Orange County Sanitation District Wednesday, February 22, 2017 Regular Meeting of the 6:00 P.M. BOARD OF DIRECTORS Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGENDA CALL TO ORDER INVOCATION AND PLEDGE OF ALLEGIANCE (Denise Barnes, City of Anaheim) ROLL CALL (Clerk of the Board) 1. RECEIVE AND FILE MINUTE EXCERPTS OF MEMBER AGENCIES RELATING TO APPOINTMENTS TO THE ORANGE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS (Clerk of the Board) CITY/AGENCY DIRECTOR ALTERNATE DIR. City of Fullerton Greg Sebourn Jesus Silva City of Santa Ana Sal Tinajero David Benavides City of Newport Beach Scott Peotter Brad Avery (amended) DECLARATION OF QUORUM (Clerk of the Board) PUBLIC COMMENTS: If you wish to address the Board of Directors on any item, please complete a Speaker’s Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you wish to speak. Speakers will be recognized by the Chairperson and are requested to limit comments to three minutes. SPECIAL PRESENTATIONS: • Employee Service Award(s) • CSDA Transparency Certificate 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. 02/22/2017 OCSD Board of Directors’ Agenda Page 1 of 8 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 Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 2. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve the minutes of the Regular Board of Directors Meeting held on January 25, 2017. 3. REPLACEMENT OF PLANT 2 MAINTENANCE BUILDING HVAC SYSTEM (Ed Torres) RECOMMENDATION: A. Award a purchase order for the replacement of the Plant 2 Maintenance building air conditioning system with a TRANE IntelliPak VAV rooftop HVAC unit with gas heat in agreement with TRANE US Communities 15-JLP-023 for a total amount not to exceed $210,607 delivered; and B. Approve a contingency amount of $21,061 (10%). 4. PAYMENT OF ANNUAL OCEAN DISCHARGE PERMIT FEE (Jim Colston) RECOMMENDATION: Approve payment in an amount not to exceed $525,537 to the State Water Resources Control Board for annual permit fees for the ocean discharge permit. RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the Board Chair. 5. COMMITTEE MINUTES (Clerk of the Board) RECOMMENDATION: Receive and file the approved minutes of the following standing committees: A. Operations Committee Meeting of December 7, 2016 B. Administration Committee Meeting of November 9, 2016. C. Legislative and Public Affairs Committee Meeting of December 14, 2016. D. GWRS Steering Committee Meetings of October 10, 2016 and January 9, 2017. 02/22/2017 OCSD Board of Directors’ Agenda Page 2 of 8 6. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF JANUARY 2017 (Lorenzo Tyner) RECOMMENDATION: Receive and file the report of the Investment Transactions for the month of January 2017. OPERATIONS COMMITTEE: 7. AGREEMENT WITH THE CALIFORNIA ALLIANCE FOR SEWER SYSTEM EXCELLENCE MEMBER AGENCIES FOR COST-SHARING REIMBURSEMENT (Ed Torres) RECOMMENDATION: Adopt Resolution No. OCSD 17-02 entitled, “A Resolution of the Board of Directors of the Orange County Sanitation District authorizing the General Manager to enter into an agreement with the California Alliance for Sewer System Excellence Member Agencies for cost-sharing reimbursement for approved agency-administered projects.” 8. SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 1, PROJECT NO. P1-101 (Rob Thompson) RECOMMENDATION: Approve a contingency increase of $714,000 (10%) to the Professional Consultant Services Agreement with HDR Engineering, Inc. to provide construction support services for Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1-101, for a total contingency amount of $1,285,200 (18%). 9. SAFETY IMPROVEMENT PROGRAM, PROJECT NO. J-126 (Rob Thompson) RECOMMENDATION: A. Approve a budget increase of $1,500,000 for Safety Improvements Program, Project No. J-126, for a total budget amount of $11,202,000; and B. Approve Amendment No. 1 to the Professional Design Services Agreement with Arcadis, US, Inc., for Safety Improvement Program, Project No. J-126, for an additional amount of $1,500,000 for a total budget amount of $3,040,000. 10. INTERIM FOOD WASTE RECEIVING FACILITY, PROJECT NO. P2-124 (Rob Thompson) RECOMMENDATION: Establish a project for Interim Food Waste Receiving Facility, Project No. P2-124, with a budget of $5,400,000. 02/22/2017 OCSD Board of Directors’ Agenda Page 3 of 8 ADMINISTRATION COMMITTEE: 11. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST (Lorenzo Tyner) RECOMMENDATION: Receive and file the Orange County Sanitation District purchases made under the General Manager’s authority and additions to the pre- approved OEM Sole Source List for the period of October 1, 2016 - December 31, 2016. 12. MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD ENDED DECEMBER 31, 2016 (Lorenzo Tyner) RECOMMENDATION: Receive and file Orange County Sanitation District Mid- Year Report for the period ended December 31, 2016. 13. CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FY 2017-18 BUDGET UPDATE (Lorenzo Tyner) RECOMMENDATION: Approve the FY 2017-18 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2017-18 budget update. 14. COOPERATIVE PROCUREMENT AGREEMENTS WITH U.S. COMMUNITIES GOVERNMENT PURCHASING ALLIANCE AND NATIONAL ASSOCIATION OF STATE PROCUREMENT OFFICIALS VALUEPOINT COOPERATIVE PURCHASING ORGANIZATION (Lorenzo Tyner) RECOMMENDATION: Authorize the purchasing of information technology products, services, and solutions utilizing the U.S. Communities Government Purchasing Alliance and National Association of State Procurement Officials ValuePoint Cooperative Purchasing Organization (NASPO ValuePoint) for the period of March 1, 2017 through February 29, 2020 for a total amount not to exceed $6,000,000, in accordance with Ordinance No. OCSD-47, Section 2.03(B) Cooperative Purchases. INFORMATION ITEMS: 15. HEADQUARTERS COMPLEX, SITE AND SECURITY, AND ENTRANCE REALIGNMENT PROGRAM, PROJECT NO. P1-128 (Rob Thompson) AB 1234 REPORTS: This is the time of the meeting when Board Members will provide a brief oral report on any conference, meeting, or travel paid by the Sanitation District. 02/22/2017 OCSD Board of Directors’ Agenda Page 4 of 8 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 California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. (1) CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION (Government Code Section 54956.9(d)(1)) Number of Cases: 2 Klean Waters, Inc. et al. v. Orange County Sanitation District, et al., United States District Court, Central District of California, Southern Division, Case No. 8:15−cv−00627. Klean Waters, Inc. et al. v. Orange County Sanitation District, et al. United States District Court, Central District of California, Southern Division, Case No. 8:15−cv−01498. (2) CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION (Government Code Section 54956.9(d)(1)) Number of Cases: 1 City of Los Angeles v. County of Kern, Tulare County Superior Court, Case No. 242057. (3) CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8) Property: 300 East Coast Highway, Newport Beach, CA - APN No.440-132-60 Agency negotiators: General Manager, Jim Herberg; Assistant General Manager, Bob Ghirelli; Director of Finance and Administrative Services, Lorenzo Tyner; Director of Engineering, Rob Thompson; Engineering Managers, Kathy Millea and Jeff Mohr; and CIP Project Manager, Adam Nazaroff. 02/22/2017 OCSD Board of Directors’ Agenda Page 5 of 8 Negotiating parties: Bayside Village Marina LLC Under negotiation: Instruction to negotiator will concern price and terms of payment. (4) CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8) Property: 10950 Virginia Cir. Fountain Valley, CA - APN No.156-165-05; 10870 Spencer Ave. Fountain Valley, CA -APN No.156-163-07; 18480 Pacific St. Fountain Valley, CA - APN No.156-165-04; 18430 Pacific St. Fountain Valley, CA - APN No.156-165-06; 18370 Pacific St. Fountain Valley, CA - APN No.156-165-08; 18429 Pacific St. Fountain Valley, CA - APN No.156-163-09; 18410 Bandilier Cir. Fountain Valley, CA - APN No.156-163-10; 18368 Bandilier Cir. Fountain Valley, CA - APN No.156-163-11; 10700 Spencer St. Fountain Valley, CA - APN No.156-163-16; 10700 Spencer Ave. Fountain Valley, CA - APN No.156-154-07; 18350 Mt. Langley St. Fountain Valley, CA - APN No.156-154-08; 18386 Mt. Langley St. Fountain Valley, CA - APN No.156-154-06; 18385 Bandilier Cir. Fountain Valley, CA - APN No.156-163-12; 18401 Bandilier Cir. Fountain Valley, CA - APN No.156-163-13; 18424 Mt. Langley St. Fountain Valley, CA - APN No.156-154-05; 18435 Bandilier Cir. Fountain Valley, CA - APN No.156-163-14; 18475 Bandilier Cir.