DOC: District No. 2; Book 55; August 23, 2017; RM; Page 1 of 5

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1 MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 2 HELD AT THE OFFICE OF THE DISTRICT August 23, :30 o clock, P.M. The Board of Directors of County Sanitation District No. 2 of Los Angeles County met in regular session. There were present: Absent: Also present: David Mejia, Director from Alhambra Sally Ann Flowers, Alternate Director from Artesia Ali Saleh, Alternate Director from Bell Ray Dunton, Alternate Director from Bellflower Jim Edwards, Temporary Alternate Director from Cerritos Janna Zurita, Alternate Director from Compton Fernando Vasquez, Director from Downey Dee Andrews, Alternate Director from Long Beach Joe Buscaino, Alternate Director from Los Angeles City Vivian Romero, Director from Montebello Teresa Real Sebastian, Director from Monterey Park Luigi Vernola, Director from Norwalk Peggy Lemons, Director from Paramount Juli Costanzo, Director from San Gabriel Maria Davila, Director from South Gate Melissa Ybarra, Director from Vernon Cathy Warner, Alternate Director from Whittier Mark Ridley-Thomas, Director from Los Angeles County David Armenta, Chairperson, Alternate Director from Pico Rivera Jose J. Mendoza, Director from Bell Gardens Oralia Y. Rebollo, Director from Commerce Kimberly S. Compton, Secretary to the Board A letter from the City of Cerritos stating that Mr. Jim Edwards, member of the City Council of the City of Cerritos, was appointed to serve as temporary alternate Director from said city, to attend the meeting of August 23, 2017, only, is in the file in the Secretary s office. RE: PUBLIC COMMENTS - ITEMS NOT POSTED ON AGENDA The Chairperson announced this was the time for any questions or comments by members of the public on items not listed on the agenda. He announced that each speaker would be allotted two minutes each. The Secretary called the following speakers: Mr. Tris Carpenter wished the Directors a good afternoon and introduced himself as a business agent working with the American Federation of State, County and Municipal Employees (AFSCME). He stated that his reason for addressing the Boards was to give an overview from the employees point of view of the negotiation process. He stated that this point of view could be very different from what has been presented. He stated that there is progress on the negotiations and that he will continue to approach negotiations with good faith. He mentioned that negotiations for an initial contract take a long time and can be very slow. There are still key issues that are concerning, which involves the seven percent CalPERS contribution. He stated that the union withdrew an item yesterday in good faith to stick to their goals. AFSCME and Districts employees will remain united in issues related to the negotiations. He thanked the Directors for their time and appreciated the opportunity to address them. Mr. Glenn Acosta, Senior Civil Engineer, thanked the Chairperson and Directors for allowing him to address them. He introduced himself and stated that he had not planned to speak today, although he felt compelled to give a different perspective of the negotiations. He stated that he is an elected official, just like the Board members present, serving on a Board of a Water District that collects and treats wastewater. He noted that empty seats in the Board room demonstrate an agency is doing a good job. He stated that the Districts goal to provide high quality services with the lowest rates per year is achieved through the employees. He stated that in serving as a Director over the last 15 years, he has learned that an agency is only DOC: District No. 2; Book 55; August 23, 2017; RM; Page 1 of 5

2 as good as the people in it. Sitting behind the Directors are Stanford and Harvard graduates that operate the largest wastewater treatment facility in the County. This sets a high bar for employees, who do not have the highest pay, but are set in the middle of the pack. He stated that he was disturbed by the effort to push the Districts employees to the bottom and to devalue those who are highly skilled. He asked the Directors what quality they want from this organization. He stated there is a great deal of low employee morale and this should give them pause. Mr. Earl Hartling, Water Recycling Coordinator, wished a good afternoon to the ladies and gentlemen and thanked them for allowing him to address the Boards. He stated that he has been employed with the Districts for over 36 years. He stated that he is the union negotiator for the Professional Unit. He stated that if questioned why and what was the reason he was involved, he said nothing and that he could retire comfortably and does not owe the Districts employees anything. He stated that the labor negotiations would not affect his retirement. He stated that he has worked at the Districts for decades and that he likes and respects almost all of the Districts employees. He stated that the Board members reap the benefit of not being faced with many issues like a high number of sewer spills or wastewater treatment plants failing to treat over 5.6 million gallons. The proposal for a soft landing is not what it is and sadly is a salary cut. He mentioned various employee titles and dollar amounts of salary loss over certain amounts of years. He stated that due to these cutbacks, previously 80 percent of the Districts employees signed up for the union representation within three weeks. C O N S E N T A G E N D A Upon motion of Director Saleh, duly seconded and unanimously carried, the Consent Agenda was approved as follows: RE: MINUTES JOINT WATER POLLUTION CONTROL PLANT - FIRE ALARM SYSTEM REPLACEMENT - AUTHORIZE ADVERTISING AND RECEIPT OF BIDS The minutes of the regular meeting held August 9, 2017, were approved. The Purchasing Agent was authorized to advertise and receive bids for the fire alarm system replacement for the Joint Water Pollution Control Plant (JWPCP). Two fire alarm systems at the JWPCP, located in the East Laboratory and the Administrative Building, did not pass their most recent annual inspection. The fire alarm systems cannot be repaired because the components are no longer supported by the manufacturer and, therefore, the systems must be replaced. Replacing the fire alarm systems will protect employees and facility assets. This item is consistent with the Districts Guiding Principle for protecting facility assets through prudent investment. SCHOLL CANYON LANDFILL PORTABLE EMERGENCY DIESEL GENERATOR - REPORT ON BIDS AND AWARD OF ORDER R E G U L A R A G E N D A One bid was received on July 27, 2017, at the District s office for a 350 kw portable emergency diesel generator for the Scholl Canyon Landfill, per the summary that was attached to the agenda. A recommendation was made to authorize the Chief Engineer and General Manager, in her capacity as Purchasing Agent, to award a purchase order to the sole bidder, Valley Power Systems, Inc., in the amount of approximately $159,900. Upon motion of Director Warner, duly seconded and unanimously carried, the Purchasing Agent was authorized to issue a purchase order to Valley Power Systems, Inc., for a 350 kw portable emergency diesel generator for the Scholl Canyon Landfill, in the amount of approximately $159,900, in accordance with the bids received July 27, JOINT WATER POLLUTION CONTROL PLANT - WATER QUALITY LABORATORY INDUCTIVELY COUPLED PLASMA OPTICAL EMISSION SPECTROMETER REPORT ON BIDS AND AWARD OF ORDER Three bids were received on June 21, 2017, at the District s office for an inductively coupled plasma optical emission spectrometer at the Joint Water Pollution Control Plant Water Quality Laboratory, per the summary that was attached to the agenda. A recommendation was made to authorize the Chief Engineer and General Manager, in her capacity as Purchasing Agent, to award a purchase order to the low bidder, Agilent Technologies Inc., in the amount of approximately $89, District No. 2; Book 55; August 23, 2017; RM; Page 2 of 5

3 Upon motion of Director Warner, duly seconded and unanimously carried, the Purchasing Agent was authorized to issue a purchase order to Agilent Technologies Inc., for an inductively coupled plasma optical emission spectrometer at the Joint Water Pollution Control Plant Water Quality Laboratory, in the amount of approximately $89,184.16, in accordance with the bids received June 21, VARIOUS DISTRICTS LANDFILLS VACUUM TRUCK AND HYDROJETTING SERVICES - REPORT ON BIDS - REJECT - READVERTISE Six bids were received on July 27, 2017, at the District s office, for vacuum truck and hydrojetting services at various Districts landfills for a three-year period, per the summary that was attached to the agenda. A recommendation was made to authorize the Chief Engineer and General Manager, in her capacity as Purchasing Agent, to reject the bids received, and that the Purchasing Agent be authorized to re-advertise and receive bids for vacuum truck and hydrojetting services at various Districts landfills for a three-year period. Upon motion of Director Andrews, duly seconded and unanimously carried, all bids received on July 27, 2017, for purchase of vacuum truck and hydrojetting services at various Districts landfills for a threeyear period were rejected, and the Purchasing Agent was authorized to re-advertise and receive bids. INDIANA STREET PUMPING PLANT CONNECTIONS SEWER REHABILITATION BETWEEN MH AND MH SANCON ENGINEERING, INC. CONTRACT NO EXECUTE A proposed contract, Contract No. 5039, executed by Sancon Engineering, Inc., for construction of the Indiana Street Pumping Plant Connections Sewer Rehabilitation Between MH and MH in the amount of approximately $71,980 was presented. Surety bonds executed by Hanover Insurance Company, for faithful performance and payment, both covering 100 percent of the contract amount, dated July 27, 2017, were filed with the Secretary to the Board and found to be sufficient. This item is consistent with the Districts Guiding Principle of protecting facility assets through prudent investment. A recommendation was made to order executed the proposed contract. Upon motion of Director Andrews, duly seconded and unanimously carried, the Board of Directors of County Sanitation District No. 2 of Los Angeles County found and determined that it would be to the advantage of the District to enter into a contract with Sancon Engineering, Inc., for construction of the Indiana Street Pumping Plant Connections Sewer Rehabilitation Between MH and MH in the amount of approximately $71,980, as set forth in the contract and under terms and conditions contained therein. All of the terms and conditions of the contract, Contract No. 5039, dated July 27, 2017, were accepted, and the Chairperson and Secretary were authorized to execute the contract on behalf of the District. RE: TULARE LAKE COMPOST FACILITY - TEMPORARY LABOR AUTHORIZE ISSUANCE OF PURCHASE ORDER TO VOLT WORKFORCE SOLUTIONS As a new District facility located in the Central Valley, the Tulare Lake Compost facility utilizes temporary workers for site maintenance and operations due to a shortage of permanent staff. Hiring efforts have been on-going since September 2015, resulting in filling six of the nine original permanent blue collar positions. There remain vacancies for one Compost Operations Worker, one Compost Utility Equipment Operator, and one Compost Operations Coordinator. Additionally, there is a vacancy for a Compost Administrative Aide, a position that was authorized in fall of Volt Workforce Solutions is the only responsive provider of blue collar temporary labor in the area. Approval of a purchase order with Volt is recommended until these vacant positions can be filled. This item is consistent with the Districts Guiding Principle of commitment to operational excellence, including cost-effectiveness. A recommendation was made to authorize the Chief Engineer and General Manager, in her capacity as Purchasing Agent, to issue a purchase order to Volt Workforce Solutions in the amount of $100,000 for temporary labor at the Tulare Lake Compost facility. Upon motion of Director Buscaino, duly seconded and unanimously carried, the Purchasing Agent was authorized to issue a purchase order to Volt Workforce Solutions for temporary labor at the Tulare Lake Compost facility, at a cost of approximately $100,000. SURCHARGE PROCESSING UNIQUE LAUNDRY AUTHORITY TO SETTLE SURCHARGE OBLIGATION AND SECURE COLLECTION Company representatives for Unique Laundry have not yet responded to requests to remedy financial shortcomings and have not yet agreed to proposals to pay the balance in monthly installments. Authorization to settle includes any amounts otherwise due and any additional amounts that become due prior to institution of DOC: District No. 2; Book 55; August 23, 2017; RM; Page 3 of 5

4 litigation or settlement. This item is consistent with the Districts Guiding Principle of commitment to fiscal responsibility and prudent financial stewardship. A recommendation was made to authorize settlement of the industrial wastewater surcharge obligations of Unique Laundry, in the principal sum of $96,002.16, plus penalty and interest; and to authorize the Chief Engineer and General Manager and District Counsel to take all appropriate steps to secure collection of all past due amounts, including authority to institute litigation, stipulate to judgment, and execute settlement agreement that provides for payment of indebtedness on a periodic basis. Upon motion of Director Andrews, duly seconded and unanimously carried, settlement of the industrial wastewater surcharge obligations due from Unique Laundry, in the principal sum of $96,002.16, plus penalty and interest, was authorized; and the Chief Engineer and General Manager and District Counsel were authorized to take all appropriate steps to secure collection of all past due amounts now due together with any amounts that may later become due, including the authority to institute litigation, stipulate to judgment, and to execute settlement agreements that provides for payment of the indebtedness on a periodic basis. LISTING AGREEMENT - CUSHMAN & WAKEFIELD - AUTHORIZE CHIEF ENGINEER AND GENERAL MANAGER TO EXECUTE Market conditions and economic factors have delayed the need for a Waste-by-Rail system and startup of the Puente Hills Intermodal Facility (PHIMF) is not expected in the immediate future. To generate revenue and offset the costs of maintaining this infrastructure, staff is proposing to lease the PHIMF for uses consistent with the recently-amended conditional use permit. Proposals to provide brokerage services in support of the PHIMF lease were solicited from ten real estate brokerage firms. Three firms showed interest by attending a mandatory site visit, but only one proposal, from Cushman & Wakefield (C&W), was received. C&W delivered a responsive and qualified proposal and staff was able to negotiate a lower commission rate of 4.2 percent instead of the industry standard of six percent. The PHIMF property is owned by District No. 18, and District No. 2 has administrative authority over the Districts solid waste facilities; therefore, authorization from both Districts is required. The Listing Agreement is for a six-month period and any proposed lease agreement will be presented to the Board for approval. A recommendation was made to authorize the Chief Engineer and General Manager, or her designee, to enter into a Listing Agreement with Cushman & Wakefield for lease of the Puente Hills Intermodal Facility. In response to Director Real Sebastian, the Chief Engineer and General Manager stated that the Listing Agreement is exclusive and that two other companies were solicited. Mr. Ray Tremblay, Department Head of Facilities Planning, advised that there were several other parties Districts staff had spoken with prior to soliciting broker services. He stated that the agreement excludes the names of those corporations. Upon motion of Director Andrews, duly seconded and unanimously carried, the Chief Engineer and General Manager, or her designee, on behalf of the District, was authorized to execute a Listing Agreement with Cushman & Wakefield for the lease of the Puente Hills Intermodal Facility to generate revenue and offset the costs of maintaining the Puente Hills Intermodal Facility. CONSTRUCTION MANAGEMENT AGREEMENT - MOTT MACDONALD, LLC CONTRACT NO APPROVE The Clearwater Program Master Facilities Plan, which was previously approved by the Board, recommends construction of a new tunnel to convey treated wastewater effluent from the Joint Water Pollution Control Plant to the existing ocean outfalls at Royal Palms Beach on the Palos Verdes Peninsula. The new tunnel will allow for the inspection of the existing tunnels, provide redundancy for critical wastewater infrastructure, ensure capacity for future growth, and convey peak storm flows. Engineering services are required to augment District staff in managing the construction of the new tunnel. Request for Qualifications were sent to 63 firms. Five firms submitted Statement of Qualifications and three firms were short-listed to receive Request for Proposals. Proposals received from the three firms were evaluated using specific rating criteria. Following interviews, Mott MacDonald, LLC, was determined to be the most qualified and their hourly rates are comparable to other engineering firms. This item is consistent with the Districts Guiding Principles of commitment to operational excellence and to protect facility assets through prudent maintenance programs. A recommendation was made to approve and order executed a Construction Management Agreement with Mott MacDonald, LLC, in the amount of approximately $23,700,000 for construction management services for the Joint Water Pollution Control Plant Effluent Outfall Tunnel. Upon motion of Director Warner, duly seconded and unanimously carried, the Board of Directors of County Sanitation District No. 2 of Los Angeles County found and determined that it would be to the advantage of the District to enter into a Construction Management Agreement with Mott MacDonald, LLC, providing for construction management services for the Joint Water Pollution Control Plant Effluent Outfall District No. 2; Book 55; August 23, 2017; RM; Page 4 of 5

5 Tunnel, as set forth in the Agreement and under terms and conditions contained therein. All the terms and conditions of the Construction Management Agreement, Contract No. 5049, dated August 23, 2017, were accepted and approved, and the Chairperson and Secretary were authorized to execute the Agreement on behalf of the District. RE: BIOSOLIDS MANAGEMENT SETTLEMENT AGREEMENT CITY OF LOS ANGELES ET AL. V. COUNTY OF KERN, CASE NO. VCU , IN SUPERIOR COURT OF STATE OF CALIFORNIA CONTRACT NO APPROVE In 2006, the voters in Kern County approved an initiative ordinance, Measure E, adopting a complete ban on the land application of all classes of biosolids within unincorporated areas of the County. The District, the City of Los Angeles, and other entities filed a challenge to this ordinance. On March 14, 2017, the Superior Court of the State of California issued a final decision invalidating the ordinance. To avoid further litigation in this matter, the parties to the litigation have reached a Settlement Agreement (Agreement) under which no further appeals of the decision would be made. The Agreement would also resolve remaining obligations of the City of Los Angeles under the California Environmental Quality Act or its biosolids land application activities in Kern County, which had been challenged in related litigation. District s counsel recommends approval of the settlement as being in the best interest of the District. It will ensure that the Court s ruling that Measure E is invalid, stays in effect, and will allow the parties to avoid future litigation costs in this matter. This is consistent with the Districts Guiding Principles of commitment to fiscal responsibility and collaboration with others to promote science-based, efficient, and sustainable environmental regulations. A recommendation was made to approve and order executed a Settlement Agreement related to the City of Los Angeles et al. v. County of Kern, Case No. VCU , in the Superior Court of State of California. Upon motion of Director Warner, duly seconded and unanimously carried, the Board of Directors of County Sanitation District No. 2 of Los Angeles County found and determined that it would be to the advantage of the District to enter into a Settlement Agreement related to the City of Los Angeles et al. v. County of Kern, Case No. VCU , in the Superior Court of State of California, providing that the Court s ruling that Measure E is invalid, stays in effect, and will allow the parties to avoid future litigation costs in this matter, as set forth in the Agreement and under terms and conditions contained therein. All the terms and conditions of the Settlement Agreement, Contract No. 5050, dated August 23, 2017, were accepted and approved, and the Chairperson and Secretary were authorized to execute the Agreement on behalf of the District. Upon motion of Director Andrews, duly seconded and unanimously carried, the meeting adjourned. DAVID ARMENTA Chairperson ATTEST: KIMBERLY S. COMPTON Secretary /ak DOC: District No. 2; Book 55; August 23, 2017; RM; Page 5 of 5