Engineers 62497 10,681.97 Professional Services Carollo Engineers 62498 4,694.05 Professional Services/Engineering Design Services CASE MANAGEMENT SOCIETY OF AMERICA INC 62339 200.00 Professional Organizations Meeting/Training/Membership CASSIDY'S BAR & GRILL INC. 62446 5,000.00 Sewer Fee Rebate Cemtek Environmental, Inc. 62499 4,291.67 CEMS Maintenance Agreement Charles King Company, Inc. 62462 371,641.66 Construction CINTAS FIRE PROTECTION 62340 504.18 Fire Extinguisher Supplies & Services City of Fullerton 62529 33.30 Water Use City of Huntington Beach 62547 12,321.05 Water Use City of Newport Beach 62578 166.30 Water Use City of Tustin 62341 275.00 Water Use City of Tustin 62500 82.56 Water Use CMAA 62501 285.00 Professional Organizations Meeting/Training/Membership CMAA 62650 1,800.00 Professional Organizations Meeting/Training/Membership Columbia Analytical Services 62325 1,320.00 Laboratory Services & Supplies Columbia Analytical Services 62447 58,650.00 Laboratory Services & Supplies Compressor Components of California 62502 8,602.20 Repair & Maintenance Services and/or Supplies Compucom Systems, Inc. 62312 199,278.33 Computer Applications & Services Connell Chevrolet\GEO 62503 428.61 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Consolidated Electrical Distributors 62504 1,266.49 Electrical/Electronic Equipment, Parts & Repairs Constellation Newenergy Gas Division LLC 62505 15,319.68 Natural Gas Constructive Community Relations 62506 21,485.92 Construction Outreach Consumers Pipe & Supply Co. 1553 3,838.31 Repair & Maintenance Services and/or Supplies CORRPRO Companies, Inc. 62452 35,511.00 Professional Services/Temporary Services Counterpart Enterprises, Inc. 62507 495.71 Repair & Maintenance Services and/or Supplies County of Orange Auditor Controller 62343 495.00 Governmental Agency Fees & Charges County of Orange Auditor Controller 62344 600.00 Governmental Agency Fees & Charges County of Orange Auditor Controller 62508 360.00 Governmental Agency Fees & Charges County of Orange Auditor Controller 62509 735.00 Governmental Agency Fees & Charges County of Orange Auditor Controller 62510 3,060.00 Governmental Agency Fees & Charges Court Order 62378 2,179.38 Judgments Payable Court Order 62408 108.00 Judgments Payable Court Order 62438 912.50 Judgments Payable CR&R, Inc. 62345 2,064.54 Waste Disposal CSUF Auxillary Services Corporation 62514 19,979.25 Professional Organizations Meeting/Training/Membership (Demographics) CWEA Membership 62515 296.00 Professional Organizations Meeting/Training/Membership David Wheeler Pest Control, Inc. 62516 1,260.00 Pest Control Services Desert Pumps & Parts, Inc. 62517 267.32 Repair & Maintenance Services and/or Supplies Detector Technology, Inc. 62518 653.31 Laboratory Services & Supplies Dezurik Water Controls 62346 15,704.00 Repair & Maintenance Services and/or Supplies DIVERSIFIED LANDSCAPE CO. 62347 3,847.50 Landscaping Consulting Services Donahue, Molly B. 62636 1,808.63 Meeting/Training Expense Reimbursement Dudek & Associates, Inc. 62519 24,015.72 Professional Services/Engineering Design Services Dunn-Edwards Corporation 62348 47.35 Facilities, Maintenance, Services & Supplies Dunn-Edwards Corporation 62520 256.02 Facilities, Maintenance, Services & Supplies Edward M. Torres 62647 417.78 Meeting/Training Expense Reimbursement

EXHIBIT B fin/210/lr Page 2 of 8 2/5/2014 Return to Agenda Report

Claims Paid From 1/16/14 to 1/31/14

Vendor Warrant No. Amount Description

EHS International, Inc. 62349 21,840.00 Professional Organizations Meeting/Training/Membership Embark Consulting, LLC 62350 3,295.61 Professional Services/SCADA Software Maintenance Support Employee Benefits Specialists, Inc. 62351 10,867.04 Reimbursed Prepaid Employee Medical & Dependent Care Employee Benefits Specialists, Inc. 62652 823,553.81 Reimbursed Prepaid Employee Medical & Dependent Care ENS Resources, Inc. 62521 5,566.00 Professional Services - Federal Advocacy Environmental Sampling Supply 62352 1,381.86 Laboratory Services & Supplies Eros Yong 62649 415.00 Meeting/Training Expense Reimbursement Ewing Irrigation 62353 984.96 Irrigation Repair & Maintenance Services and/or Supplies Ewing Irrigation 62522 396.13 Irrigation Repair & Maintenance Services and/or Supplies Fedex Corporation 62523 182.44 Freight Services First American Corelogic 62342 105.00 Software Maintenance Agreement Fisher Scientific 62354 1,384.88 Laboratory Services & Supplies Fisher Scientific 62524 318.14 Laboratory Services & Supplies Fishing Boats Unlimited 62525 2,602.44 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Flex Core 62526 1,890.23 Repair & Maintenance Services and/or Supplies FLW, Inc. 62355 704.18 Electrical/Electronic Equipment, Parts & Repairs Fountain Valley Paints, Inc. 62527 322.75 Facilities, Maintenance, Services & Supplies Franchise Tax Board 62356 368.49 Judgments Payable Frank I. Benest 62357 1,806.43 Professional Organizations Meeting/Training/Membership Franklin Covey 62528 78.54 Office Supplies Fresno First Bank-Acct 100013315 62321 65,327.35 Construction, Retention G&B Creative Solutions LLC 62511 3,192.00 Printing and Publications Garland Manufacturing Co. 62358 3,136.43 Repair & Maintenance Services and/or Supplies Garratt Callahan Company 62359 268.70 Chemicals, Water/Wastewater Treatment Garratt Callahan Company 62530 54.67 Chemicals, Water/Wastewater Treatment GGF Bristol, LLC 62531 487.88 Sewer User Refund GGF Bristol, LLC 62532 1,031.07 Sewer User Refund GGF Bristol, LLC 62533 482.47 Sewer User Refund Global Environmental Network Inc. 62534 3,250.00 Safety, Security, Health Equipment, Supplies, and Services Golden State Controls 62535 867.63 Electrical/Electronic Equipment, Parts & Repairs Golden State Overnight Delivery Service 62536 160.16 Courier Services Golden West Window Service 62360 6,992.50 Facilities, Maintenance, Services & Supplies Golden West Window Service 62537 2,150.00 Facilities, Maintenance, Services & Supplies Grainger, Inc. 62361 2,797.98 Repair & Maintenance Services and/or Supplies Grainger, Inc. 62538 1,479.82 Repair & Maintenance Services and/or Supplies Graybar Electric Company 62362 24,106.43 Electrical/Electronic Equipment, Parts & Repairs Graybar Electric Company 62539 242.07 Electrical/Electronic Equipment, Parts & Repairs Great Western Sanitary Supplies 62540 21.16 Janitor & Household Service & Supplies Gregg J. Deterding 62441 146.86 Meeting/Training Expense Reimbursement Haaker Equipment Company 62541 823.77 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Hach Company 62363 6,091.13 Laboratory Services & Supplies Hach Company 62542 419.05 Laboratory Services & Supplies Harrington Industrial Plastics, Inc. 62364 3,720.86 Repair & Maintenance Services and/or Supplies Harrington Industrial Plastics, Inc. 62543 2,214.52 Repair & Maintenance Services and/or Supplies Hazen And Sawyer, P.C. 62544 22,567.19 Professional Services/Oxygen Plant Demolition HDR Engineering, Inc. 62453 129,046.53 Professional Services/Engineering Design Services Hewlett Packard Company 62365 8,145.92 Computers, Software/Hardware Highmark 62366 1,024.43 Safety, Security, Health Equipment, Supplies, and Services Hill Brothers 1547 193,516.62 Chemicals, Water/Wastewater Treatment Hills Boat Service, Inc. 62367 996.64 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Hilti, Inc. 62368 1,027.51 Repair & Maintenance Services and/or Supplies Home Depot 62369 17.15 Miscellaneous Parts and Supplies

EXHIBIT B fin/210/lr Page 3 of 8 2/5/2014 Claims Paid From 1/16/14 to 1/31/14

Vendor Warrant No. Amount Description

Home Depot 62545 27.70 Miscellaneous Parts and Supplies Hub Auto Supply 62370 1,999.20 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Hub Auto Supply 62546 131.69 Autos, Trucks & Marine Equipment, Parts, Accessories & Services I.A.M. Environmental 62548 1,150.00 Repair & Maintenance Services and/or Supplies Industrial Distribution Group 62549 312.79 Repair & Maintenance Services and/or Supplies Industrial Fabrics Corp. 62550 13,798.08 Repair & Maintenance Services and/or Supplies Industrial Steam 62371 337.00 Repair & Maintenance Services and/or Supplies Industrial Threaded Products, Inc. 1554 14.93 Repair & Maintenance Services and/or Supplies Ingrid G. Hellebrand 62640 138.49 Meeting/Training Expense Reimbursement Insight Public Sector, Inc. 62551 15,130.01 Computers, Software/Hardware INTELLIGENT POWER SOLUTIONS, INC. 62552 15,810.29 Repair & Maintenance Services and/or Supplies Interstate Batteries of Cal Coast 62372 621.87 Repair & Maintenance Services and/or Supplies Interstate Batteries of Cal Coast 62553 2,544.27 Repair & Maintenance Services and/or Supplies Intl. Union of Oper. Eng. AFL CIO Local 62373 4,625.05 Dues Deductions Intratek Computer, Inc. 62374 970.01 Network/Server/Printer Maintenance Services Intratek Computer, Inc. 62554 487.68 Network/Server/Printer Maintenance Services Irvine Ranch Water District 62375 63.22 Water Use Irvine Ranch Water District 62555 62.74 Water Use J R Filanc Construction 62313 192,487.60 Construction James D. Herberg 62641 1,133.22 Meeting/Training Expense Reimbursement Jamison Engineering Contractors, Inc. 62376 14,038.31 Professional Services/Construction Support Services Jamison Engineering Contractors, Inc. 62556 22,807.73 Professional Services/Construction Support Services Jeffrey T. Reed 62645 130.84 Meeting/Training Expense Reimbursement Jetters Northwest 62557 175.00 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Joanne T. Crossley 62512 292.18 Sewer Fee Rebate Johnstone Supply 62377 1,446.32 Repair & Maintenance Services and/or Supplies Johnstone Supply 62558 125.60 Repair & Maintenance Services and/or Supplies JP Morgan Chase Bank, NA 62314 50,533.05 Purchasing Card Program for Miscellaneous Parts and Supplies Julian F. Sabri 62646 148.00 Meeting/Training Expense Reimbursement Kaveh Engineering & Construction 62315 30,000.00 Repair and Maintenance Services & Supplies Keenan & Associates - Remit 62559 3,316.66 Professional Services/Worker's Compensation Program Kemira Water Solutions 1542 21,164.69 Chemicals, Water/Wastewater Treatment Kemira Water Solutions 1548 46,802.31 Chemicals, Water/Wastewater Treatment Keybank RE Capital 62560 6,135.09 Reconciliation User Fee Refund Program Kim A. Bowman 62635 242.13 Meeting/Training Expense Reimbursement Kroll Cyber Security, Inc. 62379 385.20 Human Resource Services LECO Corporation 62380 618.05 Laboratory Services & Supplies Lewis Brisbois Bisgaard & Smith 62381 966.00 Professional Services - Legal Lexis-Nexis 62382 168.00 Books & Publications On-Line Lexis-Nexis 62561 9,626.00 Books & Publications On-Line Liberty Mutual Claims 62383 16,716.55 Insurance Lina Hsiao 62642 182.12 Meeting/Training Expense Reimbursement Lorman Education Services 62562 339.00 Professional Organizations Meeting/Training/Membership Lustre-Cal 62563 610.89 Office Supplies Lynde-Ordway Company, Inc. 62384 39.57 Computer Applications & Services Mag Trol, Inc. 62385 120.74 Electrical Parts & Supplies Magnus Pacific Corporation 62463 252,011.25 Construction Malcolm Pirnie, Inc. 62386 16,713.00 Professional Services/Engineering Design Services Mallory Safety And Supply, LLC 62564 3,218.29 Small Tools Marcus D. Dubois 62637 560.73 Meeting/Training Expense Reimbursement Marie C. Martin 62644 1,221.78 Employee Computer Loan Program Mark A. Kibby 62643 176.80 Meeting/Training Expense Reimbursement

EXHIBIT B fin/210/lr Page 4 of 8 2/5/2014 Return to Agenda Report

Claims Paid From 1/16/14 to 1/31/14

Vendor Warrant No. Amount Description

MARTENS PROPERTIES 62565 1,285.60 Sewer Fee Rebate Marvac Electronics 62566 22.79 Electrical/Electronic Equipment, Parts & Repairs Mary Gonser Family Trust 62567 427.10 Sewer Fee Rebate Matheson Tri Gas, Inc. 62568 2,563.40 Laboratory Services & Supplies Maxim Security Systems 62569 205.00 Safety, Security, Health Equipment, Supplies, and Services McCrometer, Inc. 62570 1,116.31 Instrument Parts & Supplies McMaster-Carr Supply Co. 62387 906.85 Repair & Maintenance Services and/or Supplies McMaster-Carr Supply Co. 62571 1,902.69 Repair & Maintenance Services and/or Supplies Merrill F. Seiler 62442 148.00 Meeting/Training Expense Reimbursement Mesa International Technologies, Inc. 62572 934.20 Repair & Maintenance Services and/or Supplies Miele, Inc. 62573 751.72 Laboratory Services & Supplies Mike Bubalo Construction Co., Inc. 62464 806,665.17 Construction Mine Safety Appliance 1555 2,144.16 Electrical/Electronic Equipment, Parts & Repairs MSC Industrial Supply Co. 62388 924.21 Repair & Maintenance Services and/or Supplies MSC Industrial Supply Co. 62574 172.60 Repair & Maintenance Services and/or Supplies MTM Recognition Corporation 62575 420.92 Service Awards Multi W Systems, Inc. - Remit 62389 5,444.54 Pump Supplies Mythics, Inc. 62390 441.64 Software - Perpetual License for Oracle Data Base-Enterprise Edition, Maint. & Support National Fire Protection Association 62391 1,043.05 Professional Organizations Meeting/Training/Membership National Tax Search 62392 994.59 Sewer User Refund Neal Supply Co. 62576 481.68 Repair & Maintenance Services and/or Supplies Neopost USA Inc. 62577 63.54 Equipment Lease/Postage Meter NRG Engine Services, L.L.C. 62579 15,663.16 Repair & Maintenance Services and/or Supplies OCB Reprographics 62478 4,986.06 Printing/Reprographics Services OCEA 62393 653.25 Dues Deductible ODC Engineering & Technology 62465 125,457.00 Construction Office Depot 62394 999.08 Office Supplies Office Depot 62580 391.36 Office Supplies Office Team 62581 639.36 Professional Services/Temporary Services Olin Corporation 62582 13,852.91 Chemicals, Water/Wastewater Treatment OneSource Distributors, Inc. 62395 3,103.59 Electrical/Electronic Equipment, Parts & Repairs OneSource Distributors, Inc. 62583 1,496.13 Electrical/Electronic Equipment, Parts & Repairs Oracle America Inc. 62584 290.39 Software Maintenance Agreement Orange County Sanitation District 62651 1,487.66 Petty Cash Expense Orange County Sheriff 62396 1,336.07 Judgments Payable ORANGE COUNTY TREASURERS CONFERENCE 62397 700.00 Encroachment Permit Orange County United Way 62398 40.00 Employee Contributions Pacific Mechanical Supply 1543 109.85 Repair & Maintenance Services and/or Supplies Pacific Mechanical Supply 1556 819.99 Repair & Maintenance Services and/or Supplies PACIFIC PARADISE POOLS, INC. 62399 95.00 Admin Bldg Fountain Service Call Parkhouse Tire, Inc. 62400 178.20 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Paso Robles Tank, Inc. 62316 113,691.25 Professional Services/Low Pressure Digester Gas Holder Repairs Patrick A. Sullivan 62443 300.00 Meeting/Training Expense Reimbursement PBS & J 62310 249,272.37 Professional Services/Engineering Design Services PBS & J 62482 3,166.23 Professional Services/Engineering Design Services Peace Officers Council of CA 62401 2,035.50 Dues Deductions, Supervisors & Professionals Pelonis, Sotirios T. 62586 820.29 Sewer Fee Rebate Pencco, Inc. 62317 38,338.38 Chemicals Pencco, Inc. 62587 16,347.20 Chemicals Peter Cheffs 62440 82.00 Meeting/Training Expense Reimbursement PL Hawn Company, Inc. 62588 1,737.20 Repair & Maintenance Services and/or Supplies Polydyne, Inc. 1549 182,869.21 Chemicals, Water/Wastewater Treatment

EXHIBIT B fin/210/lr Page 5 of 8 2/5/2014 Claims Paid From 1/16/14 to 1/31/14

Vendor Warrant No. Amount Description

Ponton Industries, Inc. 62589 12,844.64 Laboratory Services & Supplies Port Supply 62590 451.90 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Power Bros. Machine, Inc. 62591 5,568.15 Repair & Maintenance Services and/or Supplies Praxair Distribution, Inc. 62592 34.66 Laboratory Services & Supplies Precision Digital Corporation 62402 944.82 Repair & Maintenance Services and/or Supplies Prima Public Risk Management Assoc. 62593 385.00 Professional Organizations Meeting/Training/Membership Primrose Ice Co., Inc. 62403 236.25 Water & Ice Services Primrose Ice Co., Inc. 62594 131.25 Water & Ice Services Procare Work Injury Center 62404 525.00 Medical Services Process Instruments & Controls, LLC 62595 5,421.74 Electrical/Electronic Equipment, Parts & Repairs Prudential Cleanroom Services 62405 186.06 Uniforms Prudential Insurance Company of America 62454 48,461.03 Benefits Prudential Overall Supply 1557 4,531.55 Uniforms Pump Action 62596 220.21 Oil Filters Quickstart Intelligence 62597 1,397.50 Professional Organizations Meeting/Training/Membership Quickstart Technologies 62406 1,397.50 Computer Hardware & Software Services Quinn Power Systems 62407 1,335.46 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Quinn Power Systems 62598 2,808.53 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Rabobank, Escrow Acct# 272295573 62466 64,104.40 Construction Grochery Co. 62409 1,051.42 Sewer User Refund Restek Corp. 1544 385.38 Laboratory Services & Supplies Roberto's Auto Trim Shop 62410 428.20 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Robyn A. Wilcox 62648 170.00 Meeting/Training Expense Reimbursement Rotork Controls, Inc. 62599 4,956.57 Electrical/Electronic Equipment, Parts & Repairs RPM Electric Motors 62411 9,653.96 Repair & Maintenance Services and/or Supplies Saddleback Materials Co., Inc. 62600 477.92 Miscellaneous Parts and Supplies San Diego/Orange Fluid System Technologi 62601 463.59 Repair & Maintenance Services and/or Supplies Sancon Engineering, Inc. 62318 40,491.00 Repair & Maintenance Services and/or Supplies Sancon Engineering, Inc. 62455 64,132.75 Repair & Maintenance Services and/or Supplies SARBS-CWEA 62602 50.00 Professional Organizations Meeting/Training/Membership Scientific Services Plus, LLC 62413 231.60 Laboratory Services & Supplies Scott A. Green 62639 300.00 Meeting/Training Expense Reimbursement SGS Testcom, Inc. 62414 5.17 Computer Hardware and Services Shamrock Supply Co., Inc. 62603 2,224.64 Repair & Maintenance Services and/or Supplies Shortridge Instruments, Inc. 62604 1,412.91 Repair & Maintenance Services and/or Supplies Shureluck Sales & Engineering 62605 1,456.21 Repair & Maintenance Services and/or Supplies SIEMENS INDUSTRY, INC. 62456 45,911.10 Repair & Maintenance Services and/or Supplies Siemens Water Technologies Corp. 1545 1,523.84 Repair & Maintenance Services and/or Supplies Sigma-Aldrich, Inc. 62606 2,563.54 Laboratory Services & Supplies Skalar, Inc. 62607 465.75 Laboratory Services & Supplies SKC West, Inc. 62415 577.98 Laboratory Services & Supplies So. Cal Gas Company 62416 10,208.74 Utilities So. Cal Gas Company 62608 865.82 Utilities Society of Environmental Toxicology & Ch 62609 1,035.00 Professional Organizations Meeting/Training/Membership/Meeting Registration South Coast Air Quality Management Dist. 62610 1,416.88 Governmental Agency Fees & Charges South Coast Environmental Co. 62412 910.00 Professional Services - Air Quality Monitoring Southern California Edison 62319 292,910.63 Utilities Southern California Edison 62457 79,931.42 Utilities Southern Counties Lubricants 62611 734.84 Fuel and Lubricants SOUTHERN VALVE SERVICE, INC. 62417 6,443.41 Valve Cleaning Sparklett-Dallas 62612 789.60 Miscellaneous Services Stanek Constructors Inc 62467 90,905.50 Construction

EXHIBIT B fin/210/lr Page 6 of 8 2/5/2014 Return to Agenda Report

Claims Paid From 1/16/14 to 1/31/14

Vendor Warrant No. Amount Description

Stantec Consulting Services, Inc. 62418 2,393.00 Professional Services/Surveying Summit Steel 1558 5,652.87 Repair & Maintenance Services and/or Supplies Synagro West, Inc. 62320 565,652.41 Biosolids Management Synagro West, Inc. 62458 151,914.49 Biosolids Management T & D Communications 62613 20,423.41 Computers, Software/Hardware Tenant Services Inc. 62614 1,361.62 Sewer Fee Rebate Thatcher Company Of California 62459 57,415.95 Chemicals, Water/Wastewater Treatment THE ALARM AND SPRINKLER COMPANY 62615 5,181.12 Repair & Maintenance Materials - Ocean Monitoring Vessel Nerissa The Orange County Rescue Mission, Inc 62585 609.58 Sewer Fee Rebate Thermo Electron North America, L.L.C. 1559 437.74 Laboratory Services & Supplies Thompson Industrial Supply, Inc. 1560 1,007.56 Repair & Maintenance Services and/or Supplies Thunigh, Hans Christoph 62420 2,474.32 Sewer user refund Time Warner Communications 62616 66.47 Telecommunications Tony's Lock & Safe Service & Sales 62421 46.44 Repair & Maintenance Services and/or Supplies Tony's Lock & Safe Service & Sales 62617 599.78 Repair & Maintenance Services and/or Supplies Toshiba Business Solutions USA Inc. 62422 3,190.85 Computers, Software/Hardware & Managed Services Total Resource Management, Inc. 62423 5,965.96 Professional Services/Implementation of IBM Maxim Trane U.S. Inc 62618 5,566.51 Repair & Maintenance Services and/or Supplies Tremco Incorporated 1546 1,490.00 Repair & Maintenance Services and/or Supplies Troy D. Edgar 62638 719.16 Meeting/Training Expense Reimbursement Truck & Auto Supply, Inc. 62424 262.86 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Tule Ranch/Magan Farms 62460 286,590.43 Biosolids Management Two Wheels One Planet 62425 45.68 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Underground Service Alert of So. Calif 62619 1,419.00 Professional Services - Dig Alert Notification Service Union Bank of California 62620 997.30 Banking Services United Parcel Service 62426 330.03 Freight Services United Parcel Service 62621 353.30 Freight Services United States Department Of The Treasury 62427 399.86 Judgments Payable Univar USA Inc 1562 5,168.33 Chemicals, Water/Wastewater Treatment Universal Flooring Systems, Inc. 62428 3,175.00 Facilities, Maintenance, Services & Supplies US Airconditioning Distributors, Inc. 62622 639.32 Electrical Parts & Supplies US Equipment Co., Inc. 62429 845.80 Repair & Maintenance Services and/or Supplies US Peroxide, L.L.C. 62461 119,540.24 Chemicals, Water/Wastewater Treatment USA Bluebook 62623 994.60 Laboratory Services & Supplies Valin Corporation 1561 3,374.27 Repair & Maintenance Services and/or Supplies Valley Power Systems, Inc. 62624 317.03 Repair & Maintenance Services and/or Supplies Valve Automation & Controls 62625 6,976.73 Repair & Maintenance Services and/or Supplies Vapex Products, Inc. 62430 7,440.01 Electrical/Electronic Equipment, Parts & Repairs Verbal Ink 62431 175.50 Human Resources Services Vertech Industrial Systems, Llc 62432 2,397.09 Professional Services/Construction Consulting Services Veterinary Pet Insurance Company 62433 879.57 Employee Voluntary Benefits Village Nurseries 62434 146.82 Repair & Maintenance Services and/or Supplies VWR Scientific Products 62626 815.25 Laboratory Services & Supplies W.M. Lyles Co. 62444 4,089.25 Construction Water Environment Federation 62435 249.00 Professional Organizations Meeting/Training/Membership WateReuse Association 62627 375.00 Professional Organizations Meeting/Training/Membership Waters Corporation 62628 1,536.65 Laboratory Services & Supplies Waxie Sanitary Supply 62629 1,119.20 Janitor & Household Service & Supplies West Coast Arborists, Inc. 62436 2,700.00 Landscape Maintenance Services West Lite Supply Company, Inc. 62630 1,669.79 Electrical/Electronic Equipment, Parts & Repairs Wilson Supply Inc. 62631 2,524.61 Repair & Maintenance Services and/or Supplies WRIPAC 62437 1,100.00 Professional Organizations Meeting/Training/Membership

EXHIBIT B fin/210/lr Page 7 of 8 2/5/2014 Claims Paid From 1/16/14 to 1/31/14

Vendor Warrant No. Amount Description

Xylem Water Solutions 62632 3,482.03 Repair & Maintenance Services and/or Supplies Yorba Linda Water District 62439 51.60 Utilities Total Accounts Payable - Warrants $ 7,670,989.46

Payroll Disbursements Employee Paychecks 52653 - 52688 $ 79,400.79 Biweekly Payroll (1/22/14) Employee Paychecks 52689 3,543.24 Interim Payroll - Resignation - Hours (1/16/14) Employee Paychecks 52690 2,779.24 Interim Payroll - Resignation - Accruals (1/16/14) Employee Paychecks 52691 - 52696 5,452.01 Interim Payroll - OCERS Overcharge (1/21/14) Employee Paychecks 52697 2,359.10 Interim Payroll - Re-issue Direct Deposit as check (1/26/14) Employee Paychecks 52698 2,276.59 Interim Payroll - Re-issue Direct Deposit as check (1/27/14) Employee Paychecks 52699 - 52720 3,636.75 Interim Payroll - ARBA (1/31/14) Employee Paychecks 52721 - 52723 2,824.32 Interim Payroll - Correct for underpayment (1/29/14) Direct Deposit Statements 348967 - 349528 1,406,545.02 Biweekly Payroll (1/22/14) Direct Deposit Statements 349529 - 349712 32,466.00 Interim Payroll - ARBA (1/31/14) Total Payroll Disbursements $ 1,541,283.06

Wire Transfer Payments OCSD Payroll Taxes & Contributions $ 878,958.92 Biweekly Payroll (1/22/14) Union Bank of California 101,892.82 Workers' Compensation Services (1/28/14) W.M Lyles 1,241,219.65 Construction P2-89/PP13 (1/23/14) W.M Lyles 1,217,983.60 Construction P1-101/PP12 (1/30/14) Total Wire Transfer Payments $ 3,440,054.99

Total Claims Paid 1/16/14 - 1/31/14 $ 12,652,327.51

EXHIBIT B fin/210/lr Page 8 of 8 2/5/2014 02/19/2014 KL ORANGE COUNTY SANITATION DISTRICT ITEM NO. 3 CURRENT COMMITTEES

GWRS JOINT COOPERATIVE STEERING COMMITTEE (7) STEERING COMMITTEE

Troy Edgar, Board Chair Troy Edgar Tom Beamish, Board Vice-Chair Tom Beamish John Nielsen, Chair, Operations Committee Jim Ferryman Brad Reese, Chair, Administration Committee Keith Curry, Member-At-Large (A1) – Brett Murdock Brett Murdock, Member-At-Large (A2) – John Nielsen John Withers, Member-At-Large (A3) – Greg Sebourn ADMINISTRATION COMMITTEE (14) AUDIT AD HOC COMMITTEE (4) Brad Reese, Chair (Villa Park) John Withers, Vice Chair (IRWD) John Nielsen (Tustin) David Benavides (Santa Ana) Troy Edgar, Board Chair (Los Alamitos) Joe Carchio (Huntington Beach) John Withers (IRWD) Steven Choi (Irvine) --VACANCY-- Tyler Diep (MCSD) Jim Ferryman (CMSD) Gene Hernandez (Yorba Linda) LEGISLATIVE AND PUBLIC AFFAIRS Peter Kim (La Palma) SPECIAL COMMITTEE (7) 8/28/2013 Prakash Narain (Cypress) Janet Nguyen (Board of Supervisors) Troy Edgar (Los Alamitos) Teresa Smith (Orange) Tom Beamish (La Habra) Troy Edgar, Board Chair (Los Alamitos) David Benavides (Santa Ana) Tom Beamish, Board Vice Chair (La Habra) John Nielsen (Tustin) OPERATIONS COMMITTEE (13) Brad Reese (Villa Park) John Withers (IRWD) --VACANCY-- John Nielsen, Chair (Tustin) Brett Murdock, Vice-Chair (Brea) Keith Curry (Newport Beach) SAWPA JOINT POLICY COMMITTEE Steve Jones (Garden Grove) Lucille Kring (Anaheim) Troy Edgar (Los Alamitos) Michael Levitt (Seal Beach) Tom Beamish (La Habra) Steve Nagel (Fountain Valley) Scott Nelson (Placentia) Greg Sebourn, (Fullerton) David Shawver (Stanton) Fred Smith (Buena Park) Troy Edgar, Board Chair (Los Alamitos) Tom Beamish, Board Vice Chair (La Habra)

Board Delegate to Santa Ana River Flood Protection Agency (SARFPA) - Jim Ferryman Board Delegate to Orange County Council of Governments (OCCOG) – Jim Ferryman Board Delegate to National Water Research Institute (NWRI) – Jim Ferryman ITEM NO. 4

Orange County Sanitation District MINUTES BOARD MEETING January 22, 2014

Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018

01/22/2014 Minutes of Board Meeting Page 1 of 8 ROLL CALL

A regular meeting of the Board of Directors of the Orange County Sanitation District was held on January 22, 2014, at 6:30 p.m., in the Administration Building. Director Teresa Smith delivered the invocation and led the Pledge of Allegiance.

Maria Ayala, Clerk of the Board, announced the revisions to Agenda Item No. 1 as indicated below:

1. MOVED, SECONDED, AND DULY CARRIED: Receive and file Minute Excerpts of member agencies relating to appointments to the Orange County Sanitation District Board, REVISED by the Clerk of the Board as follows:

City / Agency Active Director Alternate Director Anaheim Lucille Kring Jordan Brandman Cypress Prakash Narain Doug Bailey Fountain Valley Steve A. Nagel Michael Vo Huntington Beach Joe Carchio Dave Sullivan Irvine Steven Choi Christina Shea La Habra Tom Beamish Rose Espinoza Los Alamitos Troy Edgar Richard Murphy Midway City Sanitary Tyler Diep Al Krippner Newport Beach Rush Hill Keith Curry Newport Beach Keith Curry Rush Hill Placentia Scott Nelson Constance Underhill Santa Ana David Benavides Sal Tinajero Seal Beach Michael Levitt Gordon Shanks Stanton David Shawver Carol Warren Tustin John Nielsen Allan Bernstein Yorba Linda Gene Hernandez John Anderson Added the following appointments: Brea Brett Murdock Roy Moore Fullerton Greg Sebourn Jan Flory La Palma Peter Kim Gerard Goedhart Orange Teresa Smith Mark Murphy

AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep, Ferryman; Hernandez; Kim; Kring; Murdock; Murphy (Alternate); Nagel; Narain; Nguyen; Nielsen; Reese; Sebourn; Shawver; F. Smith; T. Smith; Underhill (Alternate); and Withers

NOES: None

ABSTENTIONS: None

ABSENT: Edgar and Jones 01/22/2014 Minutes of Board Meeting Page 2 of 8 The Clerk of the Board declared a quorum present as follows:

ACTIVE DIRECTORS ALTERNATE DIRECTORS

Troy Edgar, Chair X Richard Murphy X Tom Beamish, Vice Chair Rose Espinoza X David Benavides Sal Tinajero X Steven Choi Christina Shea X Rush Hill Keith Curry X Tyler Diep Al Krippner X James M. Ferryman Bob Ooten X Gene Hernandez John Anderson X Steven Jones Kris Beard X Peter Kim Gerard Goedhart X Lucille Kring Jordan Brandman A Michael Levitt Gordon Shanks X Brett Murdock Roy Moore X Steve Nagel Michael Vo X Prakash Narain Doug Bailey Scott Nelson X Constance Underhill X Janet Nguyen Shawn Nelson X John Nielsen Jerry Amante X Brad Reese Greg Mills X Gregory Sebourn Jan Flory X Joe Carchio Dave Sullivan X David Shawver Carol Warren X Fred Smith Steve Berry X Teresa Smith Mark Murphy X John Withers Douglas Reinhart

STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Bob Ghirelli, Assistant General Manager; Nick Kanetis, Director of Engineering, Nick Arhontes, Director of Facilities Support Services; Ed Torres, Director of Operations and Maintenance; Lorenzo Tyner, Director of Finance & Administrative Services; Jeff Reed, Director of Human Resources; Maria E. Ayala, Clerk of the Board; Bob Bell; Mark Boyd; Jennifer Cabral; Jim Colston; Norbert Gaia; Mark Kawamoto; Kelly Lore; Faviola Miranda; Andrew Nau; Rich Spencer; and Paula Zellar.

OTHERS PRESENT: Brad Hogin, General Counsel; and Mike Moore, representative from the Water Environment Federation and the National Biosolids Partnership.

01/22/2014 Minutes of Board Meeting Page 3 of 8 PUBLIC COMMENTS:

None.

REPORTS:

Tom Beamish, Vice-Chair, reported that Chair Edgar is out of town and will not be at tonight’s meeting. He announced that he and Chair Edgar will be meeting with SAWPA representatives on February 4th.

Jim Herberg, General Manager, provided the following updates from his General Manager’s Monthly Update Report: District’s budget kickoff for the new two-year budget; mid-year work plan updates: completion of SAWPA arbitration, development of a new 5- year strategic plan, and transfer of local sewers in Tustin area.

Mr. Herberg also reported that in December, the District sold excess air pollution emission credits in the amount of $345,000. In 2008 the Board authorized the General Manager to sell these credits, and since then the District has generated over $4 million in revenue. AQMD has now issued a moratorium on sales of these credits.

Vice-Chair Beamish announced that Board Agenda Item No. 8 would be moved out of order, and addressed at this time.

8. OCSD Certified Biosolids Program, 10th Anniversary

Mr. Herberg, General Manager, introduced Mike Moore, representative from the Water Environment Federation and the National Biosolids Partnership. Mr. Moore presented the Sanitation District with the National Biosolids Partnership’s Platinum Level Award.

Ed Torres, Director of Operations and Maintenance, presented the following service awards to OCSD employees:

- Mark Boyd, Plant Operator, 25 Years of Service - Bob Bell, Maintenance Supervisor, 20 Years of Service

Vice-Chair Beamish announced that a Certificate of Appreciation would be presented to outgoing Director, Joe Shaw, at February’s Board Meeting.

01/22/2014 Minutes of Board Meeting Page 4 of 8 RATIFICATION OF PAYMENT OF CLAIMS:

2. MOVED, SECONDED, AND DULY CARRIED: Ratify payment of claims of the District, by roll call vote, as follows:

Claims Paid for the Period Ending: 12/15/13 12/31/13 Totals $9,525,558.70 $7,131,861.58

AYES: Beamish; Benavides; Choi; Diep, Ferryman; Hernandez; Kim; Kring; Murdock; Murphy (Alternate); Nagel; Narain; Reese; F. Smith; T. Smith; Underhill (Alternate); and Withers

NOES: None

ABSTENTIONS: Carchio; Curry; Nguyen; Nielsen; Sebourn; and Shawver

ABSENT: Edgar and Jones

CONSENT CALENDAR:

3. MOVED, SECONDED, AND DULY CARRIED: Approve minutes for the Regular Board Meeting held on December 18, 2013.

AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep, Ferryman; Hernandez; Kim; Kring; Murdock; Murphy (Alternate); Nagel; Narain; Nguyen; Nielsen; Reese; Sebourn; Shawver; F. Smith; Underhill (Alternate); and Withers

NOES: None

ABSTENTIONS: T. Smith

ABSENT: Edgar and Jones

4. MOVED, SECONDED, AND DULY CARRIED: Adopt Resolution No. OCSD 14- 01 a resolution Establishing the Policies and Procedures for the Approval of Plans, Design, and Specifications for Public Works Projects.

AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep, Ferryman; Hernandez; Kim; Kring; Murdock; Murphy (Alternate); Nagel; Narain; Nguyen; Nielsen; Reese; Sebourn; Shawver; F. Smith; T. Smith; Underhill (Alternate); and Withers

01/22/2014 Minutes of Board Meeting Page 5 of 8 NOES: None

ABSTENTIONS: None

ABSENT: Edgar and Jones

5. MOVED, SECONDED, AND DULY CARRIED:

A. Approve Steve Filarsky, Filarsky & Watt LLP, to provide labor relations consulting services and to be the chief negotiator on behalf of OCSD for the upcoming OCEA and Local 501 MOU negotiations; and

B. Authorize the General Manager to negotiate and enter into a consulting services agreement with Filarsky & Watt LLP for labor relations consulting services for a term of six months, at an hourly rate of $290 per hour, at a maximum cost of $29,000, in a form approved by General Counsel.

AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep, Ferryman; Hernandez; Kim; Kring; Murdock; Murphy (Alternate); Nagel; Narain; Nguyen; Nielsen; Reese; Sebourn; Shawver; F. Smith; T. Smith; Underhill (Alternate); and Withers

NOES: None

ABSTENTIONS: None

ABSENT: Edgar and Jones

STEERING COMMITTEE:

6. MOVED, SECONDED, AND DULY CARRIED: Approve Minutes of the December 18, 2013 Steering Committee Meeting.

AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep, Ferryman; Hernandez; Kim; Kring; Murdock; Murphy (Alternate); Nagel; Narain; Nguyen; Nielsen; Reese; Sebourn; Shawver; F. Smith; Underhill (Alternate); and Withers

NOES: None

ABSTENTIONS: T. Smith

ABSENT: Edgar and Jones

01/22/2014 Minutes of Board Meeting Page 6 of 8 LEGISLATIVE AND PUBLIC AFFAIRS SPECIAL COMMITTEE:

7. MOVED, SECONDED, AND DULY CARRIED: Receive and file the minutes of the January 13, 2014 meeting of the Legislative and Public Affairs Special Committee.

AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep, Ferryman; Hernandez; Kim; Kring; Murdock; Murphy (Alternate); Nagel; Narain; Nguyen; Nielsen; Reese; Sebourn; Shawver; F. Smith; T. Smith; Underhill (Alternate); and Withers

NOES: None

ABSTENTIONS: None

ABSENT: Edgar and Jones

INFORMATION ITEMS:

8. OCSD Certified Biosolids Program, 10th Anniversary

Item addressed at the beginning of the meeting.

CLOSED SESSION

CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54956.9(d)(1).

The Board convened in closed session at 6:52 p.m. to discuss one item. Confidential Minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings.

Director Jones arrived at the meeting at 7:05 p.m. during closed session.

RECONVENE IN REGULAR SESSION: The Board reconvened in regular session at 7:16 p.m.

01/22/2014 Minutes of Board Meeting Page 7 of 8 CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION:

Brad Hogin, General Counsel, reported the following from closed session:

The Board approved a settlement agreement on the Mladen Buntich v. Orange County Sanitation District, Case No. RIC 1201005. The material terms are as follows:

- Insurance carriers to pay $13 million to OCSD for property damage claims; - Black and Veatch to pay $600,000 to OCSD for property damage claims; - OCSD to pay to contractor $216,942 to settle delay claims unrelated to property damage claims.

Vote:

AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep, Ferryman; Hernandez; Jones; Kim; Kring; Murdock; Murphy (Alternate); Nagel; Narain; Nguyen; Nielsen; Reese; Sebourn; Shawver; F. Smith; T. Smith; Underhill (Alternate); and Withers

NOES: None

ABSTENTIONS: None

ABSENT: Edgar

OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY:

Mr. Herberg announced that OCSD 60th Anniversary commemorative lapel pins were being distributed tonight. Also, in honor of the District’s 60th Anniversary, the District will be hosting a VIP Breakfast in the near future. Mr. Herberg invited all to sign a banner- sized 60th Anniversary “card” for the District.

ADJOURNMENT:

The Vice-Chair adjourned the meeting at 7:20 p.m. until the next Regular Board Meeting on February 26, 2014 at 6:30 p.m.

______Maria E. Ayala, Clerk of the Board

01/22/2014 Minutes of Board Meeting Page 8 of 8 Meeting Date To Bd. of Dir. BOARD OF DIRECTORS -- 02/26/14 Item Number Item Number AGENDA REPORT -- 5 Orange County Sanitation District

FROM: James D. Herberg, General Manager Originator: Robert P. Ghirelli, Assistant General Manager

SUBJECT: RESOLUTION NO. OCSD 14-02 COMMENDING JOHN ANDERSON

GENERAL MANAGER'S RECOMMENDATION

Adopt Resolution No. OCSD 14-02, a Resolution of the Board of Directors of the Orange County Sanitation District commending John Anderson for his outstanding contributions and dedication to public service as Vice-Chair of the Orange County Sanitation District Board of Directors.

SUMMARY

The Sanitation District wishes to acknowledge former Board Vice-Chair John Anderson (City of Yorba Linda) for his many contributions to the Sanitation District during his tenure as member of the Board of Directors.

The resolution is a formal commendation recognizing his term, the different positions he held, and the accomplishments he contributed towards while on the Board.

PRIOR COMMITTEE/BOARD ACTIONS

None

ADDITIONAL INFORMATION

None

CEQA

N/A

BUDGET / DELEGATION OF AUTHORITY COMPLIANCE

N/A

ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package:

• Resolution No. OCSD 14-02

Page 1 of 1 Return to Agenda Report

OCSD 14-02

O RANGE COUNTY SANITATION DISTRICT Resolution of Commendation

A Resolution of the Board of Directors of the Orange County Sanitation District commending John Anderson fork his outstanding contributions and dedication to public service as Vice-Chair of the Orange County Sanitation District Board of Directors

Whereas, John Anderson served as Vice-Chair of the Orange County Sanitation District Board of Directors from December 2008 through November 2013; and,

Whereas, John Anderson provided leadership and vision as the Chair of the Board of Director’s Administration Committee, and member of the Steering Committee, Legislative and Public Affairs Committee, GWRS Joint Cooperative Steering Committee, and Audit Ad Hoc Committee; and,

Whereas, John Anderson contributed to the successful completion of the $600 million Secondary Treatment Program and USEPA consent decree resulting in 100 percent of the wastewater entering OCSD receiving a higher level of treatment; and,

Whereas, John Anderson was instrumental in guiding the District’s efforts in local, regional, state and federal forums; and,

Whereas, John Anderson played a key role in OCSD’s partnership with OCWD to expand GWRS for a 40% increase in water recycling; and,

Whereas, John Anderson represented the District, its board members, employees and ratepayers with a generous commitment of his time, professional dignity, pride, enthusiasm, and genuine caring spirit.

Now, therefore, the Board of Directors of the Orange County Sanitation District does hereby resolve that the Directors and staff of the Orange County Sanitation District express to John Anderson their sincere appreciation for his outstanding public service to the citizens of Orange County, and his meritorious efforts on behalf of the District and its program of public health and environmental protection.

Passed and adopted by unanimous acclamation at the regular meeting of said Board held on February 26, 2014.

______Troy Edgar, Chairman of the Board

______James D. Herberg, General Manager

______Maria E. Ayala, Clerk of the Board Meeting Date To Bd. of Dir. BOARD OF DIRECTORS -- 02/26/14 Item Number Item Number AGENDA REPORT -- 6 Orange County Sanitation District

FROM: James D. Herberg, General Manager Originator: Nick Kanetis, Director of Engineering

SUBJECT: NEWPORT FORCE MAIN REHABILITATION, PROJECT NO. 5-60

GENERAL MANAGER'S RECOMMENDATION

A. Approve a sole source agreement with Charles P. Crowley Co., for the purchase and installation support of pump station equipment to support Newport Force Main Rehabilitation, Project No. 5-60, for an amount not to exceed $340,000; and

B. Approve a contingency of $34,000 (10%).

SUMMARY

As part of the Newport Force Main Rehabilitation, Project No. 5-60 (Force Main Project), one of the two force main pipelines connecting the Newport Beach Pump Station system will be removed from service for extended periods of time for rehabilitation. This will place added demands on the Bay Bridge Pump Station to be able to pump wet weather flows reliably during this interim condition estimated to last for two years. To mitigate risks regarding capacity and reliability during wet weather events, an additional pump will be added to this station to provide reliable pumping capacity.

The new pump will be added to a system consisting of multiple existing pumps with a common discharge pipeline. As such, this new pump must match the existing pumps and have the same hydraulic pump characteristics to operate as a system. Charles P. Crowley Co. is the sole authorized company for the necessary pump. The pump package will include the pump, motor, variable frequency electric drive (VFD) and other mechanical appurtenances to assure compatibility with the pump, the geometry of the existing pump station and provide unit responsibility with the pump supplier. This package also includes startup and testing assistance necessary to commission the pump.

This equipment is intended to be provided to the Contractor of the Force Main Project for installation. To have the reliability in-place prior to next year’s winter season, timing of this purchase is critical to support the project’s construction schedule.

Page 1 of 2 Due to the critical schedule and long manufacture time of the equipment, this pre- purchase is being recommended separately from the Force Main Project’s bid in order to mitigate schedule and cost risks associated with this procurement. The costs were reviewed and appear to be fair and reasonable for the equipment and services being provided.

PRIOR COMMITTEE/BOARD ACTIONS

None.

ADDITIONAL INFORMATION

The purpose of Project No. 5-60, Newport Force Main Rehabilitation, is to rehabilitate the Newport Force Main system located on Pacific Coast Highway in Newport Beach between Bitter Point Pump Station and Dover Drive. The project will use various rehabilitation methods, including cured-in-place pipe rehabilitation, open cut method replacement, and tunneling for replacement of pipe in difficult-to access locations. More than half of the force main system will be rehabilitated rather than replaced to minimize impacts to the community, businesses, tourism, and the environment.

CEQA

The Newport Force Main Rehabilitation, Project No. 5-60, is within the scope of the Program Environmental Impact Report (PEIR) for the Collection System Improvement Plan, SCH #2006101018, certified in August 2007. Pursuant to CEQA Guidelines section 15168(c)(4), the Orange County Sanitation District (Sanitation District) is preparing an addendum to the PEIR to cover the greenhouse gas emissions section which was not included in the original PEIR.

BUDGET/DELEGATION OF AUTHORITY COMPLIANCE

This request complies with authority levels of the Sanitation District’s Delegation of Authority. This item has been budgeted (FY2013-14 Update, Page A-7, Item 24) and the budget is sufficient for the recommended action.

Date of Approval Contract Amount Contingency 02/26/14 $340,000 $34,000 (10%)

ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package:

• Sole Source Agreement • Photos of the proposed pump location within Bay Bridge Pump Station

MD:dm:gc

Page 2 of 2 Return to Agenda Report

EQUIPMENT PURCHASE AND SERVICES CONTRACT Bay Bridge Lift Station Additional Pump and Varriable Frequency Drive (VFD) Project No.5-60

THIS CONTRACT is made and entered into as of the date fully executed below by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708-7018 (hereinafter referred to as "OCSD") and Charles P. Crowley Company with a principal business at 15861 Business Center Drive, Irwindale, CA 91706 (hereinafter referred to as “Vendor”) collectively referred to as the “Parties”.

W I T N E S S E T H

WHEREAS, OCSD desires to purchase the equipment (“Equipment”) and retain the installation oversight services (“Services”) of Vendor as described in the attached Specifications (Exhibit “A”); and

WHEREAS, OCSD has chosen Vendor to conduct Services in accordance with Ordinance No. OCSD-44; and

WHEREAS, on February 26, 2014, the Board of Directors of OCSD, by minute order, authorized execution of this Contract between OCSD and Vendor; and

WHEREAS, Vendor is qualified by virtue of experience, training, and education and expertise to accomplish such Services,

NOW THEREFORE, in consideration of the promises and mutual benefits exchanged between the Parties, it is mutually agreed as follows:

1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and Vendor. The Terms and Conditions herein exclusively govern the purchase of Services as described in the Specifications, attached hereto and incorporated herein by reference as Exhibit “A”.

1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibits to this Contract are as follows in order of precedence:

Exhibit “A” Scope of Work/Technical Specifications Exhibit “B” Final Quote, dated January 28, 2014 Exhibit “C” Acknowledgement of Insurance Requirements

1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control.

1.4 The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto.

1.5 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any Paragraph or provision hereof.

Orange County Sanitation District 1 of 7 Project No.5-60 Return to Agenda Report

1.6 The term “work”, when used in this Contract, shall mean all the work specified in the Contract Documents necessary to complete the requirements of the Contract, including the furnishing of all Services and Equipment.

1.7 The term “days”, when used in this Contract, shall mean calendar days, unless otherwise noted as business days.

1.8 OCSD holidays (non-working days) are as follows: New Year’s Day, Lincoln’s Birthday, Presidents’ Day Monday, Memorial Day Monday, Independence Day, Labor Day Monday, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day.

1.9 Vendor shall provide OCSD with all required premiums and/or overtime work at no charge beyond the price provided under “Compensation” below.

1.10 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Vendor as a result of work performed in anticipation of purchases of said Services by OCSD.

2. Compensation Compensation for this project shall not exceed the total amount of Three Hundred Thirty-eight Thousand Nine Hundred Twelve and 56/00 Dollars ($338,912.56).

3. Payments 3.1 Payments shall be made upon approval by OCSD Project Manager, Martin Dix or his designee, of invoices submitted for all Equipment provided and Services completed.

• $306,521.56 paid upon delivery and acceptance of all Equipment • $32,391.00 to be paid upon completion of certification and testing; Services.

3.2 OCSD, at its sole discretion, shall be the determining party as to whether the tasks and deliverables for each milestone have been satisfactorily completed.

4. Invoices 4.1 OCSD shall pay within 30 days of completion and receipt and approval by OCSD Project Manager of an itemized invoice, in a form acceptable to OCSD to enable audit of the charges thereon.

4.2 Invoices shall be emailed by Vendor to OCSD Accounts Payable at [email protected] and the Purchase Order number and “Project No.5-60” shall be referenced in the subject line.

5. Audit Rights Vendor agrees that, during the term of this Contract and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Vendor relating to the invoices submitted by Vendor pursuant to this Contract.

6. Exception OCSD hereby takes exception under Exhibit “B”, Exclusions, bullet seven, finance charges. OCSD shall not pay finance charges or fees.

7. Freight (F.O.B. Destination) Vendor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract.

Orange County Sanitation District 2 of 7 Project No.5-60

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8. Scope of Work Subject to the terms of this Contract, Vendor shall provide all equipment and perform the Services identified in Exhibits “A” and “B”. All Services associated with the performance of this Contract shall be done in accordance with generally accepted industry and professional standards.

9. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties.

10. Contract Term Equipment purchased under this Contract shall be delivered within 180 days from the date of notice to proceed. All Services performed under this Contract shall be completed by February 1, 2015.

11. Extensions The Term of this Contract may be extended only by written instrument signed by both Parties.

12. Termination 12.1 OCSD reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD, (delivered by certified mail, return receipt requested) of intent to terminate. Upon receipt of a termination notice, Vendor shall immediately discontinue all work under this Contract (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Vendor for work performed (cost and fee) to the date of termination. Vendor expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and release OCSD from any further fee, cost or claim hereunder by Vendor other than for work performed to the date of termination.

12.2 OCSD reserves the right to terminate this Contract immediately upon OCSD’s determination that Vendor is not meeting specification requirements, if the level of service is inadequate, or any other default of this Contract.

12.3 OCSD may also immediately cancel for default of this Contract in whole or in part by written notice to Vendor:

. if Vendor becomes insolvent or files a petition under the Bankruptcy Act; or . if Vendor sells its business; or . if Vendor breaches any of the terms of this Contract; or . if total amount of compensation exceeds the amount authorized under this Contract.

12.4 All OCSD property in the possession or control of Vendor shall be returned by Vendor to OCSD upon demand, or at the termination of this Contract, whichever occurs first.

13. Insurance Vendor and all subcontractors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements, Exhibit “C“. Vendor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OCSD, nor shall Vendor allow any subcontractor to commence services pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract.

Orange County Sanitation District 3 of 7 Project No.5-60 Return to Agenda Report

14. Indemnification and Hold Harmless Provision Vendor agrees to save, indemnify, defend and hold harmless OCSD against any and all liability, claims, judgments, cost and demands, including demands arising from injuries or death of persons and damage to property, arising directly or indirectly out of the negligence or willful misconduct of Vendor, its employees or agents, in relation to the rendition of services pursuant to this Contract, except claims or litigations arising through the sole negligence or willful misconduct of OCSD. Vendor agrees to reimburse OCSD for any expenditure, including reasonable attorney’s fees, OCSD may incur by reason of such matters, and, if requested by OCSD, will defend any such suits at the cost and expense of Vendor.

15. Warranty 15.1 Manufacturer’s standard warranty shall apply. All manufacturer warranties will begin at date of completion of this Contract or 120 days after delivery.

15.2 Vendor’s warranty: If, within the 12-month period following completion of its Services, OCSD informs Vendor that any part of the Services fails to meet the standards required under this Contract, Vendor shall, within the time agreed to by OCSD and Vendor, take all such actions as are necessary to correct or complete the noted deficiency(ies).

16. Force Majeure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Contract.

17. Independent Contractor It is agreed that Vendor shall act and be an independent contractor and not an agent or employee of OCSD, and shall obtain no rights to any benefits which accrue to OCSD’s employees.

18. Limitations upon Subcontracting and Assignment Vendor shall not delegate any duties nor assign any rights under this Contract without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void.

19. Licenses, Permits, Ordinances and Regulations Vendor represents and warrants to OCSD that it has obtained all licenses, permits, qualification and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by State, County, City and/or municipal laws, codes and/or tariffs that pertain to work performed under the terms of this Contract will be paid by Vendor.

20. Applicable Laws and Regulations Vendor shall comply with all applicable federal, state, and local laws, rules, and regulations. Vendor also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OCSD as a result of Vendor’s noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically referenced.

21. Familiarity with Work By executing this Contract, Vendor warrants that: 1) it has investigated the work to be performed; 2) it has investigated the site of the work and is aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the work under this Contract. Should Vendor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except at Vendor’s risk, until written instructions are received from OCSD.

Orange County Sanitation District 4 of 7 Project No.5-60 Return to Agenda Report

22. Public Contracts Law OCSD 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. Vendor agrees that not less than said prevailing rates shall be paid to workers employed on this project as required by Labor Code Section 1774 of the State of California.

23. Governing Law This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Contract or the performance thereof.

24. Dispute Resolution 24.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process.

24.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein.

25. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Contract, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Vendor to which OCSD does not object shall not operate as a waiver of OCSD’s rights to seek remedies available to it for any subsequent breach.

26. Remedies In addition to other remedies available in law or equity, if the Vendor fails to make delivery of the goods or Services or repudiates its obligations under this Agreement, or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1) cancel the Agreement; (2) recover whatever amount of the purchase price OCSD has paid, and/or (3) “cover” by purchasing, or contracting to purchase, substitute goods or Services for those due from Vendor.

27. Severability If any section, subsection, or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties.

Orange County Sanitation District 5 of 7 Project No.5-60

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28. Survival The provisions of this Contract dealing with Payment, Warranty, and Forum for Enforcement, shall survive termination or expiration of this Contract.

29. Disclosure Vendor agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OCSD.

30. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OCSD and Vendor.

31. Damage to OCSD’s Property Any of OCSD’s property damaged by Vendor, any subcontractors or by the personnel of either will be subject to repair or replacement by Vendor at no cost to OCSD.

32. OCSD Safety and Human Resources Policies OCSD requires all contractors, vendors and service providers to follow and ensure their employees and all subcontractors follow all State and Federal regulations as well as OCSD requirements while working at OCSD locations. If during the course of a contract it is discovered that OCSD policies, safety manuals, or contracts do not comply with State or Federal regulations then the Vendor is required to follow the most stringent regulatory requirement at no cost to OCSD. Vendor and all their employees and subcontractors, shall adhere to all applicable OCSD Safety and Human Resources Policies found at: OCSD.com, “Doc Central” (bottom of page), under “Safety”.

33. Attorney’s Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled.

34. South Coast Air Quality Management District’s (SCAQMD) Requirements It is Vendor’s responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All contract work practices, which may have associated emissions such as sandblasting, open field spray painting or demolition of asbestos containing components or structures, shall comply with the appropriate rules and regulations of the SCAQMD.

35. Regulatory Requirements Vendor shall perform all work under this Contract in strict conformance with applicable federal, state, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, and 261, Title 22, 23, and California Water Codes Division 2.

36. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound.

37. Read and Understood By signing this Contract, Vendor represents that he has read and understood the terms and conditions of the Contract.

38. Entire Agreement This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof.

Orange County Sanitation District 6 of 7 Project No.5-60 Return to Agenda Report

39. Notices All notices under this Contract must be in writing. Written notice shall be delivered by personal service or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address or which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses:

OCSD: Clarice M. Marcin Senior Contracts Administrator Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018

Vendor: Charles P. Crowley Company ______

IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives.

ORANGE COUNTY SANITATION DISTRICT

Dated: By: ______Chair Board of Directors

Dated: By: ______Clerk of the Board

Dated: By: ______Contracts/Purchasing Manager

CHARLES P. CROWLEY COMPANY

Dated: By: ______

______Print Name and Title of Officer

______IRS Employer’s I.D. Number

Orange County Sanitation

Orange County Sanitation District 7 of 7 Project No.5-60 Return to Agenda Report 2/18/2014

New Pump Motor

Discharge Piping

1 Return to Agenda Report 2/18/2014

Suction Piping

New Pump Base

2 Meeting Date To Bd. of Dir. BOARD OF DIRECTORS -- 02/26/14 Item Number Item Number AGENDA REPORT -- 7 Orange County Sanitation District

FROM: James D. Herberg, General Manager Originator: Nick Kanetis, Director of Engineering

SUBJECT: LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVE CORRIDOR, PROJECT NO. FE10-19

GENERAL MANAGER'S RECOMMENDATION

A. Approve Plans and Specifications for Landscaping and Miscellaneous Improvements along Ellis Ave Corridor, Project No. FE10-19; and

B. Approve Addendum No. 1 to the plans and specifications; and

C. Receive and file bid tabulation and recommendation; and

D. Receive and file Award Protest from Green Building Corporation dated January 27, 2014 concerning the award to ACE CD, Inc.; and

E. Receive and file Orange County Sanitation District’s determination letter dated January 29, 2014 to Green Building Corporation responding to Award Protest; and

F. Deny Award Protest filed by Green Building Corporation; and

G. Receive and file Appeal Letter from Lax & Stevens representing Green Building Corporation dated February 4, 2014 concerning the award protest determination; and

H. Receive and file Response Letter from ACE CD, Inc. dated February 11, 2014 concerning the Appeal Letter from Lax & Stevens; and

I. Receive and file Orange County Sanitation District’s determination letter dated February 11, 2014 to Green Building Corporation responding to Appeal Letter; and

J. Award a construction contract to ACE CD, Inc. for the Landscaping and Miscellaneous Improvements along Ellis Ave Corridor, Project No. FE10-19, for a total amount not to exceed $403,650; and

K. Approve a contingency of $40,365 (10%).

Page 1 of 3 SUMMARY The Landscaping and Miscellaneous Improvements along Ellis Ave Corridor, Project No. FE10-19, will provide landscaping improvements along the north perimeter of Plant No. 1, including installation of trees, groundcover, and associated irrigation. The landscaping improvements are focused on planting trees along the north perimeter of Orange County Sanitation District (Sanitation District) facilities for both visual and olfactory screening. The large eucalyptus trees that had been providing the screening were removed amid concerns that the trees were either diseased and decayed or prone to root impairment by construction of the north perimeter wall. In 2011, the City of Newport Beach inspected its eucalyptus trees for potential safety risks, resulting in the removal of more than one hundred trees. The Sanitation District also performed an inspection on the eucalyptus trees along Ellis Avenue. It was determined that dozens of eucalyptus trees posed a safety risk and these trees were removed. This project provides for new pine trees to take the place of the removed eucalyptus trees.

The project also provides for the construction of storm drain improvements in the same area. This work was designed by RBF Consulting, Inc. and the design was completed in November 2013.

The Sanitation District advertised for bids on November 19, 2013. Four sealed bids were received on January 7, 2014. The bids were evaluated in accordance with the Sanitation District policies and procedures. DD Systems, Inc., dba ACE CD, Inc., was deemed the lowest responsive, responsible bidder.

Staff recommends awarding a construction contract to ACE CD, Inc. for Landscaping and Miscellaneous Improvements along Ellis Ave Corridor, Project No. FE10-19, for a total amount not to exceed $403,650.

Summary information on the bid opening for the Landscaping and Miscellaneous Improvements along Ellis Ave Corridor, Project No. FE10-19, is as follows:

Project Budget $998,545 Construction Contract Budget $505,000 Engineer’s Estimate $475,000 Lowest Responsive, Responsible Bid $403,650 High Bid $510,000

Bidder Amount of Bid DD Systems, Inc. dba ACE CD, Inc. $403,650 C.S. Legacy Construction, Inc. $416,804 Green Building Corporation $436,000 STL Landscaping $510,000

Green Building Corporation, the third low bidder, filed an Award Protest dated January 27, 2014 alleging irregularities with the bid documents submitted by the two low bidders. Staff reviewed and considered in detail the matters raised in the Award Protest.

Page 2 of 3 Staff determined that the protest did not merit a change to the award recommendation, and issued a formal Response to Award Protest on January 29, 2014.

Lax & Stevens, law firm representing Green Building Corporation, filed an Appeal Letter dated February 4, 2014 contending Sanitation District’s award protest determination. The Appeal Panel reviewed and considered in detail the matters raised in the Appeal Letter. The Appeal Panel determined that the appeal did not merit a change to the award recommendation, and issued a formal Response to Appeal on February 11, 2014.

PRIOR COMMITTEE/BOARD ACTIONS

None.

ADDITIONAL INFORMATION

None.

CEQA

A Notice of Exemption was filed and recorded on October 27, 2011.

BUDGET/DELEGATION OF AUTHORITY COMPLIANCE

This request complies with authority levels of the Sanitation District’s Delegation of Authority. This item has been budgeted as part of the Plant 1 Facilities Engineering budget (Line item: FY 2013-14 Update, Page A-11) and the budget is sufficient for the recommended action.

Date of Approval Contract Amount Contingency 02/26/14 $403,650 $40,365 (10%)

ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package and attachments:

• Construction Contract • Green Building Corporation Award Protest dated January 27, 2014 • Sanitation District’s response letter to Green Building Corporation’s Award Protest dated January 29, 2014 • Lax & Stevens’ Appeal Letter representing Green Building Corporation dated February 4, 2014 • ACE CD, Inc.’s response letter to Green Building Corporation’s Appeal dated February 11, 2014 • Sanitation District’s response letter to Green Building Corporation’s Appeal dated February 11, 2014

JM:dm:gc

Page 3 of 3 Return to Agenda Report

Attachment 1

PART A CONTRACT AGREEMENT

C-CA-071913 TABLE OF CONTENTS CONTRACT AGREEMENT

SECTION – 1 GENERAL CONDITIONS ...... 1 SECTION – 2 MATERIALS AND LABOR ...... 4 SECTION – 3 PROJECT ...... 5 SECTION – 4 PLANS AND SPECIFICATONS ...... 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 ...... 8 SECTION – 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS ...... 10 SECTION – 13 COMPLETION ...... 10 SECTION – 14 CONTRACTOR’S EMPLOYEES COMPENSATION ...... 10 SECTION – 15 SURETY BONDS ...... 13 SECTION – 16 INSURANCE ...... 14 SECTION – 17 RISK AND INDEMNIFICATION ...... 21 SECTION – 18 TERMINATION ...... 22 SECTION – 19 WARRANTY ...... 22 SECTION – 20 ASSIGNMENT ...... 22 SECTION – 21 RESOLUTION OF DISPUTES ...... 23 SECTION – 22 SAFETY & HEALTH ...... 23 SECTION – 23 NOTICES ...... 24

C-CA-071913 Return to Agenda Report

CONTRACT AGREEMENT

ORANGE COUNTY SANITATION DISTRICT

PROJECT NO. FE10-19

LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR

THIS AGREEMENT is made and entered into, to be effective, this February 26, 2014, by and between DD Systems, Inc. dba ACE CD, Inc., hereinafter referred to as “CONTRACTOR” and the Orange County Sanitation District, hereinafter referred to as “OCSD”.

WITNESSETH

That for and in consideration of the promises and agreements hereinafter made and exchanged,

OCSD and CONTRACTOR agree as follows:

SECTION – 1 GENERAL CONDITIONS

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 OCSD. 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.

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 1 of 25 A. Contract Documents Order of Precedence

“Contract Documents” refers to those documents identified in the definition of “Contract

Documents” in the General Conditions – Definitions.

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 opening 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

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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

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 OCSD’s

ENGINEER, without whose decision CONTRACTOR shall not adjust said

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 3 of 25 discrepancy save only at CONTRACTOR’s own risk and expense. The

decision of the ENGINEER shall be final.

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 OCSD, to construct and complete the

Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, OCSD 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, OCSD may settle them directly and deduct the amount of payments from the Contract Price and any amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees.

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SECTION – 3 PROJECT

The Project is described as:

PROJECT NO. FE10-19

LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR

SECTION – 4 PLANS AND SPECIFICATONS

The Work to be done is shown in a set of Plans and Specifications entitled:

PROJECT NO. FE10-19

LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR

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 OCSD, unless otherwise specified therein and shall diligently prosecute the Work to completion within 180 calendar days from the date of the “Notice to

Proceed” issued by OCSD, excluding delays caused or authorized by OCSD as set forth in

Sections 7, 8, and 9 hereof, and applicable provisions in the General Conditions. The time for completion includes 5 calendar days determined by OCSD 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

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 5 of 25 and of OCSD, 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. OCSD 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 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, “Extensions 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”.

OCSD’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 OCSD 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”.

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In the event a Change Order is issued by OCSD pursuant to the Contract Documents, OCSD 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

OCSD’s ENGINEER. The decision of the ENGINEER shall be final.

SECTION – 9 CHANGES IN PROJECT

OCSD 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 OCSD-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.”

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 7 of 25 SECTION – 11 CONTRACT PRICE AND METHOD OF PAYMENT

A. OCSD 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 Four Hundred Three Thousand Six Hundred Fifty

Dollars ($403,650) as itemized on the Attached Exhibit “A”.

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. OCSD 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

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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 OCSD’s ENGINEER.

The processing of payments shall not be considered as an acceptance of any part of the

Work.

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 OCSD;

b. plus the value of material suitably stored at the worksite, treatment plant or

approved storage yards subject to or under the control of OCSD since the

commencement of the Work as determined by OCSD;

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 OCSD 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.”

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 9 of 25 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.

Upon receipt of all documentation, records, and releases as required by the Contract from the

CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General

Conditions.

SECTION – 14 CONTRACTOR’S EMPLOYEES COMPENSATION

A. Davis-Bacon Act:

CONTRACTOR will pay and will require all Subcontractors to pay all employees on said

Project a salary or wage at least equal to the prevailing rate of per diem wages as

determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each

craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon

Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00) and

when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If

the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be

complied with are incorporated herein as a part of this Contract and referred to by

reference.

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B. General Prevailing Rate:

OCSD 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 OCSD. 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, OCSD 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.

C. Forfeiture for Violation:

CONTRACTOR shall, as a penalty to OCSD, 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.

D. 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

shall comply therewith if the prime contract involves Thirty Thousand Dollars ($30,000.00)

or more.

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 11 of 25 E. 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 OCSD 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.

F. Record of Wages; Inspection:

CONTRACTOR agrees to maintain accurate payroll records showing the name, address,

social security number, work classification, straight-time and overtime hours worked each

day and week, and the actual per diem wages paid to each journeyman, apprentice,

worker or other employee employed by it in connection with the Project and agrees to

require that each of its Subcontractors do the same. All payroll records shall be certified

as accurate by the applicable CONTRACTOR or Subcontractor or its agent having

authority over such matters.

CONTRACTOR further agrees that its payroll records and those of its Subcontractors shall

be available to the employee or employee’s representative, the Division of Labor

Standards Enforcement, and the Division of Apprenticeship Standards and shall comply

with all of the provisions of Labor Code Section 1776, in general. Penalties for non-

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 12 of 25 Return to Agenda Report

compliance with the requirements of Section 1776 may be deducted from Project

payments per the requirements of Section 1776.

SECTION – 15 SURETY BONDS

CONTRACTOR shall, before entering upon the performance of this Contract, furnish Bonds approved by OCSD’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 OCSD. 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.

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 13 of 25

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, 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 OCSD, 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 OCSD 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 OCSD 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. OCSD 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

OCSD premises/worksite without possessing the required insurance coverage.

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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

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 OCSD herein, the requirement(s) providing the more protective coverage for both OSCD and the Third Parties shall control and be purchased and maintained by CONTRACTOR.

A. Limits of Insurance

1. General Liability: Five Million Dollars ($5,000,000) per occurrence and a general

aggregate limit of Five Million Dollars ($5,000,000) for bodily injury, personal injury

and property damage. 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 Five Million

Dollars ($5,000,000) 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.

c. Broad Form Property Damage, expressly including damage arising out of

explosion, collapse, or underground damage.

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 15 of 25 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.

f. Independent CONTRACTOR’s Liability.

To the extent first dollar coverage, including defense of any claim, is not

available to OCSD 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 limits

of liability coverage:

Either (1) a combined single limit of One Million Dollars ($1,000,000) and a general

aggregate limit of One Million Dollars ($1,000,000) for bodily injury, personal injury

and property damage;

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Or alternatively, (2) One Million Dollars ($1,000,000) per person for bodily injury and

One Million Dollars ($1,000,000) per accident for 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.

4. Worker’s Compensation/Employer’s Liability: CONTRACTOR shall provide such

Worker’s 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.

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 OCSD, its

or their officers, agents, or employees, and any other contractor or subcontractor

performing Work or rendering services on behalf of OCSD in connection with the

planning, development and construction of the Project. In all its insurance coverages

related to the Work, CONTRACTOR shall include clauses providing that each insurer

shall waive all of its rights of recovery by subrogation against OCSD, its or their

officers, agents, or employees, or any other contractor or subcontractor performing

Work or rendering services at the Project. Where permitted by law, CONTRACTOR

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 17 of 25 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.

B. Deductibles and Self-Insured Retentions

Any deductibles or self-insured retentions must be declared to and approved by OCSD. At

the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self-

insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and

employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD

guaranteeing payment of losses and related investigations, claim administration, and

defense expenses.

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. OCSD, 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 OCSD 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.

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 18 of 25 Return to Agenda Report

b. Insurance afforded by the additional insured endorsement shall apply as

primary insurance, and other insurance maintained by OCSD shall be excess

only and not contributing with insurance provided under this policy.

2. Each insurance policy required herein shall be endorsed to state that coverage shall

not be cancelled by either party, except after thirty (30) days prior written notice by

certified mail, return receipt requested, and that coverage shall not be cancelled for

non-payment of premium except after ten (10) days prior written notice by certified

mail, return receipt requested. Should there be changes in coverage or an increase

in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript

endorsement from its insurer giving 30 days prior notice of such an event to OCSD,

or to have its insurance broker/agent send to OCSD a certified letter describing the

changes in coverage and any increase in deductible or SIR amounts. The certified

letter must be sent Attention: Risk Management and shall be received not less than

twenty (20) days prior to the effective date of the change(s). The letter must be

signed by a Director or Officer of the broker/agent and must be on company

letterhead, and may be sent via e-mail in pdf format.

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.

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 19 of 25 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.

OCSD recognizes that State Compensation Insurance Fund has withdrawn from

participation in the A.M. Best Rating Guide process. Nevertheless, OCSD will accept

State Compensation Insurance Fund for the required policy of worker’s compensation

insurance, subject to OCSD’s option, at any time during the term of this Contract, to

require a change in insurer upon twenty (20) days written notice. Further, OCSD 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 OCSD or its agent.

E. Verification of Coverage

CONTRACTOR shall furnish OCSD 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

OCSD before Work commences. OCSD 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. OCSD 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

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 20 of 25 Return to Agenda Report

all Subcontractors’ policies, Certificate of Liability and mandatory endorsements effecting

coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced

required documents.

G. Required Forms and Endorsements

1. Required ACORD Form

a. Certificate of Liability Form 25-S (7/97)

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-0001 10 01

b. Additional Insured Including Form CG-2010 10 01 and Products-Completed Operations Form CG-2037 10 01

c. Waiver of Transfer of Rights of Form CG-2404 11 85; or Recovery Against Others to Us/ Form CG-2404 10 93 Waiver of Subrogation

3. Required State Compensation Insurance Fund Endorsements

a. Waiver of Subrogation Endorsement No. 2570

b. Cancellation Notice Endorsement No. 2065

4. Additional Required Endorsements

a. Notice of Policy Termination Manuscript Endorsement

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 OCSD and others harmless as more specifically set forth in

General Conditions, “General Indemnification”.

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 21 of 25 SECTION – 18 TERMINATION

This Contract may be terminated in whole or in part in writing by OCSD in the event of substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may be terminated by OCSD 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 OCSD, 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 OCSD’s designs, Drawings and Specifications. The

CONTRACTOR guarantees for a period of at least one (1) year from the date of Final

Completion 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 resulting from such defects. OCSD 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, OCSD 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;

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 22 of 25 Return to Agenda Report

or (2) one year after acceptance by OCSD 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 OCSD 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 OCSD unless such assignment has had prior written approval and consent of OCSD and the Surety.

SECTION – 21 RESOLUTION OF DISPUTES

OCSD 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 OCSD, 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 well as these Contract Documents, including but not limited to the General Requirements,

Section entitled “Safety” and Exhibit B OCSD Safety Standards.

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 23 of 25 SECTION – 23 NOTICES

Any notice required or permitted under this Contract may be given by ordinary mail at the address set forth below. Any party whose address changes shall notify the other party in writing.

TO OCSD: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Clerk of the Board

Copy to: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Construction Manager

Bradley R. Hogin, Esquire Woodruff, Spradlin & Smart 555 Anton Boulevard Suite 1200 Costa Mesa, California 92626

TO CONTRACTOR: DD Systems, Inc. dba ACE CD, Inc. 1199 Englewild Drive Glendora, CA 91741

Copy to: Danny Daher, Officer DD Systems, Inc. dba ACE CD, Inc. 1199 Englewild Drive Glendora, CA 91741

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IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written.

CONTRACTOR: DD Systems, Inc. dba ACE CD, Inc. 1199 Englewild Drive Glendora, CA 91741

By______

______Printed Name

Its______

CONTRACTOR’s State License No. 847907 (Expiration Date 10/30/2014)

OCSD: Orange County Sanitation District

By______Chair, Board of Directors

By______Maria Ayala Clerk of the Board

By______Marc Dubois Contracts, Purchasing and Materials Management Division Manager

C-CA-071913 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 25 of 25 EXHIBIT A SCHEDULE OF PRICES

C-EXA-071012 Return to Agenda Report

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

C-EXA-071012 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 – “OCSD’s Right to Withhold Certain Amounts and Make Application Thereof”; and

9. General Conditions – “Final Payment.”

EXA-3 RETENTION AND ESCROW ACCOUNTS

A. Retention:

OCSD 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.

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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 OCSD 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 OCSD, 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, OCSD 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 OCSD’s discovery of deficiencies in the Work or non-compliance with the Specifications or any other requirement of the Contract;

3. Sums expended by OCSD in performing any of the CONTRACTOR’S obligations under the Contract that the CONTRACTOR has failed to perform, and;

4. Other sums that OCSD is entitled to recover from the CONTRACTOR under the terms of the Contract, including without limitation insurance deductibles and assessments.

C-EXA-071012 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 2 of 8 The failure of OCSD to deduct any of the above-identified sums from a progress payment shall not constitute a waiver of OCSD’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, OCSD 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 OCSD 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 OCSD 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 OCSD 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 OCSD reviews, confirming that tax payments are current at all times.

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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 OCSD, 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 OCSD, arising out of or filed in connection with the Work. Prior progress payments shall be subject to correction in OCSD’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, OCSD 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 OCSD, 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

C-EXA-071012 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 4 of 8 acceptance by OCSD, 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 (30) calendar days after Final Acceptance of the Work by OCSD, and agreements are reached on all issues regarding the application for Final Payment, OCSD, in exchange for an executed release, satisfactory in form and substance to OCSD, 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 OCSD are specifically reserved, and shall release and waive all unreserved Claims against OCSD 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 OCSD which has not been communicated in writing by the CONTRACTOR to OCSD 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, OCSD may make Final Payment subject to resolution of those claims. OCSD 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 OCSD’s acceptance of the application for Final Payment and irrespective of whether it is before or after Final Payment has been made, OCSD shall not be precluded from subsequently showing that: 1. The true and correct amount payable for the Work is different from that previously accepted;

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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. OCSD 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.

C-EXA-071012 PROJECT NO. FE10-19 LANDSCAPING AND MISCELLANEOUS IMPROVEMENTS ALONG ELLIS AVENUE CORRIDOR CONFORMED Page 6 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 OCSD 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 OCSD 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 OCSD 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

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ATTACHMENT 2

SCHEDULE OF PRICES

See next pages for Bid Submittal Forms (DD Systems, Inc. dba ACE CD, Inc.)

BF-14 Schedule of Prices, Page 27-28

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Return to Agenda Report Attachment 2 Green Building Corporation Lic#919867 Tel: (818) 308-6435 Fax: (818) 308-6202

January 27, 2014

Mr. Ludwig Lapus Contracts Administrator Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708

RE: Award Protest Statement of Ace CD’s and CS Legacy’s bid for Project No. FE10-19, Landscaping and Miscellaneous Improvements Along Ellis Avenue Corridor

Dear Mr. Lapus,

This letter serves as Green Building Corporation’s (GBC) award protest of DD Systems Inc. dba Ace CD’s (Ace CD) bid for the above referenced public bid, which was held on January 7, 2014, at 11:00am.

Ace CD submitted the lowest bid at $403,750.00. GBC believes the bid of Ace CD is non- responsive, and we direct the Orange County Sanitation District’s (District) attention to the items listed below.

I. Failure to attach notarized acknowledgement standard form for all signatures on their Bid Bond.

Bid package page 21 of 28, states the following: (Attach Acknowledgements here on Standard Form for each signature)

Ace CD failed to notarize Danny Daher’s signature on the bid bond. This omission should deem Ace CD’s bid as non-responsive.

II. Subcontractor Mask EDC is associated with Danny Daher, president of Ace CD.

One of the subcontractors listed by Ace CD is Mask EDC, Inc. According to the personnel list posted by the California State License Board (CSLB) website, Danny Daher is the RMO of Ace CD, as well as the RMO of Mask EDC, Inc. GBC feels that listing a subcontractor who is represented by the same person gives ACE CD an unfair advantage, and makes their bid non-responsive. Attachment A (2 pages) to this bid protest letter is the personnel information page shown on CSLB for Mask EDC Inc, and Ace CD.

6913 Alcove Avenue. North Hollywood, CA 91605 Visit us at: www.greenbuildingcorporation.com Green Building Corporation Lic#919867 Tel: (818) 308-6435 Fax: (818) 308-6202

III. Phone numbers not listed for contacts provided by Ace CD.

Page 6 and 7 of the bid package provided a table for the contractors to list their current and completed projects to demonstrate their experience requirements. The fourth column on this table requested the owner’s name, address, phone no., project manager, or project engineer. Ace CD failed to list any phone numbers for the contacts listed. In addition, only one of the projects listed by Ace CD has a dollar value higher than the value of this project. The project that has the higher dollar value was performed for Los Angeles Neighborhood Land Trust, which is a private non-profit organization, not a public owner as listed in the instructions on page 5 of the bid package. GBC feels that omission of the phone numbers by Ace CD is an attempt to preclude the District from calling and verifying their past experience. Attachment B (2 pages) to this letter is pages 6 and 7 of the bid package, where Ace CD fails to provide phone numbers for their references.

IV. Safety Declaration of Contractor

The third paragraph on Page 16A-2 states the following: “Failure to check “Yes” in either A. or B. below will render the Bid Non-Responsive and the bid shall be rejected.”

Page 16A-2 Accident Frequency A- asks the contractor to acknowledge if they have an accident frequency level at or below 1.00 Ace CD responded by writing the word “No”. Page 17A-2 Accident Frequency part B - asks the contractor to acknowledge if they have an accident frequency factor within 1.01 to 1.25. Ace CD responded by writing the word “No”. Attachment C (2 pages) to this letter is page 16A-2 and 17A-2, where Ace CD fails to check yes to one of the two questions.

Ace CD’s inability to check “Yes” in either A or B as directed by the bid documents, is further evidence the bid submitted by Ace CD is non-responsive and should be rejected.

GBC respectfully requests that after review of the above facts, the District reject the bid of Ace CD as nonresponsive. Should the District need any additional information I am available at (818)987-6059 or [email protected].

Additionally, this letter serves as Green Building Corporation’s (GBC) award protest of C.S. Legacy Construction, Inc.’s (CS Legacy) bid for the above referenced public bid, which was held on January 7, 2014, at 11:00am.

CS Legacy submitted the 2nd lowest bid at $416,804.00. GBC believes the bid of CS Legacy is non-responsible/non-responsive. We direct the Orange County Sanitation District’s (District) attention to the items listed below.

6913 Alcove Avenue. North Hollywood, CA 91605 Visit us at: www.greenbuildingcorporation.com Green Building Corporation Lic#919867 Tel: (818) 308-6435 Fax: (818) 308-6202

I. BF4(B.1-B.6) Performance History and Financial Resources

GBC believes that CS Legacy was not truthful in the answers provided in Section BF4, questions B.1-B.6 of their bid package.

B.1 asked the contractor to acknowledge if the firm has had any contracts terminated prior to completion of the contract within the past 5 years. CS Legacy responded by checking the box corresponding to the word “No”.

In April 2012, CS Legacy was awarded Contract # C0218010 to construct Chino Hills Entrance Road and Facilities. Attachment D (1 page) to this letter is the award notice for that project. In August 2013, a Solicitation for Offers was issued to obtain offers for the completion of Contract # C0218010. Attachment E (14 pages) to this letter is the Solicitation for Offers. According to the document, CS Legacy was terminated from the project before the contract work was complete.

GBC believes that CS Legacy was not truthful in the answers provided in Section BF4 questions B.1 thru B.4. Since it appears CS Legacy was not truthful in the answer to B.1, it is unclear if they were also untruthful in their responses to B.2-B.4.

B.2 -It is possible to surmise that LD’s may have been assessed on a Contract where a contractor was terminated.

B.3 – The surety company was in charge of administration of the SFO, thus it is obvious that the Surety had to make payments.

B.4 – It is unclear if CS Legacy has been prevented to bidding to anyone. However, it may be in the interest of the District to confirm with the California State Park and Recreation if CS Legacy is prevented from bidding to them.

II. Termination of Contract - San Bernardino Community College

GBC has further evidence that CS Legacy was unresponsive and untruthful in their response to BF-4 questions B.1 thru B.4. Attachment F (2 pages) to this bid protest letter is meeting minutes from a San Bernardino Community College District board meeting. During this meeting the Vice Chancellor recommends to the board to terminate the contract the District had with CS Legacy.

GBC respectfully requests that after review of the above facts, the District reject the bid of CS Legacy and deem it nonresponsive and/or non-responsible because CS Legacy provided the district with false answers to the questions mentioned above. GBC was able to locate these two contract terminations for CS Legacy by doing extensive research on the internet. We can only

6913 Alcove Avenue. North Hollywood, CA 91605 Visit us at: www.greenbuildingcorporation.com

Contractor's License Personnel Detail - Contractor State License Board Page 1 of 1

Contractor's License Personnel Detail

Contractor License #: 847907 Contractor Name: D D SYSTEMS INC

Name: DANNY DAHER

ASSOCIATION DISASSOCIATION TITLE CLASS DATE DATE A GENERAL ENGINEERING RMO/CEO/PRES 10/06/2004 08/28/2009 Title and Class CONTRACTOR History A GENERAL ENGINEERING RMO 08/28/2009 CONTRACTOR B GENERAL BUILDING RMO 08/28/2009 CONTRACTOR

BOND EFFECTIVE CANCELLATION PERCENT SURETY COMPANY BOND# AMOUNT DATE DATE Bonding History % 08/31/2010 % 10/06/2004 08/28/2009

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Contractor's License Detail (Personnel List)

Contractor License #: 943926 Contractor Name: MASK E D C INC

Click on the person's name to see a more detailed page of information on that person ASSOCIATION DISASSOCIATION MORE NAME TITLE CLASS DATE DATE CLASS

DANNY DAHER RMO 02/26/2010 10/01/2011 B More

ARBY KHODABAKHSHIAN RMO/CEO/PRES 02/26/2010 C10 More

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SAN BERNARDINO COMMUNITY COLLEGE DISTRICT

TO: Board of Trustees

FROM: Bruce Baron, Chancellor

REVIEWED BY: Charlie Ng, Vice Chancellor, Fiscal Services

PREPARED BY: Charlie Ng, Vice Chancellor, Fiscal Services

DATE: June 13, 2013

SUBJECT: Consideration of Approval of Termination of Contract

RECOMMENDATION

It is recommended that the Board of Trustees approve the termination of its contract with CS Legacy Construction.

OVERVIEW

On December 13, 2012 the Board of Trustees approved a contract with CS Legacy Construction for the Valley College Voluntary ADA Upgrades Project. Article 14.3 of this contract’s General Requirements stipulates that the District can terminate the contract “for convenience” (contractor not at fault). On April 5, 2013 the campus directed Kitchell/BRj/Seville (KBS) to terminate CS Legacy’s contract for convenience, based on the following reasons.

1. CS Legacy did not provide, nor receive approval for, a Schedule of Values (SOV) for the various phases of construction as required by the General Conditions of the contract. 2. Absent the approved SOV, CS Legacy submitted invoices far exceeding the value of work performed, and was not willing to negotiate. 3. The concrete to be demolished in the project was thicker than indicated on the plans, requiring additional demolition. CS Legacy submitted change orders far exceeding the value of the additional demolition, and was not willing to negotiate. They preferred to file a claim and go into litigation. Because each phase of work included this additional demolition, the potential for significantly increasing the value of scope to be litigated or arbitrated was high. 4. The work is modular in nature and can be included in other projects, or in phases, and accomplished by other contracts.

ANALYSIS

Per the General Requirements, the contractor is to submit all invoices, receipts, and timesheets, or otherwise documented actual costs. The contractor is then required to add 10% for profit and overhead, as well as an additional 5% for termination costs, totaling the final payment.

CS Legacy submitted their final payment request on May 9, detailing with back-up their accrued costs as of April 5. KBS analyzed the complete package for correctness, validation against certified payroll, labor and construction activities matching the daily reports and contractually approved expenditures and services. CS Legacy is representing accrued costs at the time of termination of $855,625.67. KBS was only able to verify $854,114.80 through a review of the backup provided. Of this $854,114.80, only $534,628.86 held up to the requirements of the contract language for approved expenditures and expenses.

Original Previous Final Revised Contract Payments Payment Contract Amount Variance

CS Legacy’s Request 1,356,776.00 423,864.59 430,250.21 854,114.80 -502,661.20

KBS Finding 1,356,776.00 423,864.59 110,764.27 534,628.86 -822,147.14

BOARD IMPERATIVE

III. Resource Management for Efficiency, Effectiveness, and Excellence

FINANCIAL IMPLICATIONS

Included in the 2012-2013 Budget for Measure M. Attachment 3

Attachment 4

Attachment 5 Attachment 6

ITEM NO. 8

MINUTES OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Facilities Support Services

Orange County Sanitation District

A regular meeting of the Operations Committee of the Orange County Sanitation District was held on February 5, 2014, at 5:00 p.m. at the District’s Administrative Office. Director Nelson led the Flag Salute.

A quorum was declared present, as follows: Operations Directors Present: Staff Present: Brett Murdock, Vice-Chair Jim Herberg, General Manager Keith Curry Nick Kanetis, Director of Engineering Steve Jones Nick Arhontes, Director of Facilities Support Lucille Kring Services Michael Levitt Ed Torres, Director of Operations & Maintenance Steve Nagel Lorenzo Tyner, Director of Finance & Scott Nelson Administrative Services Greg Sebourn Jeff Reed, Director of Human Resources David Shawver Maria, Ayala, Clerk of the Board Fred Smith Rich Castillon Troy Edgar, Board Chair Mark Esquer Tom Beamish, Board Vice-Chair Dean Fisher Dave Halverson Operations Directors Absent: Todd Haynes John Nielsen, Chair Rob Thompson Jennifer Cabral Al Garcia Norbert Gaia

Others Present: Brad Hogin, General Counsel Lisa Ohlund, EOCWD

PUBLIC COMMENTS:

No public comments.

REPORT OF COMMITTEE CHAIR:

Committee Vice-Chair, Brett Murdock did not provide a report.

REPORT OF GENERAL MANAGER:

General Manager, Jim Herberg, did not provide a report.

02/05/2014 Operations Committee Minutes Page 1 of 5 DEPARTMENT HEAD REPORT:

None.

CONSENT CALENDAR:

1. MOVED, SECONDED, and DULY CARRIED: Approve Minutes of December 4, 2013, Operations Committee meeting.

AYES: Beamish, Curry, Edgar, Levitt, Murdock, Nagel, Nelson, Sebourn, and Smith

NOES: None

ABSTENTIONS: None

ABSENT: Jones; Kring; Nielsen and Shawver

2. MOVED, SECONDED, and DULY CARRIED: Recommend to the Board of Directors to:

A. Authorize the General Manager to competitively bid and subsequently award a contract to the lowest responsive and responsible bidder, for the Replacement of Valves at Bay Bridge Valve Vault, Project No. FR10-018, for an amount not to exceed $170,000; and

B. Approve a contingency of $34,000 (20%).

AYES: Beamish, Curry, Edgar, Levitt, Murdock, Nagel, Nelson, Sebourn, and Smith

NOES: None

ABSTENTIONS: None

ABSENT: Jones; Kring; Nielsen and Shawver

3. MOVED, SECONDED, and DULY CARRIED:

A. Authorize the purchase of maintenance tools and supplies from W.W. Grainger, Inc., in accordance with Ordinance No. OCSD-44, Section 2.03(B): Cooperative Procurement; for the period beginning March 1, 2014 through February 28, 2015 with two one-year renewals in the amount of $200,000 per year; and

B. Approve a contingency of $20,000 (10%).

02/05/14 Operations Committee Minutes Page 2 of 4 AYES: Beamish, Curry, Edgar, Levitt, Murdock, Nagel, Nelson, Sebourn, and Smith

NOES: None

ABSTENTIONS: None

ABSENT: Jones; Kring; Nielsen and Shawver

4. MOVED, SECONDED, and DULY CARRIED: Recommend to the Board of Directors to:

A. Award a contract to the lowest responsive and responsible bidder, Power Testing and Energization, for Electrical Relay Testing and Calibration, Specification No. S-2013-574-R2, for a total amount not to exceed $296,990; and

B. Approve a contingency of $59,000 (20%).

AYES: Beamish, Curry, Edgar, Levitt, Murdock, Nagel, Nelson, Sebourn, and Smith

NOES: None

ABSTENTIONS: None

ABSENT: Jones; Kring; Nielsen and Shawver

Director Shawver arrived at the meeting at 5:04 p.m.

NON-CONSENT CALENDAR:

Mr. Herberg introduced Lisa Ohlund, General Manager for the East Orange County Water District, who was in the audience. Mr. Herberg reported that various details of this item that are going to be worked out prior to this item being brought before the Board for approval.

Nick Arhontes, Director of Facilities Support Services, gave an informative PowerPoint presentation on the transfer of sewers – history, process, and financial summary.

Staff responded to various questions from the Committee.

Director Kring arrived at the meeting at 5:09 p.m. during Mr. Arhontes’ presentation.

Director Jones arrived at the meeting at 5:11 p.m. during Mr. Arhontes’ presentation.

02/05/14 Operations Committee Minutes Page 3 of 4 5. MOVED, SECONDED, and DULY CARRIED: Recommend to the Board of Directors to:

Authorize the General Manager to:

A. Approve agreement with East Orange County Water District (EOCWD), to transfer ownership of local sewers in Service Area 7, and the appropriate reserve balances, and

B. Provide EOCWD with technical and financial information to assist with its submittal of a reorganization application to the Orange County Local Area Formation Commission (OC LAFCO) to facilitate the transfer of ownership of the local sewers and agreed assets; and

C. Draft and execute a letter of support to OC LAFCO in favor of EOCWD’s reorganization application, subject to and contingent upon OC LAFCO’s acceptance of the terms and conditions of transfer agreed upon by OCSD and EOCWD; and

D. Approve an agreement with EOCWD to reimburse OCSD for staff support requested during an agreed transition period.

AYES: Beamish, Curry, Edgar, Jones, Kring, Levitt, Murdock, Nagel, Nelson, Sebourn, Shawver, and Smith

NOES: None

ABSTENTIONS: None

ABSENT: Nielsen

INFORMATION ITEMS:

6. Quarterly Odor Complaint Report

Ed Torres, Director of Operations and Maintenance, gave a brief report on odor complaints during the last quarter. A total of 15 complaints were received with staff responding accordingly.

7. Construction Projects in the Collections System

Nick Kanetis, Director of Engineering, provided a brief PowerPoint of the collections systems CIP projects – the challenges and risks associated, and what opportunities there may be.

Staff responded to questions from the Committee. The Committee also discussed concerns with contingencies.

02/05/14 Operations Committee Minutes Page 4 of 4

Director Curry departed the meeting at 5:45 p.m.

8. Enterprise Asset Management – Planning and Scheduling Software

Rich Castillon, IT Systems and Operations Manager, and Dave Halverson, Engineering Manager, gave and informative report on Phase 3 of the Maximo Asset Management System and the benefits of having this system available for efficiencies in maintenance.

OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY:

Mr. Kanetis reported that the District received bids yesterday on Project 5-60, the Newport Force Main Project for pipe rehabilitation. Staff will bring the award of this construction contract to the Board in March. Prior to beginning construction on Project 5-60, there is a need for a new pump to be installed at the Bay Bridge Pump Station. Because the pump that is required must match the existing pump, a sole source item will be brought before the Board for approval this month so that this work may be completed prior to beginning construction.

Mr. Torres provided an update on the latest efforts to support the recently Board adopted strategic initiative on disinfection. A panel of independent experts and community members was recently assembled to review the studies OCSD has compiled.

ADJOURNMENT

Committee Vice-Chair Murdock declared the meeting adjourned at 6:05 p.m.

Submitted by

______Maria E. Ayala Clerk of the Board

02/05/14 Operations Committee Minutes Page 5 of 4

Meeting Date To Bd. of Dir. OPERATIONS COMMITTEE 02/05/14 02/26/14 Item Number Item Number AGENDA REPORT 2 9 Orange County Sanitation District

FROM: James D. Herberg, General Manager Originator: Nick Arhontes, P.E., Director of Facilities Support Services

SUBJECT: REPLACEMENT OF VALVES AT BAY BRIDGE VALVE VAULT, PROJECT NO. FR10-018

GENERAL MANAGER'S RECOMMENDATION

A. Authorize the General Manager to competitively bid and subsequently award a contract to the lowest responsive and responsible bidder, for the Replacement of Valves at Bay Bridge Valve Vault, Project No. FR10-018, for an amount not to exceed $170,000; and

B. Approve a contingency of $34,000 (20%).

SUMMARY

The Orange County Sanitation District (OCSD) is planning to rehabilitate the Newport Force Mains located within Pacific Coast Highway pursuant to Contract No. 5-60 (Newport Force Main Rehabilitation Project). This project is currently scheduled to commence late spring 2014. The valve replacements must be completed ahead of Contract No. 5-60.

The Bay Bridge Valve Vault is located on the south side of West Pacific Coast Highway between Bayshore Drive and Newport Bay in the City of Newport Beach. The work covered under this contract will replace four 24-inch knife valves within the Bay Bridge Valve Vault. These valves are over 20 years old, at the end of useful life, and leak when closed. The Bay Bridge Valve Vault is a confined space and requires confined space safety measures be included in the work. In addition, the work includes temporary sewage bypass, removal of sewage from the force mains, as well as other associated work.

PRIOR COMMITTEE/BOARD ACTIONS

None

ADDITIONAL INFORMATION

OCSD is planning to advertise the Bay Bridge Valve Vault, Project No. FR10-018 final plans and specifications in February 2014 and open bids in March 2014. The bids will be evaluated in accordance with the OCSD’s policies and procedures, and awarded to the lowest responsive and responsible bidder. OCSD’s project schedule is estimated at

Page 1 of 2 45 calendar days after the “notice to proceed” has been issued. At this time, it is expected to be completed by May 30, 2014.

The Bay Bridge Valve Vault structure was constructed in 1981 and is located next to the Newport Bay. The salt air environment has caused significant corrosion to the structure over the past 33 years. The four valves located within the structure have not been replaced to date. OCSD has pre-purchased four valves in anticipation of this required maintenance work. The OCSD supplied valves will be provided to the contactor that is awarded this contract, and the contractor will be required to install the valves pursuant to the plans and specifications prepared by OCSD.

A delay in the Bay Bridge Valve Vault Project will delay Contract No. 5-60. A delay in Contract No 5-60 will delay a Caltrans Street Project that starts in the summer of 2016. As a result, it is imperative that the Bay Bridge Valve Vault Project is completed prior to the beginning of summer 2014.

CEQA

Notice of Exemption filed with the County of Orange on November 27, 2013.

BUDGET/DELEGATION OF AUTHORITY COMPLIANCE

This request complies with authority levels of the Sanitation District’s Delegation of Authority (Ordinance Article 7, Section 7.01 (B). This repair will be funded through the Small Capital Replacement/Rehabilitation Project - SP-34 (Budget Update Fiscal Year 2012-2013 and 2013-2014 Misc. & Support Projects; Section 8 – Page 111). This Small Capital fund is used to pay for capital repairs and/or direct replacements. The SP-34 budget is adequate to cover this project.

Date of Approval Contract Amount Contingency 02/26/14 $170,000 $34,000 (20%)

ATTACHMENTS The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package and attachments:

• Draft Contract

Page 2 of 2 Return to Agenda Report

SERVICE CONTRACT Replacement of Valves at the Bay Bridge Valve Vault Project No. FR10-018

THIS CONTRACT is made and entered into as of the date fully executed below by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708-7018 (hereinafter referred to as "OCSD") and ______Company Name______with a principal business at ______address______(hereinafter referred to as "Contractor") collectively referred to as the “Parties”.

W I T N E S S E T H

WHEREAS, OCSD desires to retain the services of Contractor for ______“Services”; and

WHEREAS, OCSD has chosen Contractor to conduct Services in accordance with Ordinance No. OCSD-44; and

WHEREAS, on February 5, 2014, the Operations Committee authorized bidding and execution of this Contract by the General Manager between OCSD and Contractor; and

WHEREAS, Contractor is qualified by virtue of experience, training, and education and expertise to accomplish such Services,

NOW THEREFORE, in consideration of the promises and mutual benefits exchanged between the Parties, it is mutually agreed as follows:

1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and Contractor. The Terms and Conditions herein exclusively govern the purchase of Services as described in the Scope of Work, attached hereto and incorporated herein by reference as Exhibit “A”.

1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibits to this Contract are as follows in order of precedence:

Exhibit “A” Scope of Work Exhibit “B” ______Exhibit “C” ______Exhibit “D” ______

1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control.

1.4 The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto.

1.5 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any Paragraph or provision hereof.

Orange County Sanitation District 1 of 9 Project No. FR10-018 DRAFT CONTRACT - DO NOT SUBMIT Return to Agenda Report

1.6 The term “days”, when used in the Contract, shall mean calendar days, unless otherwise noted as business days.

1.7 The term “hours”, when used in this Contract, shall be as defined in Exhibit “___”.

1.8 Contractor shall provide OCSD with all required premiums and/or overtime work at no charge beyond the price provided under “Compensation” below.

1.9 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Contractor as a result of work performed in anticipation of purchases of said services by OCSD.

2. Compensation Compensation for this project shall not exceed the total amount of ______and 00/00 Dollars ($______).

3. Payments Payments shall be made upon approval by OCSD Project Manager, Chuck Hodge or his designee, of invoices submitted for milestones completed as described in Exhibit “A”. OCSD, at its sole discretion, shall be the determining party as to whether the tasks and deliverables for each milestone have been satisfactorily completed.

4. Invoices 4.1 OCSD shall pay within 30 days of completion and receipt and approval by OCSD Project Manager of an itemized invoice, in a form acceptable to OCSD to enable audit of the charges thereon. Invoices shall include the Purchase Order Number.

4.2 Invoices shall be emailed by Contractor to OCSD Accounts Payable at [email protected] and the Purchase Order number and “FR10-018” shall be referenced in the subject line.

5. Audit Rights Contractor agrees that, during the term of this Contract and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Contract.

6. Scope of Work Subject to the terms of this Contract, Contractor shall perform the Services identified in Exhibit “A” and (additional SOW material). Contractor shall perform said Services in accordance with generally accepted industry and professional standards.

7. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties.

8. Contract Term The Services provided under this Contract shall be completed within 45 days from the date of notice to proceed.

9. Termination 9.1 OCSD reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD of intent to terminate. Upon receipt of a termination notice, Contractor shall immediately discontinue all work under this Contract (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Contractor for work performed (cost and fee) to the date of termination. Contractor expressly waives any claim to receive anticipated profits to be earned during the uncompleted

Orange County Sanitation District 2 of 9 Project No. FR10-018 DRAFT CONTRACT - DO NOT SUBMIT Return to Agenda Report

portion of this Contract. Such notice of termination shall terminate this Contract and release OCSD from any further fee, cost or claim hereunder by Contractor other than for work performed to the date of termination.

9.2 OCSD reserves the right to terminate this Contract immediately upon OCSD’s determination that Contractor is not meeting specification requirements, if the level of service is inadequate, or any other default of this Contract.

9.3 OCSD may also immediately cancel for default of this Contract in whole or in part by written notice to Contractor:

. if Contractor becomes insolvent or files a petition under the Bankruptcy Act; or . if Contractor sells its business; or . if Contractor breaches any of the terms of this Contract; or . if total amount of compensation exceeds the amount authorized under this Contract.

9.4 All OCSD property in the possession or control of Contractor shall be returned by Contractor to OCSD upon demand, or at the termination of this Contract, whichever occurs first.

10. Insurance Contractor and all subcontractors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements (attached hereto and incorporated herein as Exhibit “______“). Contractor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OCSD, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract.

11. Bonds 11.1 Contractor shall, before entering upon the performance of this Contract, furnish bonds (attached hereto in Exhibit ______) approved by OCSD’s General Counsel - one in the amount of one hundred percent (100%) of the Contract price bid, to guarantee the faithful performance of the work, and the other in the amount of one hundred percent (100%) of the Contract price bid, to guarantee payment of all claims for labor and materials furnished. This Contract shall not become effective until such bonds are supplied to and approved by OCSD. Bonds must be issued by a surety authorized by the State Insurance Commissioner to do business in California and must be maintained throughout the life of the project and during the warranty period.

Contractor is hereby notified that it is required that the person executing the Bonds must have on file with the County Clerk, County of Orange, a Power of Attorney and authorization to execute said Bonds for and on behalf of the corporate surety. The purpose of this requirement is to insure that the provisions of Code of Civil Procedure Section 995.630 requiring such authority to be on file with the Orange County Clerk are satisfied in order for the OCSD and its officers to approve the bond.

12. Indemnification and Hold Harmless Provision Contractor shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or be caused by Contractor's services under this Contract, or by its subcontractor or by anyone directly or indirectly employed by Contractor, and whether such damage or injury shall accrue or be discovered before or after the termination of the Contract. Except as to the sole active negligence of or willful misconduct of OCSD, Contractor shall indemnify, protect, defend and hold harmless OCSD, its elected and appointed officials, officers,

Orange County Sanitation District 3 of 9 Project No. FR10-018 DRAFT CONTRACT - DO NOT SUBMIT Return to Agenda Report

agents and employees, from and against any and all claims, liabilities, damages or expenses of any nature, including attorneys' fees: (a) for injury to or death of any person or damage to property or interference with the use of property, arising out of or in connection with Contractor's performance under the Contract, and/or (b) on account of use of any copyrighted or uncopyrighted material, composition, or process, or any patented or unpatented invention, article or appliance, furnished or used under the Contract, and/or (c) on account of any goods and services provided under this Contract. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Contractor of or anyone employed by or working under Contractor. To the maximum extent permitted by law, Contractor's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meritless, or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently negligent, or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Contractor agrees to provide this defense immediately upon written notice from OCSD, and with well qualified, adequately insured, and experienced legal counsel acceptable to OCSD

13. Safety and Human Resources (HR) Policies OCSD requires all contractors and service providers to follow and ensure their employees and all subcontractors follow all State and Federal regulations as well as OCSD requirements while working at OCSD locations. If during the course of a contract it is discovered that OCSD policies, safety manuals, or contracts do not comply with State or Federal regulations then the Contractor is required to follow the most stringent regulatory requirement at no cost to OCSD. Contractor and all their employees and subcontractors, shall adhere to all applicable OCSD Safety and Human Resources Policies found at: OCSD.com, “Doc Central” (bottom of page), under “Safety”.

14. Warranty 14.1 Manufacturer’s standard warranty shall apply. All manufacturer warranties will begin at date of completion of this Contract.

14.2 Contractor’s warranty: If, within the 12-month period following completion of its Services, OCSD informs Contractor that any part of the Services fails to meet the standards required under this Contract, Contractor shall, within the time agreed to by OCSD and Contractor, take all such actions as are necessary to correct or complete the noted deficiency(ies) at Contractor’s sole expense.

15. Performance Time is of the essence in the performance of this Contract and the provisions hereof.

16. Liquidated Damages In the event the CONTRACTOR fails to achieve Final Completion of the Work within the required period of performance or fails to meet any other time requirements set forth in the Contract Documents, including the timely submittal or update of the Project Schedule or achievement of any designated milestones or deadline as required in the approved Schedule of Values, after due allowance for extensions of time made in accordance with the Contract Documents, if any, OCSD will sustain damage which would be extremely difficult and impracticable to ascertain. The parties therefore agree that in each such event, CONTRACTOR will pay to OCSD the sum of $______per day, as Liquidated Damages, and not as a penalty, for each and every calendar day during which Final Completion of the Project is so delayed, or timely submittal or update of the Project Schedule is so delayed. If deadlines for milestones are identified in the approved Schedule of Values, CONTRACTOR shall pay OCSD the Liquidated Damage amount corresponding to that milestone for each and every day during which the achievement of the milestone is delayed. CONTRACTOR agrees to pay such

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Liquidated Damages and further agrees that OCSD may offset the amount of Liquidated Damages from any monies due or that may become due CONTRACTOR under this Contract. CONTRACTOR also agrees that to the extent the amount of Liquidated Damages exceeds any monies due to the CONTRACTOR under this Contract, CONTRACTOR shall pay all such amounts to OCSD upon demand. Liquidated Damages due to delays in achieving a milestone or deadline will not be credited toward Liquidated Damages due to delays in achieving subsequent milestones, deadlines or Final Completion of the Work. If this Special Provision, “Delay and Liquidated Damages,” is found for any reason to be void, invalid or otherwise inoperative so as to disentitle OCSD from claiming Liquidated Damages, OCSD is entitled to claim against the CONTRACTOR damages at law for the CONTRACTOR’s failure to complete the Project by the Final Completion date.

17. Force Majeure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Contract.

18. Freight (F.O.B. Destination) Contractor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract.

19. Familiarity with Work By executing this Contract, Contractor warrants that: 1) it has investigated the work to be performed; 2) it has investigated the site of the work and is aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the work under this Contract. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except at Contractor’s risk, until written instructions are received from OCSD.

20. Regulatory Requirements Contractor shall perform all work under this Contract in strict conformance with applicable federal, state, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and California Water Codes Division 2.

21. Licenses, Permits, Ordinances and Regulations Contractor represents and warrants to OCSD that it has obtained all licenses, permits, qualification and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by State, County, City and/or municipal laws, codes and/or tariffs that pertain to work performed under the terms of this Contract will be paid by Contractor.

22. Applicable Laws and Regulations Contractor shall comply with all applicable federal, state, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OCSD as a result of Contractor's noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically referenced.

23. Public Contracts Law Contractor’s Employees Compensation

23.1 Davis-Bacon Act - Contractor will pay and will require all subcontractors to pay all employees on said project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon

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Act shall apply only if the Contract is in excess of two thousand dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference.

23.2 General Prevailing Rate – OCSD 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 OCSD. 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, OCSD 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.

23.3 Forfeiture For Violation - Contractor shall, as a penalty to OCSD, forfeit fifty dollars ($50.00) 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.

23.4 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 shall comply therewith if the prime contract involves thirty thousand dollars ($30,000.00) or more or twenty (20) working days or more; or if contracts of specialty contractors not bidding for work through the general or prime Contractor are two thousand dollars ($2,000.00) or more or five (5) working days or more.

23.5 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 19.2 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 OCSD 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.

23.6 Record of Wages; Inspection - Contractor agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the project and agrees to require that each of its subcontractors do the same. All payroll records shall be certified as accurate by the applicable Contractor or subcontractor or its agent having authority over such matters. Contractor further agrees that its payroll records and those of its subcontractors shall be available to the employee or employee’s representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. Penalties for non-compliance with the requirements of Section 1776 may be deducted from project payments per the requirements of Section 1776.

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24. South Coast Air Quality Management District’s (SCAQMD) Requirements It is Contractor’s responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All contract work practices, which may have associated emissions such as sandblasting, open field spray painting or demolition of asbestos containing components or structures, shall comply with the appropriate rules and regulations of the SCAQMD.

25. Governing Law This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Contract or the performance thereof.

26. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Contract, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Contractor to which OCSD does not object shall not operate as a waiver of OCSD’s rights to seek remedies available to it for any subsequent breach.

27. Remedies In addition to other remedies available in law or equity, if the Contractor fails to make delivery of the goods or Services or repudiates its obligations under this Contract, or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1) cancel the Contract; (2) recover whatever amount of the purchase price OCSD has paid, and/or (3) “cover” by purchasing, or contracting to purchase, substitute goods or Services for those due from Contractor. In the event OCSD elects to “cover” as described in (3), OCSD shall be entitled to recover from Contractor as damages the difference between the cost of the substitute goods or Services and the contract price, together with any incidental or consequential damages.

28. Dispute Resolution 28.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process.

28.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein.

29. Attorney’s Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and

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necessary disbursements in addition to any other relief to which he may be entitled.

30. Survival The provisions of this Contract dealing with Payment, Warranty, Indemnity, and Forum for Enforcement, shall survive termination or expiration of this Contract.

31. Severability If any section, subsection, or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties.

32. Damage to OCSD’s Property Any of OCSD’s property damaged by Contractor, any subcontractors or by the personnel of either will be subject to repair or replacement by Contractor at no cost to OCSD.

33. Disclosure Contractor agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OCSD.

34. Independent Contractor The legal relationship between the parties hereto is that of an independent contractor, and nothing herein shall be deemed to make Contractor an OCSD employee. During the performance of this Agreement, Contractor and its officers, employees, and agents shall act in an independent capacity and shall not act as OCSD's officers, employees, or agents. Contractor and its officers, employees, and agents shall obtain no rights to any benefits which accrue to OCSD’s employees.

35. Limitations upon Subcontracting and Assignment Contractor shall not delegate any duties nor assign any rights under this Contract without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void.

36. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OCSD and Contractor.

37. Non-Liability of OCSD Officers and Employees No officer or employee of OCSD shall be personally liable to Contractor, or any successor-in-interest, in the event of any default or breach by OCSD or for any amount which may become due to Contractor or to its successor, or for breach of any obligation for the terms of this Agreement.

38. Read and Understood By signing this Contract, Contractor represents that he has read and understood the terms and conditions of the Contract.

39. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound.

40. Entire Contract This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof.

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41. Notices All notices under this Contract must be in writing. Written notice shall be delivered by personal service or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address or which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses:

OCSD: Clarice M. Marcin Senior Contracts Administrator Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018

Contractor: Company ______

Each party shall provide the other party written notice of any change in address as soon as practicable.

IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives.

ORANGE COUNTY SANITATION DISTRICT

Dated: By: ______General Manager

Dated: By: ______Contracts/Purchasing Manager

COMPANY

Dated: By: ______

______Print Name and Title of Officer

______IRS Employer’s I.D. Number Orange County Sanitation District

Orange County Sanitation District 9 of 9 Project No. FR10-018 DRAFT CONTRACT - DO NOT SUBMIT Meeting Date To Bd. of Dir. OPERATIONS COMMITTEE 02/05/14 02/26/14 Item Number Item Number AGENDA REPORT 4 10 Orange County Sanitation District

FROM: James D. Herberg, General Manager Originator: Ed Torres, P.E., Director of Operations & Maintenance

SUBJECT: ELECTRICAL RELAY TESTING AND CALIBRATION SPECIFICATION NO. S-2013-574-R2

GENERAL MANAGER'S RECOMMENDATION

A. Award a contract to the lowest responsive and responsible bidder, Power Testing and Energization, for Electrical Relay Testing and Calibration, Specification No. S-2013-574-R2, for a total amount not to exceed $296,990; and

B. Approve a contingency of $59,000 (20%).

SUMMARY

This Contract will provide electrical testing services for testing all of the electrical protective relays at Plant No’s 1 and 2. The Orange County Sanitation District (Sanitation District) Electrical Maintenance Division is required by safety regulations to periodically test these devices to ensure that they will function correctly when an electrical problem arises.

The Sanitation District advertised for bids for electrical relay testing and calibration on Nov 1, 2013. Four sealed bids were received on December 12, 2013. The bids were evaluated in accordance with the Sanitation District’s policies and procedures. Power Testing and Energization was deemed the lowest responsive, responsible bidder. Staff recommends awarding a contract to Power Testing and Energization for Electrical Relay Testing and Calibration Specification No. S-2013-574-R2, for a total amount not to exceed $296,990.

The estimated duration of this project is 480 calendar days. A 20% contingency is being proposed since the activities of the contractor has the potential to disrupt on-going treatment processes and possibly delaying the contractor to wait for low flow or more favorable conditions to de-energize equipment.

Page 1 of 2 Summary information on the bid opening for Electrical Relay Testing and Calibration Specification No. S-2013-574-R2 is as follows:

Bidder Amount of Bid Power Testing and Energization $ 296,990 Southwest Energy Systems, LLC $ 489,010 VISTAM, Inc. $ 493,380 Hampton Tedder Technical Services $ 1,046,830

PRIOR COMMITTEE/BOARD ACTIONS None.

ADDITIONAL INFORMATION Electrical Relays are protective devices that serve as the watchdogs in an electrical power system. These devices are designed to continuously monitor electrical circuits for problems (like short circuits) over the decades-long lifespan of the equipment. Yet if a problem arises at any time, those same devices must swiftly trip circuit breakers in split-seconds to prevent injury to personnel and reduce damage to equipment. It is therefore necessary to periodically test the devices to ensure that they will work when required.

CEQA A Notice of Exemption was filed for this work. The work is categorically exempt from CEQA under section 15301 Existing Facilities, class 1 (b) – repair and maintenance of existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewerage, or other public utility services.

BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This recommendation complies with authority levels of the OCSD Delegation of Authority. There are sufficient funds in the budget to cover the requested service. This item is budgeted under Division 860, object 54010, Repairs and Maintenance Services, $761,200.

Date of Approval Contract Amount Contingency 02/26/14 $296,990 $59,000

ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package and attachments:

• Contract

DDH:JM:eh

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SERVICE CONTRACT Electrical Relay Testing & Calibration Rebid-2 SPECIFICATION NO. S-2013-574-R2

THIS AGREEMENT is made and entered into as of the date fully executed below by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708-7018 (hereinafter referred to as "OCSD") and Power Testing and Energization with a principal business at 731 East Ball Road, Suite 100, Anaheim, CA 92805 (hereinafter referred to as "Contractor") collectively referred to as the “Parties”.

R E C I T A L S

WHEREAS, OCSD desires to retain the services of Contractor for Electrical Relay Testing and Calibration services “Services”; and

WHEREAS, OCSD has chosen Contractor to conduct Services in accordance with Ordinance No. OCSD-44; and

WHEREAS, Contractor is qualified by virtue of experience, training, education, and expertise to accomplish such Services,

NOW THEREFORE, in consideration of the promises and mutual benefits exchanged between the Parties, it is mutually agreed as follows:

1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and Contractor. The Terms and Conditions herein exclusively govern the purchase of Services as described in the Scope of Work, attached hereto and incorporated herein by reference as Exhibit “A”.

1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibits to this Contract are as follows in order of precedence:

Exhibit “A” Memorandum of Understanding between OCSD and Contractor Exhibit “B” Conformed Scope of Work Exhibit “C” OCSD Safety and Human Resources Policies Exhibit “D” Bid and Qualifications submitted by Contractor Exhibit “E” Acknowledgement of Insurance Requirements

1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control.

1.4 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any Paragraph or provision hereof.

1.5 The term “days”, when used in the Contract, shall mean calendar days, unless otherwise noted as business days.

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1.6 Work shall be performed Monday through Friday between the hours of 6:00AM PT and 3:00PM PT. Shutdowns may be performed only between the hours of 7:00AM PT and 3:00PM PT. Work shall not be performed on weekends nor on holidays observed by OCSD.

1.7 Holidays observed by OCSD are as follows: New Year’s Day, Lincoln’s Birthday, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day.

1.8 Contractor shall provide OCSD with all required premiums and/or overtime work at no charge beyond the price provided under “Compensation” below.

1.9 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Contractor as a result of work performed in anticipation of purchases of said Services by OCSD.

2. Compensation Compensation for this project shall not exceed the total amount of Two Hundred Ninety-six Thousand Nine Hundred Ninety and 00/00 Dollars ($296,990.00).

3. Payments and Invoicing 3.1 Payments shall be made monthly upon approval by OCSD Project Manager, Jim Mullins or his designee, of invoices submitted for work completed as described in Exhibits “A” and “B”. OCSD, at its sole discretion, shall be the determining party as to whether the work has been satisfactorily completed.

3.2 OCSD shall pay within 30 days of completion and receipt and approval by OCSD Project Manager of an itemized invoice.

3.3 Invoices shall be submitted in a form acceptable to OCSD to enable audit of the charges thereon. Contractor shall not pay less than the prevailing wage, if applicable.

3.4 Invoices shall be emailed by Contractor to OCSD at the following email address and the Purchase Order number shall be referenced in the subject line: [email protected].

4. Audit Rights Contractor agrees that, during the term of this Agreement and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Agreement.

5. Scope of Work Subject to the terms of this Contract, Contractor shall perform the Services identified in Exhibits “A” and “B”. Contractor shall perform said Services in accordance with generally accepted industry and professional standards.

6. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties.

7. Contract Amendments The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto.

8. Contract Term The Services provided under this Contract shall be completed within eighteen (18) months from the date of the Notice to Proceed.

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9. Performance Time is of the essence in the performance of this Contract and the provisions hereof.

10. Termination 10.1 OCSD reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD, (delivered by certified mail, return receipt requested) of intent to terminate. Upon receipt of a termination notice, Contractor shall immediately discontinue all work under this Contract (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Contractor for work performed (cost and fee) to the date of termination. Contractor expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and release OCSD from any further fee, cost or claim hereunder by Contractor other than for work performed to the date of termination.

10.2 OCSD reserves the right to terminate this Contract immediately upon OCSD’S determination that Contractor is not meeting specification requirements, if the level of service is inadequate, or any other default of this Contract.

10.3 OCSD may also immediately cancel for default of this Contract in whole or in part by written notice to Contractor:

. if Contractor becomes insolvent or files a petition under the Bankruptcy Act; or . if Contractor sells its business; or . if Contractor breaches any of the terms of this Contract; or . if total amount of compensation exceeds the amount authorized under this Contract.

10.4 All OCSD property in the possession or control of Contractor shall be returned by Contractor to OCSD upon demand, or at the termination of this Contract, whichever occurs first.

11. Insurance Contractor and all subcontractors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements (attached hereto and incorporated herein as Exhibit “E“). Contractor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OCSD, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract.

12. Indemnification and Hold Harmless Provision Contractor agrees to save, indemnify, defend and hold harmless OCSD against any and all liability, claims, judgments, cost and demands, including demands arising from injuries or death of persons and damage to property, arising directly or indirectly out of the negligence or willful misconduct of Contractor, its employees or agents, in relation to the rendition of Services pursuant to this Contract, except claims or litigations arising through the sole negligence or willful misconduct of OCSD. Contractor agrees to reimburse OCSD for any expenditure, including reasonable attorney’s fees, OCSD may incur by reason of such matters, and, if requested by OCSD, will defend any such suits at the cost and expense of Contractor.

13. Warranty 13.1 Manufacturer’s standard warranty shall apply. All manufacturer warranties will begin at date of completion of this Contract.

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13.2 Contractor’s warranty: If, within the 12-month period following completion of its Services, OCSD informs Contractor that any part of the Services fails to meet the standards required under this Contract, Contractor shall, within the time agreed to by OCSD and Contractor, take all such actions as are necessary to correct or complete the noted deficiency(ies).

14. Force Majeure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Contract.

15. Freight (F.O.B. Destination) Contractor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract.

16. Independent Contractor It is agreed that Contractor shall act and be an independent contractor and not an agent or employee of OCSD, and shall obtain no rights to any benefits which accrue to OCSD’S employees.

17. Limitations upon Subcontracting and Assignment Contractor shall not delegate any duties nor assign any rights under this Contract without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void.

18. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OCSD and Contractor.

19. Licenses, Permits, Ordinances and Regulations Contractor represents and warrants to OCSD that it has obtained all licenses, permits, qualification and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by State, County, City and/or municipal laws, codes and/or tariffs that pertain to work performed under the terms of this Contract will be paid by Contractor.

20. Applicable Laws and Regulations Contractor shall comply with all applicable federal, state, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OCSD as a result of Contractor's noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically referenced.

21. Familiarity with Work By executing this Contract, Contractor warrants that: 1) it has investigated the work to be performed; 2) it has investigated the site of the work and is aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the work under this Contract. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except at Contractor’s risk, until written instructions are received from OCSD.

22. South Coast Air Quality Management District’s (SCAQMD) Requirements It is Contractor’s responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All contract work practices, which may have associated emissions such as sandblasting, open field spray painting or demolition of asbestos containing components or structures, shall comply with the appropriate rules and regulations of the SCAQMD.

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23. Regulatory Requirements Contractor shall perform all work under this Contract in strict conformance with applicable federal, state, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, and 261, Title 22, 23, and California Water Codes Division 2.

24. Public Contracts Law OCSD 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. Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this project as required by Labor Code Section 1774 of the State of California.

25. Governing Law This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Contract or the performance thereof.

26. Dispute Resolution 26.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process.

26.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein.

27. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Contract, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Contractor to which OCSD does not object shall not operate as a waiver of OCSD’S rights to seek remedies available to it for any subsequent breach.

28. Remedies In addition to other remedies available in law or equity, if the Contractor fails to make delivery of the goods or Services or repudiates its obligations under this Contract, or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1) cancel the Contract; (2) recover whatever amount of the purchase price OCSD has paid, and/or (3) “cover” by purchasing, or contracting to purchase, substitute goods or Services for those due from Contractor. In the event OCSD elects to “cover” as described in (3), OCSD shall be entitled to recover from Contractor as damages the difference between the cost of the substitute goods or Services and the contract price, together with any incidental or consequential damages.

Orange County Sanitation District 5 of 7 Specification No. S-2013-574-R2

Return to Agenda Report

29. Survival The provisions of this Contract dealing with Payment, Warranty, and Forum for Enforcement, shall survive termination or expiration of this Contract.

30. Severability If any section, subsection, or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties.

31. Disclosure Contractor agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OCSD.

32. Damage to OCSD’S Property Any of OCSD’S property damaged by Contractor, any subcontractors or by the personnel of either will be subject to repair or replacement by Contractor at no cost to OCSD.

33. Safety and Human Resources Policies OCSD requires all contractors and service providers to follow and ensure their employees and all subcontractors follow all State and Federal regulations as well as OCSD requirements while working at OCSD locations. If during the course of a contract it is discovered that OCSD policies, safety manuals, or contracts do not comply with State or Federal regulations then the Contractor is required to follow the most stringent regulatory requirement at no cost to OCSD. In addition to the Safety requirements contained in the Exhibits hereto, Contractor and all their employees and subcontractors, shall adhere to all applicable OCSD Safety and Human Resources Policies found at: OCSD.com, “Doc Central” (bottom of page), under “Safety”.

34. Attorney’s Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled.

35. Read and Understood By signing this Contract, Contractor represents that he has read and understood the terms and conditions of the Contract.

36. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound.

37. Entire Agreement This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof.

Orange County Sanitation District 6 of 7 Specification No. S-2013-574-R2 Return to Agenda Report

38. Notices All notices under this Contract must be in writing. Written notice shall be delivered by personal service or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address or which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses:

OCSD: Clarice M. Marcin Senior Contracts Administrator Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018

Contractor: Power Testing and Energization ______

Each party shall provide the other party written notice of any change in address as soon as practicable.

IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives.

ORANGE COUNTY SANITATION DISTRICT

Dated: By: ______Chair Board of Directors

Dated: By: ______Clerk of the Board

Dated: By: ______Contracts/Purchasing Manager

POWER TESTING AND ENERGIZATION

Dated: By: ______

______Print Name and Title of Officer

______IRS Employer’s I.D. Number

Orange County Sanitation District 7 of 7 Specification No. S-2013-574-R2 ITEM NO. 11

MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE

Orange County Sanitation District Wednesday, February 19, 2014, at 5:30 P.M.

A regular meeting of the Administration Committee of the Orange County Sanitation District was held on February 19, 2014, at 5:33 p.m., in the Sanitation District's Administration Building. Director Ferryman led the Flag Salute.

A quorum was declared present, as follows:

COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Brad Reese, Chair Jim Herberg, General Manager John Withers, Vice-Chair Lorenzo Tyner, Director of Finance David Benavides & Administrative Services Joe Carchio Jeff Reed, Director of Human Resources Steven Choi Nick Kanetis, Director of Engineering Tyler Diep Ed Torres, Director of Operations and James Ferryman Maintenance Gene Hernandez Nick Arhontes, Director of Facilities Peter Kim Support Services Prakash Narain Kelly Lore, Secretary Pro Tem Joe Shaw Jennifer Cabral Teresa Smith Rich Castillon Troy Edgar, Board Chair Norbert Gaia Al Garcia COMMITTEE MEMBERS ABSENT: Stephanie Good Janet Nguyen Dave Halverson Andrew Nau Joe Park

OTHERS PRESENT: Omar Sandoval, Assistant General Counsel Steve Filarsky, Consultant Alternate Director Al Krippner (MCSD)

PUBLIC COMMENTS:

Chair Reese stated that there were two speakers who would be heard prior to Item 5.

02/19/2014 Administration Committee Minutes Page 1 of 6 REPORT OF COMMITTEE CHAIR:

Committee Chair Reese did not provide a report.

REPORT OF GENERAL MANAGER:

General Manager, Jim Herberg, did not provide a report.

REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES:

Lorenzo Tyner, Director of Finance, did not provide a report.

CONSENT CALENDAR:

1. MOVED, SECONDED, AND DULY CARRIED: Approve Minutes of the December 11, 2013 Administration Committee Meeting.

AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers

NOES: None

ABSTENTIONS: None

ABSENT: Nguyen

2. MOVED, SECONDED, AND DULY CARRIED:

A. Approve an agreement for Deferred Compensation Program 457(b) Investment Consulting Services, Specification No. CS-2013-588, with SST Benefits Consulting for a term of three years, in an amount not to exceed $158,000 with the option to renew for one additional one-year period; and

B. Approve a contingency of $15,800 (10%)

AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers

NOES: None

ABSTENTIONS: None

ABSENT: Nguyen

02/19/2014 Administration Committee Minutes Page 2 of 6 ON-CONSENT:

3. Director of Human Resources, Jeff Reed provided a brief presentation regarding this item and answered questions from the Committee.

MOVED, SECONDED, AND DULY CARRIED: Authorize the General Manager to advertise a request for proposal and subsequently award a Consultant Services Agreement for an OCSD-wide classification and compensation study, for a total amount not to exceed $100,000.

AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers

NOES: None

ABSTENTIONS: None

ABSENT: Nguyen

4. Director of Director of Finance and Administrative Services, Lorenzo Tyner, provided a brief presentation regarding this item and answered questions from the Committee.

MOVED, SECONDED, AND DULY CARRIED:

A. Approve a Professional Services Agreement for Specification S-2013- 562BD with CiM Maintenance, Inc., for Enterprise Asset Management - Planning and Scheduling Software, for an amount not to exceed $147,297; and

B. Approve a contingency in the amount of $14,730 (10%).

AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers

NOES: None

ABSTENTIONS: None

ABSENT: Nguyen

5. Chair Reese called upon the speakers who wished to address this item.

Patrick Shields, Director of Operations, Irvine Ranch Water District (IRWD), stating that IRWD service area in contiguous to the transfer area, and that IRWD would be interested in meeting with staff to explore their agencies’ possible

02/19/2014 Administration Committee Minutes Page 3 of 6 contribution to this transfer.

Doug Davert, Director, East Orange County Water District (EOCWD), stated that EOCWD encompasses 90% of the transfer area and asked for the Board’s support for this transfer.

Nick Arhontes, Director of Facilities Support Services, gave an informative PowerPoint presentation on the transfer of sewers – history, process, and financial summary.

Staff responded to various questions from the Committee.

MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to:

Authorize the General Manager to:

A. Approve agreement with East Orange County Water District (EOCWD), to transfer ownership of local sewers in Service Area 7, and the appropriate reserve balances; and

B. Provide EOCWD with technical and financial information to assist with its submittal of a reorganization application to the Orange County Local Area Formation Commission (OC LAFCO) to facilitate the transfer of ownership of the local sewers and agreed assets; and

C. Draft and execute a letter of support to OC LAFCO in favor of EOCWD’s reorganization application, subject to and contingent upon OC LAFCO’s acceptance of the terms and conditions of transfer agreed upon by OCSD and EOCWD; and

D. Approve an agreement with EOCWD to reimburse OCSD for staff support requested during an agreed transition period.

AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers

NOES: Carchio, Choi and Withers

ABSTENTIONS: None

ABSENT: Nguyen

Director Narain left the meeting at 6:41 p.m.

02/19/2014 Administration Committee Minutes Page 4 of 6 6. Director of Director of Finance and Administrative Services, Lorenzo Tyner, provided a brief presentation regarding this item and answered questions from the Committee.

MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to:

A. Advertise a request for proposal for managing the District’s Investment Program that includes making the investment decisions and execution of the investment transactions; and

B. Advertise a request for proposal for an investment advisor to assist with the selection process of an investment management firm in an amount not to exceed $40,000.

AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Reese, Smith and Withers

NOES: None

ABSTENTIONS: None

ABSENT: Narain and Nguyen

7. Director of Director of Finance and Administrative Services, Lorenzo Tyner, and Controller, Mike White, provided a PowerPoint presentation regarding this item and answered questions from the Committee.

MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to:

Approve the budget assumptions to be used for the preparation of the FY 2014- 15 and FY 2015-16 two-year budget.

AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Reese, Smith and Withers

NOES: None

ABSTENTIONS: None

ABSENT: Narain and Nguyen

Director Narain returned prior to Closed Session at 7:02 p.m.

02/19/2014 Administration Committee Minutes Page 5 of 6 CLOSED SESSION:

CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54957.6

The Board convened in closed session at 7:03 p.m. to discuss one item. Confidential Minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings.

RECONVENE IN REGULAR SESSION: The Board reconvened in regular session at 7:43 p.m.

OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY:

None.

ADJOURNMENT:

Committee Chair Reese declared the meeting adjourned at 7:45 p.m.

Submitted by:

______Kelly A. Lore, Secretary Pro Tem

02/19/2014 Administration Committee Minutes Page 6 of 6 Meeting Date To Bd. of Dir. ADMINISTRATION COMMITTEE 02/19/14 02/26/14 Item Number Item Number AGENDA REPORT 6 12 Orange County Sanitation District

FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services

SUBJECT: REQUEST FOR PROPOSAL FOR INVESTMENT MANAGEMENT

GENERAL MANAGER'S RECOMMENDATION

A. Advertise a request for proposal for managing the District’s Investment Program that includes making the investment decisions and execution of the investment transactions; and

B. Advertise a request for proposal for an investment advisor to assist with the selection process of an investment management firm in an amount not to exceed $40,000.

SUMMARY

The District has utilized Pacific Investment Management Company (PIMCO) to manage the District’s investment portfolio since September 1995. Services include making investment decisions, completing investment transactions, and reporting investment results in accordance with the District’s investment policy.

As the Sanitation District has used the same investment manager for several years, staff believes that it would be prudent to re-evaluate the availability of these services in today’s open market, from both a cost and a performance basis, and to conduct a competitive request for proposal process for these services.

PRIOR COMMITTEE/BOARD ACTIONS

September 1995 – The Board awarded PIMCO to serve as the District’s Investment Manager.

ADDITIONAL INFORMATION

PIMCO fees for service are equal to 15 basis points (0.15%) of the annual average investment balance, calculated and billed quarterly. These fees average approximately $645,000 a year for the current portfolio size of $430 million and are recorded by the District as a reduction of interest revenue. Page 1 of 2

CEQA

N/A

BUDGET/DELEGATION OF AUTHORITY COMPLIANCE

N/A

ATTACHMENT

N/A

Page 2 of 2

Meeting Date To Bd. of Dir. ADMINISTRATION COMMITTEE 02/19/14 02/26/14 Item Number Item Number AGENDA REPORT 7 13 Orange County Sanitation District

FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services

SUBJECT: BUDGET ASSUMPTIONS

GENERAL MANAGER'S RECOMMENDATION

Approve the budget assumptions to be used for the preparation of the FY 2014-15 and FY 2015-16 two-year budget.

SUMMARY

The Administration Committee establishes the Budget Assumptions and approves the Budget Calendar in the development of the District’s two-year budget.

Staff will make a brief presentation at the Committee meeting.

PRIOR COMMITTEE/BOARD ACTIONS

None.

ADDITIONAL INFORMATION

Currently, there are no proposed changes to the Sanitation District Fiscal Policy. The Fiscal Policy is published in the FY 2012-13 and 2013-14 Budget document (Section 3, Pages 1-8), and is available on the Sanitation District’s website.

ATTACHMENTS The following attachment(s) are attached in hard copy and may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package and attachments:

• Preliminary Budget Assumptions (Page 2-6) • Budget Update Calendar (Pages 7-10)

Page 1 of 10 Return to Agenda Report

FY 2013-14 & 2014-15 Preliminary Budget Assumptions

Economic Assumptions • Inflation for Orange County in FY 2014-15 is projected to be 2.3 percent based on the 2014 projected percentage change in consumer price index obtained from the November 2013 Economic and Business Review report prepared by Chapman University. A 2.3 percent inflation factor will also be used for 2015-16.

Revenue Assumptions • A five-year Sewer Service Fee Rate Schedule was approved by the Board in March 2013.

• The single-family residence (SFR) rate will increase 2.6% to $316 in FY 2014- 15. For FY 2015-16, the single-family residence (SFR) rate will increase an additional 2.2% to $323.

• Note that each $1 increase in the SFR rate generates approximately $900,000 per year.

• The capital facilities capacity charge (CFCC) fee captures only those infrastructure costs that relate to additional capacity. Other infrastructure costs such as improved treatment, rehabilitation, refurbishment, and replacement, will be supported through user fees.

• Given the new Facilities Master Plan adopted in December 2009, a new rate study was completed in April 2010 to ensure that the CFCC fee methodology remains equitable and to confirm that an appropriate share of system costs would be recovered from new development.

• Revenues will be budgeted to reflect little growth in Equivalent Dwelling Unit (EDU) connections that have remained flat over the past five years.

• Permit user rates for flow, Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS) will follow the most recent Rate Study.

• Annexation fees capture both the net current assets and the equivalent property tax allocations totaling $4,235 per acre.

• Annexable property in the District’s service area sphere is minimal; consequently, no FY 2014-15 income from annexation fees is anticipated.

• Property tax revenues of $64,025,000 are preliminarily estimated to increase by approximately 5% from FY 2013-14. A 2% annual increase in Assessed Value is authorized by the state constitution and is included in the increases noted above. The additional increase in assessed value is from authorized increases to market value when property is sold at a higher value.

Page 2 Return to Agenda Report

FY 2013-14 & 2014-15 Preliminary Budget Assumptions

• Earnings on the investment of the District’s operating cash and reserves will be budgeted at 1.0% of the average cash and investment balance projected for the fiscal year.

• No additional debt issuance is scheduled for FY 2014-15 or FY 2015-16.

Operating Assumptions • Dry weather urban run off up to 10 mgd will continue to be treated at no charge.

• Operating expenses are expected to approximate the adopted FY 2013-14 budget of $153.4 million.

• All secondary treatment facilities are completed and fully operational.

• Average daily flows are projected to remain steady at 200 mgd for FY 2014-15 and FY 2015-16. This projection reflects an expectation that increased economic activity and urban runoff will be offset by effects of conservation and minimal rainfall, resulting in no overall increase in the average daily flow. The FY 2014-15 flow projection of 200 mgd reflects no change from the actual for the first 5 months of the current year and the final actual flow for FY 2012-13.

Employee/Staffing Assumptions • Staffing level is expected to remain flat. The total FY 2013-14 authorization level is 626.00 FTEs.

• Vacant positions as of 12/31/13 are budgeted at 50% of step 1 for the remainder of FY 2013-14 and at 100% of step 2 for FY 2014-15.

• New positions will be projected at 100% of step 1 for FY 2014-15.

• A 3% vacancy factor on authorized positions has been budgeted for FY 2014- 15. The actual vacancy factor for 2012-13 was 5.6%. This vacancy factor accounts for time spent for recruitment and turnover.

• The Memorandum of Understanding (MOU) for the Supervisor and Professional (SPMT) group expired June 30, 2013. Pending the completion of the negotiation process, no salary adjustments will be included in the budget for COLA for periods beyond the expiration of the current MOU.

• The MOUs for both OCEA and Local 501 will expire June 30, 2014. Pending the completion of the negotiation process, no salary adjustments

Page 3 Return to Agenda Report

FY 2013-14 & 2014-15 Preliminary Budget Assumptions

will be included in the budget for COLA for periods beyond the expiration of the current MOUs.

• Retirement costs for employees enrolled in OCERS Plans G and H are estimated at a rate of 41.98% of the employee’s base salary for FY 2014- 15 and FY 2015-16, up from 35.45% in FY 2013-14. The rates for Plans G and H include the District’s pickup of 3.5% of employees’ required contributions. Employees enrolled in OCERS Plan B are estimated at a rate of 36.62% of the employee’s base salary for FY 2014-15 and FY 2015-16, up from 30.77% in FY 2013-14. All employees hired on or after January 1, 2013 are enrolled in OCERS Plan U and are estimated at a rate of 34.98% for FY 2014-15 and FY 2015-16, up from 29.36% in FY 2013-14. Interns are not enrolled in OCERS so their retirement benefits are calculated at 6.2% (FICA rate).

• Other employee benefits and insurances will be budgeted to increase each year by moderate but yet to be determined amounts.

Materials, Supplies, & Services Assumptions • The proposed operating budget will continue to reflect an emphasis on safety, technical, and management training. The proposed FY 2014-15 budget will include a budget for training based on recent actual costs and identified needs rather than on a percentage of regular salaries and wages.

• An amount equal to half of one percent of the Operating materials and services budget will be a contingency for prior year re-appropriations. Since the current year’s budget lapses on June 30, a contingency is needed in the succeeding budget year for goods or services ordered at the end of one budget year but not delivered until the following year.

• An amount equal to one half of one percent of the Operating materials and services budget will be the General Manager’s contingency budget. These funds will be allocated to appropriate line items during the year after requests and justifications for unanticipated needs are approved by the General Manager.

• Resource needs for strategic initiatives will be included in the budget.

Capital Improvement Program Assumptions • The FY 2014-15 and 2015-16 cash flow budgets, based on the most current Validated Capital Improvement Program (CIP), is the target.

• The baseline CIP cash flow for FY 2014-15 is $205 million and for FY 2015- 16 is $183 million.

Page 4 Return to Agenda Report

FY 2013-14 & 2014-15 Preliminary Budget Assumptions

• Continual evaluation of the CIP by the Asset Management Team may result in deferral or reduction of some projects and a resultant increase in O&M repair costs for materials and services, if the net cash flow impact is a decrease.

• The FY 2014-15 and 2015-16 CIP budget will only increase for critical projects which were not previously identified in the Strategic Plan Update.

• For the first five months of FY 2013-14, $36.2 million of the $141.6 million CIP budget, approximately 25.6%, was expended.

Debt Financing • The District will issue new debt in the form of Certificates of Participation (COP) as needed to fund the CIP and to maintain reserves. • No additional debt issuance is scheduled for FY 2014-15 and FY 2015-16.

• Debt will only be used for CIP and capital expenses, not for operating expenses.

• Capital financing plans which include fewer future borrowings and higher user fees after FY 2015-16 will be considered.

• Borrowing is proposed only for facilities which do not add capacity and that are funded by all users for replacement, rehabilitation, and improved treatment.

Reserve Assumptions • The current reserve policy was reviewed by Public Resources Advisory Group and the Board during FY 2003-04. No changes were proposed and direction was given to continue to maintain reserve levels at a level that is adequate to offset exposure to variable rate COPs due to interest rate increases. • The current reserve policy is summarized as follows: ► A cash flow reserve will be established to fund operations, maintenance and certificates of participation expenses for the first half of the fiscal year, prior to receipt of the first installment of the property tax allocation and sewer service user fees which are collected as a separate line item on the property tax bill. The level of this reserve will be established as the sum of an amount equal to six months operations and maintenance expenses and the total of the annual debt (COP) service payments due in August each year. ► An operating contingency reserve will be established to provide for non- recurring expenditures that were not anticipated when the annual budget and sewer service fees were considered and adopted. The level of this

Page 5 Return to Agenda Report

FY 2013-14 & 2014-15 Preliminary Budget Assumptions

reserve will be established at an amount equal to ten percent of the annual operating budget.

► A capital improvement reserve will be maintained to fund annual increments of the capital improvement program. The long-term target is for one half of the capital improvement program to be funded from borrowing and for one half to be funded from current revenues and reserves. With this program in mind, the target level of this reserve has been established at one-half of the average annual capital improvement program through the year 2020.

► Catastrophic loss, or self-insurance, reserves will be maintained for property damage including fire, flood and earthquake, for general liability and for workers' compensation. These reserves are intended to work with purchased insurance policies, FEMA disaster reimbursements and State disaster reimbursements. The potential infrastructure loss from a major earthquake, of which the District currently has no outside insurance coverage, has been estimated to be as high as $1.3 billion. The level of this reserve has been set at $57 million should such a catastrophic event occur. This reserve amount will assist the District with any short-term funding needs until Federal and State assistance becomes available.

► Accumulated capital funds will be set aside for certain specific, short-term capital improvements as the need and availability arise.

► A capital replacement/renewal reserve policy has been established to provide thirty percent of the funding to replace or refurbish the current collection, treatment and disposal facilities at the end of their useful economic lives.

Based on the FY 2011-12 Asset Management Plan, the current replacement value of these facilities is estimated to be $3.14 billion for the collection facilities and $3.12 billion for the treatment and disposal facilities. The initial reserve level has been established at $50 million, which will be augmented by interest earnings and a small portion of the annual sewer user fee, in order to meet projected needs through the year 2030.

► Provisions of the various certificates of participation (COP) issues require debt service reserves to be under the control of the Trustee for that issue. These reserve funds are not available for the general needs of the District and must be maintained at specified levels. The current level of required COP service reserves is projected to be $214.5 million.

► Accumulated funds exceeding the levels specified by District policy will be maintained in a rate stabilization fund. These funds will be applied to future years' needs in order to maintain rates or to moderate annual fluctuations. There is no established target for this reserve.

Page 6 Return to Agenda Report

FY 2013-14 & 2014-15 Budget Calendar

Tasks Responsibility Event/Due Date

PHASE I – BUDGET PREPARATION

Preliminary Budget Assumptions Identified Financial Planning 12/12/13

CIP – Project Attributes Reviewed and Updated Engineering Planning 12/23/13

Preliminary Budget Assumptions Presented to MT Financial Planning 1/16/14

Draft Budget Calendar Presented to MT Financial Planning 1/16/14

Preliminary Budget Assumptions Presented to EMT Financial Management 1/13/14

Draft Budget Calendar Presented to EMT Financial Management 1/13/14

Update to Strategic Initiatives Finalized MT & EMT 1/14/14

Preparation for Budget Kickoff / Training Session: Financial Planning 1/16/14 • Salary and benefits downloaded to Excel worksheets • Develop line item worksheets with mid-year actual expense • Prepare/update budget instruction manual Budget Kickoff / Training Session: Financial Planning 1/22/14 • Distribute budget instruction manual update • Conduct budget training session • Review submission deadlines CIP – Engineering Validation Inputs Complete Engineering Project 1/24/14 Managers Operating Divisional Budgets: New Position, Equity Divisional Budget 2/3/14 Adjustment & Position Reclassification Decision Coordinators Packages Due to Human Resources (Richard Spencer, Ext. 7164) with copies to Financial Planning (John Ralston, Ext. 7568) Operating Budget: Promotional Items Request Forms Divisional Budget 2/3/14 Due to Dr. Robert Ghirelli (Division 110) Coordinators

Capital Equipment Budget: Vehicle Capital Equipment Divisional Budget 2/3/14 Decision Packages Due to Fleet Services (Chuck Coordinators Forman, Ext. 7867) Capital Equipment Budget: Computer Capital Divisional Budget 2/3/14 Equipment Decision Packages Due to Information Coordinators Technology (Rich Castillon, Ext. 7283)

Page 7 Return to Agenda Report

FY 2013-14 & 2014-15 Budget Calendar

Tasks Responsibility Event/Due Date CIP – New Project Numbers Assigned Engineering PMO 2/11/14

Division Budget Packages Due to Financial Planning: Divisional Budget 2/18/14 • Projection of current year actual operating costs Coordinators • Proposed operating costs for 2014-15 & 2015-16 • Operating Budget Expense Detail • Meetings, Memberships and Training Requests • Capital Equipment Decision Packages (other than computer and vehicle decision packages which were due on 2/3/14) • New program decision packages (Financial Planning will collate and bind these items – along with salary information - into the Preliminary Division Budget Document for use during the budget review process.)

Budget Assumptions Presented to Administration Financial Management 2/19/14 Committee Mid-Year Financial Report to Administration Committee Financial Management 2/19/14

CIP – Non-engineering CIP project validation forms Non-engineering 2/20/14 completed & approved Project Managers CIP – Preliminary capital equipment request estimates Financial Planning 2/21/14 delivered to PMO

Complete the Compilation of the Preliminary Division Financial Planning 2/21/14 Budget Document

Critical Goals, Strategic Planning and Five Year EMT 2/26/14 Staffing Plan – Steering Committee Meeting

Mid-Year Financial Report to Board Financial Management 2/26/14

CIP – Unified Proposed CIP Budgets & Equipment Engineering PMO 2/27/14 Request Reports and Analysis Created CIP – Validated CIP budgets delivered to IT Engineering PMO 3/25/14

CIP – Project Requests with Project Information IT 3/26/14 Entered in CIP Database CIP – Completed CIP Budget Delivered to Finance IT 3/27/14

Departmental Narrative Updates for Budget Executive EMT 4/10/14 Summary Due to Financial Planning

Page 8 Return to Agenda Report

FY 2013-14 & 2014-15 Budget Calendar

PHASE II - BUDGET REVIEW

Tasks Responsibility Event/Due Date CIP – Planning Presentations to Clearinghouse Engineering Planning 1/23/14 (Proposed CIP changes) Divisional Budgets - Distribution of Preliminary Line Financial Planning 2/26/14 Item Requested Budgets to Department Heads and Managers along with Analysis/Questions for Review Operating Budget - Budget Review Meetings with Financial Planning & 3/3/14 – 3/6/14 Finance and Department Representatives Department Representatives CIP – Review/Adjust Preliminary CIP Budget Engineering 3/7/14

CIP –Engineering/Finance Budget Review Workshop Engineering/Financial 3/12/14 Management Operating Budget – Recommendations to General Financial Planning 3/11/14 Manager Final Operating Budget – General Manager Review of Financial Planning, 3/13/14 – 3/18/14 Budget Recommendations GM, & Department Heads Capital Equipment Budget – Requests Reviewed & Financial Planning, 3/13/14 – 3/18/14 Approved GM, & Department Heads Divisional Budgets – Performance Budget Documents Divisional Budget 3/14/14 Due to Financial Planning (John Ralston): Coordinators • Organization Charts • Performance Results (2012-13) • Performance Measures (2014-15 & 2015-16) CIP – Final Adjustments Engineering/Financial 3/17/14 Management CIP – Confirm 20 Year Cash Flow Schedules Engineering/Financial 3/17/14 Management CIP – Final capital equipment requests delivered to Financial Planning 3/21/14 PMO Divisional Budgets - Completion of Preliminary Budget Financial Planning 3/21/14 and Compilation into Departmental Budgets CIP – Approve Proposed CIP Budget EMT 3/24/14

CIP - Committee Review Operations Committee 4/2/14

Page 9 Return to Agenda Report

FY 2013-14 & 2014-15 Budget Calendar

PHASE III - BUDGET PRESENTATION

CIP - Final CIP Budget Document Preparation and Financial Planning 4/10/14 Incorporation into Final Budget Document Tasks Responsibility Event/Due Date CIP – Review draft of Final Budget Document pages Financial Planning 4/10/14 with Engineering Planning & PMO Initial - Proposed Budget finalized Financial Planning 4/30/14

Initial - Proposed 2014-15 & 2015-16 Budget Financial Management Ops – 5/7/14 Presented to Committees Admin – 5/14/14 General Manager’s Budget Message Completed General Manager/ 5/5/14 Financial Planning Approval of General Manager’s Budget Message General Manager 5/9/14

Final - Proposed Budget to Printer Financial Planning 5/12/14

PHASE IV - BUDGET DELIBERATIONS Final Draft - Proposed 2014-15 & 2015-16 Budget Financial Management Ops – 6/4/14 Presented to Committees Admin – 6/11/14 Public Hearing & Board Adoption Board of Directors 6/25/14

PHASE V – DISTRIBUTION OF BUDGET Final line item budget and equipment budgets posted Financial Planning 7/7/14 in H:\ntglobal

PHASE VI - BUDGET DEBRIEFING Budget Debriefing E-mail Message Financial Planning 7/11/14 • Global changes that occurred in this year’s budget. • Changes since the Departments’ original submittal. • Changes that occurred as a result of Board action. • Results of Budget Survey. • Overview of Budget Monitoring with Oracle (JD Edwards) One World Xe Software and review of Budget Coordinator’s Responsibility. • Overview of CIP Budget Monitoring. • Suggestions for Budget Process Improvements.

Page 10 Meeting Date To Bd. of Dir. OPERATIONS COMMITTEE 02/05/14 02/26/14 Item Number Item Number AGENDA REPORT 5 14 Orange County Sanitation District

FROM: James D. Herberg, General Manager Originators: Nick Arhontes, Director of Facilities Support Services, and Lorenzo Tyner, Director of Finance and Administrative Services

SUBJECT: TRANSFER OF LOCAL SEWERS IN SERVICE AREA 7

GENERAL MANAGER'S RECOMMENDATION

A. Approve agreement with East Orange County Water District (EOCWD), to transfer ownership of local sewers in Service Area 7, and the appropriate reserve balances; and

B. Authorize the General Manager to provide EOCWD with technical and financial information to assist with its submittal of a reorganization application to the Orange County Local Area Formation Commission (OC LAFCO) to facilitate the transfer of ownership of the local sewers and agreed assets; and

C. Authorize the General Manager to draft and execute a letter of support to OC LAFCO in favor of EOCWD’s reorganization application, subject to and contingent upon OC LAFCO’s acceptance of the terms and conditions of transfer agreed upon by OCSD and EOCWD; and

D. Approve an agreement with EOCWD to reimburse OCSD for staff support requested during an agreed transition period.

SUMMARY

OCSD currently owns and operates 174 miles of local sewers in Service Area 7, located in the City of Tustin and unincorporated county areas north of Tustin, including the El Modena islands. Our Strategic Plan includes an initiative to transfer these local sewers to a local (retail) agency.

In 2013 the City of Tustin asked for and was granted additional time to consider accepting the transfer of all the local sewers in Service Area 7. After the City indicated that it was no longer interested in obtaining local facilities, EOCWD expressed its interest in acquiring 100% of the local sewers from OCSD and requested information on the local sewer system.

The proposed transfer of ownership of the local sewers will require an OC LAFCO- approved reorganization because the boundaries of Service Area 7 cover several jurisdictions. EOCWD staff will seek authorization from its Board in February to initiate the OC LAFCO process. OC LAFCO’s estimated timeline (attached) shows that the

Page 1 of 3 overall process will take approximately nine months to conclude. Assuming a February filing date, the reorganization process should be completed in November 2014.

PRIOR COMMITTEE/BOARD ACTIONS

February 2014 - Operations Committee and Administration Committee approved this item.

November 2013 - Five Year Strategic Plan and prior OCSD Strategic Plans support the transfer.

ADDITIONAL INFORMATION

Retail or local sewer agencies collect wastewater from residential, commercial and industrial properties through local sewer lines. Each city or special district providing local service has established its own local sewer fee depending on its site specific costs to own, manage, operate and maintain its local wastewater collection system. Parts of Tustin and unincorporated areas of the County are owned, operated and serviced entirely by OCSD. The cost of the local sewerage system is apportioned to each property owner based on the amount of the average wastewater discharged from that type of parcel.

The Area 7 local sewer service fees currently collected by OCSD are based upon financial and engineering studies and reports. The annual single-family residential (SFR) user rate is $216 and the multi-family residential (MFR) use per apartment unit is $151.20. These fees have been set to support annual operating expenses and to build a reserve for future capital costs. The current reserve balance is $25 million, however; that amount will change depending on the date of recordation of the transfer. OCSD proposes to transfer these reserves to EOCWD following its assumption of ownership for the Area 7 local sewers.

The proposed transfer agreement will be essentially cost/revenue neutral to OCSD. The fees currently collected by OCSD for local sewer service will be collected by EOCWD. EOCWD will assume responsibility for all maintenance costs, as well as capital improvement and replacement costs.

The assets included in the proposed transfer serve approximately 18,000 parcels. The entire local sewer system is comprised of gravity sewers ranging between 4 and 27 inches in diameter, however the vast majority of the assets are 8-inch Vitrified Clay Pipe (VCP). There are no pumping facilities.

CEQA

N/A

BUDGET / DELEGATION OF AUTHORITY COMPLIANCE

Page 2 of 3 This request complies with authority levels of the Sanitation District’s Delegation of Authority.

ATTACHMENTS The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package:

• Local Sewer Facilities Transfer Agreement • Letter of Support for EOCWD Reorganization Application • Quitclaim Deed • Transitional Services Agreement • Map of area exhibit • OC LAFCO Estimated Timeline (schedule)

Page 3 of 3 Return to Agenda Report

LOCAL SEWER FACILITIES TRANSFER AGREEMENT

THIS LOCAL SEWER FACILITIES TRANSFER AGREEMENT ("Agreement") is made this ___ day of ______, 2014 ("Effective Date") by and between the ORANGE COUNTY SANITATION DISTRICT ("OCSD"), a duly organized County Sanitation District existing pursuant to California Health and Safety Code section 47000 et seq., and the EAST ORANGE COUNTY WATER DISTRICT ("EOCWD"), a duly organized County Water District existing pursuant to California Water Code section 30000 et seq. OCSD and EOCWD are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as "Parties".

RECITALS

WHEREAS, OCSD owns and operates regional wastewater collection, conveyance, treatment, and disposal facilities within its 471 square mile service area;

WHEREAS, OCSD owns and operates the local wastewater collection and conveyance system, encompassing approximately 174 linear miles of sewer lines and serving more than 18,000 connections, within the area known as Service Area 7, which area is more particularly identified in Exhibit "A" attached hereto and incorporated herein by reference;

WHEREAS, OCSD desires to transfer to EOCWD: (a) its ownership of certain local sanitary sewer lines and appurtenant facilities located in Service Area 7 ("Local Sewer Facilities"), which are more particularly described and delineated in attachments 1 and 2 of Exhibit "B" attached hereto and incorporated herein by reference, and (b) the responsibility for providing local sewer service to Service Area 7;

WHEREAS, EOCWD desires to acquire ownership and assume responsibility for the Local Sewer Facilities and to accept responsibility for providing local sewer service to Service Area 7;

WHEREAS, the transfer of ownership in and the assumption of responsibility for the Local Sewer Facilities to EOCWD will require the approval of the Orange County Local Agency Formation Commission ("LAFCO"); and

WHEREAS, following the transfer to EOCWD of the Local Sewer Facilities, OCSD shall retain its power to provide regional sewer service within the entirety of Service Area 7.

Page 1 of 9 985050.1 AGREEMENT

NOW, THEREFORE, in consideration of the mutual promises set forth herein, the Parties agree as follows:

1. Recitals. The recitals set forth above are true and correct and are incorporated into this Agreement.

2. Cooperation.

a. OCSD and EOCWD shall work cooperatively to complete the successful transfer from OCSD to EOCWD of the Local Sewer Facilities and the assumption of responsibility for ongoing operation and maintenance of the Local Sewer Facilities by EOCWD by no later than December 1, 2014. Both Parties shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, necessary or appropriate to fulfill the obligations imposed by this Agreement.

3. LAFCO Proposal.

a. Initiation of Proceedings. EOCWD shall, within one month (30 days) from the Effective Date, initiate proceedings under the Cortese-Knox- Herzberg Local Government Reorganization Act of 2000, as amended, Government Code section 56000, et seq., requesting LAFCO approval of a reorganization proposal (the "Proposal”). The resolution of application enacted by EOCWD and submitted to LAFCO shall propose that LAFCO's approval of the Proposal shall be subject to the terms and conditions of this Agreement. EOCWD shall be solely responsible for the direct costs incurred in connection with the initiation and processing of the Proposal, and LAFCO approval thereof, including without limitation any LAFCO deposits, application or processing fees, and the cost of preparing any legal descriptions, boundary surveys or maps. The Proposal shall consist of the following:

i. The annexation of certain territory within Service Area 7 that is not within the current boundaries of EOCWD; and

ii. A proposal by EOCWD to provide a new or different service – "local" sewer service – within the entirety of Service Area 7.

b. Public Outreach. EOCWD desires to proactively inform the ratepayers within Service Area 7, and the general public, of the Proposal and the process for implementing it, including opportunities for public involvement. In furtherance of that desire, OCSD agrees to provide EOCWD with a mailing list of the property owners in Service Area 7 (consistent with the format used for Proposition 218 notifications) in an Excel spreadsheet or an Access compatible (SQL) database format within 30 days of EOCWD’s submittal of an application to LAFCO. In the written materials, EOCWD shall accurately and fairly describe the

Page 2 of 9 985050.1 Return to Agenda Report

proposal and may indicate that the Proposal is jointly proposed and supported by EOCWD and OCSD. EOCWD shall provide OCSD an opportunity to review and approve the written material it intends to mail to the property owners in Service Area 7 prior to such mailing. OCSD shall approve, or request changes to, the written materials within ten days of receipt. If OCSD fails to approve or request revisions within 10 days, it shall be deemed to have approved the materials. OCSD shall approve, or request changes to, revised written materials that incorporate or respond to OCSD’s requests for changes within 5 days of receipt, or the materials shall be deemed approved. All costs of producing such material and mailing it will be paid by EOCWD.

c. Letter of Support. OCSD shall cooperate with EOCWD and use its best efforts to support the Proposal in accordance with the terms of this Agreement. OCSD shall, within 45 days of EOCWD's filing of the Proposal with LAFCO, file with LAFCO a formal Letter of Support in favor of the Proposal executed by the General Manager ("Letter of Support"). The Letter of Support shall propose that LAFCO's approval of the Proposal shall be subject to the terms and conditions of this Agreement. OCSD shall execute such documents and take such other actions to support and facilitate the processing of the Proposal as may be reasonably requested by EOCWD, provided such actions shall not result in any cost or expense to OCSD (other than overhead and employee staff time).

d. Continuing Support for Proposal. The Parties agree to support and not oppose the Proposal before and after it is initiated. Specifically, OCSD and EOCWD will cooperate and consult with one another in responding to questions and inquiries from LAFCO, the public and the press, appear in support of the Proposal at LAFCO hearings, and cooperate on a joint response in the event that LAFCO or LAFCO staff propose to alter the Proposal. Furthermore, OCSD agrees that, prior to December 1, 2014, or such earlier time as the LAFCO proceedings have been completed or disapproved, it will not engage in negotiations with other entities regarding the transfer of the Local Sewer Facilities. Both Parties shall support the conditioning of LAFCO's approval of the Proposal on the performance of the terms and conditions of this Agreement. If LAFCO or LAFCO staff propose an alteration to the Proposal that materially diverges from the terms and conditions of this Agreement, either Party may, after consultation with the other Party, oppose the alteration, and if necessary, withdraw its support, and actively oppose LAFCO's approval of the Proposal.

e. Tax Exchange Negotiations and Consultations. The Parties shall cooperate in seeking to have the Board of Supervisors adopt a property tax exchange resolution pursuant to Revenue and Taxation Code section 99 exchanging property tax from OCSD to EOCWD. The Parties agree that in the tax exchange negotiation and consultation process they will jointly support and advocate for having all of the property tax associated with the Local Sewer Facilities be exchanged from OCSD to EOCWD. In Fiscal Year 2012-2013, the

Page 3 of 9 985050.1 estimated property tax collected for the local sewers was $287,000.00 (two hundred eighty seven thousand dollars).

f. Local Sewer Service User Fee.

i. OCSD’s Annual Local Sewer Service User Fee (“the Fee”) shall be continued and following the effective date, to the extent feasible, shall be collected by EOCWD rather than by OCSD. OCSD collects the Fee by reporting it to the County of Orange, which collects it on the property tax roll, and EOCWD intends to do the same. Should it not be feasible, due to statutory or County requirements, for responsibility for collection of the Fee for the 2014-2015 Fiscal Year to be transferred to EOCWD, OCSD shall account for and transmit, within 5 business days of receipt, any such revenues it receives from the County that are attributable to the Fee imposed in Service Area 7. OCSD shall rescind the Fee, as it pertains to the Local Sewer Facilities, by no later than July 1, 2015, or at such earlier time as EOCWD may enact its own local sewer service user fees.

ii. EOCWD shall indemnify, defend and hold harmless, OCSD, its officers, directors, employees and agents from and against any and all claims, actions, damages, liabilities, and expenses (including attorney's fees and reasonable expenses for litigation or settlement) in connection with or arising out of OCSD's assessment, distribution, and collection of the Fee, including without limitation any such claims asserting that the collection by OCSD and transfer of the Fee to EOCWD violates Proposition 218.

4. Transfer of Local Sewer Facilities.

a. Upon the effective date of LAFCO's approval of the Proposal and the requested reorganization ("Date of Reorganization"), EOCWD shall accept ownership of the Local Sewer Facilities and all maintenance responsibilities, as well as the responsibility for all sewer spill notification, reporting, and related regulatory activities. Furthermore, EOCWD shall negotiate, execute and maintain its own contracts with third-party contractors for line- cleaning, CCTV, rehabilitation, repairs and replacement, engineering consultants, and similar services, and directly pay all costs for such contracts.

b. Prior to the Date of Reorganization, EOCWD shall fully execute and deliver to OCSD the Quitclaim Deed, attached hereto as Exhibit "B", transferring ownership of the Local Sewer Facilities from OCSD to EOCWD.

c. Within five (5) business days following the Date of Reorganization, OCSD shall submit the Quitclaim Deed for recordation in the Official Records, Orange County California. Upon recordation, OCSD shall transmit a conformed copy of the Quitclaim Deed to EOCWD.

d. Within five (5) business days following the Date of Reorganization, OCSD shall transfer to EOCWD $10,000,000.00 (ten million

Page 4 of 9 985050.1 Return to Agenda Report

dollars) via wire transfer of the Annual Sewer Service User Fee reserves attributable to the Local Sewer Facilities.

e. On July 1, 2018, OCSD shall transfer to EOCWD $15,000,000.00 (fifteen million dollars) via wire transfer of the Annual Sewer Service User Fee reserves attributable to the Local Sewer Facilities.

f. If, prior to July 1, 2018, a natural catastrophe occurs resulting in substantial damage to the Local Sewer Facilities, OCSD shall release to EOCWD a mutually agreed upon portion of the $15,000,000.00 (fifteen million dollars) transfer of Annual Sewer Service User Fee reserves contemplated by section 4(e) above. Any such release will result in a proportionate reduction of reserves transferred from OCSD to EOCWD on July 1, 2018.

g. After closing its books for the 2017-2018 Fiscal Year, and by no later than November 1, 2018, OCSD shall transfer to EOCWD the remainder of the Annual Sewer Service User Fee reserves, if any, attributable to the Local Sewer Facilities.

h. Upon the Date of Reorganization, OCSD shall transfer ownership of the following vehicles to EOCWD: (a) a 2000 Sterling Vactor (OCSD vehicle 470, California license number 1067492, vehicle identification number (VIN) 2FZ6BJBB81AH61833), and (b) a 1995 FE42 Volvo Hydroflusher truck (OCSD vehicle 396, California license number 356619, vehicle identification number (VIN) 4V52AFHD0SR474402). These vehicles shall be provided to EOCWD "as is" and with no warranties or representations whatsoever as to the condition of the vehicle, or the suitability of the vehicle for any purpose. EOCWD hereby acknowledges that it has/will be granted the opportunity to inspect the vehicles and their maintenance records and has/will do so prior to the Date of Reorganization.

i. On or prior to the Date of Reorganization, OCSD shall allow EOCWD to review, reference and utilize OCSD established specifications for line-cleaning, CCTV, rehabilitation, repairs and replacement, and similar services, as mutually agreed by the Parties.

5. Environmental Review. EOCWD shall act as lead agency for purposes of the Proposal, and shall be solely responsible for the preparation of all environmental documentation required pursuant to the California Environmental Quality Act ("CEQA").

6. Term. This Agreement shall commence on the Effective Date and continue in full force and effect through December 1, 2014. The Parties may mutually agree in writing to extend the term of this Agreement. The Agreement shall automatically terminate if LAFCO disapproves the Proposal.

Page 5 of 9 985050.1 7. Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be personally delivered, sent by registered or certified mail, postage prepaid, return receipt requested, or delivered or sent by electronic transmission, and shall be deemed received upon the earlier of: (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) three (3) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by electronic transmission. Any notice, request, demand, direction, or other communication sent by electronic transmission must be confirmed within forty-eight (48) hours by letter mailed or delivered. Notices or other communications shall be addressed as follows:

To OCSD: Orange County Sanitation District 10844 Ellis Avenue Post Office Box 8127 Fountain Valley, CA 92708-7018 Attn: General Manager

To EOCWD: East Orange County Water District 185 North McPherson Road Orange, CA 92869-3720 Attn: General Manager

Either Party may from time to time, by written notice to the other, designate a different address and/or person which shall be substituted for the one above specified, and/or specify additional parties to be notified.

8. Jurisdiction. In the event of a dispute regarding performance or interpretation of this Agreement, the venue for any action to enforce or interpret this Agreement shall lie in the Superior Court of California for Orange County.

9. Governing Law. This Agreement shall be governed by the laws of the State of California.

10. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between the Parties pertaining to the subject matter thereof.

11. Waiver. A waiver of a breach of the covenants, conditions or obligations under this Agreement by either Party shall not be construed as a waiver of any succeeding breach of the same or other covenants, conditions or obligations of this Agreement.

12. Modification. Alteration, change or modification of this Agreement shall be in the form of a written amendment, which shall be signed by each Party.

Page 6 of 9 985050.1 Return to Agenda Report

13. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be invalid under the applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of that provision, or the remaining provisions of this Agreement.

14. No Obligation to Third Parties. Execution and delivery of this Agreement shall not be deemed to confer any rights upon others, directly, indirectly or by way of subrogation, and shall not obligate either of the Parties hereto to any person or entity other than each other and their respective affiliates.

15. Successors. This Agreement and the provisions contained herein shall be binding upon and inure to the benefit of OCSD, EOCWD, and their respective heirs, executors, administrators, personal representatives, successors and assigns.

16. Indemnification.

a. EOCWD shall indemnify, defend and hold harmless OCSD, its officers, directors, employees and agents from and against any and all claims, actions, damages, liabilities and expenses (including attorney's fees and reasonable expenses for litigation or settlement) for any loss or damage, including death, bodily injury or damage to or loss of use of property, caused by negligent acts or omissions or willful misconduct by the EOCWD, its officers, directors, employees and agents in connection with or arising out of the performance of this Agreement.

b. OCSD shall indemnify, defend and hold harmless EOCWD, its officers, directors, employees and agents from and against any and all claims, actions, damages, liabilities and expenses (including attorney's fees and reasonable expenses for litigation or settlement) for any loss or damage, including death, bodily injury or damage to or loss of use of property, caused by negligent acts or omissions or willful misconduct by OCSD, its officers, directors, employees and agents in connection with or arising out of the performance of this Agreement. c. The Parties acknowledge that LAFCO policy requires applicants to defend, indemnify, hold harmless, and release LAFCO, its agents, officers, attorneys, and employees from any claim, action, or proceeding brought against any of them, the purpose of which is to attack, set aside, void, or annul the approval of the application or the environmental document that accompanies it. The parties further acknowledge that this indemnification obligation will include, but not be limited to, damages, costs, expenses, attorney fees, or expert witness fees that may be asserted by any person or entity, including the applicant, arising out of or in connection with the approval of the application. As the applicant, EOCWD will be required to execute such an indemnification

Page 7 of 9 985050.1 agreement with LAFCO, and, as a result, EOCWD may incur substantial costs paying for LAFCO’s defense and indemnifying any liability. Notwithstanding anything to the contrary in the foregoing, If LAFCO does not approve the EOCWD Proposal, OCSD agrees to pay one-half of EOCWD's actual costs, associated with indemnifying LAFCO pursuant to the indemnification agreement it will be obligated to sign, as those costs are incurred; however, OCSD's payment hereunder shall not exceed $100,000.00 (one hundred thousand dollars) in total. Furthermore, if LAFCO approves the EOCWD Proposal, OCSD shall have no obligation to pay any of EOCWD's actual costs associated with indemnifying LAFCO. EOCWD shall promptly advise OCSD if the indemnification agreement it is obligated to sign as the applicant is materially different than described in this paragraph, and it shall notify OCSD if LAFCO notifies EOCWD of a legal challenge covered by the indemnification agreement.

17. OCSD Board of Directors. The Parties acknowledge that nothing contained herein shall entitle EOCWD to a seat on the OCSD Board of Directors, and that any such change would require an amendment to Health and Safety Code section 4730.65, which governs the composition of the OCSD Board of Directors.

18. No Warranty of Title or Condition. OCSD makes not warranty or representation of any kind regarding its title to the Local Sewer Facilities, the condition of the Local Sewer Facilities, or the suitability of the Local Sewer Facilities for any purpose. EOCWD has been granted an opportunity to fully inspect the Local Sewer Facilities and has done so as of the Effective Date. EOCWD accepts the Local Sewer Facilities "as is".

19. Authorization. Each of the undersigned represents and warrants that he or she is duly authorized to execute and deliver this Agreement and that such execution is binding upon the entity for which he or she is executing this document.

[SIGNATURES ON FOLLOWING PAGE]

Page 8 of 9 985050.1 Return to Agenda Report

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the dates set forth below.

ORANGE COUNTY SANITATION DISTRICT

By ______Date______Troy Edgar Chairman of the Board

ATTEST:

______Maria E. Ayala Clerk of the Board

APPROVED AS TO FORM:

______Brad Hogin General Counsel

EAST ORANGE COUNTY WATER DISTRICT

By ______Date______William VanderWerff President of the Board of Directors

ATTEST:

______

APPROVED AS TO FORM:

______Joan Arneson General Counsel

Page 9 of 9 985050.1 EXHIBIT “A”

SERVICE AREA 7

985050.1 Return to Agenda Report

EXHIBIT “B”

QUITCLAIM DEED

985050.1 Attachment 1 of Exhibit B

985050.1 Return to Agenda Report

Attachment 2 of Exhibit

985050.1 [On OCSD Letterhead]

[Date]

Ms. Susan Wilson, Chair Orange County LAFCO 12 Civic Center Plaza Room 235 Santa Ana, CA. 92701

RE: Letter in Support of East Orange County Water District Reorganization Application

Dear Chair Wilson,

On behalf of the Orange County Sanitation District ("OCSD"), I am sending this letter to you, with copies to the OC LAFCO commissioners, to express OCSD's support of the East Orange County Water District ("EOCWD") Reorganization Application.

The OCSD Five-Year Strategic establishes as a goal the transfer back to cities and sanitary districts local sewer assets that are not serving a true regional purpose. In furtherance of this goal, OCSD has negotiated an agreement to transfer its ownership of local sewer lines and appurtenant facilities located in OCSD Service Area 7 to EOCWD. The terms and conditions applicable to the proposed transfer are memorialized in the Local Sewer Facilities Transfer Agreement ("Transfer Agreement") entered into between OCSD and EOCWD on ______, 2014.

Again, on behalf of OCSD, I urge OC LAFCO to approve the EOCWD Reorganization Application, and ask that such approval incorporate the Transfer Agreement terms and conditions.

Very truly yours,

James D. Herberg, General Manager

cc: OC LAFCO Commissioners

981017.1 Return to Agenda Report RECORDING REQUESTED BY: Orange County Sanitation District Attn: Clerk to the Board 10844 Ellis Avenue Fountain Valley, CA 92708

Exempt from recording fee per Government Code §§ 6103 and 27383 (SPACE ABOVE THIS LINE FOR RECORDER’S USE) Documentary Transfer Tax Exempt per Rev & Tax Code § 11922

QUITCLAIM DEED

FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, the ORANGE COUNTY SANITATION DISTRICT, a County Sanitation District organized under the laws of the State of California ("GRANTOR"), does hereby release, remise, and quitclaim to the EAST ORANGE COUNTY WATER DISTRICT, a County Water District organized under the laws of the State of California ("GRANTEE"), all its right, title and interest in the real property, sewer lines and appurtenant sewer facilities described and depicted in Attachment "1" and shown visually in Attachment "2", appended hereto and made a part hereof (collectively, "Local Sewer Facilities") SUBJECT TO THE FOLLOWING DISCLAIMER:

No Warranty of Title or Condition

Grantor makes no warranty or representation of any kind regarding its title to the Local Sewer Facilities, the condition of the Local Sewer Facilities or the suitability of the Local Sewer Facilities for any purpose. Grantee has been granted an opportunity to fully inspect the Local Sewer Facilities and has done so. Grantee accepts the Facilities “as is”.

IN WITNESS WHEREOF, this Quitclaim Deed has been executed by the Parties hereto.

[Signatures on the following page.]

953408.2 EAST ORANGE COUNTY WATER DISTRICT

By:______

Printed Name: William VanderWerff

Title: President of the Board of Directors

Date: ______

EAST ORANGE COUNTY WATER DISTRICT

By:______

Printed Name: Joan Arneson

Title: Secretary

Date: ______

ORANGE COUNTY SANITATION DISTRICT

By:______

Printed Name: Troy Edgar

Title: Chair of the Board of Directors

Date: ______

ORANGE COUNTY SANITATION DISTRICT

By:______

Printed Name: Maria E. Ayala

Title: Clerk of the Board

Date: ______

953408.2 Return to Agenda Report

ATTACHMENT "1"

Description of Local Sewer Facilities

953408.2 ATTACHMENT "2"

Visual Depiction of Local Sewer Facilities

953408.2 Return to Agenda Report

LOCAL SEWER FACILITIES TRANSITIONAL SERVICES AGREEMENT

THIS LOCAL SEWER FACILITIES TRANSITIONAL SERVICES AGREEMENT ("Agreement") is made this ___ day of ______, 2014 ("Effective Date") by and between the ORANGE COUNTY SANITATION DISTRICT ("OCSD"), a duly organized County Sanitation District existing pursuant to California Health and Safety Code section 47000 et seq., and the EAST ORANGE COUNTY WATER DISTRICT ("EOCWD"), a duly organized County Water District existing pursuant to California Water Code section 30000 et seq. OCSD and EOCWD are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as "Parties".

RECITALS

WHEREAS, Pursuant to the Local Sewer Facilities Transfer Agreement by and between the Parties dated ______2014, OCSD agreed to transfer to EOCWD its ownership of certain local sanitary sewer lines and appurtenant facilities located in Service Area 7 ("Local Sewer Facilities"), which are more particularly described and delineated in Exhibit "A" attached hereto and incorporated herein by reference;

WHEREAS, EOCWD has agreed to acquire ownership and assume responsibility for the ongoing operation and maintenance of the Local Sewer Facilities;

WHEREAS, Orange County Local Agency Formation Commission approval of a reorganization proposal is necessary to perfect the transfer of the Local Sewer Facilities ("LAFCO Approval");

WHEREAS, upon transfer of the Local Sewer Facilities to EOCWD, OCSD is willing to provide EOCWD, on a fee for service basis, technical assistance and other staff resources to assist EOCWD assume responsibility for the ongoing operation and maintenance of the Local Sewer Facilities ("Transitional Services"); and

WHEREAS, EOCWD is willing to reimburse OCSD, on a fee for service basis, for the provision of such Transitional Services.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual promises set forth herein, the Parties agree as follows:

1. Recitals. The recitals set forth above are true and correct and are incorporated into this Agreement.

Page 1 of 7 967209.1

2. Provision of Transitional Services by OCSD. Upon the effective date of the LAFCO Approval, and the successful transfer of the Local Sewer Facilities, OCSD shall provide Transitional Services to EOCWD as follows:

a. As may be requested by EOCWD, OCSD shall assist EOCWD in developing a maintenance schedule for the Local Sewer Facilities or relinquish OCSD’s current schedule.

b. As may be requested by EOCWD, OCSD shall provide its expertise and training for the EOCWD’s evaluation of current “trouble spots” in the sanitary sewer collection system and clean them until ______, 20__, or until such earlier time as the EOCWD will have established its own crew.

c. OCSD shall provide emergency "call-out" response services and training, as needed, to EOCWD employees for first response during a possible SSO until January 1, 2015, or until such earlier time as the EOCWD will have established its own crew.

d. OCSD shall provide Fats, Oils and Grease (FOG) program oversight and enforcement until ______, 20__, or until such earlier time as the EOCWD can acquisition staff for the program.

3. EOCWD's Specific Obligations.

a. EOCWD shall assign no less than one EOCWD employee to respond to call-outs and join in first response with OCSD during a possible SSO for training purposes.

b. EOCWD shall assign no less than one EOCWD employee to accompany OCSD during cleaning of sanitary sewer collection "trouble spots."

c. EOCWD shall reimburse OCSD per the Fee Schedule, as may be amended annually by OCSD, attached hereto at Exhibit “A”, and incorporated herein, for the provision of any Transitional Services provided by OCSD to EOCWD pursuant to this Agreement.

4. Timing of Reimbursement. OCSD shall perform quarterly accountings to determine the amount owed by EOCWD pursuant to this Agreement on the 15th of July and October 20__, and January ___. Upon completion of each accounting, an invoice, along with the accounting or a summary thereof, shall be submitted to EOCWD for the amount due, which amount shall be paid within forty-five (45) days of receipt of billing. All such amounts are delinquent if unpaid sixty (60) days after the date of invoice. Any charge that becomes delinquent shall have added to it a penalty in accordance with the following:

Page 2 of 7 967209.1 Return to Agenda Report

a) Sixty-one (61) days after date of invoice, a basic penalty of ten percent (10%) of the base invoice amount, not to exceed a maximum of $1,000.00; and

b) A penalty of one and one-half percent (1.5%) per month of the base invoice amount and basic penalty shall accrue from and after the sixty-first (61st) day after date of invoice.

Notwithstanding the foregoing, in the event EOCWD disputes any of the charges upon inspection of the quarterly OCSD invoice, EOCWD shall promptly notify OCSD in writing and shall pay the undisputed charges in accordance with this Section 5. No penalty shall be imposed on the disputed amounts until the Parties have resolved the dispute.

5. Independent Contractors. The Parties’ relationship to each other in the performance of this Agreement is that of independent contractors. OCSD’s personnel performing services under this Agreement shall at all times be under OCSD’s exclusive direction and control and shall be employees of OCSD and not employees of EOCWD. EOCWD’s personnel performing services under this Agreement shall at all times be under EOCWD’s exclusive direction and control and shall be employees of EOCWD and not employees of OCSD.

6. Agents. Any contractor or subcontractor performing work in connection with the work described herein on behalf of either Party shall be conclusively deemed to be the servant and agent of each respective Party for whom the work is being performed.

7. Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be personally delivered, sent by registered or certified mail, postage prepaid, return receipt requested, or delivered or sent by electronic transmission, and shall be deemed received upon the earlier of: (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) three (3) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by electronic transmission. Any notice, request, demand, direction, or other communication sent by electronic transmission must be confirmed within forty-eight (48) hours by letter mailed or delivered. Notices or other communications shall be addressed as follows:

Page 3 of 7 967209.1 To OCSD: Orange County Sanitation District 10844 Ellis Avenue Post Office Box 8127 Fountain Valley, CA 92708-7018 Attn: General Manager

To EOCWD: East Orange County Water District 185 North McPherson Road Orange, CA 92869-3720 Attn: General Manager

Either Party may from time to time, by written notice to the other, designate a different address and/or person which shall be substituted for the one above specified, and/or specify additional parties to be notified.

8. Jurisdiction. In the event of a dispute regarding performance or interpretation of this Agreement, the venue for any action to enforce or interpret this Agreement shall lie in the Superior Court of California for Orange County.

9. Term and Termination. This Agreement shall expire ______, 20__ unless earlier terminated. The Parties may mutually agree in writing to extend the term of this Agreement. Either Party may terminate this agreement for any reason by providing thirty (30) days written notice to the other Party.

10. Governing Law. This Agreement shall be governed by the laws of the State of California.

11. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between the Parties pertaining to the subject matter thereof.

12. Waiver. A waiver of a breach of the covenants, conditions or obligations under this Agreement by either Party shall not be construed as a waiver of any succeeding breach of the same or other covenants, conditions or obligations of this Agreement.

13. Modification. Alteration, change or modification of this Agreement shall be in the form of a written amendment, which shall be signed by each Party.

14. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be invalid under the applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of that provision, or the remaining provisions of this Agreement.

15. No Obligation to Third Parties. Execution and delivery of this Agreement shall not be deemed to confer any rights upon others, directly, indirectly or by way of

Page 4 of 7 967209.1 Return to Agenda Report

subrogation, and shall not obligate either of the Parties hereto to any person or entity other than each other and their respective affiliates.

16. Successors. This Agreement and the provisions contained herein shall be binding upon and inure to the benefit of OCSD, EOCWD, and their respective heirs, executors, administrators, personal representatives, successors and assigns.

17. Indemnification.

a. EOCWD shall indemnify, defend and hold harmless OCSD, its officers, directors, employees and agents from and against any and all claims, actions, damages, liabilities and expenses (including attorney's fees and reasonable expenses for litigation or settlement) for any loss or damage, including death, bodily injury or damage to or loss of use of property, caused by negligent acts or omissions or willful misconduct by the EOCWD, its officers, directors, employees and agents in connection with or arising out of the performance of this Agreement.

b. OCSD shall indemnify, defend and hold harmless EOCWD, its officers, directors, employees and agents from and against any and all claims, actions, damages, liabilities and expenses (including attorney's fees and reasonable expenses for litigation or settlement) for any loss or damage, including death, bodily injury or damage to or loss of use of property, caused by negligent acts or omissions or willful misconduct by OCSD, its officers, directors, employees and agents in connection with or arising out of the performance of this Agreement.

18. Authorization. Each of the undersigned represents and warrants that he or she is duly authorized to execute and deliver this Agreement and that such execution is binding upon the entity for which he or she is executing this document.

[SIGNATURES ON FOLLOWING PAGE]

Page 5 of 7 967209.1 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the dates set forth below.

ORANGE COUNTY SANITATION DISTRICT

By ______Date______James D. Herberg, General Manager

ATTEST:

______Maria Ayala Clerk of the Board

APPROVED AS TO FORM:

______Brad Hogin General Counsel

EAST ORANGE COUNTY WATER DISTRICT

By ______Date______William VanderWerff President of the Board of Directors

ATTEST:

______

APPROVED AS TO FORM:

______Joan Arneson General Counsel

Page 6 of 7 967209.1 Return to Agenda Report

EXHIBIT “A”

FEE SCHEDULE

OCSD Employee Title or Functional Unit* Billing Rate

Monthly FOG Program Costs $9,350/month Hourly Sewer Line/”Trouble Spot” Cleaning Crew Cost – Regular $200/hr. Time Hourly Emergency Call-Out* 2-Man Crew Cost – Overtime $300/hr.

*OCSD shall be under no obligation to provide the above-referenced services to EOCWD beyond ______, 20__.

**Emergency Call-Out requires a minimum of three Overtime Hours per Emergency Response to Sanitary Sewer Overflows or other Emergency Responses (3 X $300 = $900).

Page 7 of 7 967209.1

Return to Agenda Report

Estimated Timeline (prepared 12/12/2013) East Orange County Water District Reorganization

TASK RESPONSIBLE PARTY COMPLETION DATE

Submit LAFCO Application • District resolutions (EOCWD and OCSD) Applicant 1/22/2013 • Application and filing fees • Plan of Services • CEQA: timeline assumes a NOE; if ND or Mitigated ND used, timeline may be extended Application Status Letter, AB 8 Letter and Preliminary LAFCO 2/11/2014 Staff Report (PSR) issued EOCWD submits Map and Legal Description to LAFCO Applicant Mid-March 2014 (includes review and approval by County Surveyor) Assessor issues report to Auditor identifying TRAs and Assessor 3/30/2014 AV Auditor issues report identifying amount of negotiable Auditor Mid-May 2014 property tax County adopts property tax resolution on behalf of both County 6/17/2014 EOCWD and OCSD If application complete, EO issues Certificate of Filing LAFCO 6/30/2014 and sets a hearing date Preparation of staff report, resolution LAFCO June 2014 Public hearing notice LAFCO June 6, 2014 LAFCO hearing LAFCO July 9, 2014 Request for reconsideration LAFCO July 10, 2014 – August 11, 2014 Period of protest (assumes 45-day protest period) LAFCO August 14, 2014 – September 29, 2014 Protest hearing date LAFCO September 29, 2014 Tabulate protest (if any) LAFCO September 29 – October 3, 2014 Recordation* LAFCO October 6, 2014

*Timeline can be delayed If: (1) a competing application is filed; (2) an interested party files a request for reconsideration (requiring a second LAFCO hearing date); (3) sufficient protest is filed to push the proposal to an election. ITEM NO. 15

MINUTES

STEERING COMMITTEE MEETING Orange County Sanitation District

The Steering Committee meeting convened on Wednesday, January 22, 2014, at 5:30 p.m. in the Administration Building of the Orange County Sanitation District.

A quorum was declared present, as follows:

COMMITTEE MEMBERS STAFF PRESENT PRESENT: Jim Herberg, General Manager Tom Beamish, Vice-Chair Bob Ghirelli, Assistant General Brad Reese, Administration Committee Manager Chair Nick Arhontes, Director of Facilities John Nielsen, Operations Committee Support Services Chair Nick Kanetis, Director of Engineering Keith Curry, Member-At-Large Jeff Reed, Director of Human Resources Ed Torres, Director of Operations & COMMITTEE MEMBERS ABSENT: Maintenance Troy Edgar, Chair Lorenzo Tyner, Director of Finance & John Withers, Member-At-Large Administrative Services Maria Ayala, Clerk of the Board Jim Colston Norbert Gaia Rich Spencer

OTHERS PRESENT: Brad Hogin, General Counsel

PUBLIC COMMENTS:

None.

COMMITTEE CHAIR REPORT:

Vice Chair Beamish did not provide a report. Minutes of the Steering Committee January 22, 2014 Page 2 of 4

GENERAL MANAGER REPORT:

Mr. Herberg reported on the following: - He and Chair Edgar’s recent trip to Washington DC to meet with Orange County representatives over the possibility of future funding for various District projects and initatives; - Attendance at the State CASA Conference in Palm Desert. Jeff Reed, Director of Human Resources, gave a presentation at the conference on the Sanitation District’s succession planning and, training and leadership programs; - A representative from Congressman Allan Lowenthal’s office recently visited the District and toured OCSD as well as OCWD; - OCSD received the Large Plant Safety Award from the California Water Environment Association; - Update on labor negotiation timelines; - District had the budget kickoff this week, and this will lead to budget items being presented at future meetings leading up to budget adoption in the next few months; - Provided an update to the General Manager’s Mid-Year Work Plan, specifically on the SAWPA Arbitration and Sewer Transfers in Tustin; - Chair Edgar’s memo to the Steering Committee, being distributed tonight, on the SAWPA reimbursement for OCSD’s remedial plan costs; - In December, the District sold excess air pollution emission credits in the amount of $345,000. In 2008 the Board authorized the General Manager to sell these credits, and since then the District has generated over $4 million in revenue. AQMD has now issued a moratorium on sales of these credits.

CONSENT CALENDAR:

1. MOVED, SECONDED, AND DULY CARRIED: Approve Minutes of the December 18, 2013 Steering Committee Meeting.

AYES: Beamish, Reese, Nielsen, and Curry

NOES: None

ABSTENTIONS: None

ABSENT: Edgar and Withers Minutes of the Steering Committee January 22, 2014 Page 3 of 4

INFORMATION ITEMS:

2. SAWPA Remedial Plan Update

Mark Kawamoto, Engineer, provided a report SAWPA Remedial Plan that included updates on: final compliance, pretreatment program, SAWPA planned audits for its member and contract agencies’ pretreatment programs, unresolved tasks, etc.

Staff responded to questions from the Committee.

CLOSED SESSION

CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54956.9(d)(1) and 54957(b)(1).

The Committee convened in closed session at 5:45 p.m. to discuss two items. Confidential Minutes of the closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings.

RECONVENE IN REGULAR SESSION: The Committee reconvened in regular session at 6:12 p.m.

CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION:

None.

OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY:

None. Minutes of the Steering Committee January 22, 2014 Page 4 of 4

ADJOURNMENT:

The Vice Chair declared the meeting adjourned at 6:12 p.m.

Submitted by:

______Maria E. Ayala Clerk of the Board Meeting Date To Bd. of Dir. STEERING COMMITTEE 02/26/14 02/26/14 Item Number Item Number AGENDA REPORT 2 16 Orange County Sanitation District

FROM: Troy Edgar, Chairman

SUBJECT: INTERNATIONAL WATER SUMMIT TRIP REPORT

GENERAL MANAGER'S RECOMMENDATION

Information Only.

SUMMARY

The International Water Summit was a three-day conference for promoting water sustainability in arid regions. Our trip was coordinated by Congressman Rohrabacher at the invitation of the Government of Abu Dhabi extended to both the Orange County Water District (OCWD) and the Orange County Sanitation District (OCSD). Included in the trip report is a summary of my activities and observations.

PRIOR COMMITTEE/BOARD ACTIONS

Approval by the Steering Committee on December 18, 2013 for out-of-country travel for Orange County Sanitation District Board of Directors Chair, Troy Edgar to attend the International Water Summit in Abu Dhabi, U.A.E from January 20 - January 22, 2014.

ADDITIONAL INFORMATION

None.

CEQA

N/A

BUDGET / DELEGATION OF AUTHORITY COMPLIANCE

N/A

ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package:

• International Water Summit, Abu Dhabi Trip Report

Page 1 of 1 Return to Agenda Report

ORANGE COUNTY SANITATION DISTRICT Memorandum

DATE: February 26, 2014 TO: Steering Committee FROM: Troy Edgar, Chairman of the Board SUBJECT: International Water Summit, Abu Dhabi Trip Report

The International Water Summit was a three-day conference for promoting water sustainability in arid regions. Our trip was coordinated by Congressman Rohrabacher at the invitation of the Government of Abu Dhabi, extended to both the Orange County Water District (OCWD) and the Orange County Sanitation District (OCSD). Below is a summary of my activities and observations:

OCWD Director Bilodeau and I attended the conference and participated in panel presentations on water recycling and other discussions regarding water reuse.

I made a presentation at a panel discussion, “Understanding the Challenge of Improving Water Reuse and Performance”. Members of the panel were from the United Arab Emirates, Japan, the Netherlands and the U.S. This discussion provided a global platform to highlight the Groundwater Replenishment System (GWRS) which is the largest indirect potable water reclamation plant in the world. I was able to share the policy challenges and opportunities which we faced in establishing this system and partnering with the OCWD.

Abu Dhabi is faced with many wastewater and water challenges. There are two main water sources: desalination which is energy intensive, and groundwater which is subject to salt water intrusion. Another need that was evident was the need for nutrient rich irrigation water for their farm lands. These are difficult challenges when their treatment plants are located over 25 miles (41 Km) away from the general population.

Abu Dhabi is also currently undertaking a major project involving installation of about 24 miles of gravity sewer tunnel which is being constructed by Abu Dhabi Sewerage Services Company. I was able to tour the project and meet with the CH2M Hill project manager. This project began in 2009 and is scheduled to be completed in 2015. Project costs are over $4 billion.

While in attendance at the conference, I was able to meet with Dr. Sultan, Ministry of State. We discussed long term sustainability issues with water, the problems created by the power requirements for desalination projects and the fact that the power requirement causes oil consumption internally that could be sold externally. This then affects United Arab Emirates oil revenue that would otherwise provide the ability to build infrastructure. We were also able to discuss intergovernmental policy coordination and the setting of sewer and water rates. Page | 2

I also met with United States Ambassador Richard Corbin who was very knowledgeable of the Abu Dhabi sustainability issues and greatly appreciated our support to participate in the conference and highlight U.S. policy and key projects.

During the trip, I also met with Japanese Wastewater Experts to discuss their Fukuoka Japan Waste Treatment Process and challenges related to reclamation options (mountain to shore). GE Water and Power discussed their current subsidiary initiatives in renewable energy and the largest global Reclamation Plant in Kuwait (Non-Potable).

Shell Upstream Services was also in attendance and discussed using reclaimed water in oil extraction/injection process.

New York University requested OCSD to provide graduate level Research Projects, as well as invited OCSD to present at the University.

OCSD and OCWD met with Abu Dhabi Sewerage Service Company to discuss wastewater and water alternatives. We agreed to send over additional OCSD, OCWD, and GWRS materials and will consider possibly setting up a phone meeting to discuss OCSD and OCWD geology studies and lessons learned.

Troy Edgar, Chairman Board of Directors

Page 2 of 2 ITEM NO. 17

MINUTES

LEGISLATIVE AND PUBLIC AFFAIRS SPECIAL COMMITTEE MEETING Orange County Sanitation District

The Legislative and Public Affairs Special Committee meeting convened on Monday, February 10, 2014, at 8:05 a.m. in the Administration Building of the Orange County Sanitation District. Director Withers led the Flag Salute.

A quorum was declared present, as follows:

COMMITTEE MEMBERS STAFF PRESENT PRESENT: Jim Herberg, General Manager Troy Edgar, Board Chair Nick Arhontes, Director of Facilities John Nielsen, Operations Committee Support Services Chair Nick Kanetis, Director of Engineering Brad Reese, Administration Committee Jeff Reed, Director of Human Chair Resources John Withers, Administration Ed Torres, Director of Operations and Committee Vice-Chair Maintenance David Benavides, Director Lorenzo Tyner, Director of Finance & Administrative Services Maria Ayala, Clerk of the Board Jim Colston Faviola Miranda COMMITTEE MEMBERS ABSENT: Tom Beamish, Board Vice-Chair OTHERS PRESENT: Heather Stratman, Townsend Public Affairs Eric Saperstein, ENS Resources (via teleconference)

PUBLIC COMMENTS:

None. Minutes of the Legislative and Public Affairs Special Committee February 10, 2014 Page 2 of 4

REPORTS:

General Manager, Jim Herberg, reported that he along with Board Chair Edgar, Board Vice-Chair Beamish, and Director Nielsen will be attending the future CASA Conference in Washington DC. They will be making congressional visits. Director of Engineering, Nick Kanetis, will also be attending as he will be moderating a session during the conference. Mr. Herberg added that SAWPA General Manager, Celeste Cantu will also be joining OCSD members in various congressional meetings as they directly relate to the SARI Line.

Mr. Herberg announced that the Orange County Water District and OCSD have been named the recipients of the 2014 U.S. Water Prize by the U.S. Water Alliance for the Ground Water Replenishment System.

Chair Edgar announced that he will be providing a report of his recent attendance to the International Water Summit in Abu Dhabi.

Chair Edgar reported that he and Vice-Chair Beamish attended a recent SAWPA Board Meeting, at which they presented leadership certificates, on behalf of OCSD, to Ron Sullivan and Don Galleano for their work with OCSD during the arbitration process.

CONSENT ITEMS:

1. MOVED, SECONDED, and DULY CARRIED: Approve the minutes for the Committee meeting held on January 13, 2014.

AYES: Edgar, Nielsen, Reese, and Withers

NOES: None

ABSTENTIONS: None

ABSENT: Beamish and Benavides

2. Agenda previously revised to remove this item.

INFORMATIONAL ITEMS:

3. Legislative Advocates’ Contracts Minutes of the Legislative and Public Affairs Special Committee February 10, 2014 Page 3 of 4

Jim Colston, Environmental Compliance and Regulatory Affairs Manager, gave a brief informative on the current agreements with the legislative advocates, and the future outlook of the legislative affairs program.

Director Benavides arrived at the meeting at 8:08 a.m.

The Committee discussed the following: possibly extending the current agreements for another year; advertising a Request for Proposal in the future for these services; current services being provided; and needs of the District in this area. Staff responded to questions.

4. Federal Legislative Affairs

Mr. Sapirstein gave a brief federal legislative update that included the following: meetings scheduled to take place in Washington DC with Orange County delegation; providing a future update to the Army Corp of Engineers; Water SMART program funding; recent visit by EPA; possible additional future funding for existing program to combat drought.

Mr. Sapirstein responded to questions from the Committee.

5. State Legislative Affairs

Ms. Stratman gave an update on the District’s bill, SB 946. She also gave brief updates on: possible water bonds and funding resources for GWRS expansion; updates and information on AB1831 and SB932.

Ms. Stratman responded to questions from the Committee.

6. Public Affairs Update

Faviola Miranda, Sr. Public Affairs Specialist, provided an update about the recent and upcoming events the District is planning on attending as part of the Community Outreach Program. She also announced May 21st as the date of the VIP Breakfast, part of the District’s 60th Anniversary celebratory events. A follow-up meeting to the first meeting regarding odor complaint issues – with the community – was being planned.

OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY:

None. Minutes of the Legislative and Public Affairs Special Committee February 10, 2014 Page 4 of 4

ADJOURNMENT:

The Chair declared the meeting adjourned at 8:53 a.m.

Submitted by:

______Maria E. Ayala Clerk of the Board ORANGE COUNTY SANITATION DISTRICT

Agenda

Terminology Glossary

AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease FSSD Facilities Support Services Department gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District OOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration POTW Publicly Owned Treatment Works ppm Parts per million RFP Request For Proposal RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation

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.

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.

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 farm land 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 the people detect the odor becomes the D/T for that air sample.

Greenhouse gases – 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 (GWR) System – 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 the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply.

Levels of Service (LOS) – Goals to support environmental and public expectations for performance.

NDMA – N‐Nitrosodimethylamine is an N‐nitrosoamine suspected cancer‐causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra‐violet treatment.

National Biosolids Partnership (NBP) – An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance.

Plume – A visible or measurable concentration of discharge from a stationary source or fixed facility.

Publicly‐owned Treatment Works (POTW) – Municipal wastewater treatment plant.

Santa Ana River Interceptor (SARI) Line – A regional brine line designed to convey 30 million gallons per day (MGD) 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. Combined sewers carry both wastewater and urban run‐off.

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.

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.