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HomeMy WebLinkAbout2007-06 ADM MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday,June 13,2007, at 5:00 P.M. A meeting of the Administration Committee of the Orange County Sanitation District was held on June 13, 2007, at 5:00 p.m., in the Sanitation District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: ADMINISTRATION COMMITTEE STAFF PRESENT: MEMBERS: Jim Ruth, General Manager DIRECTORS PRESENT: Bob Ghirelli,Assistant General Manager Mark Waldman, Chair Lorenzo Tyner, Director of Finance and Phil Luebben,Vice Chair Administrative Services Steven Choi Mike White, Controller Bill Dalton Lilia Kovac, Committee Secretary Jon Dumitru Norbert Gala Joy Neugebauer Randy Kleinman Chris Norby Juanita Skillman Sal Tinajero Jim Winder OTHERS PRESENT: Rich Freschi Brad Hogin, General Counsel Darryl Miller Ron Karich, Karich &Assoc. Doug Davert, Board Vice Chair Don McLean, Driver-Alliance DIRECTORS ABSENT: Ken Parker Jim Ferryman, Board Chair �r 4EINp�TrH1 or��.�ccp (2) APPOINTMENT OF CHAIR PRO TEM oiKir+Tv§ IT�YTOAI ic7 No appointment was necessary. JUN 272007 (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Chair Waldman did not give a report. Minutes of the Administration Committee June 13,2007 Page 2 (5) REPORT OF THE GENERAL MANAGER General Manager, Jim Ruth, did not give a report. (6) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES Lorenzo Tyner, Director of Finance and Administration, did not give a report. (7) REPORT OF GENERAL COUNSEL Brad Hogin, General Counsel,did not give a report. (8) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the May 9,2007 meeting of the Administration Committee. b. ADM07-35 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve the release of a request for proposal for the administration of an Owner Controlled Insurance Program, Specification No. CS-2007-347,covering the Sanitation District's $2.5 billion capital improvement program. C. ADM07-36 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to renew the District's Excess Workers'Compensation Insurance for the period July 1, 2007 through June 30, 2008 with the California State Association of Counties Excess Insurance Authority ("CSAC EIA"), in an amount not to exceed $0.003018 per dollar of actual payroll. d. ADM07-37 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to renew the District's All-Risk Property, Flood,and Boiler& Machinery Insurance Program ("Property Insurance")for the period July 1, 2007 through June 30,2008, in an amount not to exceed $585,630. e. ADM07-38 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to renew the District's Excess General Liability Insurance Program for the period July 1, 2007 through June 30,2008, in an amount not to exceed $367,366. END OF CONSENT CALENDAR • Minutes of the Administration Committee June13,2007 Page 3 (9) ACTION ITEMS a. ADM07-39 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to adopt Resolution No. OCSD 07-XX, Establishing Use Charges for the 2007-08 Fiscal Year Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority('SAW PA'). b. ADM07-40 Lorenzo Tyner, Director of Finance and Administrative Services, briefly presented the proposed budget update and recommended adjustments to the adopted budget MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve the proposed revisions to the Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 2007-08, as follows: Originally Proposed Adopted Revised Budget Budget FY 2007-08 FY 2007-08 Net Operations, Maintenance&Working Capital $135,602,130 $139,973,400 Worker's Compensation Self Insurance 559.400 559.400 General Liability and Property Self-Insurance 2,055,200 2.055.200 Net Capital Improvement Program 338,818,000 302.714.000 Debt/COP Service 65.462,000 65,273.720 Other Requirements 2,646,300 2,645,300 TOTAL $545,142,030 $513,221,020 (10) INFORMATIONAL ITEMS There were none. (11) CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957(b)(1). The Committee convened in Closed Session at 5:17 p.m. pursuant to Government Code Section 54957. Confidential Minutes of the Closed Session held by the Administration Committee have been prepared in accordance with California Government Code Section 54957(b)(1), 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 5:23 p.m. Minutes of the Administration Committee - June 13, 2007 Page 4 (12) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (14) FUTURE MEETING DATES The next regular Administration Committee meeting is scheduled for July 11, 2007, at 5 p.m. (15) ADJOURNMENT The Chair declared the meeting adjourned at 5:25 p.m. Submitted by: Lilia Kovac Committee Secretary HJAepllegendMCommideeslAdmin Commidee\O6OT0613O7 Adminisimlian Minules.doc STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and the Agenda for the Administration Committee meeting to be held on June 13, 2007, was duly posted for public inspection in the main lobby of the District's offices on June 6, 2007. IN WITNESS WHEREOF, I have hereunto set my hand this 6" day of June 2007. Lilia Kovac Clerk of the Board Orange County Sanitation District H:\DEPT\AGENDA\POSTING\COMMITTEE POSTING CERTIFICATION FORM.DOC ORANGE COUNTY SANITATION DISTRICT !nm znn°2411 NOTICE OF MEETING tee: nlalsezrxse ADMINISTRATION COMMITTEE aaWaa.owd.mm m.IlMp•lino: Finance, Human Resources and Information Technology Rn Elul 8121 ,tan Wby.rn BeM 8121 streat alE!as 19M4 81rs A... rn<axa�veay.rn ORANGE COUNTY SANITATION DISTRICT 92108101E WEDNESDAY, JUNE 13, 2007 - 5:00 P.M. +F cclaa DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE n.ea FOUNTAIN VALLEY, CALIFORNIA 92708 enu:, r,n p;presa W W W.00SD.COM room u vanes l inlamm fwrlen i. tmm,nu,nn aaat one A regular meeting of the Administration Committee of the Orange ,., Pal". County Sanitation District will be held at the above location, date I,M Ala z 711W5 and time. 1HnlE ISe:enaa ti r.l!.1 A,N e:Beach Tmm� mna r„x Yani uuda ioancy el oren0e wt., District. Al., M!", Cm, Water n1ssrites Irm.pi To maintain warld-cless laadarshW in wastewater and water resource mana9emant. PN\Y SPNI,q�/ x o *C�E fNP\P ADMINISTRATION COMMITTEE MEETING DATES Meeting Date Board Meeting Dates June 13, 2007 June 27, 2007 July 11, 2007 *July 18, 2007 August—Dark August 22, 2007 September 12, 2007 September 26, 2007 October 10, 2007 October 24, 2007 November 14, 2007 November 28, 2007 December 12, 2007 *December 19, 2007 January2008 — Dark January 23, 2008 February 13, 2008 February 27, 2008 March 12, 2008 March 26, 2008 April 9.,2008 April23, 2008 May 14, 2008 May 28, 2008 *Meetings being held the third Wednesday of the month. ROLL CALL ADMINISTRATION COMMITTEE Finance, Human Resources and Information Technology Meeting Date: June 13, 2007 Time: 5:00 o.m. Adjourn: COMMITTEE MEMBERS (141 Mark Waldman Chair Phil Luebben Ice Chair Steven Choi Bill Dalton Jon Dumitru Rich Freschi Darryl Miller Joy Neu ebauer Chris Norb Ken Parker Sal Tina ero Jim Winder James M. Ferryman Board Chair Doug Davert Board Vice Chair OTHERS Brad Ho in, General Counsel STAFF Jim Ruth, General Manager Nick Arhontes, Director of Operations & Maint. Bob Ghirelli,Assistant General Manager Jim Herber , Director of Engineering Ed Torres, Director of Technical Services Lorenzo Tyner, Director of Finance and Administrative Services Lilia Kovac, Committee Secretary Jeff Reed, Human Resources and Employee Relations Mena er Mike White, Controller H:Wepgagenda\Committee Admin CommltteeA060T02.Roll Call.dao AGENDA REGULAR MEETING OF THE ADMINISTRATION COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, JUNE 13, 2007, AT 5:00 P,M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 92708 www.ocsd.com (1) DECLARATION OF QUORUM (2) APPOINTMENT OF CHAIR PRO TEM IF NECESSARY (3) PUBLIC COMMENTS (4) REPORT OF COMMITTEE CHAIR (5) REPORT OF GENERAL MANAGER (6) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES (7) REPORT OF GENERAL COUNSEL (8) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. Approve minutes of the May 9, 2007 meeting of the Administration Committee. b. ADM07-35 Recommend to the Board of Directors to approve the release of a request for proposal for the administration of an Owner Controlled Insurance Program, Specification No. CS-2007-347, coverinq the Sanitation District's $2.5 billion capital improvement program. (Book Page 9) Book Page I June 13, 2007 Page 2 C. ADM07-36 Recommend to the Board of Directors to renew the District's Excess Workers' Compensation Insurance for the period July 1, 2007 through June 30, 2008 with the California State Association of Counties Excess Insurance iy Authority ("CSAC EIA"), in an amount not to exceed $0.003018 per dollar of actual payroll. (Book Page 11) d. ADM07-37 Recommend to the Board of Directors to renew the District's All-Risk Property, Flood, and Boiler& Machinery Insurance Program ("Property Insurance")for the period July 1. 2007 through June 30, 2008, in an amount not to exceed $585,630. (Book Page 14) e. ADM07-38 Recommend to the Board of Directors to renew the District's Excess General Liability Insurance Program for the period July 1. 2007 throuqh June 30, 2008, in an amount not to exceed $367,366 (Book Page 17) END OF CONSENT CALENDAR f. Consideration of items deleted from Consent Calendar, if any. (9) ACTION ITEMS a. ADM07-39 Recommend to the Board of Directors to adopt Resolution No. OCSD 07-XX, Establishing Use Charges for the 2007-08 Fiscal Year Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority ("SAWPA"). (Book Page 19) b. ADM0740 Recommend to the Board of Directors to approve the proposed revisions to the Operating, Capital, Debt/COP Service and Self- Insurance Budgets for FY 2007-08, as follows: (Book Page 21) Originally Proposed Adopted Revised Budget Budget FY 2007-08 FY 2007-08 Net Operations, Maintenance&Working Capital $135,602,130 $139,973,400 Worker's Compensation Self Insurance 559,400 569,400 General Liability and Property Self4nsumnce 2,055,200 2,055,200 Net Capital Improvement Program 338,818,000 302,714,0 DebH 00 COP Service 65,462,000 65,273,720 Other Requirements 2,645,300 2,645300 TOTAL $645,142,030 $613,221,020 Book Page 2 June 13, 2007 Page 3 (10) INFORMATIONAL ITEMS (11) CLOSED SESSION ............................................._..........................._......................._...._.........___............_.............._.._.....__......___..... ....._....... .._....._._.._.__.__._..........__., i Dunng the course of conducting the business set forth on this agenda as a regular meeting of the Committee, j the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, i `:. pending or potential litigation,or personnel matters, pursuant to Government Code sections 54956.8,54956.9, j 54957 or 54957.6.as noted. i Report relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) j i employee actions or negotiations with employee representatives; or which are exempt from public disclosure i i under the California Public Records Act, may be reviewed by the Committee during a permitted closed session and are not available for public inspection. At such time as final actions are taken by the Committee on any of these subjects,the minutes will reflect ell reguireE,dixlpsure9 nlortnetion._ _ __ _ __ _ A. Convene in closed session. 1. Conference with designated representatives Jim Ruth, General Manager, Lorenzo Tyner, Director of Finance and Administrative Services; and Jeff Reed, Human Resources and Employee Relations Manager re Meet and Confer Update re contract negotiations for Managers and Confidential Employees (Government Code Section 54957(b)(1)). B. Reconvene in regular session. C. Consideration of action, 9 any, on matters considered in dosed session. (12) OTHER BUSINESS COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY (13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (14) FUTURE MEETING DATES The next regular Administration Committee meeting is scheduled for July 11, 2007, at 5 P.M. (15) ADJOURNMENT Book Page 3 June 13, 2007 Page 4 Agenda Posting: In accordance with the requirements of California Government Code Section 549542,this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Clerk of the Board. Items Not Posted: in the event any matter not listed on this agenda is proposed to be Submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency hem or because there is a need to take immediate action, which need came to the attention of the Committee subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Public Comments: Any member of the public may address the Administration Committee on specific agenda items or matters of general Interest. As determined by the Chair, speakers may be deferred until the specific Rem is taken for discussion and remarks may be limited to three minutes, Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). Consent Calendar: All matters placed on the consent calendar are considered as not requiring discussion or further explanation, and unless a particular Rem is requested to be removed from the consent calendar by a Director of staff member, there will be no separate discussion of these items. All items on the consent calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the consent calendar shall be considered in the regular order of business. The Committee Chair will determine if any Items are to be deleted from the consent calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee meeting held within five(5)days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adioumment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955(posted within 24 hours). Accommodations for the Disabled: The Board of Directors Meeting Room is 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. Notes,to Committee Members: For any questions on the agenda or to place any items on Ohe agenda, Committee members should contact the Committee Chair or Clerk of the Board ten days in advance of the Committee meeting. Committee Chair: Mark Waldman (714)827-1969 Committee Secretary: Dlia Kovac (714)593-7124 Ikovaceocsd com General Manager: Jim Runt (714)593-7110 inAhMocsd corn Assistant General Manager Bob Ghirelli (714)593-7400 roh'rellibomd com Director of Finance and Lorenzo Tyner (714)593-7550 Itvnergitamtl corn Admirstrative Services Human Resources and Employee Jeff Reed (714)593-7144 ire d®ocsd m Relations Manager H:Meprlagenda\Commigees'Admin CommMW0607103.061307 Admir isaation Agenda.dm Book Page 4 b June 13, 2007 ADMINISTRATION COMMITTEE AGENDA CALENDAR Item Action July Consider Investment Policy Action Book Page 5 MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, May 9, 2007,AT 6:00 P.M. A meeting of the Administration Committee of the Orange County Sanitation District was held on May 9, 2007, at 5:00 p.m., in the Sanitation District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: ADMINISTRATION COMMITTEE STAFF PRESENT: MEMBERS: Jim Ruth, General Manager DIRECTORS PRESENT: Bob Ghirelli, Assistant General Manager Mark Waldman, Chair Lorenzo Tyner, Director of Finance and Phil Luebben, Vice Chair Administrative Services Steven Choi Jeff Reed, Human Resources and Employee Bill Dalton Relations Manager Jon Dumitru Mike White, Controller Joy Neugebauer Life Kovac, Committee Secretary Chris Norby Norbert Gaia Ken Parker Randy Kleinman Sal Tinajero Juanita Skillman Jim Winder Doug Davert, Board Vice Chair OTHERS PRESENT: Jim Ferryman, Board Chair Brad Hogin, General Counsel Don McLean, Driver-Alliance DIRECTORS ABSENT: Rich Freschi Darryl Miller (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Chair Waldman did not give a report. Book Page 6 Minutes of the Administration Committee May 9, 2007 Page 2 (5) REPORT OF THE GENERAL MANAGER General Manager, Jim Ruth, did not give a report. (6) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES Lorenzo Tyner, Director of Finance and Administration, reported that $95 million of Board- approved debt was recently refinanced netting a savings of approximately $4.5 million. (7) REPORT OF GENERAL COUNSEL Brad Hogin, General Counsel, reported that the Travelers Insurance litigation has reached a settlement amount that staff agreed to, and will be presented at the May Board meeting for discussion and consideration. (8) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the April 11,2007 meeting of the Administration Committee. b. ADM07-32 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to adopt Resolution No. OCSD 07-XX,Adopting the Updated Records Retention Schedule and Records Series Definitions,Authorizing Destruction of Obsolete Records, and Repealing Resolution No. OCSD 06-08. END OF CONSENT CALENDAR (9) ACTION ITEMS No items were considered. (10) INFORMATIONAL ITEMS a. ADM07-33 Annual Renewal of the District's Major Insurance Programs for FY 2007-08. Mike White, Controller, introduced Don MacLean of Driver-Alliant Insurance Services, who presented a summary of estimated insurance quotes. These insurance quotes will be finalized and presented to the Board of Directors for approval in June. Book Page 7 Minutes of the Administration Committee May 9, 2007 Page 3 b. ADM07-34 FY 2007-08 District Budget Lorenzo Tyner, Director of Finance and Administrative Services, briefly presented the revenue summary as part of the development of the 2007/08 budget process. The budget will be presented to the Committee and Board of Directors for approval in June. (11) CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957(b)(1). The Committee convened in Closed Session at 5:14 p.m. pursuant to Government Code Section 54957. Confidential Minutes of the Closed Session held by the Administration Committee have been prepared in accordance with California Government Code Section 54957(b)(1), 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 5:39 p.m. (12) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (14) FUTURE MEETING DATES The next regular Administration Committee meeting is scheduled for June 13,2007, at 5 p.m. (15) ADJOURNMENT The Chair declared the meeting adjourned at 5:40 p.m. Submitted by: Lilia Kovac Committee Secretary H:Wep11a9endalComm[tl Mdmin Commidae105071050907 Administ llon Minules.doc Book Page 8 ADMINISTRATION COMMITTEE MZ71307 TOeA.Of Dtr. O6/13/07 O6d 0 AGENDA REPORT Iem 07-3 Ian Number Ain Num 5 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: OWNER CONTROLLED INSURANCE PROGRAM GENERAL MANAGER'S RECOMMENDATION Approve the release of a request for proposal for the administration of an Owner Controlled Insurance Program, Specification No. CS-2007347, covering the Sanitation District's $2.5 billion capital improvement program. SUMMARY An owner controlled insurance program (OCIP) provides insurance coverage for job site construction projects. This would eliminate the construction contractor from having to provide workers' compensation, liability, and property insurance as part of their bid proposal. An OCIP centralizes and coordinates construction project insurance and coordinates loss control and loss prevention. An OCIP would eliminate multiple insurers, cost duplication, stacked markups, potential cross litigation, gaps in coverage, inadequate limits, and uninsured contractors. An OCIP generally will produce 0.6 to 0.9 percent in savings from the overall project bids submitted by the individual contractors due to economies of scale. Also, the OCIP play a major role in the oversight of the capital improvement safety program to ensure that all contractor employees are properly trained in safety. Advantages of an OCIP include: • Better control over claims, litigation and settlement negotiations • Fair opportunities for minority, small and specialty contractors • Volume purchase equates to lower insurance rates • Elimination of hidden subcontractor mark-ups • Cash flow earnings on deferred premium and loss payment • Dividends or returned premiums based on favorable claims reporting Major brokers who administer OCIP's include: • Aon • Marsh • Alliant Fume N. pVAttl[] Ppmt,MIMI Page 1 Book Page 9 Major Insurance Carriers who insure OCIP's: • ACE • AIG • Arch Insurance • CSAC Excess Insurance Authority • Liberty Mutual • Lloyds of London and London Companies • St. Paul • Zurich Insurance PRIOR COMMITTEE/BOARD ACTIONS None. ADDITIONAL INFORMATION Sufficient funds have been budgeted within the FY 2007-08 budget to fund the cost of developing a request for proposals to administer an owner controlled insurance program. Form No.0 ,cza PpiaN.0.YDfiPI Page 2 Book Page 10 ADMINISTRATION COMMITTEE Meang Da[e Tosn.of Dlr. W13ro7 06J27/07 AGENDA REPORT 1bun Num Hem Number ADM07-36 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: ANNUAL RENEWAL OF THE DISTRICT'S EXCESS WORKERS' COMPENSATION INSURANCE, FY 2007-08 GENERAL MANAGER'S RECOMMENDATION Renew the District's Excess Workers' Compensation Insurance for the period July 1, 2007 through June 30, 2008 with the California State Association of Counties Excess Insurance Authority("CSAC EIA"), in an amount not to exceed $0.003018 per dollar of actual payroll. SUMMARY The District's Excess Workers' Compensation insurance coverage is with the CSAC EIA. This is the fourth year the District has participated in this program or its predecessor. The coverage expires on June 30, 2007 and is now up for renewal for fiscal year 2007-08. The District's Excess Workers' Compensation Program currently provides coverage to $200 million with a self-insured retention ("SIR"), or deductible, of $500,000. The proposed renewal maintains the existing $200 million coverage limit and self- insured retention of$500,000. The premium proposed from CSAC EIA is $0.003018 per dollar of actual payroll, or a total estimated premium of$167,310. This is a decrease of 24.4 percent from the prior year rate of$0.00399 per dollar of actual payroll, and a 17.1 percent estimated decrease overall based on the total increase in salaries. PRIOR COMMITTEE/BOARD ACTIONS In June 2006, the Board last approved renewal for the period July 1, 2006 through June 30, 2007. ADDITIONAL INFORMATION Background x:wop�ma.�commme"ewamm commm�imorna.mae.eao..ven,",.com�.,.me,.a« a«�.m: oaoam Page 1 Book Page I 1 The District's use of Excess Workers' Compensation insurance dates back to 1989-90. At that time, the Fiscal Policy Committee approved a self-insured retention (SIR), or deductible, of$250,000, for such coverage. This deductible was raised to $500,000 beginning in FY 2002-03 through a policy with Employers Reinsurance Corporation (ERG) that provided coverage to $25 million with a self-insured retention (SIR), or deductible of$500,000. In FY 2003-04, the District joined the California Public Entity Insurance Authority (CPEIA), the lowest responsible provider, and approved the District's Excess Workers' Compensation Insurance, with limits of$50 million and a self-insured retention of $500,000. In FY 2004-05, the District again renewed with CPEIA with increased limits from $50 million to $100 million while maintaining the self-insured retention of$500,000. In FY 2005-06, CPEIA negotiated an increase in the $100 million coverage limit to $150 million, with the same$500,000 self-insured retention. In FY 2006-07, CPEIA again negotiated an increase in the $150 million coverage limit to $200 million, with the same $500,000 self-insured retention. Some additional risk is associated with the CSAC EIA joint powers authority in that a premium surcharge can be assessed to individual members if an unusually large number of losses occur outside of the actuarial evaluation estimates. However, only once has an actual surcharge ever been made in over 20 years of the operation of the program. The cost of Excess Workers Compensation Insurance from CSAC EIA has been much lower than that of competing sources, and so even if a surcharge were ever made, the cost might continue to be lower. FY 2007-08 Renewal Cvcle The District's broker of record, Alliant, has received quotes from CSAC EIA as well as from several other carriers including ACE, CNA, Travelers, Arch, Zurich, and AIG. The premium proposed from CSAC EIA is $0.003018 per dollar of actual payroll, or a total estimated premium of$167,310. This is a decrease of 24.4 percent from the prior year rate of$0.00399 per dollar of actual payroll, and a 17.1 percent estimated decrease overall in considering the total increase in FY 2007-08 estimated salaries over the prior year. Of the quotes received from outside insurance carriers, the most competitive was from ACE, that was approximately 5 percent higher and with lesser coverages. Other carriers contacted included CNA, Travelers, Arch, Zurich, and AIG. M:W eMbBmtla�CmuniXeesYLmN CwnmMwNB W Vb.O]3B Fmv NbrFme CmnP^ ealM.Gx w,,.�. oamam3 Page 2 Book Page 12 Sufficient funds have been budgeted within the FY 2007-08 Budget to cover expected premium costs. H.wecmameacomoa.wemm�naemsaws.o�as.[vesava n�Ca�wa��a�.mc Page 3 Book Page 13 ADMINISTRATION COMMITTEE Meoeetm/>3/9Da o7 owz'e Toiw 7 7 arotx AGENDA REPORT Item Number Item Number ADM07-37 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: ANNUAL RENEWAL OF THE DISTRICT'S ALL-RISK PROPERTY, FLOOD, AND BOILER & MACHINERY INSURANCE PROGRAM FOR FY 2007-08 GENERAL MANAGER'S RECOMMENDATION Renew the District's All-Risk Property, Flood, and Boiler& Machinery Insurance Program ("Property Insurance") for the period July 1, 2007 through June 30, 2008, in an amount not to exceed $585,630. SUMMARY The District's All-Risk Property, Flood and Boiler & Machinery Insurance coverage expires June 30, 2007 and is now up for renewal for FY 2007-08. The All-Risk insurance program provides for comprehensive coverage for the District's real and personal property regarding virtually all perils including fire, flood, and business interruption, and loss caused by machinery breakdown and explosion of steam boilers or other covered process equipment, including damage to the equipment itself and damage to other property caused by covered accident. The District previously carried earthquake insurance as part of its Property Insurance, but in the last few years earthquake insurance has been impossible to obtain or not cost-effective. Currently, the District has earthquake insurance only in connection with some of its buildings under construction. The District's current Property Insurance limits are $1 billion,for most perils other than flood and earthquakes, and $175 million for flood, although there are many sub-limits for various situations. In order to reach $1 billion in limits, the District's broker had to arrange for nearly a dozen different layers of insurers. The Self-Insured Retention ("SIR") is $25,000 per occurrence for most types of losses. The District's current Boiler & Machinery coverage is $100 million per occurrence with deductibles ranging from $25,000 to $350,000. Staff recommends renewal of the District's All-Risk Property, Flood, and Boiler and Machinery program through a nationwide joint purchase property insurance program called Public Entity Property Insurance (PEPIP) in an amount not to exceed $585,630, a $217,590 decrease, or 27.1 percent reduction from the prior year, (18.6% decrease in insurable property values and an 8.5% decrease in the overall rates). �e"mw.b.�cemmm.nw,a,wmmmmmoo�ma o�a7 n,oany ma eaw w.m< A.,;,.n oamaw Page 1 Book Page 14 PRIOR COMMITTEE/BOARD ACTIONS In June 2006, the Board approved annual renewal for FY 2006-07. li ADDITIONAL INFORMATION Background For a ninth consecutive year, Alliant, the District's Broker of Record, marketed renewal of the District's All-Risk Program through a nationwide joint purchase property insurance program called Public Entity Property Insurance Program (PEPIP), one of the world's largest property programs. It is important to note that this joint purchase property insurance program offers the purchasing power of numerous large public entities without the pooling or sharing of coverage or losses with any other public entities. Multiple insurance carriers underwrite the All-Risk program to distribute risk exposure and to ensure competitively bid premiums. Thus, the District's premium costs are controlled, while obtaining maximum coverage levels for the District. The District's FY 2004-05 All-Risk Program covered the District's property with a $300 million blanket loss limit for flood and $750 million blanket loss limit for all other perils, including fire damage. The deductible for flood perils is $100,000 per occurrence and the deductible for all other perils is $25,000 per occurrence for a total premium of $729,388. In FY 2005-06, the coverage and deductible remained the same except for an increase in coverage for all perils except for flood from the $750 million blanket loss limit to $1 billion. In addition, premiums were reduced to $703,664. In FY 2006-07, the coverage and deductible remained the same except for a decrease in coverage for flood from the$300 million blanket loss to $175 million. In addition, premiums rose to $803,220, a 14.1 percent increase over the prior year. FY 2007-08 Renewal Cycle As a result of the significant purchasing power (in excess of$70 million in combined annual premiums) of the PEPIP joint purchase program, the FY 2007-08 renewal option is being proposed to maintain the existing $175 million blanket loss limit for flood, $100 million blanket loss for Boiler& Machinery, and $1 billion blanket loss limit for all other perils except for earthquake, including fire damage. The deductibles for perils of flood and the deductibles for all basic risk perils are proposed to remain at$250,000 and $25,000, respectively. The proposed premium of$585,630 is a decrease of$217,590, or 27.1 percent reduction from the prior year premium, and a decrease of$118,034, or 16.8 percent from the premium paid two years ago. The 27.1 percent increase from FY 2004-05 to FY 2005-06 represents an 18.6 percent decrease in insurable property values and an 8.5 percent decrease in rates. HWepllaOa,WlCwnmalooeV M WmmOeaWl'ATID.0737.Wq'aly m BW(me Ox Pma.a: aawma Page 2 Book Page 15 Quotes were also pursued from several insurance carriers including Affiliated FM, AIG, ACE, Royal, Chubb, and Zurich. The carrier with the most comparable quote, Affiliated FM, was $274,170 higher at $859,800, and with a lesser coverage amount. No earthquake quote is provided as no quote was worth recommending. Sufficient funds have been budgeted within the FY 2007-08 Budget to cover expected premium costs. H:WaNWonEelCmnmXlw�Ntlmin Gmmnoel�P➢B➢]01 P^ .M.In.. Page 3 Book Page 16 ADMINISTRATION COMMITTEE FRWe gDaEe TO Bd.of Mr. 06/13/07 06/27/07 AGENDA REPORT tt RMW Rem Number Orange County Sanitation District ADM07 M FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: ANNUAL RENEWAL OF THE DISTRICT'S EXCESS LIABILITY INSURANCE PROGRAM, FY 2007-08 GENERAL MANAGER'S RECOMMENDATION Renew the District's Excess General Liability Insurance Program for the period July 1, 2007 through June 30, 2008, in an amount not to exceed $367,366. SUMMARY Staff recommends the renewal of the District's $25 million Excess General Liability Insurance Program for FY 2006-07 through the Alliant National Municipal Liability Program (ANIMAL) in an amount not to exceed $367,366. ANIMAL is a program provided by the District's broker of Record, Alliant, and is a new sister program of the coverage currently provided through the California Municipal Excess Liability Program ("CAMEL"). The District has participated in the CAMEL program since FY 1996-97. The proposed premium quote of$367,366 is a decrease of 7.7 percent from last year's premium of$398,020. PRIOR COMMITTEEIBOARD ACTIONS In June 2006, the Board approved renewal for the period July 1, 2006 through June 30, 2007. ADDITIONAL INFORMATION Background The current liability insurance program provides the District with a $25 million policy of comprehensive coverage for municipal liability, bodily injury and property damage, and personal injury. The program was structured to also include Employment Practices, and Public Officials Errors & Omissions coverage. The $25 million coverage is per occurrence, with a self-insured deductible of$250,000 per occurrence. Since 1997, the Employment Practices portion of coverage was enhanced from a $2 million sub-limit, to the full $25 million policy limit. Fmm No.o ima nwiveu:ovouor Page 1 Book Page 17 This insurance program is provided through the California Municipal Excess Liability program (CAMEL) and consists of two separate layers of coverage. The first layer is the "Basic" $10 million program with self-insured retention of$250,000. The second layer consists of$15 million of coverage in excess of the first layer of$10 million. In FY 2006-07, the CAMEL program utilized Everest National Insurance Company for renewal of the "Basic" $10 million program with a Best Guide Rating of A+. The second layer was placed with Traders and Pacific Insurance Company, a carrier that held a Best Guide Rating of A. Total premium cost for these two layers of coverage, including terrorism coverage, totaled $398,020, a 2.5 percent decrease over the prior year total of $408,330. FY 2007-08 Renewal Cycle In order to generate lower premiums, the District's Broker of Record,Alliant, has established a new sister program of CAMEL, the Alliant National Municipal Liability Program (ANIMAL). Under the ANIMAL program, Alliant is proposing to again utilize Everest National Insurance Company for renewal of the"Basic" $10 million program, but substituting Traders and Pacific Insurance Company for North American Specialty, Best Guide Rating of A+, for the second layer. Total premium cost for these two layers of coverage, including terrorism coverage, is being proposed at $367,366, a decrease of 7.7 percent from last year's premium of$398,020. Quotes were also pursued from several insurance carriers including AIG, Munich, Markel, ACE, and St. Paullrravelers. AIG was the closest quote, and was more than $100,000 higher. Sufficient funds have been budgeted within the FY 2007-08 Budget to cover expected premium costs. Form N. o ,M xmeea:=IM7 Page 2 Book Page 18 ADMINISTRATION COMMITTEE Meeing Dale To 31 CO Dir. 06/13/07 06MI07 AGENDA REPORT Item NoinW IOan Number ADMo7-39 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: Wastewater Rates for SAWPA Discharge GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 07-XX, Establishing Use Charges for the Fiscal Year 2007-08 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority ("SAWPA"). SUMMARY Currently we invoice SAWPA on a quarterly basis for the wastewater discharge we receive from the SARI line. Annually, the rates for flow, biochemical oxygen demand (BOD), and total suspended solids (TSS) are calculated based upon the fiscal year budget for treatment and disposal costs and the 1996 Wastewater Treatment and Disposal agreement. The rates calculated for each constituent for Fiscal Year 2007-08 for wastewater discharge are: FLOW $145.49 BOD $223.17 TSS $331.26 The 2007-08 rates are a 5.3% increase over the FY 2006-07 rates due to a 5.3% increase in the treatment and disposal costs in the proposed revised FY 2007-08 budget. These rates are separate from the rates charged for additional capacity purchases by SAWPA. The allocation percentages for flow, TSS and BOD that are used in the rate calculation were updated when the FY 2006-07 rates were calculated to coincide with the Rate Study that was completed in 2006 by Carollo Engineers. These allocation percentages remain the same for FY 2007-08. PRIOR COMMITTEEIBOARD ACTIONS Wastewater Treatment and Disposal Agreement executed on July 24, 1996 between the Orange County Sanitation District and the Santa Ana Watershed Project Authority. Fmm No.O 1= Rcv '.1N7 Page 1 Book Page 19 RESOLUTION NO. OCSD 07-XX ESTABLISHING USE CHARGES FOR THE 2007-08 FISCAL YEAR PURSUANT TO THE WASTEWATER TREATMENT AND DISPOSAL AGREEMENT WITH THE SANTA ANA WATERSHED PROJECT AUTHORITY ('SAWPA') A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING USE CHARGES FOR THE 2007-08 FISCAL YEAR PURSUANT TO THE WASTEWATER TREATMENT AND DISPOSAL AGREEMENT WITH THE SANTA ANA WATERSHED PROJECT AUTHORITY('SAWPA") WHEREAS, the Board of Directors has approved the Wastewater Treatment and Disposal Agreement with the SANTA ANA WATERSHED PROJECT AUTHORITY ("SAWPA'); and, WHEREAS, said agreement provides for payment of Disposal Costs for the measured and sampled flow of Wastewater discharged from SAWPA's SARI Service Area to Districts'facilities; and, WHEREAS, said agreement provides for adjustment of said Disposal Costs on an annual basis. NOW, THEREFORE, The Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE,AND ORDER: Section 1. That pursuant to Section C4 of the Wastewater Treatment and Disposal Agreement, the 2007-08 fiscal year charges for Disposal Costs are hereby established as follows: For Flow: $ 145.49 per million gallons of flow For Biochemical Oxygen Demand: $223.17 per thousand pounds For Total Suspended Solids: $ 331.26 per thousand pounds PASSED AND ADOPTED at a regular meefing held June 27, 2007. Chair ATTEST: Clerk of the Board 1 Book Page 20 ADMINISTRATION COMMITTEE Neetlng/e7 Oy27Da'o Teeaorar/O7 . ee/13 Numb AGENDA REPORT non aoNm to 07-40 eemrvemW Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PROPOSED REVISIONS TO FY 2007-08 OPERATING, CAPITAL, DEBT/COP SERVICE, SELF-INSURANCE BUDGETS AND OTHER REQUIREMENTS BUDGET GENERAL MANAGER'S RECOMMENDATION Approve the proposed revisions to the Operating, Capital, DebVCOP Service and Self-Insurance Budgets for FY 2007-08, as follows: Originally Proposed Adopted Budget Revised Budget FY 2007-08 tY 2007-08 Net Operations, Maintenance&Working Capital $135.602.130 $139.973.400 Worker's Compensation Self Insurance 559,400 559,400 General Liability and Property Self-Insurance 2,055.200 2,055,200 Net Capital Improvement Program 338,818.000 302.714,000 Debt/COP Service 65,462.000 65,273,720 Other Requirements 2,645,300 2.645,300 TOTAL $50,142,030 $513,221,020 SUMMARY The budget continues to reflect the District's move from a series of one-year budgets to a two-year budget. Developing a two-year budget increases efficiencies and provides a longer planning horizon. This update represents known revisions to the second year of the two-year budget. The FY 2007-08 Proposed Revised Budget is enclosed for the Committee's consideration. The Budget has been presented to the Operations Committee at the regular June meeting in order to allow each Standing Committee an opportunity to review the proposal prior to the June Board meeting. Although each Committee has had an opportunity to review the proposal, it remains the responsibility of the Administration Committee to recommend approval. Book Page 21 The Administration Committee is requested to recommend that the Board of Directors approve this budget. PRIOR COMMITTEE/BOARD ACTIONS The Board approved the FY 2006-07 and FY 2007-08 Two-Year Budget for the period July 1, 2006 through June 30. 2008 in June 2006. Budget overviews were presented to the Administration and Operations Committees in June 2007. ADDITIONAL INFORMATION None. ATTACHMENTS 1. Proposed FY 2007-08 Revised Budget a:maamammc�mm�.wa,m,cmmmm .m .0740 WM7w aa,.es WWW Page 2 Book Page 22 ORANGE COUNTY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address 10844 Ellis Avenue Fountain Valley, California 92708-7018 1 Opp MPR VC VIRONMENT ONE MILESTONE AT A TIME �.,� .' .�• BUDGET UPDATE Fiscal Year 2007-08 -► ORANGE COUNTY SANITATION DISTRICT, CALIFORNIA Orange County Sanitation District, California Budget Update Fiscal Year 2007 -08 S A N I Tq T�o2 _ 3 Q 9 E �Nv\P0� Vision Statement "To maintain world-class leadership in wastewater and water resource management." GFOA Budget Presentation Award 0 GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Orange County Sanitation District California Forthe Fiscal Year Beginning July 1, 2006 Prtaiaem Exmnve 01—e T r r The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Orange County r Sanitation District, California, for its annual budget for the fiscal year beginning July 1, 2006. In order to receive this award,a government unit must publish a budget document r that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. r Table of Contents OCSDService Area........................................................................................................................... i Boardof Directors............................................................................................................................ ii Board Committees..................... "' Orange County Sanitation District Organization Chart................................................................... iv AdministrativeOfficials....................................................................................................................v Message from the General Manager.............................................................................................vi }1 FinanceSummary............................................................................................................1 Y� Financial Overview 8 Budgetary Issues...........................................................................................2 { Where the Money Comes From......................................................................................................6 r Revenuesby Category.....................................................................................................................6 Wherethe Money Goes...................................................................................................................8 ' 1 Expensesby Category.....................................................................................................................8 �I StrategicPlanning ........................................................................................................10 it Capital Improvement Program Overview................................................17 Debt Financing Program.........................................................................................19 OperatingExpenses....................................................................................................20 Departments......................................................................................................................24 Summary........................................................................................................................................24 Office of the General Manager......................................................................................................26 Administrative Services.................................................................................................................28 TechnicalServices .........................................................................................................................30 Engineering....................................................................................................................................32 Operations and Maintenance........................................................................................................34 Appendix CashFlow Projection....................................................................................................................A-1 Capital Improvement Program Summary.....................................................................................A-3 ProjectSummary..........................................................................................................................A-4 Capital Improvement Expenditure Graphs ...................................................................................A-5 Summary of Capital Requirements...............................................................................................A-6 New Project Descriptions...........................................................................................................A-12 Capital Equipment Budget Summary.........................................................................................A-15 Capital Equipment Budget Detail...............................................................................................A-17 Listing of Proposed Purchases Over$100,000..........................................................................A-18 Self-Funded Insurance Plans......................................................................................................A-19 ., HistoricalStaffing Summary.......................................................................................................A-20 HistoricalStaffing Detail.............................................................................................................A-21 AppropriationsLimit...................................................................................................................A-29 L Miscellaneous Statistics.............................................................................................................A-30 Wastewater Treatment Process L L OCSD Service Area LC6<flGELEB CJ01{ry y� DR<NGE UNtt vr. LA o sFq� HABRA BREA AL ?'"oec 9Omo YORBA \Ds�Gys FULLERTON pLACEM VAIDAIA \l »cps e L B E A of AR< _ PALMA CYPRESS l `VILLAo PAr Wiz, LOS STANTON © 'ORANGE cl ALAMITOS GARDEN ° GROVE e� EACH STMINSTER - ® ` SANTA ANA UNTAIN TUSTI V HUNTINGTON°G anon 6 �® BEACH rant 0.bOSTA ® A MESA A IRVINE CSD Treatmen o N Plant No.2 l is PORT ��' 'BEACtt a � 135 35 5 Mks IKSDOffird-r —Wp tbl Ta 4ab di dne Pyelne IDX ppm vvrel I IOmela.5 miles bngl — OCSD Service Area Boundary OCSD Pump Station (16 total) DISCIAIMER'. Map tool ad by Orange County Sanitation DiNritl.Tuns map is Inlantled for....ni,el d'studob ion onh.No level of accuracy Is claimM for the base mapping sboam hereon and 9mpMu should not be used to obtain cowtlinare values.Mann,or di dances. Portland of this tlenvetl prWutl contain geo9mphkal informalnn mpyryhtetl by Thomas BrNo as All Rights Reurved. SOURCE.OCSD QS Data.Thomas Dollars 2.06 REVISED.03I93007 OCSD Board of Directors Agency/City AictivE UFr �cioi Anaheim....................................................................Harry Sidhu Brea...........................................................................Roy Moore Buena Park................................................................Patsy Marshall r Cypress.....................................................................Phil Luebben Fountain Valley..........................................................Larry Crandall Fullerton....................................................................Don Bankhead Garden Grove....................--....................................Bill Dalton Huntington Beach.....................................................Cathy Green .. Irvine..........................................................................Steven Choi La Habra....................................................................Steve Anderson La Palma....................................................................Mark Waldman Los Alamitos.............................................................Ken Parker L. Newport Beach.........................................................Don Webb Orange ......................................................................Jon Dumitru Placentia.......................................-...........................Constance Underhill L Santa Ana..................................................................Sal Tinajero Seal Beach ................................................................Charles Antos r. Stanton......................................................................David Shawver Tustin.........................................................................Doug Davert -Vice Chairman I d Villa Park....................................................................Richard A. Freschi Yorba Linda...............................................................Jim Winder Y, Sanitary/Water Districts Costa Mesa Sanitary District....................................James M. Ferryman-Chairman Midway City Sanitary District ...................................Joy L. Neugebauer Irvine Ranch Water District.......................................Darryl Miller County Areas Member of the Board of Supervisors.......................Chris Norby W V L Y ® L OCSD Board Committees r r Steering Comp e James M. Ferryman, Board Chair Doug Davert, Board Vice Chair Larry Crandall, Operations Committee Chair r Mark Waldman, Administration Committee Chair Steve Anderson Cathy Green r Phil Luebben Administration Committee ,r Mark Waldman, Chair Phil Luebben,Vice Chair Steven Choi Bill Dalton r Jon Dumi[ru Richard A. Freschi Darryl Miller r Joy L. Neugebauer Chris Norby Ken Parker r Sal Tinajero Jim Winder James M. Ferryman, Board Chair Doug Davert, Board Vice Chair Operations Committee Larry Crandall, Chair r Cathy Green,Vice Chair Steve Anderson Charles Antos r Don Bankhead Patsy Marshall Roy Moore David Shawver Harry Sidhu Constance Underhill Don Webb r James M. Ferryman, Board Chair Doug Davert, Board Vice Chair GWR System Joint Cooperative Steering Committee James M. Ferryman Steve Anderson r Don Bankhead Larry Crandall (Alternate 1) Darryl Miller(Alternate 2) Cathy Green (Alternate 3) r r Organization Chart , t General — ANnic sozuwi IncMies I.ngm� ripl Yr Mmmgnmem Services Services Adnnnistraann Moore"once a Process Administration Administration Mantenance Engineering 6 — Fnanual Planning Administration Odor Control Assistant Management Bimrunmental General Manner Comlianceb Protect fluanal Assets Im g — Contracts. p Mona ement g� Plant No. I Administration Hegulatory Allmrs Y 6Services operations bo[lud of l I'edl r Purchasing6 Olgee nn.�nsl Maturate besonmentat Collector Plant No.2 Management Laboratoryb Enyineedng6 Faciliues Operations Board Services Construction p lurr Ocean Monitoring pVeratmns b Public Human Maunenance Mechanical ledurnatmn Office Resources Source Control Facnmes Heliabitity6 Engineering Fcdmus Maintenance Safety and Health 11dormation Protect Maunenance Support Services r Technology Management Servces Electricalb Process Instrumentation Engineering 6 Maintenance Odor Central r ►a w r r r r r Administrative Officials Management Team General Manager.................................................................James D. Ruth r Assistant General Manager............................................. Robert P. Ghirelli General Counsel........................................................................Brad Hogin Director of Finance and Administrative Services ................Lorenzo Tyner Director of Technical Services.......................................Edward M. Torres Director of Engineering.................................................James D. Herberg r Director of Operations 5 Maintenance.....................Nicholas J.Arhontes r r r r r r Message from the General Manager May 29. 2007 .. Honorable Chair and Board of Directors: r I am pleased to submit this update to the Orange County Sanitation District(OCSD)2007-08 approved operating budget and capital improvement program. This document provides `. a framework for District activities during the second year of the adopted two-year budget for fiscal years 2006-07 and 2007-08. Our mission remains to protect public health and the environment by developing, integrating, r and implementing fiscally responsible solutions to processing wastewater, water reclamation and watershed protection.We operate two treatments plants in Huntington Beach and Fountain Valley, 581 miles of collection systems and sewers and 16 offsite pump stations.The District 6. processes nearly 250 million gallons of wastewater each day from 2.5 million residents and business in central and northwest Orange County, In July 2002, the Orange County Sanitation District pledged to move all operations to a higher ' r level of service-secondary treatment standards by December 31, 2012. In March 2006, OCSD took a major step toward this goal as we successfully completed the first of seven milestones, constructing our new Plant 1 trickling filter facility. During fiscal year 2006,07, the next two I milestones were completed: the advertisement for construction bids for the Plant 1 secondary expansion and the Plant 2 trickling filter facility. We continue to make great strides in the area of biosolids. The District produces approximately 650 tons of digested and dewatered biosolids daily. By 2020, the District's daily biosolids production is projected to increase by 25 percent,to 820 tons. The District applies its biosolids on farmlands in counties in California and Arizona. However, it has become clear that future requirements for managing biosolids will be more restrictive and costs will increase as current L. options are eliminated in two to five years. Most recently we have developed agreements with several firms to process our biosolids into high-quality fuel pellets and compost.The District has 4751ons of daily biosolids committed r via guaranteed contracts to management options that are considered sustainable long-term options. The District will continue to pursue additional biosolids management capacity. In addition to these issues, rising treatment and chemical costs, aging infrastructure and r increased regulatory requirements are addressed in the 2007-08 Proposed Budget Update, The District's proposed revised 2007-08 operating and capital improvement budget is$513.2 million, or 5.8 percent less than what was approved last year as the second year of the adopted two year budget.The decrease in the 2007-08 budget is primarily due to the deferral of certain construction projects. OCSD's commitment to capital development and increased wastewater treatment activity is highlighted by the fact that less than 16% of the total 2007-08 budget is allocated for employee costs.Authorized staffing is proposed at 634 positions, 10 less than what was authorized in the previously adopted two-year budget, and 44 less than authorized in 1995-96. r Ongoing efforts to streamline operations and lower operational and maintenance costs are becoming more challenging as system demands and levels of service increase. Despite these increases, OCSD provides wastewater treatment, sewer and facilities maintenance, ocean monitoring and many other services to Orange County residents with residential user fees averaging $15 per month, one of the lowest rates in the state. r r 2007-08 Budget Update r While the District will begin many new and exciting challenges over this two-year budget r period, I would like to highlight some of the positive aspects of this budget: • Two-Year Budget Process-This budget reflects the District move from a series of one-year budgets to a two-year budget. Developing a two-year budget has increased r efficiencies and provided for a longer planning horizon. • Capital Improvement Program (CIP) -A focused staff review of our CIP resulted in a nearly$500 million reduction in budgeted expenditures without impacting our commitment to reaching full secondary treatment standards, providing for the Groundwater Replenishment System, reducing odors, and maintaining our facilities. r • Level of Service -We are continuing to increase the quality of effluent discharged into the ocean and supplied for water reclamation. • Process Reviews-To ensure our major programs are managed as efficiently r as possible, we will continue to engage independent experts to review our projects and services to assure we are operating in an efficient and effective manner. • Financial Positioning-We continue to maintain our AA bond rating reflecting r our commitment to fiscal responsibility. • Efficiencies-This budget is $31.9 million lower than originally approved for this fiscal year. r Ten less staff positions are being proposed, reducing staffing levels to 634 employees. • Strategic Planning-Staff continues to focus on ten key strategic initiatives, ranging from odor control and level of service programs to the development of an information r technology strategic plan and a comprehensive asset management plan. Staff will review and update its existing Strategic Plan and goals for adoption by the Board in the near future. r • Employee Emphasis-Over the past 12 months,we have implemented a succession plan, developed a leadership training program and implemented a new performance appraisal system. Our management team has been streamlined from eight departments r to five and we have reached multi-year labor agreements with all of the District's employee bargaining units. While there are many challenges ahead. I believe this second year update to our two-year r budget continues to lay out a strong financial and organizational plan. I look forward to the opportunity to lead this organization into the next fiscal year. James D. Ruth General Manager r Y 1 1 r r r r r r 2007-08 Budget Update Finance Summary r Financial Summary - Overview 8 Budgetary Issues of existing bargaining agreements and health - -- insurance and retirement premiums, the District The District's proposed revised 2007-08 operating will continue to effectively manage these expenses, and capital improvement budget totals$513.2 as less than 16 percent of the District's budget is million, or 5.8 percent less than what was approved allocated to employee costs. last year as the second year of the adopted two-year budget. The decrease in the 2007-08 budget Level of Treatment is primarily attributable to the deferral of certain The agency's two treatment plants, located in construction projects as the District continues Fountain Valley and Huntington Beach, process to move towards meeting full secondary treatment about 250 million gallons of wastewater each day y standards by December 31, 2012 and incurs costs generated by approximately 2.5 million people in related to the Groundwater Replenishment program. central and northwest Orange County. The proposed The budget continues to reflect the agency's budget to operate, maintain and manage our sewage ongoing efforts to streamline operations. However, collection, treatment and disposal system in 2007-08 operating costs will increase as a result of the is $140.0 million. Increases are primarily a result expansion of the Capital Improvement Program of chemical and contractual costs and utilities. and the increase in the demand for services in the areas of ocean monitoring,ocean discharge The cost per million gallons of wastewater treated, and treatment levels,water reclamation and lap industry-wide performance measurement!, is expected to increase in fiscal year 2007-08 to $1,478, conservation, urban runoff diversions, increased local regulations of biosolids. a $48, or 3.3 percent increase over the previous 2007-08 projection of$1,430. The District's Capital Improvement Program (CIP) In order to eliminate most bacteria from being budget for fiscal year 2007-08 is$302.7 million. released From the ocean outfall, the District began This CIP budget finances collection system, joint in fiscal year 2002-03 to first use chlorine bleach works treatment and disposal system improvement to disinfect the effluent and then apply sodium projects.This increase is attributable to our bisulfite to remove any remaining chlorine prior r infrastructure needs. to releasing the treated wastewater to the ocean. Financing To protect the animal life living in the ocean, the The District uses long-term borrowing(Certificates District continues to take great measures to limit r of Participation (COP))for capital improvements the chlorine residual to a very low level—essentially that cannot be financed from current revenue. non-detectable. This mode of disinfection is Before any new debt is issued,the impact of debt anticipated to continue for the short-term, possibly service payments on total annual fixed costs is three years, while the District studies, designs analyzed. Debt financing of$1.2 billion is forecasted and constructs permanent facilities, and considers over the next seven years to assist in the funding alternate disinfection technologies. Beginning of the$2.5 billion in capital improvements required in fiscal year 2002-03. the addition of disinfection over the next ten years.While no new money debt treatment required an annual outlay for additional was issued in 2006-07, it will be necessary to issue chemicals within the operating budget of the $300 million in COPS in 2007-08. District. The cost for disinfection is projected L to be approximately$8 million and $9 million Staffing in 2006-07 and 2007-08, respectively. Reflecting the organization's commitment to providing service at the lowest costs, the budget includes a reduction in staffing of 10 positions to a new authorized staffing level of 634 positions. This is also a reduction of 44 positions from the fiscal year 1995-96 approved staffing level of 678 positions. In addition to the reduction of 10 positions,this revised budget also reflects the reclassification of 20 positions to lower pay grade levels.Although personnel costs will increase primarily as a result r 2007-08 Budget Update r Capital Improvement ' --. oundwater Replenishment Program (CIP) (GWR) System r The total CIP cash flow outlay for FY 2007-08 is being The OCSD strategic plan includes water reclamation. proposed at$302.7 million, down $36.1 million from With the Orange County Water District(OCWD), we the previously approved two-year budget due to the have begun the Groundwater Replenishment System, deferral of several CIP projects out into future years. the nation's largest water reclamation project. Over the next 15 years, the District's CIP will By reclaiming 70 million gallons of water a day,we r accomplish: will delay the need to build a second outfall,the cost of which could reach$170 million or more. • Rehabilitate the existing headworks, primary treatment, secondary treatment, outfall pumping, OCSD and OCWD have agreed to match the funding r and solids handling facilities at both treatment for this project. Staff recommends that$15.6 million plants. be budgeted in 2007-08. Currently, $42 of$45 million in Federal and State Grants have been received to • Replace and rehabilitate 9 of the District's offset part of the District's total costs. r outlying pumping stations, and rehabilitate and upgrade 29 trunk sewer improvement projects. Moving Towards • Optimize the production of Power and Biosolids Secondary Treatment r at each of the treatment plants.P In July 2002, the Board of Directors approved • Reclaim 70 millions of gallons per day of the a change from the existing level of treatment, r District's effluent, or nearly one-third of the total a blend of 50 percent advanced primary and 50 daily flow(Groundwater Replenishment System). Percent secondary treated wastewater,to secondary treatment standards.The reasoning behind the • Achieve secondary treatment standards decision to move to secondary standards included •• by December 2012. (1)the possibility(no matter how remote)that bacteria from the ocean outfall may at times reach Five Projects Drive the CIP the shoreline, (2) upgraded treatment will aid Over the next 12 months,two of the larger cash additional water reclamation with the Orange County outlay capital projects include the Headworks at Water District, (3)and the public's clearly stated Plant No. 2, requiring $53.4 million in 2007-08 preference for upgrading wastewater treatment with a total project cost of$257.8 million, and at this time. r the Groundwater Replenishment(GWR)System that is expected to be completed in 2007-08 The 2007-08 CIP includes three projects totaling with a cash outlay of$15.6 million and at a total $649 million to upgrade the District's treatment cost of$246 million. plants to meet secondary treatment standards. '• Construction of the facilities to meet secondary Two of the larger Collection System related projects treatment standards is currently on track to be include the$68.4 million Bushard Trunk Sewer completed by December 31. 2012. _ Rehabilitation and the$78.5 million Ellis Avenue Pumping Station,with 2007-08 proposed cash Sewer Service Fee Increases outflows of$8.5 million and $36.6 million, respectively. As a result of operational efficiencies, capital program reductions and deferrals, and other Two secondary upgrade projects required to achieve financing strategies the projected single family secondary treatment standards will also drive the residential rate increase, the underlying basis CIP over the next year.The secondary treatment for all sewer rates,was reduced by 50%for 2007-08 system up at Plant No. 1 and the Trickling Filters to approximately$1 per month or$182 per year. at Plant No. 2 are expected to require $29.2 and This new proposed 2006-07 and 2007-08 rates are $54.3 million, respectively. $166 and $182 respectively. This new proposed r These six projects represent 65 percent of the rate by the District is still well below the average total FY 2007-08 proposed CIP cash flow budget annual sewer rate of$370 currently being charged of$302.7 million. throughout the state according to a 2007 survey r of 725 agencies encompassing all counties within California. r Financial Summary - Overview & Budgetary Issues Cost Allocation - ($2.1)),., The operations budget for the collection, treatment, Increase in cost allocation charges to the capital and disposal of wastewater is proposed at$142.5 improvement program due to the creation of the million,a $4.3 million, or 3.1% increase above the Facilities Engineering Project Management Division previously approved 2007-08 budget. and the concentration of work performed by the Although some expenses will increase or decrease employees transferred to this division from the slightly, the overall increase to the operating budget Operations and Maintenance Department. is primarily attributable to five specific areas: Personnel Costs - $4.OM ` Although staffing is being proposed at 634 full time Operating Expenses equivalents, a reduction of ten from the prior year, r costs will increase$4.0 million as a result of recently +8.8% approved collective bargaining agreement impacts, +5.2% including medical and other benefit cost increases. $142.5M $138.2M The other significant increase in personnel cost is the$700.000, or 5.7 percent increase in retirement I premiums. This increase is reflective of revised — actuarial assumptions, low interest earnings in prior years, as well as the enhanced retirement benefit program effective July 1,2005.The increases in retirement premiums are reflective of the rising costs occurring throughout the State of California. Contractual Services — $3.5M FY 2006-07 FY 2007-08 FY 2007-08 Approved Approved Proposed — The major component of this category is biosolids Revision removal and transportation costs.These costs Total operating and maintenance expenses continue to increase as acceptable locations for will increase$11 5 million from FY 2006-07 ., biosolids disposal become less accessible. Utilities - $800,000 O&M Variable Costs Despite reductions identified in natural gas utilization, total utilities costs will increase due to rising ❑Power ■Disinfection Chem. electricity costs.This represents a 8.8 percent ■Biosolids Removal ■Water increase over the 2007-07 approved budget. ❑Chemicals(Coag SOdor) ■Natural Gas Operating Materials S20M & Supplies - ($2.3)M As the requirement for better quality effluent increases, so does the need for chemicals (primarily $10M bleach)to treat the region's wastewater. These decreases are due to projected unit increases y on the various chemicals used throughout the plant facilities that are expected to average 10 percent. SOM FY 2005-06 FY 2006-07 FY 2007-08 FY 2011-12 Moving to full secondary treatment will increase the Districts need for the removal of biosolids and purchased energy. Y� -tip _ , F� � I � W„�« M Financial Summary - Where the Money Comes From Debt Proceeds $300.OM 31% Fees 8 Charges _ $201.2M 20% Beginning Reserves $369.2M _ 38% Property Taxes $5 6% Other $30.7M Interest 3% $16.3M 2% r Revenues by Category (in millions) r 2007-08 2006-07 2007-08 Proposed FCategory Approved Approved Revisions r. serves $519.4 $364.3 $36 ..2 Service Fees 154.5 170.1 171.5 b User Fees 17.1 18.9 18.2 Connection Fees 11.1 11.7 11.5 Debt Proceeds 0.0 300.0 300.0 Property Taxes 55.6 58.3 58.9 Intradistrict Transfers 4.5 2.6 2.6 Interest 17.3 15.5 16.3 Other Revenue 41.1 30.2 28.1 r To[al Revenue $820.6 $971.6 $976.3 r Financial Summary Revenues by Category The District has a variety of revenue sources available for operating and capital expenses. iIa Nc;-i , �a JS'iPoI The major revenue sources are as follows: The County is permitted by State law(Proposition 13)to levy taxes at 1% of full market value(at time • Beginning Balances of purchase)and can increase the assed value no • Service Fees more than 2% per year.The District receives a share • Industrial Waste Permit User Fees of the basic levy proportionate to what was received • Connection Fees in the 1976 to 1978 period less$3.5 million, the • Property Taxes amount that represents the State's permanent annual diversion from special districts to school • Interest Earnings districts that began in 1992-93. The Districts share • Other Miscellaneous Revenue of this revenue is dedicated for the payment • Debt Proceeds of debt service. Beginning Reserves - $369M As a result of the State fiscal crisis,the District did not receive its full allocation of property tax funds „r As result of its Reserve and Investment Policies, for the previous two fiscal years preceding 2006-07. the District will begin the year with a balance carried However, the Governor's Approved 2006-07 Budget forward from the previous year, excluded this additional tax shift and the District received an additional$20 million over the r General Service Fees - $172M 2005-06 allocation. User fees are ongoing fees for service paid Interest Earnings — $1 6M by customers connected to the sewer system. r A property owner, or user, does not pay user fees Interest earnings are generated from the invest- until connected to the sewer system and receiving ment of accumulated reserves consisting of a cash services. Once connected, a user is responsible flow/contingency, a capital improvement, a renewal/ r for his share of the system's costs, both fixed and replacement,and a self-insurance reserve. variable, in proportion to his demand on the system. Other Revenue — $28M These fees are for both Single Family Residences r (SFF)and Multiple Family Residences(MFR). Other revenue includes $17 million from the Permit User Fees - $17M Irvine Ranch Water District(IRWD)for capital and equity charges, $4 million from other agencies as r Large industrial and commercial properties that reimbursement on capital projects, and $3 million discharge high volumes or high strength wastewater from inter-district sewer use from the Santa Ana are required to obtain a discharge permit and pay Watershed Project Authority(SAWPA). extra fees. These fees are for the owner's share Debt Proceeds — $300M r of the system's costs, both fixed and variable, in proportion to the demand placed on the system. Certificates Participation(COPS)are the Districts Capital Facilities Capacity primary mechanism for financing capital projects. r COPs are repayment obligations based on a lease Charges (CFCC) — $11M or installment sale agreement. CFCC is a one-time, non-discriminatory charge In taking advantage of the current low interest rate r imposed at the time a building or structure is newly environment.the District refunded $88.5 million connected to the District's system, or an existing of the COP Series$280 million debt issue in 2006-07 structure is expanded. This charge pays for District with the issuance of the$95.180,000 Refunding r facilities in existence at the time the charge is COP Series 2007A.The net present value savings imposed, or to pay for the construction of new generated from this refunding totaled $4.4 million. facilities in the future that are of benefit to the In 2007-08, the District is scheduled to issue r property being charged. $300 million of new money COPS to assist with the financing of the$334 million in capital outlays scheduled for this fiscal year. r Financial Summary - Where the Money Goes 1lrere the Money does CIP $302.7M 31% perating Expenses $142.6M — Ending Reserves 15% $463.1 M 47% Debt Services $65.3M Intradistrict 7% r Transfers $2.6M 0% ` r Expenses by Category r (in millions) z007-08 2006-07 2007-08 Proposed Category Approved Approved Revisions Capital Improvement Program $266.1 $338.8 $302.7 r Debt Service 54.4 65.5 65.3 Operating Expenses 131.3 138.2 142.6 r Intradistrict Transfers 4.5 2.6 2.6 Subtotal $456.3 $545.1 $513.2 r Ending Reserves 364.3 426.5 463.1 Total Expenses $820.6 $971.6 $976.3 r r Financial Summary Expenses by Category The District budgets its funds in five distinct areas. Capital Improvement Program (CIP) r In order to provide the appropriate level of service to the District's rate payers, large capital improvements are required. The CIP provides for the management and implementation of these improvements r Debt Service r The cost of issuing debt. Long-term debt financing allows the District to complete large multi-year capital projects by providing funds not always immediately available. See Operating Expenses p r The proposed budget allocates resources to operate, maintain and manage our sewage i collection, treatment and disposal system and a r for any associated administrative or technical requirements. iii _ Intradistrict Transfers /:- Expenditures related to other affiliated agencies. :n. .. Reserves The CIP includes projects such as replacing four miles of The District budgets for reserves for various potential 50-year-old sewers with new 10-foot diameter concrete pipe. needs including cash flow, operating contingencies, r capital improvement and replacement and catastrophic loss. The reserve levels are governed by District policy. ses r r r r Strategic Planning - Vision Statement organization and reinforce our professional code of Ethics. The Orange County Sanitation District has provided wastewater treatment to the citizens of northern Honesty, Trust and Respect r and central Orange County for over 50 years. Since We aspire to the highest degree of integrity, honesty, 1991, the District has provided wastewater from trust,and respect in our interaction with each other, the secondary treatment plant in the Fountain Valley our suppliers. our customers.and our community, r facility to the Orange County Water District for tertiary Teamwork and Problem Solving treatment and reuse. the Green Acres We strive to reach OCSD goals through cooperative Project. The recycled water is used for irrigation and efforts and collaboration with each other and our prevention of groundwater intrusion.The District also constituencies.We work to solve problems in a partnered the planning, design,and construction creative,cost-effective and safe manner, and we of the Ground Water Replenishment System which acknowledge team and individual efforts. will provide 70 million gallons of drinking quality water r every day to help prevent predicted water shortages Leadership and Commitment in the future. The Vision Statement expresses the We lead by example, acknowledging the value dedication of the District to remain of our resources and using them wisely and safely a leader in watershed management. to achieve our objectives and goals.We are r committed to act in the best interest of our "To maintain world-class leadership in wastewater employees, our organization, and our community. and water resource management." r Learning/Teaching —Talents, Skills and Abilities Mission Statement We continuously develop ourselves,enhancing our talents, skills,and abilities, knowing that only through The objectives of the Mission Statement are: to personal growth and development will we continue r describe the purpose of the District; to provide a to progress as an agency and as individuals. basis for motivation; to provide a basis for allocating resources; to establish the District business Recognition/Rewards operation; to serve as a focus for the District purpose We seek to recognize.acknowledge and reward r and direction; to facilitate the objectives and goals contributions to OCSD by our many talented into an work structure with responsibilities and tasks; employees. and to specify organizational purposes and goals so Operating Philosophy r that cost,time,and performance can be measures and controlled. The Mission Statement projects the The Orange County Sanitation District is a public attitude, outlook, and orientation of the District. agency that is successful by working as a team r "We, the employees and the Board of Directors of the and by leveraging our efforts with other public Orange County Sanitation District, are committed to agencies.We think like a business and act in the protect public health and the environment by public interest, all the while emphasizing the ABC's r developing. integrating,and implementing fiscally of our operating philosophy: responsible solutions to wastewater,water Accountability reclamation and watershed protection issues. We maintain accountability for our commitments We are a value-based organization dedicated rr to upholding and consistently demonstrating and for our behavior. We use measurable short-term the attributes affirmed in our Guiding Principles." and long-term goals. We use methods that regularly check our collective and individual progress in Guiding Principles achieving our commitments.We measure and expect honest, respectful, open and constructive behavior in The Guiding Principles express the values, beliefs.and ourselves and from the people with whom we work. philosophy of the employees of the District. Balance r They were developed by a multidivisional committee We achieve balance in what we do.Work matches comprised of employees at all levels.All employees our capacity to perform it.We look for economies were offered the opportunity for input and the Guiding of operation without perform it.We y g Principles consolidated all information received into p g quality or causing r the following five tenets. Our Guiding Principles are a unreasonable risk.We consistently perform our core declaration of who we are and the beliefs we affirm. work and meet our basic wastewater management They form the framework of our responsibilities while being willing to take on new r initiatives that improve environmental quality or service in the community we serve. 0 r 2007-08 Budget Update Communication OCSD Internal Weaknesses We promote timely and accurate communication with the many different people who make up our and Outside Threats r community of interest. Staff and management During strategic level risk assessment and mitigation communicate freely, openly and honestly to solve workshops conducted at the beginning of 2006, problems and to achieve constructive change. the Executive Management Team identified 37 r We provide our Board of Directors with accurate weaknesses and threats and assessed strategic and timely information about matters that impact their and organization-wide risks facing the District. policy making and affect the wider interests They also identified mitigation measures that the r of Orange County. We provide opportunities for the District currently has in place, proposed additional public,the media and our staff to become informed mitigation measures that the District considers about our activities and to provide input during appropriate to manage; and developed an action our deliberations. plan of responsibilities and timeframes for follow-up. r Unifying Strategies The information generated from these workshops were compiled and documented within the District's The Unifying Strategies were developed in 2003 Risk Register. r and indicate the four areas where the District must The strategic plan long and short-term goals reflect focus efforts to support the mission and vision the mitigation measures recommended for several of the agency. The Long-term Strategies, Short-term of the risks. Several of the risks involve preparedness r Initiatives, Levels of Service,and personal and for uncontrollable events, such as terrorist attacks and organizational Performance Measurement should natural disasters. Several are concerned with finance, be aligned with the Unifying Strategies. and many are compliance-related. The Risk Register r Wastewater Management will be updated annually and new long and short-term OCSD will beneficially reuse and recycle water goals will be developed to address the new risks and other resources using safe and effective identified through analysis of internal weaknesses and r wastewater systems. external threats. Environment Stewardship OCSD Long-Term Planning OCSD will participate Collaboratively in the protection r of regional water resources for the benefit of the Long-Term Strategic Goals should be acceptable, people we serve. flexible, measurable, motivating, suitable, understandable, and achievable. The Long-Term Business Principle Goals are the results the District seeks to achieve r OCSD will make every decision based on short- over a specified period, usually three to five and long-term environmental, societal, and years. The Risk Register contains several long- financial impacts. term concerns requiring short and long-term r Workplace Environment strategic planning. OCSD will provide an environment of partnership, Three long-term goals have been completed: growth, opportunity, responsibility, and accountability. FOG, Benchmarking, and Urban Runoff. Three r other interrelated, long-term goals will remain as the District continues to construct the facilities required to reach full secondary treatment. r As secondary treatment facilities are completed, more biosolids will be produced. Currently, the land reuse options are scarce and other new technologies that the District is planning will r become the more available, more expensive, biosolids management options. The biosolids long-term goal will continue until a viable, r cost-efficient, and effective method of reuse is available. r r Strategic Planning - Long-Term Goals Goals FY 2006-07 Progress Move towards Secondary The District met the two 2006-07 milestones required by the Consent Decree Treatment Standards when the construction bids for the Plant 1 and Plant 2 secondary facilities were tr advertised for procurements.The next milestones are the completions of the Plant 2 construction (January 15, 2009)and the Plant 1 construction (November 15, 2012). The Level of Service provided in the treatment process is producing Total Suspended Solids(32 mg/L)and Biochemical Oxygen Demand (49 mg/L)values close to those required on December 31, 2012, Asset Management Asset Management continued in this fiscal year and focused on reliability centered maintenance, corrosion assessment, and a Risk Plan for the Collection system. Asset management has moved from a consultant supported plan to a District implemented plan using the asset management tools as part of daily work. The Business Risk assessment used for Capital Improvement planning and the Reliability Centered Maintenance Program are a result of the Asset Management Program, Biosolids Management This is an ongoing process that will continue to be a challenge as more land becomes unavailable for Class B reuse options. FOG (Fats, Oil, & Grease) Complete—The District partnered with member cities on the development Program of a food establishment FOG Permitting Process that covers the FOG Program monitoring costs. 61 Multi-Agency Bench- The major effort was completed. The original seven agencies and three new marking Effort agencies met at the District in December 2006 for a two-day overview meeting with each agency providing operational input. Urban Runoff Program Complete—The objective was to identify potential consequences (capacity, Evaluation performance, quality and cost impacts)of diverting dry weather urban runoff L to the sewer system and wastewater treatment facilities of OCSD. In 2004, the report was presented to the Board. OCSD has available treatment capacity for 10 mgd of urban runoff through year 2020, However, the regional demands call for approximately 40 mgd of dry weather urban runoff that is currently left untreated. Measure M will provide funding through the County of Orange for stormwater/urban runoff treatment. L V r I ® br 2007-08 Budget Update r During FY2006-07, there were several Short-Term Initiatives identified to support the Long-Term Strategic Goals of the District. The updates are included in the following table. Status Strategic Initiatives - Short-Term Goals " Local Sewer Services—District staff completed the Local Sewer Service Revenue Adequacy Study Complete Report and all required tasks. Secondary Treatment Interim Operations—The secondary facilities are producing the best quality r Complete effluent possible with existing facilities. Research Evaluation and Alignment—The initiative is complete and a Consultant RFP has been Complete issued for Development of the Research Strategic Plan. r Business Plan—7he team completed the Business Plan for FY 2006-07 on time and within budget. Complete The Planning and Performance sections of the Business Plan are being updated and aligned. r Asset Management—The team continued work on the original plan. Tasks this period include the GHD efforts completed and deliverables received,which included Asset Management Plan 2006, Asset Management Information System Report, Data Standards and Asset Register, Treatment Complete Plants and Collection Systems Business Risk Exposure Methodology Report, Life Cycle Costing `+ Manual,Asset Management Improvement Program, CIP Validation 2006, Methodology Reports, and the Strategic Risk Assessment Report. .. Engine Emission Compliance—The team continued work on the original plan which included start up and testing of catalyst and pretreatment on large gas engines, review of draft emission Ongoing study, development of final report and prepare it for briefing to the management and executive management teams,and evaluation of health risks from Diesel engines as defined by upcoming r state regulations. Manage and Optimize a Sustainable Biosolids Program—The team continued work on the original Will Requests Tasks completed this period included: Board authorizing the General Manager to issue Requests for Proposal(RFP)for both Biosolids Management for Energy Production and Thermal Drying offsite Specification S-2003-169A BD; Board approval of an amendment for 250 wet tons per day of biosolids to be managed at SKIC to be operational by January 2007; the signing L/ of an agreement with EnerTech to convert an average 200 wet tons per day of biosolids to usable Ongoing energy, Board approval of an amendment to the EnerTech contract to increase to 225 wet tons per day to be operational by July 2008; surveyed biosolids-to-energy management options prior J to releasing a RFP; evaluated biosolids landfill options; determined that the Biosolids Advisory Committee and Biosolids Strategic Plan provided clear direction; determined that the Kern County court ruling extending use for land application in Kern County implies that Class A land application I in Kern County is viable for at least 18 more months, or through at least June 2008; and exercised J final 1-year option and modified the Tule Ranch Contract. Plan and Maintain a Sustainable Capital Improvement Program—The team continued work on the original plan.Tasks completed include: issued a call for new projects and prepared materials for Manager and EMT review and prioritization of new requests; worked on validating all CIP project Ongoing budgets and scopes of work with updated estimated cost at completion for the entire program; and completed ASCE Peer Review of our CIP management program and presented findings to the r Board of Directors. Odor Nuisance Policy—A workshop with the Board is planned to pursue funding for three CIP Ongoing projects to address goals of this initiative. r Enterprise Information Technology Strategic Plan—All work was suspended pending an Ongoing independent evaluation of the Information Technology Department. r J Strategic Planning - Levels of Service _ The Levels of Service included in the following tables support the strategic vision, mission,ethics, goals, and initiatives of the District and include key performance indicators of the Operational targets. Level of Services Target Accomplishments for FY 2006-07 and Target Levels for FY 2008-12 Wastewater Management _ OCSD will comply with effluent quality standards: 2006" FY 06-07 Target FY 08-12 Target ►. 07 Results 1. Compliance with all ocean discharge permit limits: No permit violations No permit violations FY 06-07., 1 Effluent toxicity violation in 11106 2. Concentration of emerging chemical constituents of NOMA = < 150 opt NOMA = < 150 ppt concern in Plant No. 1 secondary effluent: 1.4 Dioxane = < 2ppb 1 A Dioxane = FY06-07:NOMA - No reported exceedence and 1.4 Dioxane < 2ppbb =2.5 December 2006 3. Thirty-day geometric mean of total coliform bacteria <1.000 mpn <1.000 mpn in effluent after initial dilution: FY 06-07:301mpn with dilution factor of 180:1 4. Percent of source control permittee compliance with >90% permit >90% permit permit conditions: compliance compliance FY 06-07:96% OCSD will manage flows reliably. FY 06-07 Target FY 08-12 Target 5. Frequency of use of emergency one�mile(78-inch 0 per year during dry, 0 per year during dry diameter)outfall: less than once per 3 weather, less than FY06-07:FY06-07:0; 1 in Apnl FY2005-062 years in peak wet once per 3 years in weather peak wet weather 6. Sanitary sewer spills per 100 miles: < 2.1 < 2.1 FY06-07: <2.1 7. Contain sanitary sewer spills within 5 hours. t00% 100% FY06-07. 100% OCSD effluent will be recycled. FY 06-07 Target FY 08-12 Target 8. Treated effluent reclaimed: 4%(10 mgd) 28%(70 mgd) FY06-07: 1.1%(2.46 mgd) OCSD will implement a sustainable biosolids FY 06-07 Target FY 08-12 Target management program. 9. National Biosolids Program Certification for Environmental Maintain NDB Maintain Management System. Certification 10. Percent of biosolids beneficial reuse 95% beneficial reuse 100% FY06-07:Beneficial Reuse-Beneficial Reuse-97% 5%landfill 100% Landfill-3%, Class "B"-26%; Class A/EO"-71% 40% 60% Ya 1� 2007-08 Budget Update Environmental Stewardship _ OCSD will improve the regional watershed. FY 06-07 Target FY 08-12 Target 1. Dry weather urban runoff collected and treated 4 mgd 10 mgd FY 06-07 1.94 average daily diversion r 2. Rainfall induced inflow and infiltration, wet weather <2.2 <2.2 peak factor FY06-07: <2.2 r 3. Stormwater management, % of treatment process 100% 100% area runoff treated on-site FY06-07: 100% r 4. Per capital wastewater flow rate, gallons per person <105 <105 per day FY06-07: 101.3 r OCSD will protect the air environment. FY 06-07 Target FY 08-12 Target 5. Odor complaints: Reclamation Plant No. 1 5 Future Level of Service for r Treatment Plant No. 2 4 odor control will be studied Collection System 30 during FY2006-07 FY 06-07: Plantl -32;Plant 2-2; Collection System-31 r 6. Air emissions health risk to community,cancer risk <25 <10 per 1 million Employees <25 <10 FY 06-07: Plant 1 - <25 Plant 2- >25 's 7. Air mass emissions permit compliance, % 100% 100% FY 06-07: 100% r OCSD will be a good neighbor. FY 06-07 Target FY 08-12 Target 8. Off site Biosolids nuisance complaints 0 0 FY 06-07: 0 r 9. Odor complaint response 100% 100% Treatment Plants withini hour 100% 100% Collection System within 1 working day FY06-07: 100%; 100% 10. Restore collection service to customer within 8 hours 100% 100% r FY 06-07: 100% 11. Respond to collection system spills within 1 hour 100% 100% FY 06-07: 100% r r r Strategic Planning - Business Principle OCSD will exercise sound financial management. FY O6-07 Target FY 08-12 Target 1. New borrowing Not more than annual CIP Not more than FY 06-07*$0 million debt issue against a$277 mil/ion requirements annual CIP Cipprogram requirements 2. COP coverage ration Between 1.25 and 2.0 Between 1.25 FY06-07:2.96 and 2.0 3. COP service Principle and Interest < O&M expenses <than O&M FY06-07. <O&Mexpenses expenses 4. Annual SFR user fee increase Not more than 15% Not more than FY06-07:9.6% 15% 5. Annual user fees Sufficient to cover all O&M Sufficient to cover FY06-07:Fees > O&M expenses requirements all 06M L requirements 6. Annual increase in collection,treatment, and disposal <10% <10% j costs per million gallons FY06-07. 79% 7. Annual variance from adopted reserve policy <5% <5% FY06-07' 1.9% - OCSD will be responsive to our customers. FY 06-07 Target FY 08-12 Target 8. Respond to public complaints or inquires regarding >90% >90% `r construction projects within 1 working day FY06-07: >90% 9. New connection permits processed within on working day >90% >90% y FY06-07: >90% 10. Dig Alert response within 48 hours 100% 100% FY06-07. 700°% i. 12. Public Records Act requests within 10 working days 100% 100% FY06-07. 700% L 13. Post Board/Committee Agenda Packages 72 hours prior 100% 100% to meeting FY06-07' 100% r Work lace Environment OCSD will take care of our people. FY 06-07 Target FY 08-12 Target t. 1. Training hours per employee 45 45 FY 06-07:43.33 2. Employee Injury Incident Rate 7.4 Industry Average FY 06-07.4.2 OCSD;O&M 7.5 <3.75 per 1000 hrs. <3.75 per 1000 hrs. r � � Ln Capital Improvement Program Overview CIP Budget Request Summary Total This is an update to the FY 2006-08 two-year budget. 2007-08 Project In preparation for the 2006-08 update, the District's Current Status Cosh Flow Costs Board of Directors reviewed the proposed changes Future $0.0 $203.0 to the CIP to gain an understanding of the impact Planning 5.9 39.7 from the CIP to the current rate structure program. Design 38.7 589.3 Construction 256.0 1.617.9 The updated CIP includes 79 large capital projects Capital Equipment 2.2 160 and 27 special projects with a 14-year expenditure Total $2.465.9 of$1.62 Billion.This total represents a$2 million decrease from the original 2006-08 CIP estimate. There are currently 19 projects in the Planning Phase This decrease includes reductions due to a better with proposed capital outlay spending in 2007-08. than expected construction bidding environment Two of the larger 2007-08 cash flow projects in the and the cancellation of several studies.There were Planning Phase are the Cengen Cooling Water also S87 million in projects delayed up to 3 years due System Replacement Project and new Research to lower than expected population growth, a $17 program with current year expenditures of S372.000 million sewer rehabilitation project was delayed and $1.00 million. respectively.A total of S39.9 two years based on new condition assessment million in capital outlay, currently listed within the information.$73 million in odor control(2)and power Planning Phase, is being projected for future budgets reliability(1)projects were delayed up to three years based on the capital improvement needs that are based on small increases in the equipment budget identified through the 2002 Interim Strategic Plan that will allow the existing equipment to be Update and the annual CIP validation effort. maintained at the current level of services for up There are currently 29 projects in the Design Phase w three more years. Finally,operational workarounds with proposed capital outlay spending in 2006-07. solids and gas processing projects up to five years. were developed delay another$147 million The two largest projects in the Design Phase are .. the Sludge Thickening Dewatering and Odor Control Several new projects were added to the CIP at Plant 1 Project and the Digester Rehabilitation to address newly developing issues that require at Plant 1 Project with projected current year immediate attention for OCSD.These include expenditures of$7.6 million and $2.3 million, two projects with a total of$1.8 million to upgrade respectively. security at each of the treatment plants. $9.1 million There are currently 41 projects in the Construction to upgrade the central generation cool systems, $10 phase with proposed capital outlay spending in million in funding establish a research program 2007-08. The two most significant projects in the for the next ten years, to investigate the construction phase are the Secondary Activated — condition of the sewerss in n Los os Alamitos Boulevard.recent space to relocate staff based on the results Sludge Facility 2 at Plant 1 and the Trickling Filters and at Plant 2 projects with a projected current year of a recent space planning study. expenditure of$29.1 million and $54.3 million, The proposed 2007-08 CIP budget is organized by respectively. treatment and collection system processes and Following within this section are descriptions and areas.The funds requested for the current cash flow budget total$302.7 million,an increase of 13.8 justifications for the capital improvement projects percent from last year's cash flow request of$266.1 which are new in this FY 2007-08 budget update. million. The current year cash flow is part of an They give the reader a brief overview of each overall total cost of$2.466 billion for active projects. project and the budget for the total project. Following is a chart for the 2007-08 Proposed CIP However,each project in the entire program went Cash Flows and the total Project Costs for all through an extensive validation and prioritization proposed projects, by project phase, in millions: process. Projects have been prioritized based on risk exposure if the project was deferred. Projects that would present a higher risk if they were delayed are given a higher priority. CIP Overview - The CIP budget process is being continually improved and further refined as the District -- implements new tools that better gauge the - - business risk to the organization associated " -- with each of the CIP projects.Also, a team of engineers, operations and maintenance staff, and representatives from management are working together to further develop detailed asset strategies for managing the District's infrastructure.The goal is to ensure that rehabilitations and expansions within the CIP are being delivered optimally. Construction of new facilities at Treatment Plant No. 1 in Huntington Beach. Debt Financing Program The maximum level of variable rate obligations Debt Financing incurred by any District should not exceed the Due to the magnitude of identified future annual level of invested reserves available to that District. capital expenditures, it is necessary that the District The District currently has outstanding synthetic utilize debt financing to meet its total obligations. fixed-rate and fixed-rate COPS of$404.4 million W Debt financing allows the District to meet projected and variable-rate COPS of$393.3 million, construction schedules while achieving the lowest for a ratio of 51:49. possible user fees, as well as, long-term stability _ in future sewer service fee rates. The District Maintains Certificate of Participation (COP) Its AA Rating The primary debt mechanism used is Certificate An "AA" Rating is one of the highest for a government xx of Participation (COP). COPS are repayment agency. In order to maintain this rating, the District obligations based on a lease or installment sale adheres to its 2001 Debt Policy and coverage ratios agreement. The COP structure was selected over requirements. This Board-adopted policy serves as ass other structures because COPS are not viewed the agency's guide in the management of existing as debt by the State of California, as the purchaser debt and in the issuance of future debt. does not actually receive a "bond," but rather a share OCSD Has No Legal Debt Limits in an installment sale arrangement where the District serves as the purchaser. COPS can be issued The District does have contractual covenants with fixed or variable interest rates. within the existing COP agreements which require minimum coverage ratios of 1.25. The minimum ,r Fixed-rate debt can be either traditional coverage ratio is the ratio of net annual revenues or synthetic in form: available for debt service requirements to total • Fixed-Rate Debt traditionally has a final maturity annual debt service requirements for all senior lien �+ between 20 and 30 years from the date of COP debt.The coverage ratio for senior lien COP issuance. Generally, principal is amortized debt is being proposed at 2.39 for FY 2007-08. annually. Principal maturing in early years •• typically has a lower interest rate("coupon") Future Debt Financing than later maturities. This structure typically Although no "new money" dept was issued produces a level debt service. in 2006-07, the District is scheduled to issue • Synthetic Fixed-Rate Debt: Long-term,variable- $300 million in 2007-08, and a total of$1.15 billion rate debt can be issued and then the interest over the next seven years to assist with the funding of the ten year$2.5 billion capital component can be swapped to a fixed rate. improvement program. six This form of fixed-rate debt achieves a balance between short and long-term interest costs Capital Financing and is frequently a less expensive form of debt. Way some markets, this form of fixed-rate debt is less expensive to issue than the more traditional CIP form of fixed-rate debt described above. $3Com Variable-rate debt can be traditional or synthetic: $200M • Variable-Rate Debt traditionally has either a long New Debt or short nominal maturity, but the interest rate $IDOM resets periodically. Typically,the intervals for interest rate resets are daily, weekly or monthly, $am but any period is possible. 2008 2009 2010 2011 2012 2013 2014 ass • Synthetic Variable-Rate Debt as described Debt is issued to fund the current portion of the CIP outlay that cannot be paid through current sewer above for fixed-rate debt, variable-rate debt fees,and prevent spiked increases in any one year. � can be created from affixed-rate issue by means of a floating-rate swap. Operating Expenses - FCategory ry of Operating & Maintenance Expenses 2007-08 - 2006-07 2007-08 Proposed Approved Approved Revisions d Benefits $74.4 $75.9 $79.9 Expenses 21.9 25.4 23.1 Contractual Expenses 17.3 17.9 21.4 Repairs and Maintenance 10.5 10.4 10.2 Utilities 8.8 9.1 9.9 r Professional Services 3.6 3.0 3.7 Other Materials. Supplies. Services 3.4 4.0 4.0 r Capital Grants to Member Agencies 2.0 2.5 2.5 Self-Insurance Requirements 2.3 2.6 2.6 r Training and Meetings 1.4 7.4 1.4 Research and Monitoring 1.3 1.4 1.5 Administrative Expenses 1.3 1.3 1.5 Printing and Publications 0.5 0.6 0.6 Cos[Allocation (17.3) 117.3) 119.81 r Total Operating Expenses $131.4 $138.2 S142.5 Salaries, Wages & HMO plans, the dental insurance plan. and the life Benefits - $79.9M and disability insurance premiums.The proposed budget includes a 7.5% increase for the Salaries & Wages-In the District's continuing medical plans. effort to streamline operations, total full time Operating Materials & equivalent(FTE)staffing positions are now being r proposed as 634, ten less than what was approved Supplies - $23.1 M within the fiscal year 2006-07 and 2007-08 budget. Disinfection Chemicals-The largest cost related Provision has been made in these salary projections to Disinfection is for chemicals, specifically bleach. 's in order to comply with the terms of the most recently adopted MOUs. Sodium Hypochlorite (Bleach)-Over 98% Retirement-The District's employees are members of the bleach is used for effluent disinfection. r of the Orange County Employees'Retirement System The remaining bleach usage is for odor control. (OCERS). Preliminary information from OCERS disinfection of plant water, and the control of indicates that an increase in rates is expected. filamentous organisms in activated sludge in the The employers required contribution rate has been secondary treatment process. It is anticipated that r increased from 20.15%to 20.87%. In addition,the the District will use 10.8 million gallons and 10.8 million gallons of bleach in 2006-07. However, District will pay 3.5%on behalf of each employee. due to revised estimates on unit cost increases, r Group Insurance-Includes the District's share the proposed budget for bleach has been reduced (approximately$10.500 per employee)of employee from $10 million to$9 million. medical plan benefits for the indemnity plan,prepaid Chemical Coagulants-Cationic polymer is added to the influent wastewater along with ferric chloride ® via the physical/chemical treatment systems at both r 2007-08 Budget Update plants to improve solids removal efficiencies in the Rep-;. primary clarifier basins. It is also added to digested sludge prior to dewatering to cause the sludge Maintenance - $10.2M to coagulate to improve the sludge and water This item, which is for parts and services for repair separation process. The usage costs for this group of plant and collection facilities and annual service of chemicals is not expected to increase as much as contracts, reflects an authorization to allow for r previously estimated as overall chemical coagulants routine equipment maintenance and is expected are being proposed at $400,000 less than previously to increase by 31%. Two large repairs include! approved for 2007-08, The activated sludge facility diffusers, used to supply Odor Control Chemicals-The District uses aeration to the basins. The diffusers are operating hydrogen peroxide and sodium hydroxide at 50% efficiency. The replacement of the diffusers (caustic soda)as the primary odor control chemicals for an estimated amount of$1.0 million will reduce r within the treatment plants; hydrogen peroxide, power costs by approximately$822,000 annually, muriatic acid, and bleach are the primary odor control chemicals used within the collection system. The cleaning and rehabilitation of four digesters as reduction of$700,000 is being proposed from to maximize treatment plant capacity is budgeted at$1.4 million. the previously approved $6.6 million 2007-08 budget for odor control chemicals due to recent declines Utilities - $9.9M in unit costs. The overall cost for utilities is a significant Contractual Services - $21 AM component of the operating budget The overall r The major component of this category is biosolids cost for utilities is anticipated to increase removal and transport costs. Contracts have been by 0 over the previous approved executed with firms for agricultural reuse of residual 2007-08 bud solids. Since the closure of the Coyote Canyon • Natural Gas-Natural gas is purchased r Landfill in 1990, no replacement site for sludge to supplement the digester gas that is disposal has yet been approved within Orange used to run the central generation facilities. County. From the$13.4 million previously budgeted The 2007-08 budget reflects lower levels as for 2007-08, staff is recommending an increase of natural gas needed because the central of$900,000 to$14.3 million as the average removal generation production has been reduced rate per ton has increased from $46 to$53. in order to meet new air emission limits. as This category also includes appropriations • Electricity-Electricity is the largest utility cost for grounds keeping services, janitorial services, incurred by the District and is used to run the security services, toxic removal services, outside plant processes.The 2007-08 budget reflects r laboratory services, trash pickup, plant site an increase in imported electricity because sweeping, temporary help to level out periodic of reduced electrical power production at increases in staff workload, a maintenance contract the District's central generation facilities; for the Plant 2 oxygen generation plant,closed-circuit additionally,the budget reflects an increase television (CCTV)services, and line cleaning services. in rates charged by utility providers. as _ Nearly all the Power requiredbt to operate Plant No.2 is generated by the District's Central Power Generation Facilities. r Operating Expenses - Professional Services includes General Counsel, The District's outside excess general liability special labor counsel, audit and miscellaneous insurance coverage is $25 million with a self- — accounting services, legislative advocacy, insurance retention of$250,000. engineering, and other technical consulting services. The District's property insurance coverage of Other Material, Supplies, $1 billion for perils other than flood and fire and r Services - $4.OM $300 million for flood is subject to a self-insurance retention of 5 percent per unit of insurance up to This category of costs includes the in-lieu insurance $25,000 for fire and $100,000 for flood. The District r premium used to maintain the level of accumulated is totally self-insured for earthquake. reserves for the property and general liability self- An appropriation of$2.0 million for in lieu premium insurance programs. This in-lieu cost for 2007-08 contribution charged to operations is recommended is proposed at$2.0 million. for the Property and General Liability Program. Expenses not chargeable to other categories, This will serve to maintain the reserves balance. such as freight and miscellaneous items, and Training and Meetings - $l AM annual regulatory fees assessed by the SCAQMD, are recorded with this category. Expanding activities of regulatory agencies have required increased Board member and staff travel r Grants to Member Cities - $2.5M in recent years. It is expected that considerable travel The payments to agencies in connection with the will continue to be required in connection with efforts Cooperative Projects Grant Program were reduced related to the renewal of our NPDES permit. r from $2.5 million in FY 2005-06 to$2.0 million in An amount equal to approximately 2% of the 2006-07, and then back up to$2.5 million in 2007-08. Regular Salaries budget is allocated to Training. The Cooperative Projects Grant Program co-funds Training activities are coordinated though the r projects sponsored by a member agency to eliminate Human Resources Division of the Administrative or reduce inflow and/or infiltration of storm water and Services Department. groundwater from local wastewater collection lines Also this category includes ongoing technical training v and to repair or replace poor performing, aging local and materials for staff; expansion of our supervisory wastewater collection system infrastructure.The training program to provide supervisors with training District will fund projects by contributing up to fifty to more effectively manage their Divisional groups; percent matching funds against a member agency's required training for computerized plant monitoring ►+ contribution to an eligible project. Most member and control systems, Laboratory Information agencies of the District are eligible to participate Management System (LIMSI, Computerized in this program. For 2007-08, up to a total of$2.5 Maintenance Management System(CMMS), y million in District funds are available to match Financial Information System IFISI, and other member agency funds. Under this program, "high tech" equipment, processes and systems; the total amount for outstanding obligations and training to allow for an adaptive and flexible has been capped at$7.5 million, work force.The General Manager and the Board have continued to place a heightened emphasis _ on safety, technical,and management training. r r r ® L+ 2007-08 Budget Update Me R . Overall, this category of costs is expected to remain stable over the next fiscal year. Research and monitoring expenditures consists of contract services to carry out the extensive ocean monitoring se program required by the EPA under provisions of the District's(NPDES)permit; air quality monitoring costs; the District's contribution to the Southern ses California Coastal Water Research Project(SCCWRP) being conducted under a joint power agreement with other Southern California municipal dischargers; and also provide for increased operational and ocean ses research and evaluation to develop optimum operating parameters in treatment plants. Administrative Expenses - $1 .5M The Nerissa is a custom designed and built ocean monitoring These accounts include supplies, postage. and research vessel. It holes and operates specialieed ocean sampling equipment that will enable OCSD to conduct core technical journals and publications, forms, small and regional monitoring and special studies along the coastline � office equipmennt,t. and small computer items that cost less than $5.000 per item and exclude items that are capitalized. Printing and Publication - $0.6M The budget provides for in-house and outside reproduction costs and reflects an expanded management information system and administrative requirements as well as a continuing demand by the public and regulatory agencies for information. The continuing effon of the Public Information Office to improve public education programs about the Districts activities is also reflected in the budget eas for this line item. This group of accounts also includes costs for photo processing, advertisements,and notices. Cost Allocation - $19.8 This represents direct labor and benefit charge outs and materials, supplies and services cost allocation to the capital project where the related work was performed. Departments - Summary Expenses by Departnia;li din millions) .. Cz007-08 2007-08 2006-07 Originally Percent Updated Percent Budget Proposed Change Proposed Change Administration Units Office of the General Manager $2.4 $2.5 4.2% $6.6 164.0% Administrative Services 20.3 21.1 3.9% 18.2 (13.7%) Operating Units Technical Services 22.4 23.1 3.1°/ 18.8 118.6%) Engineering 3.1 3.8 22.6% 3.3 (13.2%) Operations B Maintenance 81.0 85.1 5.1% 93.0 9.3% Sub-Total $106.5 $112.0 5.2% $115.1 2.8% _ Total $129.2 $135.6 5.0% $139.9 3.2% Less: Operating Revenue 15.1) (5.1) 0.0% (5.1) 0.0% Grand Total $124.1 $130.5 5.2% $134.8 3.3% Staffing by Department (FTEs) 2007-08 2007-08 2006-07 Originally Percent Updated Percent Department Budget Proposed Change Proposed Change - Office of the General Manager 3.0 3.0 0.0% 30.25 908.3% Administrative Services 123.5 123.5 0.0% 97.50 (21.1%) Operating Units Technical Services 119.0 119.0 0.0% 109.00 (8.4%) _ Engineering 98.3 98.3 0.0% 104.50 6.4% Operations B Maintenance 300.3 300.3 0.0% 292.75 (2.5%) Sub-Total 517.5 517.5 0.0% 506.25 (2.2°/u) Total FTEs 644.0 644.0 0.0% 634.00 (1.6%) 2007-08 Budget Update Administration Units Uperating Units Office of the General Manager Technical Services Budget S6.61VI - Staffing 30.25 FTEs Budget $18.81011 - Staffing 109 FTEs r The General Manager provides general oversight The Technical Services Department oversees of all District operations. This office reports directly environmental issues. regulatory compliance and to the Board of Directors. The budget reflects the research at the District and is responsible for the incorporation into this department of the functions environmental laboratory.ocean monitoring and r of Board Services, Public Information, and Safety source control. fi Health from the Human Resources Department, and Legislative Affairs from the Technical Services Engineering r Department. Budget $3.3M- Staffing 104.5 FTEs Administrative Services The Engineering Department is responsible for the r Budget S18.2M-Staffing 97.5 FTEs planning,design and construction of the District's $2.5 billion capital improvement program and District The Administrative Services Department is annexations, easements and connection permitting. comprised of three departments which were The budget reflects the addition of the new Facilities r reported as separate units in the adopted Engineering Division to oversee fast-track projects. FY 2007-08 budget: the Finance, Human and the continuing use of Integrated Program Resources, and Information Technology Management Consultants IIPMC)to supplement r Departments.The Department maintains District resources in managing the CIP. financial oversight and administration of all district funds and accounts and is responsible Operations and Maintenance for contract administration and procurement, r oversees all personnel management activities Budget $93.0M -Staffing 292.75 FTEs including employee development,and employee The Operations and Maintenance Department and labor relations, and oversees all District is responsible for the operation of the District's r computer, networking and customer two wastewater treatment plants and for reliable support issues. collection and transportation of wastewater,asset management and efficient. safe operation and r maintenance of the system in the 471 mile square area.The budget reflects the incorporation of the Odor Control Program transferred from the Technical Services Department,as well as, r Regional Assets and Services previously shown as a separate department. r r •FTE= Full-rime Equivalent Position r r Office of the General Manager Service Description _ The mission of the Office of the General Manager is to provide general oversight .. of the Districts operations; set or approve standards, policies and procedures; and establish the overall goals and strategic plan y of the District to meet the District's mission. The office reports directly to the Board r of Directors. In addition to the line departments, this depart- ment oversees District-wide functions in the Board of areas of: Safety& Health. Public Information, Directors Administrative Legislative Affairs, and Board Services(Clerk Services of the Board). Safety and Health provides expertise, support General and guidance to protect employees, the public, Counsel General Technical the environment and assets through develop- office Manager Services ment and implementation of comprehensive and cost effective safety, health and security systems, policies and procedures. Engineering Public Information Office provides services and implements programs to meet the communications needs of both internal and external audiences for the District. The division Operations& plans and implements media relations.Web site Maintenance content, community relations,construction outreach, community education and outreach, employee newsletter, intranet development. corporate identity program, collateral material and graphics development, presentation development,and crisis communications. Operating Expense 2007-08 2007-08 2005-06 2006-07 Originally Updated Category Actual Budget Proposed Proposed Personnel S 684,697 S 746,300 S 757,200 S 3,508,600 Chemicals&Other Supplies 95,469 275.500 284.000 832,440 Professional/Contractual Services 135,811 200,000 200.000 1.239,400 Research& Monitoring 0 0 0 0 Repairs&Maintenance 28 0 0 5,200 Utilities 113,812 145.000 154,000 120,000 _ Other 12,768 1,078,600 1.153.260 1,200.530 Cost Allocation (25.916) (65.800) (65,800) (323,6501 Total $ 1.016.669 $ 2.379,600 $ 2,482,660 $ 6.582.520 2007-08 Budget Update Service Descriptioro Legislative Affairs manages the intergovernmental relations for the District, including legislative analysis and tracking, building coalitions around key issues and providing timely information to the Board of Directors. Authorized FTE Positions The Legislative Affairs Office also manages state and federal legislative .. advocates; follows political matters at the regional, state and federal levels; Managers 4.00 and acts as a liaison to various associations, government agencies and 17.00 others. Finally, the office coordinates efforts seeking grants and federal appropriations. Other: 4.00 Board Services includes the Clerk of the Board office, reception, meeting Total 30.25 planning, audio visual and conference room setup, records management,and mailroom support. Services include supporting the Board of Directors, acting Staffing Trends as filing officer for Statement of Economic Interests, receiving and processing 30.25 summons and complaints filed against the District; and, preservation and protection of the District's records for public, private and governmental use, I I I including coordination of all Public Records Act requests. 0. t I Budget Overview Due to significant reorganization efforts, the Office of the General Manager shows an increase of 27.25 full-time equivalent positions with related costs of$4.1 million. These increases are a result moving functions from other 2004 2005 "' 2007 2008 departments into the office of the General Manager and adding 2 positions Adjusted for the recent re-arganization to be filled at management discretion. Specifically,the Legislative Affairs, from 8 departments to 5 departments. Board Services, Public Information Office, and Safety 6 Health were moved .. from other departments into the General Manager's Office. Performance Objectives / Measures District Slnffinq Growth • Ensure the collection, and disposal treatment cost per million gallons 6% does not exceed $1,478.08/MG by end of fiscal year 2007-08. 5% 4% • Ensure the District does not exceed 634.0 FTEs by the end of fiscal 3% year 2007-08. 2% • Maintain 100% compliance with terms and conditions of our permits 1% .. and local, State and Federal regulations. 0% • Deliver 80%+ of each fiscal year's CIP budget principles. .1% .� • Provide public outreach for OCSD's Capital Improvement projects. -2% 2004 2005 2006 2007 2006 • Maintain a safe and healthy work environment and implement security The District remains committed to measures to complywith Homeland Security requirements. providing increased quality and service y re q with the reduced level of staffing. • Establish key legislative priorities and keep the Board and senior management apprised of matters in Sacramento and Washington, D.C. Provide accurate and timely board/committee agenda packages to the Board of Directors. • Support the Board of Directors information needs via enhanced Directors'webpage. r Administrative Services Department _ Service Description The Administrative Services Department oversees all of the District's finance, contracts/ purchasing, human resources and information technology activities, including both day-to- day operations and strategic planning. The r department serves as a liaison with Executive Management, the Administration, the Board of Office of the Directors and other departments of the District. General The department includes four divisions: Financial r Manager Management; Contracts, Purchasing,8 Materials =I- Financild Management; Human Resources; and Board of Mangnerrent Information Technology. r Directors contracts, Financial Management oversees and Mialintils administers all District funds and accounts. anagennart Programs include treasury management and r General General Technical debt financing, accounts receivable and payable, Counsel Manager ServicesResoarcel user fees, payroll, accounting for fixed assets, Office Infonawncoordinating the capital and operating budget process and risk management. r Contracts, Purchasing, & Materials Engineering Management is responsible for contract administration and procurement for all District departments.Additionally, this division manages the District's warehouses, receiving Operations S and maintaining inventory, and distributing r Maintenance supplies, materials, and equipment. Human Resources manages employee development and training, compensation r and classification, employee benefits and employee and labor relation activities. Information Technology is responsible for r customer support related information technology assets and services, networking and infra- structure, telecommunications operation and maintenance and network and programming r and database systems development. Operating Expense 2007.08 2007-08 r 2005-06 2006-07 Originally Updated Category Actual Budget Proposed Proposed Personnel $ 13,880,756 $ 14,128.300 $ 14,440,660 $ 12,827,760 r Chemicals&Other Supplies 1,805,529 2,676,840 2,648,280 2,223,440 Professional /Contractual Services 2,019,442 2,449,260 2,323,560 1,536,760 — Research 5 Monitoring 0 0 0 0 Repairs B Maintenance 986,728 1,244,250 1,364,250 1,154,300 _ Utilities 172,685 172,500 177.500 201,500 Other 2.344,502 1,620,900 2,134,150 2,080,650 r Cost Allocation (3,034,178) (2,038,180) (2,038,180) (1,814,130) Total $ 18,175,464 $ 20.253,870 S 21,050,220 $ 18,210,280 r 2007-08 Budget Update r Budget Overview r For FY 2007-08,the Administrative Services Department is comprised of four divisions,which were reported as separate units in the adopted 2007-08 budget: the functions of Financial Management, Purchasing, Authorized FTE Positions Human Resources and Information Technology have been consolidated r into a single department. In addition, three divisions(Safety and Health, Managers 9.00 Board Services and the Public Information Office)which were previously 60.50 included with the Human Resources Department have been reassigned 26.00 r to the Office of the General Manager.As a result of these reorganizations Technical 2.00 and the elimination of 3 full-time equivalent positions. the department Operations ft Maintenance 0.00 shows a decrease of 26.0 full-time equivalent positions and a related Total 97.50 r cost reduction of$2.8 million. Staffing Trends Performance Objectives / Measures rr 50 r • Minimize proposed current and future annual rate increases through the use of debt financing while meeting the operational and capital ' ' t needs of the District. t ' r is Maintain the District's budget and financial reporting standards in conformance with the Government Finance Officers Association guidelines for excellence in financial reporting and distinguished 2004 2005 2006 2007 2008 r budget presentations. Adjusted for the recent a organization is Obtain the 2007 "Achievement of Excellence in Procurement"IAEP) from 8 departments to 5 departments. award by meeting all national requirements. • Continue the inventory cycle count program and maintain a 97% accuracy rate or better. r • Maintain 100% California Slate Government Code compliance 55,000 for all treasury investments. _ • Develop and implement a Leadership Academy. 50,000 — — — • Develop and implement a Succession Management Program. 45,000 — — — • Complete the Enterprise Information Technology Strategic Plan r and begin implementing its recommendations. 40,000 ZOOZ 2003 2004 2005 2006 is Create an Information Technology Governance Committee. France proctls,.s more In,,.50.00t) r is Complete Category 1 &2 Service Level Agreements ISLA)@ 100% checks.deposes and invoices annually and Category 3 6 4 @ 90%. r • Maintain an average uptime or availability of 95%for all Oracle and Microsoft SOL Server computer database-related services. r Technical Services Department _ Service Description The Technical Services Department provides District leadership on environmental, regulatory r compliance and research related matters and support services to other departments and consists of four divisions: r Technical Services Administration provides Office of the oversight to the operating divisions within General the department and manages the district's r Manager research activities. Environmental Compliance & Regulatory Board of Affairs oversees regulatory compliance r Directors Administrative for air, land,and water permits and regulations Services and is responsible for the offsite management of biosolids. General General Environmental Laboratory and Ocean Counsel Manager I 'I-I Monitoring provides laboratory services Office supporting operational compliance. and _ environmental monitoring activities and is responsible for the district's ocean Engineering r monitoring program. r Source Control is responsible for administering and enforcing the District's wastewater Operations 5 discharge ordinance and federal pretreatment Maintenance regulations to control industrial discharges into the sewer system. The division manages the district's urban runoff diversion program, FOG (fats,oils and greases)program,and r nonindustrial source control program to control pollutants of concern for the GWR System. Operating Expense 2007-08 2007-08 2005-06 2006-07 Originally Updated Category Actual Budget Proposed Proposed Personnel $ 12,836.393 S 14,011,000 S 14,310.200 S 14.372.250 Chemicals 8 Other Supplies 4,292,006 4,304.790 4,994.030 1.037.830 Professional/Contractual Services 883.791 1.758.000 1,359,000 714.000 Research 8 Monitoring 1,306,634 1,340,030 1.424.390 1.505.440 _ Repairs 8 Maintenance 237,509 313.970 322.640 242.920 Utilities 279.227 319,100 346.100 390,000 _ Other 255,257 293,400 304.400 301,850 Cost Allocation 276.416 75,310 75,310 249.550 Total $ 20,367,233 $ 22.415.600 $ 23,136,070 $ 18,813,840 W 2007-08 Budget Update GUU�di J iCI'J121 r As part of the recent District reorganization from eight departments to five departments. the Odor Control Program has been moved from Technical Services to the Operations 8 Maintenance Department for FY 2007-08. Authorized Further, reorganization of the Technical Services Department has created r the need for 4 new Environmental Supervisors.These supervisors will be Managers 4.00 responsible for the Biosolids. Regulatory Compliance,Air Compliance and 74.00 Ocean Monitoring Programs. The supervisors will assist division managers I I r in the development of strategic plans and individual section programs Technical 17.00 and help assure that the District's positive relationship with the regulatory Operations 6 Maintenance 0.00 community is maintained and strengthened.As a result of all the Total 109.00 reorganizations,the department shows a net decrease of 10 full-time equivalent positions. There is also a related cost reduction of 54.3 million, Staffing Trends mainly from transferring the costs for odor-control chemicals to the Operations fi Maintenance Department. 119.00 114.00 11�1. II 109.00 Performance Objectives / Measures • Ensure reporting divisions achieve 90%+ of the year's performance objectives. 2004 2005 2006 2007 2008 r • Ensure Technical Services Department's expenditures are managed Adjusted for the recent re-arganifation within 90%— 100% of the proposed budget. r • Ensure reporting divisions achieve 90%+ of strategic goals and objectives. r � /A0 r fi OCSD operates the Environmental Sciences Laboratory JESLI. Built in 1991 specifically as a laboratory building, this two-level steel r and concrete building occupies approximately 20,000 square feet r r r r Engineering Department _ The Engineering Department is responsible for delivering projects through skilled staff by proactive project planning, effective project delivery, effective communication,critical thinking and technical expertise.The Engineering her Department is comprised of four divisions: Office of the Engineering Administration provides General management to all Engineering Divisions. r Manager Planning provides evaluation and review to the engineering data management. master Board of planning for the District regarding the Capital Girecmrs Administrative Improvements Program(CIP) Program,water Services resources management, and the District's California Environmental Duality Act review. General In addition, this division provides oversight General Gmwral Technical to annexations, connection permitting, Office Manayer Services v easements, and agency agreements. Administration Project Management Office manages the r design and construction of new collection and treatment and disposal facilities plus the rehabilitation of older facilities for the District. r Office This division is also responsible for the delivery of capital projects from the preliminary design Operations fi stage through the closeout of construction. Maintenance Engineering and Construction provides Engineering administration, design, inspection, and other . Vanigaroent necessary services to the Project Management r Office and the Planning Division for the effective execution of projects to meet the operational needs of the District. Facilities Engineering provides engineering and design services so that the Sanitation District has an effective and efficient program for completing fast-track type projects, special .. projects, repair work projects, and/or emergency projects. Operating Expense 2007-08 2007-0e ser 2005-06 2006-07 Originally Updated _ Category Actual Budget Proposed Proposed Me Personnel $ 11,196.201 $ 12,455,000 $ 12,715,600 $ 14,449,100 Chemicals&Other Supplies 189,875 237,310 250,350 255,550 Professional/Contractual Services 128,824 71.400 74,260 87,770 see Research& Monitoring 0 0 0 0 Repairs&Maintenance 5,842 24,000 24,240 13.440 "" Utilities 14,665 21,000 21.840 17,000 Other 3,410,168 2,013,690 2.514,430 2.514.880 Cost Allocation (10,528,078) (11,771,090) (11,771,090) (13,999,090) Total $ 4.417,497 S 3,051,310 $ 3,829,630 $ 3.338.650 2007-08 Budget Update As a result of prioritizing programs, the Engineering Department has a new division whose purpose is to manage facilities engineering projects. This new division ensures that fast-track type projects are prioritized and Authorized completed efficiently. Consequently,the department shows a net increase r of 6.25 full-time equivalents after elimination of 2 full-time equivalent Managers 5.00 positions.The additions to this department are staff members who were 60.00 reassigned from other departments.There is a net decrease in overall r r operating costs of$491.000 as a result of more time and more salary Operations 6 Maintenance 0.00 costs being charged to capital projects. Total 104.50 Performance Objectives / Measures e Expend minimum 90%of project annual Capital Improvement Program Staffing Trends (CIP)cash flows for FY 2007-08. 104.50 r e Ensure that reporting division's expenditures are managed to less 94.75 than 100%of proposed budgets. 79.75 r e Process 95%of connection permits within one day of request. 40, e Meet 80% of project milestones. t t 2007 t, r e Reduce program change order performance towards goals established by change order Management Plan dated 10/13/05. Adjusted for the recent re-organigation from 8 departments to 5 departments. e Complete 50 to 65 projects in Facility Engineering Program. r Improved Treatment $79M Replacement/ Additional Rehabilitation Capacity $123M $53M Support r slim In 2006-07,the Engineering Department will be responsible for$266 million r� in capital expenditures. r Operations and Maintenance Department _ The Operations and Maintenance Department is responsible for collecting, conveying and r treating wastewater, reusing or disposing of the treated wastewater and all residuals, OHice of the and providing care to all facilities. The 06M r General Department consists of nine divisions: Manager Operations and Maintenance Board Administration provides leadership and OiDirectorsrs Administrative ,,. . oversight 9 to all Operations and Maintenance Services divisions. Regional Services Support coordinates r regional sewer system issues with member General General Technical cities and agencies, provides routine technical Counsel Manager Services support and a CIP liaison role with Engineering r Office Department staff, and manages the regional street surface overlay coordination program and the Dig Alert program. Engineering Collection Facilities Operations and Maintenance operates, maintains and manages regional gravity and pumping facilities t that transport wastewater to the two regional r plants for treatment and reclamation.The division provides support to cities and agencies for the CIP and Dig Alert program. ., Facilities Maintenance manages the non- process infrastructure systems of the two 100acre treatment facilities,and maintains r fleet equipment, crane and rigging services and the motor pool. Process Engineering provides technical support to all staff relating to air, water and solids issues. r Operating Expense 2007qProposed 08 2005-06 2006-07 Origined Category Actual Budget ProposedPersonnel $ 28.364.795 $ 33,058.100 $ 33,674,850Chemicals 6 Other Supplies 13,757.955 17,613.490 20,458,40Professional/Contractual Services 13.732.088 16,341.900 16,971,950 Research 6 Monitoring 0 0 0 0 r Repairs 6 Maintenance 5,330,866 8,953.160 8,664,740 8,788,990 Utilities 6.982.838 8,100,660 8,438,820 9,154,760 r Other 320,901 375.860 375,150 455,250 Cost Allocation 12,789,727) (3,489,340) (3,489,340) (3,891,880) Total $ 65,699,716 $ 80,953,830 $ 85,094,550 $ 93,028,110 r 2007-08 Budget Update r oc l vic i Li;SLi lfJi101i Plant 1 and Plant 2 Operations are responsible for the daily management of the wastewater treatment processes and biosolids disposal activities to ensure compliance with all regulatory permits, management of odor reduction Authorized FTE Positions operations, support of the CIP and coordination of construction work. Manager 4.00 Mechanical, Reliability and Maintenance Support Service Supervisors/Professionals t is responsible for maintaining and repairing all mechanical equipment in .25 the treatment plants, rebuild, welding and fabricating services, managing Technical •1.00 the Computerized Maintenance Management System,and helping to Operations 202.00 initiate, coordinate and manage various supply and contracted services Total 292.75 for all OEM divisions. Instrumentation and Electrical Maintenance is responsible for maintaining all instrumentation, electrical, HVAC equipment and systems in the Staffing Trends treatment plants, pump stations, support and office buildings; providing reliable power by operating the two generating facilities and back-up 00 generator power sources, and repairing all systems. Budget Overview 287.25 For FY 2007-08,the Operations and Maintenance Department is comprised of nine divisions, which were reported as part of two separate units in the adopted 2007-08 budget. The functions of Regional Services Support, 2004 20050 0 6 2007 2008 Collection Facilities Operations and Maintenance, and Facilities Maintenance Adjusted for the recent rehorganization previously shown within the Regional Assets and Services Department have from B departments to 5 departments. _ been consolidated into the 08M department. For the following reasons,the Operations 6 Maintenance Department is showing a net cost increase of$7.9 million over the approved budget for FY 2007-08 despite a reduction of 7.5 full-time equivalent positions, 7 of which were .. eliminated altogether: of SD Moves Closer to • The Odor Control Program has been moved to the OEM Department Fo ,,dory Treatnsent L, ..I from the Technical Services Department, resulting in an increase of odor control chemical costs of$3.9 million within the 90 06M Department. Bio-oxygen Demand e Due to process optimization, the total cost of chemicals(including :E 60 1 those used for the odor control program) shows a net decrease of$2.1 million from the approved budget. ;= 30 Suspended Solids • Due to unit cost increases and to higher estimated biosolids, rz contract services for biosolids hauling are estimated to increase 0 $1.0 million over the previously approved budget. 2001 2002 2003 2004 2005 2006 The cost to dispose of digester cleanings is estimated to increase The Federel Claen were,Art defines $1.0 million due to being unable to be land applied, requiring hauling secondary treatment as 30 parts per million to a landfill. of total suspended solids and as 30 parts per million of biological oxygen demand. • The costs for utilities such as electricity and natural gas are estimated to increase by$0.8 million due to an increase in unit costs, no peak ,r shaving, and new AOMD regulations. • Payments to support the groundwater replenishment program are estimated to increase by$0.5 million due to the need to provide treatment for NOMA contaminants. Operations and Maintenance Department (continued) _ Performance Objectives / Measures • Achieve 100% compliance with water, solids, air, and energy permits. r • Maintain Total Injury Frequency Rate at or below industry averages for the various crafts and trades. • Manage 06M expenditures to within 96-100%of the approved budget r and related risk levels. • Comply with the staffing plan allowed for 06M and CIP support needs. r • Provide the GWR System with"spec water" per the OCSD/OCWD Agreement and manage its waste streams while minimizing risks to the NPDES Permit and Consent Decree. r • Complete the FV 07/08 elements of the staff supported Asset Management Plan with available resources. r r r r r r r r ® r 2007-08 Budget Update Appendix r r r r Immi Cash Flow Projection L L Orange County Sanitation District Consolidated Cash Flow Projections L Pra9rNnvy Prelirtryvy Preliminary PrOrninery Pre9mirary Pre6mllu7t, LD� enlb^ 9L'44 4&4Y 49S ]217 ]1'�2 ]2:.L2 Revenues: General User Fees 164.5790W 181,592.W0 M.837,0110 M3.3M,OW 264A71,OW 299.384,01m0 i Permi6ed User Fees 19.184,000 M.054.W0 M.743.W0 25.78D.000 M,222ow W.09 .DW hel Preeerry Taxes(5%yr) W.9W.W0 61,8451000 64,937.OW 68.184.000 71,W3.000 75,173.OW New COP Issues 3W.W90W 270,OOO.OW 190.O13G.W0 1490W.OW 109000.000 1W,WO.W0 Interest Revenues(0%) 16.319.W0 18.188,000 1BAG.W0 M206.W0 21,356.W0 22115.WD t - CaoltalrealitiesCaoarinCNges 1t5ID.W0 12.144.000 12.W2.0W 13496.000 14.226.000 14.999.000 y Other Revenues 37,BB2.9M W.996.6W 27,BM.6W 27.814,800 26.891.W n.526600 Revenues 607,180.9M 594,809.6W M2.M,M 5VUM.BW 52r.761,800 570.277,6W R.W,abnenhr: L Oiler B Mt.Ex,(70%In) 139973.4W 153,WB,OW 1641OW.W0 176.667,000 191,W1,000 205547,0W Capital Improvement Program 3W,714,W0 M3.087.43W 296.WZOW M2.680,000 179A83.O00 150,968.0W Real.Rehab 6 ReNT - - I'm= 3.WO.OW 70.596.0W I COP S.M.(5.0%,30 yrs) 85273,720 M.879,W0 102.a5a,CB0 114.914.0 123.183.280 130.553.BB0 y Other Requsemenur 51M.NI) 2.610,600 2.614,6W 2.614.W0 2.614,600 2.614.eW Requirements 513221.OM 594.563880 5W.4W,OW 097.760.OW SW.WI,BW 583259.2M Revenues-Requiremanls N.M." 225.920 36,393,5M 31,020,5W 27.689.720 11,0182M V AmrmWateE Funds: Beglnnirg of Year 369.163.340 00 .113200 463.339160 499.732,6M 530,753200 558A22.WD EMal Year 083.113240 4W.339.160 499732.680 630.763.200 SSB,022.920 589A41,200 y Consolidated Reserve Polity 414.731,701 C81,402,W0 4%,671AW 5W.436,480 W.=6.2W M.801.680 Over(Under)Reserve Polity 48.381,5W 1.WrM 1,W1.2W 3.316.7M 8.196,640 13W.4401 L Sever Servir»User Feam Avg SFR Annual User Fee slam s2W.W =Hi.62 9254.95 9287.84 9324.54 I Paraentege Change 9JM 9 94 12M% 12.90% 12.90% 12.75% Y�/ Equivalent Dealing Units 5904.265.96 W7.883.02 5911.510.55 5915.160.61 $91&821.25 5922.098.54 SFR Cwmcdon Fee s4517 S4.703 54.9W 55,22E MAW $5.755 Y Outstare,COPS $1.0M.470.000 51.325.165.OW 51.106.3N.W0 S1,S93p99000 3IM,427,WD 51.716.436.000 Avenge Dail7Fbw,m9J 2W 250 257 259 262 260 R,Pdiv L 50%MM Year OPaettrg 6%W7.0W 76.504,000 9206900D 59330.000 95.901.OW 104,274,OW 10%Nexl Year OPeraYng 13.997.W0 15.W1,W0 16A10,WD 17,067.W0 19.160,OW M,665.000 1W%MA Year AUG COP Suq. 65273.720 65.874,OB0 102,850,460 114.914,480 1D.193280 1W.553.BM L Ws,average CIP bal a 2020 W.M." 79.W3000 75.O18,W0 72.77B.W0 n.727.OW 65.721." Slant arm CIP.GWRS - - - - - DSR®10%OussunnngCOP. 107.847,W0 132.517.000 148.634.000 159310.OD0 165.W.O1A) 171,BM,W0 SFIQ557mm INPUT 57.WO.OW 57000.0W 57.OW.W0 57,OW.W0 57.000.000 57AOO,DW R.,1 B Rehab 0VVW 54.121.000 55.M3,003 W.W7.OW 57.033.000 58,5W. 0 59,754,OW hed Toal 454.731. M W1,402.W0 598.671.480 567AW,OW SW.2M,280 6W,W1.6W COP Rana y Sr lien C.W.Min 125 2.39 186 1.71 1.73 1 M 1.92 ACCiUOrel Bands.1,25 2.39 1 a 1.71 1.73 1 M 1.92 I.rl A- 1 L r 2007-08 Budget Update se, Orange County Sanitation District Consolidated Cash Flow Projections r Preliminary Preliminary Preliminary Preliminary 10Ye.r oaealn9on 13-14 14.15 15.16 36-17 IgW r Revenues: General User Fees 316.513.WO 334.621,000 353,766.000 374,005.00(1 If 2,728,083.000 Permitted User Fees 34,9731000 36.974,410(1 39,089.OW 41,325.000 W1.424.000 r Property Taxes(6%yf) 78.932,000 82.8]9,000 87,023.OW 91.914.0W 740.840.000 New COP Issues 50.0001000 - - - 1,150.000,000 Interest Revenues(4%) 22,920.000 23,119.OW 24,186.000 24.821.000 212,152,000 Capital Facilities Capacity Charges 16.812.000 16.86I'm 17.572,000 18.525.000 147,767,000 r Other Revenues 42.578,W0 2].]31,6e0 30.142,SW 37,126.600 318.174,320 Revenue. 561.728,600 522.W3,600 551,171,600 581,116.600 5,599.050,320 Require romw r Opar&Mt..EsP(7.0%yf) 222.756,000 238.235.000 256.493.OW 211.291.000 2.028.870.4W Cepitel Improvement Program 75.565,000 37.848,000 43.109.000 23.777.000 1.606.015.0)0 Rspl.Rehab&Refurb 81,012. 0) 93.W5,000 105.482.000 119,670.000 473.855.0D0 COP service(S.U%,30 yre) 149.768.680 137.107,200 137,053,4W 136.486.2W 1.185,057."0 r Other Regulrarn me 2.614.WO 2.614.000 2,614,900 2.614.600 28.791,300 Requirements 531894280 50809],880 544.]52.080 581.816.860 5.322.589.140 Revenues-Requirements 30,034,320 13,755.720 7.025.520 25.357.720 216.461AW r Accumulated Funds'. Beginning of Year 589,441 240 599,475.560 613,231.280 620.256,800 369.153.300 End of Year 599.475.560 613.231.280 820,256.600 845.fi14.520 645.614,520 r Coneolidetetl Reserve Policy 598,1]8,68D eB9,212.280 584,470A80 601,845,280 $ 601,648.260 Over(Under)Reserve Policy 3.296,880 24.019,000 25,706.320 43.969.240 r Bever Service User Fees: Avg SFR Annual Usar Fee 9341.74 "59.85 $378.92 $399.00 Percentage Change 5.30% 5.30% 6.30% 5.30% r Equivalent Dwelling Unite 926.187 IN 9,891 933.611 937.346 SFR Connection Fee $6.053 Si $6.674 $].00] r Oubtandlna COP. $1,1D8,816,000 $1,663.253,000 51,615,651.W0 $1,561.247.000 Average Daily flow,m9d 268 268 270 272 Reserve Polk, r 50%Nest Year Operefin9 111.3]8.000 119,118,000 1MW.WQ 128.648,000 10%Nest Year Operetbl9 22,276.000 23,824.M 25,649.000 2].]29,000 100%Nest Year AUG COP Svc. 149,786,880 137,101,280 137.063.480 138,486,2W 50%average CIP bat W 20M 53.927.000 63,810,000 61,545,000 59,0001000 r Short term CIP,GARS - - - - DSR®10%Outstanding COP. 110,882,000 188,326.000 181,5a6.wo 156.125,000 SFI0$51mm INPUT 67.000.000 51p00.000 61,000.W0 51.000,000 Real&Rafurb a 2%t, 80.949,000 82,188,000 63.411,WO 64.619,000 r Total 838,178,880 829.212.280 634.470.480 641.645,280 COP Rarlue r Sr lien CoveMe,Min 1.25 1.= 1.95 2.03 2.10 Additional Bonds,1.25 1.W 1.95 2.03 2.10 r A-2 r W CIP Summary I Original FY 2007-08 Budget 338,818,100 1 • Change fiw Projects Completed or Canceled (5,523,000) (1.63%) New Projects 1,803,000 0.53% i Additions to Existing Projects 46,493,000 13.72% �+ Deductions from Existing Projects (79,575,000) (23.49%) Changes to Capital Equipment 697,600 0.21% I : V Revised FY 2007-08 Budget 302,713.700 (10.66%) L Original Total Budget 2,450,651,200 % Change Projects Completed or Canceled (49.014,000) (2.00%) 6. New Projects 21.744,000 0.89% Additions to Existing Projects 119,053,000 4.86% Deductions from Existing Projects (75,967,000) (3.10%) Changes to Capital Equipment (606,200) (0.02%) Revised Total Budget 2,465,861,000 0.62% LI L I L.i L L L i L A-3 L 2007-08 Budget Update r Project Summary FY 2007-08 r Replacement/ Improved Additional Total Item Rehabilitation Treatment Capacity Support Budget r Collections Facilities 31,385,800 528,850 37,887,000 1,292,350 71.094,000 r Headnorks 40.618.550 13,357.750 233,700 - 54,210,ODO r Primary Treatment 4,480,600 - 538,400 - 5,019,000 Secondary Treatment 10,646,500 75,973,070 11,739,430 - 98,559,0DO r Solids Handling&Digestion 11.515,200 12,169,000 162,800 - 23,847,ODO r Ocean Ougall Systems 1,485,500 - 1,485,500 - 2,971,0DO UOlily Systems 2,292,750 1,374,250 4,515,ODO 5,225,000 13,407,DDO r Odor Control Related Projects 160,000 - - - 160,000 r Plant Automation&Computerization 1.762,000 - 166,250 2,248,750 4,177,ODO Process Related Special Projects - 195,ODO - 2,094,D00 2,289.000 r Miscellaneous&Support Projects 4,104.100 655,700 40,500 2,015,700 6.816.000 r Water Management Projects - 15,641,000 - - 15,641,DDO r Strategic&Master Planning 111,750 311.750 111.750 111,750 647,000 Research&Development 250,000 638.500 401.500 355.000 1,645.000 r Equipment 557,925 557,925 557.925 557,925 2,231,700 Total 109,570,675 121.402,795 67,839,755 13.900,475 302,713,700 r r A-4 r r Capital Improvement Expenditure Graphs r $5.019.W0 E647,000 r $71. 9 ,000 primaryT=a', SlrarogicBMasrer Planning Called.Fxilarre 166% 02% 235% $23841000 $2231.700 $oheS HaMlirg 8 p9aslion Egupmenl i9% 0]% Conrad 0 oaar cams Fmieals r a us% $542Hearderarreo 179% n 9% $1'645.000 (1BaearcM1 8 Oevelopmc'i 0 6% $4,177.000 $98,559,0W Real Automation fl CdnpWeavtian Secondary Tmelm.. 8% 326% E15.641.000 Water Management Projects _ 5.2% —— E6.S16,000 Modell anaous8 S13A07,000 Suppwl Pojects Uldr,y Systems r 2.25% $2.971.000 40% $2,269600 Ocean OuRall Systems Process Realed Projects 10% 076% Total FY 2007-08 Capital Improvement Expenditure by Process-$302,713,700 $121.402.795 Improved Treatment 40.1% E5).639.]61 Additional Gpetlly 19.1% $13.900,475 SUppod 46% $109.570,675 Replatemenl/Re1latyfl000n 36.2% Total FY 2007.08 Capital Improvement Expenditure by Type -$302,713,700 r A-5 r 2007-08 Budget Update r Summary of Capital Requirements—Collection System Improvement Projects r Original Revised Original Revised Total Total 2007-08 2 OMM Protect Project Project Cashtew Cash0ow Item Number Budget Budget Budget Budget Number r Collections Ram and Bristol Street Stand Extension 01-101 5,342,WD 3.787,0W 622,000 594,000 1 Same Are Trunk Serer Rehab. 01-17 18,432.000 19,717,W0 2038,000 9WOW 2 r Carbon Cnyn Sewer and Pump San.Abandonment 02-2d-1 8.318,000 9,612,000 6.712.M 2.128,W0 3 Sant Magner Interceptor Realgnment and Rol 0241 9,583,0D0 10,382,000 492,000 927.000 4 Same Ana Rher Interceptor 2005 Emergency Repaba 02-414 3,767,000 - - . Compete r Santa Ma River Interceptor 2006 Rotation Repairs 02415 3,348,000 200,000 - 98.000 5 Taft Branch lmpmvemena 02-49 979.0D0 1,019,000 20,WO - 6 Euclid Reset lmpovements-Reach W 0252 23.050,000 22,050,000 224,000 - 7 "r Newhope Pfecentia&Cypress Trunk Replacements 02-65 6.623.000 6.623.000 164,W0 218.000 8 Rehatanle Oatrid Spleens BY Addbg M Jumpw 0258 5R67,000 7,72QOW 197,000 773.000 9 FuHertarvBres Interceptor Seam Rebd 02.71 855.000 946.000 29,000 - 10 r Raband'Aation of the WesbMe Pump station 0352 8,291,000 8.810,O0D 1,015.000 1,817,O00 11 Westside Relief Interceptor/1-os Alamitos MH Rehab 0355 11,7M.000 11,704,000 - - 12 r RehabBtation of Magnolia Trwk Bawd 0358 28,806,000 28,769.000 1,107.000 1.169,000 13 KOHW44WW Tmmc Sewer Rebel 03.59 9,412p00 10.200.ODD - - 14 Beach TmnkXroB lnedceptor Sewer Rebel 03-60 17,815.W0 19.415,WD - - 15 r Balboa Tmra Sever Rehabilitation 05-47 7,873.OW 7,873,000 373.000 384,W0 16 Replemmant of the Otte Pont Pump Sunken 0549 34,079AW0 34,079,W0 529,OW 4,882,OW 17 Replacement of the Rotlry Pont Pump Station 0550 30,952W0 30,952,000 1,780,000 1,452,W0 18 r Rehabihetion of do 14N Sheet Pump Station 0551 9,673,000 - - - Cmnplele Rehabkie8wr of the'A'Sheet Pomp Station 0552 9,657,OW - - - Complete Relabb8atton of has Bay Bridge Pump Station 0553 2.465.000 926.0W 300.0D0 434,OW 19 ter Bitter Point Farce Mein Reh.Wilatihn 0558 M.775,000 24.392,000 28,0W 237M w Newport Force Main Ccesiten Assessment 0560 650,000 650,000 310,W0 20,000 21 r Bayside Done lmpovemem 0561 2,875,000 3,318,000 wi.000 370.000 22 Realign&Rehab of Big Car0m1 Oflab Tmnk Sewer 0552 3b11,000 - - - Complele Dover Drive Trunk Seim Relief 0563 6,378,000 6.378,000 742,0W 465,OW 23 r D'chid 6 Tmmm Sewer Relief 06-17 1,884,000 2.050.000 221,000 - 24 Foreew Road Trunk Sewer Rebel 06-18 9.257.000 10.029,000 290,000 - 25 Sun1lMr lmerceplor Merhoe Rehab. 0741 3-94.000 - - Compete r Geer Red M TWA Beaver Relocation-Phase 1 07-32.1 2.393.000 1,667,M - 1.063.000 26 GaW4WMI System Improvements,Reach B 0737 11,763,OW 16,120,W0 6.461.000 2.483.000 27 Rehabiblabon of College Ave.Pump Station 0747 7,976,OW 11,404.000 1.171.000 2,357.000 28 r Brawag Sublmmt Sewer Rebel 07-60 3.M5,O0 3,92D.ODO 1120W - 29 Continued r A-6 r Summary of Capital Requirements i u Summary of Capital Requirements—Collection System Improvement Projects Original Rovlsed Original Ravlsed L Total Total 200748 2007-08 Project Project Project CashOow CashOow Rem Number Budget Budget Budget Budget Number CountyIenadA nexatio.l jd County lelentl Annexation and CEOA Documentation 07477 2W,000 350,000 - 150.000 30 Von Karmen Trunk Saw Relief 07-62 328,000 328,000 - - 31 Edinged8olso Chloa Trunk Improvements 11-25 4.176,000 4.176,000 Coast Trunk Saw RMabdiletion 11-28 10.950,000 10A80.000 888,000 424,000 33 led Lake Avenue Interceptor Sewer Relief 11.31 4,225,000 - 491.000 - Canceled OCTA Sewer Relocation Projects 1501 397,000 397,000 - 74,000 36 V North County Collections Yard 15.04 10,090A00 10,213,000 - 1.000,000 35 Manhole Rehabilitation and Assessment Program 15415 1,540,000 1.240,000 840,000 410.000 36 Facllltegs Engineering Projects-CWIeGbns FE-Collect 5,1010.000 7.650,000 146,000 949,000 37 L Replacement of the Ellis Ave.Pump Son 1.10 79.319.000 78.508.000 24,453.000 36,639,000 38 Suchard Trunk Sewer Rehabilitation 1-2-4 69,456.000 68.396,000 7,188,000 8.519.000 39 Los AlamibsBM.Sewam Candilion Assessment 3P-728 - 350,000 - 130,000 10 Isy Total Collections Prolecb L L L L j 6, L L L L L A-7 L r 2007-08 Budget Update Summary of Capital Requirements—Treatment System Improvement Projects r 0n9inal Revised Original Revised Total Total 200748 2007.O1 Project project Project Caehgow Cashflow Itom Number Budget Budget Budget Budget Number Headworks r Headwork;Rehab.and Expansion at Plant No.1 P1-105 18,05ti'm 11,657,M 58.000 41 Headwolks RehabilitatioMRelurnishorenl Pt-71 5.159.000 9,156,000 696.000 779,000 42 r Headwod<s lmprovemenls at Plant No.2 P266 257,782,000 257p82,000 74,538,O00 53,431.00D 43 Headworks Total 218.971.000 284.575,000 75.292.000 54,210A00 r Pnmary Treatment PH.Clarifiers 16-318 Related Faoli ie t Pl-37 90,927,0W 93.528,000 - 673,000 N r Primary Treaanent RehadRefurn PM 58,607,OW 37.230.000 312.000 4,346,000 45 PrlmaryTreatmeal Total Id9,814.000 130,758.000 314000 5A19,000 r Seco sdary Tr4atrneM r New Secelbary Treatment System at Plant No.1 P11-102 265,846p00 266,709,000 51,078,000 29,1%,000 46 AclNated Sludge Plant Rehabilitation P1412 47,013p0O 16,133,= 5,999,00D 8,419,000 47 RehaGritaOon of Activated Sludge Plant at Plant 2 1`2-74 17.306.000 17,306,000 6,169,W0 6,537,000 48 r Trickling Filters at Plant No.2 P2&0 208.531,000 221,192.000 52,792,000 54,307,000 49 Oxygen Plant Rehabilitation SP-72.1 1W.000 150.000 - 100,WD 50 r Sewntlary Treatment Total 5]8.848.000 551.510.000 118.038.000 98.SSB.000 Sonde Handling S Digestion r Sludge Digester Rehabilitation at Plant l PlAw 54,916.000 56.410.000 1,5m,000 2.340.W0 51 Sludge Desatedng and Odor control at Plant l P1-101 134.683.000 143,547.000 3,990,000 Z609.000 52 r Truck Wash and Desatedng Beds at Plant No.1 PI-106 4,361.000 3,146,000 3,1501M 2,56TOW 53 Solids Stamge and Track Loading Facility P2.60 15,822,000 16.141,000 - 416,000 54 r Rehablitagon of Solids Storage Silos C 6 D M P2 PE419 23,1ci fiat 23.143.000 727.000 all 55 Plant No.2 Primary Sludge Feed System Project P2-91 22,487,OOD 25,766,000 13.988.000 8,055.000 56 r Digester Rehabilitation at Plant No.2 P2-91-1 33,411,00D 33,146.000 1.60g000 800,000 57 Sludge Desolating and Odor Control at Plant 2 P2.92 59,520,ON 51.696.000 - - 50 r Replacement of Drying ends and Truck Wash at Plant No.2 P2-97 4,197,000 4.651.000 3.599.000 1,380,000 59 Digeslars'P and'G'Liner Replacement at TteaMent Plans Ni SPA17 2,600,000 - - - Garrulous r Solids Handling&Digestion Total 355.140.000 357.64%000 2%607,000 23,047AW ses A-8 r L Summary of Capital Requirements I 64 Summary of Capital Requirements-Treatment System Improvement Projects OHgIml Revised Original Revised L Tolel Total 200748 2007-08 Project Projoot Prefect Cishgow cacbg. Itsm Number Bud0et Budget Budget Budget Numbar come OUNan systems Effluent Pumping Station Annex J-]] 62.141.000 60,487,000 3,149.000 2.971,000 60 y GOBS Rehabilitation Assessment Study J-99 200.000 - - - Complete Ocean Outlall Systems Total 62,341.000 60,467,000 3,149,000 2.1fl.000 L Utility Systems Aro Flesh Hinged!Evaluation J-im 160,000 - - - complete Interplant Gas Lim Rahabilltallen J-106 3.172.000 3.752,000 N3,000 - at Cengen Cooling Water System Replacement J-109 - 910941000 - 3M.M 82 L SWMby Power and Reliability Modifications J-33-1A - 191009.000 - lei,= 83 Cable Tray Improvements at Planle 162 J47 29,899.000 29.899.000 e6,000 1,=,= M L Air Quality Improvements J-79 71186.000 9.168.000 - 74,000 65 Central Generation AufomMlon J-79-1 13,558,000 17,955,000 2,448,000 1,613,000 ee Fire Suppression for Servers and Equip at P1 8 P2 J-96 921.000 921.001) - 710,000 67 V ElecMcal Power DistnbuW System lmpn v ere n s J-98 81529000 8,992.000 N1,000 - 88 Plant 166kV Substation Pt-97 13,487,000 15.693,000 10.015.000 9,030,000 W L Gas Compressor BuiMing Upgraded at Plant No.2 P2-79 7,640,000 - 4,822.000 - ComplaN Electrical Equipment Refurcommenl and Protection SP-81 4,410.000 4.296,000 548.000 188.000 10 V Plant 1 Plant Water WO Replacement SP-94 1,288,000 - - - Complete Utility Systems Total 90.226.000 119,579,000 18,483 000 13,407,000 60 Odor central Related Projects Rehabilitation of Odor Control Faclims J41.8 44,131,000 42807,000 5000 160,000 ]i L Digester Gas Bolding Odor Control Project Pt-110 100,000 - - Complete Odor Control for New Solids Truck Loading Semen P2-95 - - - - Canceled Primary Treatment Odor Control Replacement P2-98 - 28E60.000 - - 72 We Odor Control Refused Projects Total M.237.000 71,267,000 5,000 160,000 I Process Related Speclel Projects V Plans O&M Manual 6 SOP Project-Phase I SP-53 4.000.000 3.730.000 12001000 11100,000 73 Corrwlon Management SPE8-1 4,667.000 4,687.000 1.000,000 994.000 74 L Special Projects:Amerotit Blamed!Reactor(ABR) SP40.2 455,000 455.000 105,000 145,000 75 Special Projects:Biotnckling Fitter(STF) SP-90-7 850.000 0501000 10,000 6Doo0 76 j Process Related Spacial Projects Total 9,9T2,000 9,122,00 2,315,m0 2,289A00 III lwl A-9 l V as 2007-08 Budget Update r Summary of Capital Requirements—Treatment System Improvement Projects r Ow9lnal RW rut Original Revised Total Total 200748 200748 project Project Project Quaff.. Ca.bOow Item Number San! sweet Budast Butlaet Number Plant Automation A component atlon r SCADA NIaterlan Replacement J-003 588,000 - 210.OW - Complete Time Entry Syatem J-104 310,000 - - - Camplee Power MenOOMr land Control Systems J-33.3 S.M.= 81035,01W 4,227.000 1.371,000 71 Fels.Ws,and Gram(FOG)Sollwere Pt-108 100,OW 10%00D 23.000 70 Sunni Information Archdenlure(SIA) SP-03 119940W 1,995.M - 2aa,OW 79 IV Inlemepinlrenel Development SP49 6501000 SW,OW - 80,000 W CMMS Syelem Replacement SP-100 3,789,000 3,789.000 2,387.000 666,000 81 PDS2D Software Replacement SP-103 260,000 2W,OW - - a2 Environments Compliance Awareness Program SP-1" 983,000 983.000 3001OW 63 Disease Recovery SP-111 21,0e) - - CalipNO r Geographic Information System SP-15 4,107,000 4.157.000 410,000 520.OW 84 annual,Equipment UMucho SP-89 2,604p00 2,804,000 599,000 930,000 85 Plant Automatlon B Computerlaatlen Total 22.3113,000 22.783.000 7,833,000 4.172.000 Miscellaneous a support Pte jecm F6clalae Enamored,PeMente-Joint FE-J 18,200.WD 21,nD,000 441,000 1,593,00) 8a Facilities Englncetln9 PmMcla-Planit FE-Pt 18,20eND 18,200,000 754.000 097.00) ar Facilities Engoo lnO Prolacle-Plant 2 FE-P2 18,200.WD 1S.M.000 423.000 858.0W Ba Temporary Upgrades,To Pant Secvly Barden J-108 - 1,30,OW - 41.000 89 Lecoram,ReheWlileOon J-86 1,652.0011 - - - Compete Ya LaOorebry ReWbbllmenl at Plats No.1 J-97 535.OW 417.000 - 102000 W ReglolMI FOG Cancers Canadian at Plant No.t Pt-004 3,150,000 3.150,000 131,W0 137.000 91 ri Plan No.2 LenOeuping Project P2-98 440.000 440,000 - 173,000 92 Centel Censer Space AllOaallan Study all el - Complete Once Spec.Plena,Study SP-127 - 500,000 - 15l 93 r Inlatced Sacmiy Access Control Syrem SP-120 - 460,000 - 110,OD0 94 Smell Cep.Equip.Replacement Project SP-34 3,260,000 12.151111,0110 - 2,000.000 95 all Asset Management Program SP8 -2 5,1W.M 5.5751OW OSD.WD 150,000 95 Warehouse Relnvention Project SP-A MAGI 900,OW 116.OW 1211.11010 91 Plant 2 Maintenance Bulking Mcdl0catlons SP-98 622.= W9,0110 161A00 217,1100 98 r Miscellaneous a Support Projects Tots 80.00.OW 02.02B.00 2.174.00 6.818.000 r rr A- 10 as L Summary of Capital Requirements L Summary of Capital Requirements—Treatment System Improvement Projects i ' ase Original Revised! Original Instead Total Total 200748 200748 Project Project project CashRow Clear. It.. Number Budget Budget Budget Bud,.t Number Water Management Projects V Groundwater Replenishment$plam J-36 248.551,000 246.094.1100 22,698,II00 15.641.000 99 Water Management Projects Total 248.551.000 246.094,000 22.698.000 16.841,000 L Strategic 6 Master Planning Treatment Plant Strategic Plan Update J-102 3.6M,DW 3,6m,m 5 ,000 44T,000 10D y Orange County Blosollds Production Siting Study SP-105 400.OU0 4W.000 150,000 200.000 101 Strategic B Master Planning Total 4,020,000 4,010,000 W,000 6Q.00 LI Research 8 Development USSR wine Management Grant Protect SP-116 100,0g0 10 ,wo - 35,000 102 Lu Research SOaleglc Plan SP-IN 120,000 365,000 - 280,000 103 SWerm,,matgn of Primary lMtand SP-121 1501000 850,000 - 210,000 1W V Digester P9o1 Plant Safely and Canard System Upgrades SP-122 105.000 - 90.0110 - 50.000 105 Digester Optimal SP423 75,000 230.000 - 901000 tab Operational Research Projects.2007418 SP-125 - 10,Wg000 - 1,000.000 107 aw Research 8 Dev0lopment Total 550.000 11,636,000 1.845.000 Lr Total Treatment and Disposal Prri 1,914,962.000 1.953.045,000 278,186,000 229.388.000 Capital Equipment PurxAmeas 16,606,200 16,000,000 1.534.f00 2.231]00 Total Collection,Treatment and Disposal Pmistala -In September M06 me Board transferred 6450,000 from existing Protects to fund new research projects. V V La 6si � I V L A-11 L wa FY 2007-08 Budget Update we Project Name&Number Los Alamitos Blvd.Sewers Condition Assessment-SP-126 Project Category Collections Facilities Project Budget: $350,000 wW Description This project will conduct an extensive condition assessment of the three sewers in Los Alamitos Boulevard to determine,the extent of the existing damage to the sewers.better estimate Me timing for needed repairs,and recommend the most cost effective method of rehabilitation. we Justification In 2006,closed-circuit television(CCTV)work was conducted on these lines in response to sinkholes forming in Los Alamitos Boulevard. The tapes indicate that groundwater and soil are infiltrating into these pipes. wa r Project Name 6 Number Cengen Cooling Water System Replacement-J409 Project Category Utility systems Project Budget: $9,094,000 sr Description This project will improve Me efficiency of existing cooling system equipment at both plants. The preliminary design was completed under J-62 and identified measures that can be taken to improve heat recovery from Me r Central Generation Engines and reduce water consumption by replacing the existing once-through cooling systems with a more efficient system. Justification This project will substantially reduce the amount of water consumed by process a ptupment/systems,resulting in an estimated savings of$500,000 annually. The district currently buys reclaimed water to cool mechanical equipment. This water is expensive and contains chemicals that damage equipment. The contract is set to expire in 2012. The suggested changes will eliminate the need to purchase reclaimed water due to use of closed Imp systems with cooling lowers. r Project Name S Number Temporary Upgrades To Plant Barrenly Barriers-J408 Project Category Miscellaneous&Support Projects Project Budget: $1,350,000 Description This project provides approximately 13,000 feet of perimeter security fencing around each of the treatment plants. we The fencing will replace or enhance deficient areas to improve site security at Me each of the treatment works. At Reclamation Plant No.1,fencing will be provided on the front and backsides of Me plant along Ellis,Ward and Garfield Avenues. Perimeter fencing will also be installed along the Santa Me River Channel and pardons of the Talbert Marsh of Treatment Plant No.2. we Justification In 2005,OCSD conducted a security assessment survey to determine the District's security vulnerabilities. One of the major recommended security improvements for the District's facilities was a perimeter barrier design at Plaid Nos.1 S 2. M improved border will serve as a structural border against intruders and probed vital plant infrastructure and District personnel. These temporary measures will allow OCSD to immediately be in compliance with a number of proposed regulations and will be in place until permanent structures can be designed and funded. we A-12 r We CIP New Project Descriptions lea Project Name a Number Office Space Plan ring Study-SP-127 tr Project Category Miscellaneous&Support Projects Project Budget: $500,000 Description r This project will dewlap a space plan for staff housed at Reclamation Plant Nail. The study will look at existing space deficiencies,ongoing staffing changes and planned operational and capital improvement planning needs over the next ten years. The study will also consider existing space planning for efforts at Treatment Plant Ni and the North Cpunly Yard. Was Juslffloallon Upgrades and renovations are needed to balance the need for new employees to support the District's future operations and the ramping down of the secondary lmalment upgrades in the Capital Improvement Program. The tau project will also allow appropriate work groups to be co-located for more efficient use of existing spaces. It is anticipated that additional space needs will be determined but several alternatives will be developed for future consideration and improvements. has Project Name S Number Integrated Security Access Control System-SP-128 yy Project Category Miscellaneous B Support Projects Project Budget: $450.000 Descrtption law This project will replace the existing access conuol system. The first phase of this project will be to lay out and design a new system to provide needed security for the treatment works. The design consultant will incorporate new technologies for card reader systems,badge systems.and camera surveillance to ensure that the overall security system is integrated. Also,the existing control center should have access to all security systems for Ir monitoring and security maintenance. Justification In 2005,the District conducted a security assessment survey to determine the District's security vulnerabilities. �+ The focus of the study was to ensure that the District could comply with proposed regulations for critical Infrastructure, One of the major recommendations was to replace the existing security systems to minimize intrusions due to anfiquated security technologies. The other recommendation was to provide for a central Iocaiion where security could be effectively monitored and maintained. i Le Project Name 8 Number Operational Research Projects,2007-08-SP-125 Project Category Research S Development Project Budget $10,000.000 Description This is a fund for operational research projects that have not yet been identified.As directed by OCSO management,an annual allocation will be made to fund research projects.For 2007-08,the Research Strategic Lu Plan will identity projects and looks;for research.Specific projects then will be iden08ed and developed to be funded from this budget. Justification L These(ands will be used for various research projects designed to improve operational e/ficienry,reduce costs. improve safety,or fill important information gaps.The results will support O&M and provide information needed by Engineering for future planning and design work.The projects will be indiddually budgeted and tracked within the overall line item allocation. ear 4 A- 13 FY 2007-08 Budget Update r r r r r r This page was intentionally left blank. r r r r r r r Yd r A- 14 j Proposed Equipment Budget Summary L Proposed Equipment Budget 2007-08 Trucks& Other Mobile Machine Eq Comm V Vehicles Eq &Tools Equipment Department 09410000 09410001 09410002 09410003 L Contracts, Purchasing &Materials Management - - Facilities Maintenance Services 570,000 - - - Environmental Assessment - - - Li Environmental Sciences Laboratory - - - - Operations&Maintenance Process Engineering - - 375,000 - Plant No. 2 Operations - - - V Mechanical, Reliability, &Maintenance Support Svos - - - Instrumentation &Electrical Maintenance - - - L Customer and Network Support Total Proposed Capital Equipment 570,000 3]5.000 L I L La L L L L L La A-15 L FY 2007-08 Budget Update r Proposed Equipment Budget r 2007-08 Instr/Tend Safety& Office Fix Computer 2007-08 Equipment Traffic Eq &Eq Equipment Proposed Deparvnent 09410004 09410005 09410006 09410007 Budget r Contracts,Purchasing&Materials Management - - 27,000 - 27.000 Facilities Maintenance Services - - - - 570,000 Environmental Assessment 299,500 - - - 299.500 Environmental Sciences Laboratory 82,100 - - $2.100 Operations&Maintenance Process Engineenng - - - - 375,000 r Plant No.2 Operations - - 20.000 - 20,000 Mechanical, Relial ility,&Maintenance Support Svcs 39,300 - - - 39,300 r Instrumentation&Electrical Maintenance 168.000 - - - 168,000 Customer and NeMrork Support 650,800 650,800 Total Proposed Capital Equipment 588,900 47,000 650,800 2,231,700 r r r r r r r A- 16 Proposed Equipment Budget Detail I i Le Proposed Equipment Budget Detail propose el Division Equipment Type Equip,Budget V 230-Contracts.Purchasing&Materials Manaaemanl File System for Public Works Atlminlstration 27,000 430 - Facilities Maintenance Services One(1)Heavy Duty Truck Chassis 436.000 V One(1)Middle-size Truck 32,800 One(1)Light Duty Service Truck 34,300 One(1)Heavy Duty Service Truck 66,900 L Total 570,0D0 620 - Environmental Assessment Water Column Sampler-Replacement 70,800 Coastal Monitoring Mooring-Replacement 228,70D r Total 299.500 630 - Environmental Sciences Laboretary Replacement Autoclave 64.700 L4 Wastewater Samplers(3) 17,400 Total a2,100 820-Operations&Maintenance Process Enuineerina L Turnkey Portable Scrubbers at P7 (carryovar from FY 06-07. not additional budget request) 100,000 Turnkey Portable Scrubbers at P2(cam/over from FY 06-07, not additional budget request) 275,000 V 375,000 840-Plant No.2 Operations Desks/cabinets for Ops Center Lab Office&Ops Mgfs Office at P2 20.000 i r Mechanical. Maintamancs, Services CSI 5200 Minilab with AMS Maa chinery Mgr and 3-day Tdbology Startup Svc 39.300 Instrumentation P1 Bus Duct Replacement(2)(#1) 21.600 V P1 Diversion Flow Meter(#2) 38.700 P1 Primary Effluent Pump Station(PEPS)Flow Meter(#4) 38.700 RAS Actuators(8)(4113) 69.000 168.000 k4 930 - Customer and Network SUDDprt Replacement Telephone)PBX System 431,000 Camera Equipment,Div 420(2) 21.500 1.4 Server Obsolescence Program(7 Servers) 85.000 Succession Planning-write software 45,000 Dias for Board Room Audk>Ndee System 5,900 L Streaming Audio Software(from FY 06-07,monies used for Board AV se additional monies needed) 12,a00 Software/Services for Learning Management System(from FY O6-07. monies used for Board AV In 06/07) 1a.000 MultiFunctianPrinter for GWRS trailer(Div 770) 10,000 860 VAX Server 21,600 Total 650.800 Total Proposed 2007-M CORF Equipment Budget 2,231,700 y V Intl A- 17 FY 2007-08 Budget Update Listing of Proposed Purchases Over$100,000 Resolution 07-04,'Establishing Policies and Procedures For:The Award of Purchase Orders and Contracts; Public Works .w Project Contracts;Professional Services Contracts;and Delegation of Authority to Implement Said Policies and Procedure,' was adopted by the Board on February 28,2007. Article IV,Section 4.03(B)of the Resolution provides that,'Purchases of supplies,materials,equipment or services,including Professional Service Consultants...as outlined in each Fiscal Years annual budget,to include capital equipment,shall be bid and awarded directly by the Contracts/Purchasing Manager.' The cow annual authorization amount for a multi-year contract is determined in the year the contract is bidAet. Therefore,the contract authorization amount indicated herein is valid only when the contract is bidaet in FY 2007-08. Following are services or supply items identified in the budget process with a cost greater than$100,000. Staff requests the Board approve the purchase of these items and those listed in the Proposed CORF Equipment Detail listing without further Board action in accordance with the referenced policy. r Contract Change Order Description of Services or Supplies Division Authorization Contingency(l) Chemical Contracts Anionic polymers for solids removal 830t84O S 269,000 0%(2) Cationic polymers for solids removal 830MO 1.590,000 0%(2) Ferric chloride 830/940 4,011,260 0%(2) Caustic soda for disinfection and odor control 83018401420 502.800 0%(2) Hydrogen peroxide for disinfection and odor control 830/840 1,521.000 0%(2) Bleach for disinfection and odor control 830/840 8.767,600 0%(2) war Magnesium hydroxide for odor control 420 663,000 0%(2) PRISC for odor control 420 2.939,000 091 Sodium bisuhite fordechlorination 840 461,000 0%(2) Omer Contracts r Uniform contract 230 300.000 10% Engineering services 410 140,900 10% Local sewer line cleaning 420 270,000 10% CCTV services for sewers 420 360.000 10% ry CCTV Woe rating contract 420 360.000 10% Manhole structure coating services 420 300.000 10% Right of way management services 420 175.000 10% Dig start program contract 420 215.000 10% Manhole W manhole relining 420 300.000 10% aw Manhole frame a cover replacement services 420 240,000 10% Groundskeeping services contract 430 304.000 10% Custodial services contract 430 452,100 10% Gasoline and lubricants-cardlock fuel contract 430 282.000 10% wa Process area preventive maintenance/painting program 430 424,000 10% Compressed natural gas 430 236,000 10% Security services contract 153 436.000 10% Hazerdous waste services 153 130,000 10% r Core OMP benthic infauna taxonomy 630 157,500 10% Physical ocearrogrephic data analysis 630 215.000 10% Solids removal 830/840 14.302.450 10% Grit and screenings hauling and disposal 830/840 510.000 10% war Natural plant services 840 328,500 10% Natural gas 830/840/860 1,181,000 10% GAP water 860 879,300 10% Digester cleaning and disposal 850 2.000.000 10% Diffuser replacement-aeration basins 8W 1,000,000 10% wa Engine overhauls 850 1.050,000 10% Gas cleaning system media replacement 850 150.000 10% Potable water systems analysis 850 350,000 10% Protective electrical relay calibration services 860 150.000 10% wa Printshop managed service program 930 280.000 10% Tmml Contracts with Board Pre-Approval 5 48,203.410 Note 1: The change order contingency is far the lifetime of this conlrect and is based can me annual authorized amount in line year her contract r is bidllet.(For sumps.a thme-year contract which is authorized for an annual contract amount of SM."with a 10%change al contingency must be initudly Neither or less than or equal for S3 .M;over am life of the contract,the hots change orders may not secured 10% of$300.000,or SWIM,) Note 2: Once a chemical contmcl is bgeat,them is ne remains lo unit cost allowed without Board approval. A- 18 r L Self-Funded Insurance Plans L SELF-FUNDED INSURANCE PLANS The General Liability and Property,program and the Workers'Compensation program have been in existence L since 1979 and cumen0y provides for the District to be partially self-insured for general liability and workers' compensation. The in-lieu premiums charged to the operating divisions are the revenue source for these j programs. Expenses primarily consist of settlement claims,legal fees and excess loss insurance premiums. LI Ending Reserve Balances are projected at$57 million. General Liability and Property L • The District's current excess general liability insurance coverage is$25 million with a self-insured retention of$250,000. • The District's current property insurance coverage is$1 billion for perils of fire and$175 million for perils of L flood,subject to a self-insured retention of 5 percent per unit of insurance up to$25,000 for fire and $100,000 for flood. The District is completely self-insured for earthquake. L • In order to maintain the reserve balance of$55 million for the Property and General Liability program, appropriations for in-lieu premiums charged to operating divisions are recommended at$1,998,200 for FY 2007-08. Ynl Workers'Compensation • The District's current excess workers'compensation coverage is$200 million with a self-insured retention of$500,000 per person per occurrence. • In order to maintain the reserve balance of$2 million for the Workers'Compensation program, appropriations for in4ieu premiums charged to operating divisions are recommended at$559,400 for FY �+ 2007-08. i FY 2007-08 Self-Insurance Program Budget y General Liability Workers' Total 8 Property Compensation Self-Insurance DESCRIPTION OR ACCOUNT TITLE Program Program Program Beginning Reserves $ 55.000,000 $ 2,000,000 $ 57,000,000 Revenues In-Lieu Premiums 1,998,200 559,400 2,557,600 Claims Reimbursement from Other Funds 10,000 - 10,000 Service Department Allocation 47,000 47,000 L Total Revenues 2,055,200 559,400 2,614,600 Expenses Benefits/Claims 200,000 200,000 400,000 L Contractual Services 1.200 30.000 31,200 Legal Services 300,000 50.000 350,000 L Professional Services 5,000 25,000 30,000 Policy Premium Expense 1,549,000 254,400 1,803,400 Total Expenses 2,055.200 559,400 2,614,600 i Excess Revenue(Expenses) L. Ending Reserves $ 55,000,000 $ 2.000.000 $ 57,000,000 A- 19 L. Historical Staffing Summary r Authorized Authorized Authorized Authorized Proposed r Department and Division Name FTE FTE FTE FTE FTE 2003-04 2004-05 2005-06 2006-07 2007-08 Office of the General Manager r General Management Administration 2.00 2.00 2.00 3.00 6.50 Assistant General Manager Administration - - - - 3.00 Board Services 8.50 8.00 5.50 6.50 5.25 Public Information Office 7.00 7.50 9.00 7.50 7.00 Safety&Health 7.00 7.00 8.00 8.00 8.50 Department Subtotal 24.50 24.50 24.50 25.00 30.25 r Administrative Services Department Administrative Services 2.00 2.00 2.00 2.00 2.00 Financial Management 18.00 20.00 20.00 19.00 18.00 r Contracts,Purchasing&Materials Management 19.50 22.50 27.50 29.50 31.50 Human Resources 25.00 27.00 28.00 19.00 16.00 Information Technology 31.00 31.00 32.00 32.00 30.00 r Departrtrent Subtotal 95.50 102.50 109.50 101.50 97.50 Technical Services Department Technical Services Administration 2.00 2.00 4.00 4,50 3.00 r Environmental Compliance&Regulatory Affairs 21.00 15.00 15.00 16.00 17.50 Environmental Laboratory&Oman Monitoring 37.00 37,00 37.00 38.00 4&50 Source Control 40.00 40.00 40.00 39.00 40.00 Environmental Compliance Services 11.001 moo 1 18.00 21.50 - Departnent Subtotal 111.00 112.00 114.00 119.00 109.00 Engineering Department r Engineering Administration 3.00 3.00 3.00 3.00 2.00 Planning 14.00 16.00 16.00 16.00 16.00 Project Management Office 14.75 17.75 15.75 15.75 1700 r Engineering&Construction 48,00 58.00 64.00 63.50 58,50 Facilities Engineering Project Management 11.00 Department Subtotal 79.75 94.75 98.75 98.25 104.50 r Operations&Maintenance Department Operations&Maintenance Administration 2.00 4.00 5.00 400 2.00 Operations&Maintenance Process Engineering 14.50 15.50 14.50 14.50 12.00 _ Plant No. 1 Operations 41.25 41.25 42.25 42.25 41.75 Plant No.2 Operations 4&50 46.50 47.50 47.50 46.00 Mechanical,Reliability,&Maim.Support Services 55.50 58.50 58.50 73.00 74.00 Instrumentation&Electrical Maintenance 54.50 54.50 54.50 6&00 71.00 Process Controls Integration 13.00 13.00 13.00 - - Regional Assets&Services Administration 2.00 2.00 8.00 8.00 6.00 Collection Facilities Operations&Maintenance 28.00 28.00 24.00 24.00 23.00 r Facilities Maintenance Services 312 32.00 30.00 19.00 17.00 Department Subtotal 287.25 295.25 29725 300.25 292.75 Grand Total-All Departments 598.001 629.00 1 644.00 1 644.00 634.00 r A-20 L Historical Staffing Detail V Authorizetl AuModzed Au0orized Approved Proposed l FTEs FTEs "Es FTEs FTEs L Division&Position 2003-04 ma4 f; 2005.OB 2008.07 2007-08 Office of the General Manager 110 Geroral Management Administration General Manager 1.00 1.00 1.00 1.00 1.00 Ly Assistant General Manager - - - 1.00 - Managemenl Discretion - - - - 4.00 Secretary to the General Manager 1.00 1.00 1.00 1.D0 1.00 i '. Intern0.50 LI Total Generel Management Administration 2.00 2.00 2.00 3.00 6.60 150 Assistant General Manager Administration Assistant General Manager - - - - 1.00 Legislative Affairs Liaison - _ _ _ 1.00 L Principal Financial Analyst - - - - 1.00 Grants Specialist - - - - - Electrical Technician II - _ _ _ _ Intern 4 Total Ant.General Management Administration 3.00 151 Board Services(formerly division 570) Director of Communications&Administrative Services - 0.50 - - - L Administrative Services Manager 1.00 - - - - Board Services Supervisor - - - 1.00 - Clerk of the Board - - - - 1.D0 thilities Management Specialist 1.00 - - - - Li Secretary to the Board of Directors 1.00 1.00 1.00 1.00 - Records Management Specialist 1.00 1.00 1.00 1.00 1.00 Associate Clerk of the Board II - - - - 1.00 Executive Assistant 1.00 1.00 - - - L• Assistant Secretary to the Board of Directors - 1.00 1.00 1.00 - Program Assistant - 0.50 0.50 0.50 0.25 Office Assistant 3.50 3.001 2.00 2.00 2.00 Total Board Services 8.50 8.00 5.50 6.50 5.25 L.I 152 Public Information Office(formerly division 560) Director of Communications&Administrative Services - 0.50 - - - Communications Manager 1.00 - - - - V Public Information Manager - - 1.00 1.00 1.00 Public Affairs Supervisor - - 1.00 - - Principal Public Information Specialist 2.00 2.00 1.00 1.00 1.00 Senior Public Information Specialist 1.00 1.00 2.00 2.00 2.00 L Public Information Specialist 2.00 3.00 2.00 2.00 2.00 Executive Assistant - - 1.00 - - Administrative Assistant 1.00 1.00 1.00 1.00 1.00 intern 0.60 Total Public Information Office 7.00 7.50 9.00 7.50 7.00 153 Safety&Health(formerly division 530) Safety&Health Manager - - - - 1.00 L Safety&Health Supervisor 1.00 1.00 1.00 1.00 1.00 Safety&Health Specialist 2.00 2.00 2.00 2.00 2.00 Security&Emergency Planning Specialist - - 1.00 1.00 1.00 L Senior Safety&Health Representative 1.00 1.00 2.00 2.00 - Senior Staff Analyst 1.00 1.00 - - - Safety&Health Representative 1.00 1.00 1.00 1.00 2.00 Human Resources Assistant 1.00 1.00 1.00 1.00 1.00 Intern - - - - 0.50 Total Safely&Health 7.00 7.00 8.00 8.00 S. Total Office of the General Manager 24.50 24.50 24.50 25.00 30.26 L A-21 i ' 66 r FY 2007-08 Budget Update r Authorized Authorized Authorized Approved Proposed r FTEs FTEs FTEs FTEs FTEs Division&Position 2003-04 2004-05 2006,06 2008-07 2007-06 Administrative Services Department 210 Administrative Services r Director of Finance&Administrative Services/Treasurer 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 Total Finance Administration 2.00 2.00 2.00 2.00 2.00 r 220 Financial Management Controller 1.00 1.00 1.00 1.00 1.00 Accounting Manager 2.00 2.00 2.00 2.00 2.00 Accounting Supervisor - 1.00 1.00 1.00 1.00 r Principal Accountant 4.00 4.00 4.00 4.00 3.00 Principal Financial Analyst 3.00 3.00 1.00 2.00 2.00 Senior Staff Analyst - 1.00 1.00 1.00 AccountantfStag Analyst - 1.00 - - 1.00 r Payroll Technician 2.00 2.00 2.00 2.00 2.00 Accounting Assistant II 6.00 6.00 8.00 6.00 5.00 Total Accounting 18.00 20.00 20.00 19.00 18.00 r 230 Contracts,Purchasing&Materiels Management Contracts&Purchasing Manager 1.00 1.00 1.00 1.00 1.00 Contracts Supervisor - - 1.00 1.00 1.00 Purchasing Supervisor 1.00 1.00 1.00 1.00 1.00 r Principal Contracts Administrator 1A0 1.00 1.00 1.00 1.00 Materiels Control Supervisor 1.00 1.00 1.00 1.00 1.00 Senior Contracts Administrator 0.50 1.50 4.50 4.50 5.60 Contracts Administrator 1.00 1.00 3.00 4.00 Senior Buyer 1.00 2.00 2.00 3.00 2.00 Buyer 2.00 2.00 2.00 1.00 2.00 StaBAnalysl 1.00 1.00 - - - Administrative Assistant 1.00 2.00 4.00 4.00 5.00 r Lead Storekeeper - 2.00 3.00 3.00 3.00 Senior Storekeeper 7.00 5.00 4.00 4.00 3.00 Contracts/Purchasing Assistant 1.00 1.00 - - - r Inventory Control Technician - - 1 00 1.00 - Program Assistant 1.00 - - - - Storekeeper - 1.00 1.00 1.00 2.00 Storekeeper Assistant 1.00 r Total Contracts, Purchasing&Materials Management 10.50 22.501 27.50 29.50 31.60 240 Human Resources(formerly division 510,620,540,550) Director of Human Resources 1.00 1.00 1.00 1.00 - r Human Resources&Employee Relations Manager - - - - 1.00 Human Resources Manager 1.00 1.00 1.00 1.00 - Human Resources Supervisor 2.00 2.00 2.00 2.00 2.00 Principal Human Resources Analyst 1.00 1.00 1.00 1.00 1.00 Security and Loss Control Representative - 1.00 - - - Senlor Human Resources Analyst 2.00 3.00 4.00 4.00 5.00 Human Resources Analyst 4.00 4.00 4.00 4.00 3.00 Executive Assistant 1.00 1.00 1.00 1.00 - r Human Resources Assistant 1.00 1.00 2.00 2.00 3.00 Program Assistant - - - - 1.00 Office Assistant 1.00 1.00 1.00 1.00 Interns for agency 9.00 9.00 9.00 - r Planned Reorultment Position Pool($max) 2.00 2.00 2.00 2.00 Total Human Resources 25.00 Ft. 28.00 10.00 18.00 11 A-22 r Historical Staffing Detail Authorized Authorized Authorized Approved Proposed FTEs FTEs FTEs "E. FTEs Division&Position M03-04 2004-05 2005-06 2006-07 2W7-05 930 Information Technology"min,Customer&Network Support(formerly division.910,920,9W Director of Information Technology 1.00 1.00 1.00 1.00 - Information Technology Systems&Operations Manager - - - - 1.W Executive Assistant 1.00 1.00 1.00 1.00 1.00 Let Office Assistant - - 1.00 1.00 Information Technology Manager 1.00 1.00 1.00 1.00 1.00 Information Technology Supervisor 1.00 1.00 1.00 1.00 - I Principal Information Technology Analyst 1.00 1.00 1.00 1.00 2.00 u Senior Information Technology Analyst 3.00 3.00 3.00 5.00 4.00 Information Technology Analyst III 6.00 7.00 7.00 5.00 3.00 Information Technology Analyst 11 1.W 1.00 1.00 1.00 1.00 Information Technology Anayst l 1.00 1.W 1.00 1.00 2.00 Staff Anslyst - - - - 1.00 Information Technology Technician II 1.00 - - 1.00 2.00 Information Technology Technician l 2.00 2.W 2.00 1.00 Total Administration.Customer&Netvod,Support 19.00 19.D0 1 20.00 20.00 18.00 940 Information Technology programming&Database Systems V Information Technology Manager 1.00 1.00 1.00 1.00 1.00 Principal Information Technology Analyst 3.00 3.W 3.W 5.00 S.OII Senior Information Technology Analyst 3.00 4.W 4.00 4.00 4.00 Information Technology Analyst 111 5.00 4.W 4.00 2.00 2.00 V Trial Programming&Detebese Systems 12.00 12.W 12.00 12.00 12.W 950 hHormation Technology Propose Controls Integration Process Controls Manager 1.00 1.00 1.00 - - SeniorEngineer 1.00 1.00 1.00 - - Is{ Principal Information Technology Analyst - 1.00 1.00 - - Engineer 4.00 4.00 4.00 - - Senlor Information Teohnctrgy Analyst 3.00 2.00 2.00 - - Information Technology Analyst 111 4.00 4.001 4.00 Total Process Controls Integration 13.00 13.00 13.00 Total Administrative Services Department 108.50 115.50 122.50 101.50 97.50 Technical Services Department 610 Technical Services Administration V Director of Technical Services 1.00 1.00 1.00 1.00 1.00 Legislative Affairs Liaison - - 1.00 1.00 - SaniorEncinear - - - - I.W Grants Specialist - - - 1.00 - SenlorEnvlronmentalSpecialist - - 1.00 - - led Executive Assistant 1.00 1.W 1.00 1.00 1.00 Intern - - - 0.80 Total Technical Sarvlcea Administration 2.00 2.W 4.00 3.W 020 Environmental Assessment Environmental Assessment Manager 1.00 1.W 1.00 1.00 I.W Chief Scientist 1.00 - - - - EnvironmentalSu"misor 1.00 - - - 3.01) Legal&Regulatory Affairs Liaison 2.00 1.00 1.00 1.00 2.00 V Senior Engineer - - - - 1.00 Senior Scientist 1.W 2.W 2.00 2.00 1.00 Engineer - - - - 1.W Scientist 2.W 1.00 - - SoftCaptain - - 1.00 1.W - Regulatory Speclalon 2.00 1.00 1.00 1.00 - Associate Engineer III - - - - 1.00 Principal Environmental Specialist 3.00 3.00 3.00 3.00 2.00 Senior Environmental Specialist 6.00 3.00 3.00 3.00 3.00 Environmental Specialist - 1.00 2.00 200 - Adminlstrative Assistant 1.00 1.00 1.00 1.00 1.W Office Assistant 1.00 1.00 - - - Intem 1.W 1.50 V Trial Environmental Assessment 21.00 1 15.001 15.00 1 16.W 1 17.50 V A-23 Lr FY 2007-08 Budget Update Authorized Audarize0 AutherizeE Appnniad Proposed FTEs FTEs ETEe FTEe FTEO Division 8 Position 2003- 20DC-05 2005-06 200607 2007-0 -� WO EnWronmental Sciences Laboratory Laboratory Manager 1AO 1.00 1.00 1.00 1.00 Operations Manager - - - - - Laboratory Section Supervisor 4A0 4.00 4.00 4.00 3.00 r Environmental Supervisor - - - - 1.00 LIMSAdnninlsiretor 2.00 2.00 2.00 2A0 1.00 Senior Scientist 1.00 1.00 1.00 1.00 3.00 Seat Captain - - - - 1.00 r Solentisl 2.00 ZOO 2.00 2.00 2.00 Principal Environmental Specialist - - - - 2.00 Principal Laborelory Analyst 9.00 9A0 9.00 9.00 1MOO Senior Environmental Specialist - - - - 3.00 Senior LaWratory Analyst 7.00 7.00 7.00 8.00 11.00 r Environmental Specalisl - - - - 1.00 Laborat r Analyst 8.00 6.00 6.00 5.00 3.00 Administrative Assistant tA0 1.00 1.00 1.Oo 1.00 Laboratory Assistant 3.00 3.00 3.00 3.00 3.00 ail Program Assblant 1.0W 1.00 tA0 1.00 1.00 Intent 1.00 1 1.50 Total Errrimmnental Sciences Laboratory 37AO 37AO 37.00 38.00 48.50 840 Sauna Central r See.Control Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 1.00 1.00 2A0 2.00 2.00 Senior Engineer 1.00 1.00 - - - Senlor Regulat r Specialist 1.00 t.W 1.00 1.00 1.00 Engineer 4.00 5.00 7.00 7.00 6.00 Regulatory Specialist 1.00 t.W 1.00 1.00 2.00 Source Control Supervisor 1.00 1.w 1.00 1.00 1.00 Associate Engineer III 6.00 5.00 3.00 3.00 3.00 Principal EnWronmanml Specialist 3A0 3.00 3.00 2.00 2.00 r Senior Emrimnmental Specialist - - - - 1.00 Source Control Inspector II 12.00 12.00 12.00 12.00 12.00 EnWronmenml Specialist 1.00 1.00 1.00 1.00 - Administrative Assistant - 1.00 1.00 1.00 1.00 Environmental Technician 2.00 2.00 2.00 2.00 3.00 r Program Assistanl 5.00 4.00 4.00 4.00 4.00 Office Assistant 1.00 1.00 1.00 1.00 I 1.00 Total Source Control 40.00 40.00 40.00 39.00 40.00 660 Environmental Compliance Services r Enclocednlg Manager 1.00 1.00 1.00 1.00 - Egineering Supervisor - - 1.00 1.00 - Legal B Regulatory Affairs Liaison - 1.00 1.00 1A0 - Senior Engineer 2.00 2.00 1.00 1AO - r Senior Scientist 1.00 1.00 1.00 1.00 - Engineer - 1.00 2.00 3.00 - RegulabrySpeciansl - 1.00 2.00 1.00 - Asso tale Engineer III 3A0 3.00 2.00 2.00 - Principal Envlronmentsl Specialist - - 1.00 1.00 - "'I Associate Engineer II _ _ _ 1.00 - Senior EnvlronmentalSpecialist 2.00 SAW 3A0 4.00 - Environmental Specialist - 1.00 1.00 1.00 - Administrative Assistant 1.00 1.00 1.00 1.00 - r Environmental Techncan 1.00 1.00 1.00 1.00 - Intern 1.50 Total Environmental Compliance Services 11.00 18.00 18.00 21.50 Total Technical Services Department 111.00 112.00 114.00 119.00 109.00 r Engineering 9 9 Department 710 Engineering Adminlntratbn Director irectorof Engineer ring 1.00 1.00 1.00 1.00 11.00Senior Engineer 1.00 1.00 1.00 1.00 - r EMI - - - - - EzeAssistant 1.00 .00 .00 1.00 1.00 Totuavtiv 1 Total Engineering Administration 3.00 3.00 3 3.00 3.00 2.00 A-24 L Historical Staffing Detail L Audgrizetl Puthortuxf AulMnzetl Approved Proposed FTEs FTEs FTEa "Es "Ea 1 Division&Position 200304 2000-05 2 06 21 7 28D]-0 L 8 740 Planning Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor - 1.00 1.00 1.00 1.00 1 Senior Engineer 1.00 1.00 1.00 1.00 - L Engineer 1.00 1.00 1.00 1.00 2.00 Principal Engineering Data Management Specialist - - - 1.00 - Senior Engineering Data Management Specialist 1.00 1.00 1.00 1.00 1.00 1 Engineering Data Management Specialist 1.00 1.00 1.00 - - Irrl Associate Engineer III 1.00 1.00 1.00 1.00 1.00 Senior Engineering Associate 2.00 2.00 2.00 2.00 2.00 Engineering Associate 1.00 1.00 1.00 1.00 2.00 Engineering Data Management Technician II 2.00 2.00 3.00 3.00 3.00 Engineering Assistant II 2.00 2.00 1.00 1.00 - Atlministra8ve Assistant 1.00 1.00 1.00 1.00 1.00 Eigineering Assistant 1.00 1.00 1.00 2.00 Total Planning 14.00 16.00 16.00 16.00 16.00 750 Project Management Office lad Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 1.00 1.00 1.00 1.00 1.00 Capital Improvement Program Pro na Manager 8.00 8.00 8.00 8.00 7.00 - Principal Engrteerin,Data Management Specialist - - - - 1.00 y Principal Staff Analyst - 2.00 2.00 2.00 2.00 Cost Estimator - - - - 1.00 Senior Engineering Associate - 1.00 - - - PlannedSctieduler _ _ 1.00 1-00 1.00 j Sanior Staff Analyst Cm - - - _ Engineering Assistant II 1.75 1.75 0.75 0.75 1.00 Atlministrative Assistant 1.00 2.00 1.00 I.W 1.00 Office Assistant 1.00 1.00 /.00 1.00 1.00 Total Project Management Once 14.75 17.75 15.75 16.75 1].00 Ld 760 Engineering&Co tmuction Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 4.00 4.00 4.00 4.00 4.00 1 Senior Engineer 4.00 7.00 6.00 7.00 &00 6. Senior Construction Inspection Supervisor - - 1.00 1.00 1.00 Construction Inspection Supervisor 2.00 2.00 3.00 3.00 3.00 Engineer 11.00 12A0 13.00 12.00 10.00 Senior Engineering Associate 1.00 2.00 2.00 2.00 1.00 y Coat Estimator - - 1.00 1.00 - plannedScaeduler - - - 1.00 - Assoaate Engineer III 3.00 4.00 4.00 4.00 4.00 Senior Construction Inspector 8.00 8.00 9.00 9.00 7.00 Associate Engineer II - - 1.00 - - Li Engineering Associate 1.00 - 1.00 1.00 - C rartrue0on Inspector 6.00 10.00 9.00 8.00 10.00 Engineering Assistant ll 2.00 3.00 3.00 3.00 3.00 1 Administrative Assistant 4.00 4.00 4.00 3.00 3.00 V Engineering Assistant 1 1.00 1.00 1.00 1.00 1.00 Office Assistant - - 1.00 1.00 1.00 Intern1.50 1.50 Total Engineering&Construction 48.00 58.00 64.00 63.50 59.50 ]]0 Facilities Engineering Protect Management Eng Engineering Manager - - - - 1.00 Engineering Supervisor _ _ _ 1.00 Senior Engineer - - - - 1.00 Engineer - - - - 5.00 u Associate Engineer 111 - - - - 1.00 Associate Engineer 11 - - - - 1.00 Administrative Assistant 1.00 Tonal Facilities Engineering Project Management 11.00 v Total Engineering Department ]9.]5 94.15 98.75 98.25 104.50 A-25 r r FY 2007-08 Budget Update Authorized Authodzed Authorized Approved Proposed r FTEs FTEs FTEs FTEs FTEs Division&Position 2003-04 20D405 2005-06 2006-07 2007-08 Operations&Maintenance Department 810 Operations&Maintenance Administration r Director of Operations&Maintenance 1.00 1.00 1.00 1.00 1.00 Environmental Supervisor - 1.00 - - - Principal Financial Analyst - - 1.00 1.00 - UtilitiesManagemenlSpecialisl - 1.00 2.00 1.00 - r Executive Assistant 1.00 1.00 1.00 1.00 1.00 Total Operations&Maintenance Administration 2.00 4.00 5.00 4.00 2.00 410 Regional Assets&Services Administration Director of Regional Assets&Services - - 1.00 1.00 - Engineering Manager 1.00 1.00 - - - Engineering Supervisor - - 1.00 1.00 1.00 Senior Engineer - - 1.00 1.00 1.00 Principal Financial Analyst - - 1.00 1.00 1.00 O1� Principal Staff Analyst - - 1.00 1.00 1.00 Engineer - - 1.00 1.00 - Senlor Engineering Associate - - 1.00 1.00 1.00 Executive Assistant - - 1.00 1.00 1.00 as Administrative Assistant 1.00 1.00 Total Regional Assets&Services Administration 2.00 2.00 8.00 8.00 6.00 420 Collection Facilities Operations&Maintenance r Engineering Manager - - - 1.00 1.00 Engineering Supervisor 1.00 1.00 - - - Senior Engineer 1.00 1.00 - - - Senior Maintenance Supervisor 1.D0 1.00 1.00 1.00 - r Principal Staff Analyst 1.00 1.00 - - - Maintenance Supervisor 2.00 2.00 2.00 2.00 2.00 Senior Engineering Associate 1.00 1.00 - - - CMMS Technician II 1.00 1.00 1.00 - r Lead Mechanic 3.00 3.00 4.00 4.00 4.00 Senior Mechanic 6.00 6.00 8.00 9.00 9.00 Mechanic 11.D0 11.00 8.00 7.00 7.00 Total Collection Facilities Operations&Maintenance 28.00 28.00 24.00 24.00 23.00 r 430 Facilities Maintenance Services Facilities Manager - - - 1.00 - Senior Maintenance Supervisor 1.00 1.00 1.00 1.00 1.00 Engineer 1.00 1.00 - - - '� Principal Financial Analyst 1.00 1.00 - - - Maintenance Supervisor 3.00 3.00 3.00 2.00 2.00 Maintenance Specialist 1.00 2.00 2.00 - - CMMS Technician ll 1.00 1.00 1.00 - - Lead Mechanic 2.00 2.00 2.00 1.00 1.00 Lead Welder/Fabricator 1.00 1.00 1.00 - - Machinisl 1.00 1.00 1.00 - - Automotive/Heavy Equipment Assistant - - 1.00 1.00 1.00 Automotive/Heavy Equipment Technician 3.00 4.00 3.00 3.00 3.00 Equipment Operator 3.D0 3.00 3.00 3.00 2.00 Senior Mechanic 2.00 2.00 3.00 - - Welder/Fabricator 2.00 2.00 2.00 - - ev Lead Facilities Worker &00 3.00 3.00 3.00 3.00 Facilities Worker/Builder 2.00 2.00 2.00 2.00 2.00 Facilities Worker/Painter 2.00 2.00 2.00 2.00 2.00 Mechanic 1.00 1.00 - - - r Motor Pool AssistantlDispatcher 1.00 Total Facilities Maintenance Services 31.00 32.00 30.00 19.00 17.00 A-26 r 64 Historical Staffing Detail Ise AWwdzed AUlhaize0 Ae1he1¢ed Approval Proposal FTEs FTEa FTEs FTEs FTEa Oivivon 8 Position 2N3-04 2004-05 200508 2 07 2007-011 I"t 820 Opera0one 8 Maintenance Process Engineering Engineering Manager 1.00 1.00 1.W 1.00 1.00 Engineerrtg Supervisor - - 1.00 1.00 1.00 Senior Engineer 3.00 3.00 3.00 3.00 2.00 as Senior Scientist O.W O.W MW 0.50 0.50 Engineer 5.W 6.W 5.00 5.W - PrincipalFinancialAnalyst 1.W 1.00 - - - RegulalorySpecalisl - - - - 1.W Associate Engineer III 2-W 2.00 2.041, 2.00 2.00 Associate Engineer II _ _ _ _ Senior Environmental Specialist 1.00 1.00 1.W 1.00 3.00 Administrative Assistant 1.00 1.00 1.00 1.00 - Engineering Assistant I - - - - - Environmental Technician - - - - COD Intent 0 W Total Operations B Maintenance Process Engineering 14.50 15.50 1 14.50 14.50 12.00 ON Plant No.1 Operations lea Operations Manager O.W 0.50, OSO 0.50 - Chief Plant Operator 1.00 1.00 1.00 1.00 1.00 Operations Supervisor 8.W 8.W 7.W 7.W 7A0 Senior Plant Operator 14.W 14.W 16.00 16.00 lam set Plant Operator 14.00 14.0D 14.00 14.00 14.0111 Administrative Assistant 0.75 0.75 0.75 M75 0.75 Control Center Technician 3.W 3.04) 3.00 3.W 3.04) Total Plant No. 1 Operations 41.26 41.25 42.25 42.25 41.75 le, Plant No.2Operattona Operations Manager 0.54) 0.50 0.50 0.50 - Chief Rent Operator 1.00 1.00 1.00 1.00 1.00 Operations Supervisor 7A0 7.00 8.00 7.00 7.00 L+ Senior Plant Operator 11A0 12.W 11.00 12.W 12.W Plant Operator 23.W 23.W 24.W 24.00 23.110 E,wpmenl Operator 1.00 1.00 1.00 1.00 1.00 - AdministrativeAssistant 1.00 1.00 1.01111 1.W 1.00 j Control Center Technician 1.00 1.W 1.W 1.00 1.00 Is, Total Plant No.2 Opetaations 45.54) 46.50 47.W 47.50 46.W ON Mephank .Reliability.8 Maintenance Support Services Maintenance Manager O.W 0.54) om 1.W 1.04) 1 Senior Engineer - - - - 2A0 V Senior Maintenance Supervisor 1.W 1.00 1.00 1.W 1.00 Reliabdity Maintenance CoordinatodTechnician - 1.W - - - _ Engineer - - 1.00 1.00 2A0 Utilities Management Specialist - - - - 1.W V Maintenance Supervisor 5.W SAW 5A0 7A0 7.W Maintenance Specialist 3.00, 3.00 3.00 7A0 7.W Associate Engineer III - - - - 1A0 CMMS Technician ll 2.00 2.W 2.00 6.00, 6.00 1 Lead Electrical Technician - - - 1.00 - 6, Lead Power Plant Operator 1.00 1.00 loU - - Elentrical Technician It - - - 2.W - Lea t Mechi nic 3.W 3.0411 3.00 SAW 5.00 Lead W.1cladFabricatar - - - 1.00 1-W V Power Rant Operator 11 111 g.W g.W - - Machinist _ _ 1.W 1.00 Administrative Assistant 1.00 1.00 1.W 1.W 1.W Senior Mechanic 27.00 29.04) W.W 34.001 33.W welder/Fabricator - - - 2.00 2.00 L Engineering Assistant 1 - - 1.00 1A0 1.W Senior Maintenance Worker 1.W I p w to 1.W - Mechanic 1.W 1.00 - - Program Assistant 1.W 1.00 - - - lei Office Assistant 1.W 1.00 Total Mechanical Maintenance 8 Power Production 55.50 1 SO SO 58.50 L A-27 r FY 2007-08 Budget Update r Aupionzetl Authorized Authanze0 Approved Propose) FTIs FTEa "Es FTEs FTEs Division 8 Position 2013 -0 2004-05 2005-06 200&07 21XI r 660 Instrumentation&Electrical Maintenance Maintenance Manager O.W O.W O.W - - Process C tmis Manager - - - 1.W 1.W Engineering Supervisor - - - 1.00 1.W r Senior Maintenance Supervisor 1.W 1.00 1.W 1.W - Maintenance Supervisor 6A0 9.W 6.00 5.00 5.00 Maintenance Specialist 3A0 3.00 3.00 - - CMMS Technician II 2.W 2.W 2.W - - r Senior Engineer, - - - 1.W 2.00 Engineer - - - 4.W 2.W Principal Information Technoogy Analyst - - - 2.00 2.00 Senior Information Technology Analyst - - - 2.00 3-W ad Grants Techo no9y Analyst III - - - &W 2.W Grants Speclallat - - - - - Laad Power PIarn Operator - - - 1.00 1.W Lead Electncl Technician 2.00 3.00 &W 2.00 4.00 Leadlostmmentation Tacllnidan 2.W 2.00 2-W 2.W 2.W r Information Technoogy Analyst ll - - - - 2.W Electrical Technician 11 17.00 16.W 16.00 14.00 16.00 InaWmentation Technician II 19.W 19.W 19.00 19.00 19.00 Power Plant Operator ll - - - 9A0 9.00 r Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Office Assistant 1.00 1.00 1.00 Total lnstmmentailon B Electrical Maintenance 54.W 54.W 54.W W.00 ]1.00 Total Operations 8 Maintenance Deparbnent 2T4.25 262.25 264.26 300.25 292.T5 r Grand Total,All Departments 599.00 629.00 644.00 1144.00 634.00 as r r r r r r A-28 r 6w Appropriations Limit years to refund any remaining excess or to Appropriations Limit obtain a successful override vote. Article XIIIB of the California State Constitution, i.. more commonly referred to as the Gann Initiative In certain situations, proceeds of taxes or Gann Limit,was adopted by California voters in may be spent on emergencies without 1980. The Gann Limit placed limits on the amount having to reduce the limit in future years. L of proceeds of taxes that state and local governmental agencies can receive and Each agency also conducts a review of its appropriate(authorize to spend)each year. Appropriations Limit during its annual financial audit. Lt The limit is different for each agency and the limit changes each year. The annual limit is based on The law requires a governing body to annually i the amount of tax proceeds that were authorized adopt,by resolution, an appropriations limit for the V to be spent in fiscal year 1978-79 in each agency, following year, along with a recorded vote modified for changes in inflation and population in regarding which of the annual adjustment factors each subsequent year. have been selected. The Orange County Sanitation District's appropriations limit and annual Proposition 111 was passed by the State's voters adjustment factors are adopted at the same in June 1990. This legislation made changes to meeting as the budget. The adjustment factors the manner in which the Appropriations Limit is to used for 2007-08 are the weighted average be calculated: change in city population and the change in state per capita personal income. The annual adjustment factors for inflation and population have been changed. The following table shows the annual Instead of using the lesser of California appropriations limit for each of the last two years per capita income,or U.S. CPI,each and the appropriations limit and the appropriations, agency may choose either the growth in or proceeds from taxes,for 2007-08. The increase the California per capita income,or the in the limit is based upon population changes 6+ growth in assessed valuation due to new ranging from 0.38%to 1.10%for major cities non-residential construction within the within the District as provided by the State district. For population, instead of using Department of Finance and a per capita personal only the population growth of an agency, income change of 4.42%as provided by the State each agency may choose to use the Department of Finance. population growth within its county. These are both annual elections. Annual Appropriation Limits: 61 The revised annual adjustment factors will 2005-06 $68,363,000 be applied to the 1986-87 limit for most 2006-07 $71,515,000 agencies and each year in between in 2007-08 $75.209.000 L. order to calculate the 1990-91 limit. The Proceeds of Taxes(Appropriations) actual limits for the intervening years, however, are not affected. 2007-08 $26.342,000 Expenditures for qualified capital outlay', As a result of the July 1998 consolidation of the which are capital assets with a value of District, a single limit is presented in contrast to more than$100,000 and an expected life individual limns shown in years prior to 1998. of 10 years or more,are excluded from the Population changes for representative cities have limit. continued to be used in order to ensure consistency and to eliminate significant population 6• An agency which exceeds the limit in any growth in parts of the County outside of the one year may choose to not give a tax District's service area. This method results in a refund if they fall below the limit in the next lower limit than using the County-wide change. L. fiscal year. They then have two more A-29 eas Miscellaneous Statistics General Information Year of Formation......................................................... 1948 2006-07 Assusacd Value......................................$239.0 billion Form of G.,conancrit..................County Sanitation District Miles of Sewers...........................................................581 miles Authority.............-.............................Section 4700 of.seq. Off-Plant Pump Stations.,........................................................16 ..........................................California Health&Safety Code Operating Authority................NPDES Permit No.CAO 110604 Service Area....................................................471 sq.miles .......................................Statewide WDR Order No.2006-0003 Service Population......................Approximately 2.5 million Authorized Staff(Full-Time Equivalent).........................644.00 Treatment Information Sax Daily Influent Flow to Total Primary 2005-06 Influent BOD: Capacity Comparison(in mgd) Plant No. I ................................280 milligrams per liter Plant No. 2................................210 milligrams per liter 40o 312 300 350 2005-06 Influent Suspended Solids: eas 250 200 ISO Plant No. I ................................278 milligrams per liter ISO Plant No. 2................................252 milligrams per liter 10, i 1. 2005-06 Effluent BOD..............................49 milligrams per liter a Plant I Plan, z Total 2005-06 Effluent Suspended Solids..........34 milligrams per liter 02006.07 Est.Influent 3C Specify- P rimary Treatment 2005-06 Biosolids Beneficially Used ...............234.024 wet tons Primary Treatment Capacity(includes standby) 2006-07 Estimated Avcragc,Daily Influent: Plant No, I................................................204 mgd Plant No. I.......................................................90 mgd Sea Plant No. 2................................................ 168 in d Plant No. 2....................................................... 139 me TOTAL....................................J72 mud TOTAL...........................................722.ligW, eas Secondary Treatment Capacity: Electricity Generated: Plant No. I................................................ 110 mgd Plant No. I............................................35,444,000 kwh Plant No. 2................................................ 90 mad Plant No. 2...........................................66,544,000 k.h TOTAL.............................. TOTAL............................. .,d millionranon 4ey Wit ka our.loua ,losir Financial Information 2007-08 2007-08 2005-06 2006-07 Originally Updated Actual —Projected Proposed Proposed Fees and Chargcs: One-Time 3-Bedroom Residence Connection S2,890.00 S4,360.00 $4,578.00 S4,517.00 eas Average Annual Single-Family Residence Fee S151.00 $165.80 $182.05 $182.00 District's Avg.Share of Ad Valorem Property Tax 1.60% 2.80% 2.80% 2.80% Cost to Collect,Treat,&Dispose of I Million Gallons S1,216.77 $1,263.84 S 1,430.17 $1,47&08 Summary of COP Issues, December 1992 Refunding S 160,600,000 August 2003 New Money $ 280,000,000 September 1993 Refunding 46.000.000 March 2006 New Money 200,000,000 August 2000 Refunding/New Money 218.600,000 May 2007 Refunding 95,180,000 Total Outstanding COP Balance 7/l/07 795,105,000 A-30 RI BTI�IAL it ' ;Aft , �. •. ��EQ a.PRIMARY TREATMENT J Following preliminary treatment the wastWle R basins(tor about two hours)where liquid no solids sank and are scraped off the botto an joff the top of the basins.The materals that are 3.AIR EMISSIONS CONTROL a processing facilities.Adding coagulants type r o SobdS resulting in'advanced primar Ire L / Chemical and biological scrubbers w is either pumped to secondan ear clean the air extracted from the various • the l treated effluent. enclosed treatment lacihbes ' 2.CHEMICAL ADDITION / Hydrogen peroxide is added to the incoming wastewater �I y to help reduce hydrogen sulfide and control occurs. r � � Chemical coagulants are added 10 the wastewater to enhance the primary settling process fill e. PRELIMINARY TREATMENT Wastewater passes through bar screens that trap and remove large and nonorgamc materials. It then flows into grit chambers j where the heaviest materials.such as egg shells,coffee grounds / and sand,settle out. The materials removed during these _ processes are sent to a sanitary landfill S. SECONOARY TRFATMENT\ Advanced primary heated wastewater is pumped to aeration basins where ^ microorganisms,called activated sludge,consume the remaining organic solids.The wastewater is then pumped < into settling basins where the activates sludge semen out.Most of it is into scraped off the bosom and returneda activated to the aeration halms to regenerate this process.and me excess is sent to solids processing. T , Toll g filers provide similar treatment who microbes INDUSTRIAL REUSE lift on media. \ I i TO.WA Aft or LANDSCAPE IRRIGA - Or. ge hill that irc he m ig and indl rm-T1 - ijr_ F LANDFILL isyyroped to larye settling sot separate.The heavier COMPOST f tt lighter material is skimmed removed are sent to solids — aw,Nstewater Improves settling de, rastewater.The treated _ LAND APPLICATION his facilities or blended into - G.SOLIDS PROCESSING Solids removed during the treatment processes are pumped intothe digesters where they undergo natural decomposition for 20.30 days. Had the solids convert to a gas mostly made up of methane.which is Ilksent to our own energy recovery facilities. The remaining solids are pumped to dewalering facilities to achieve a 23 percent solid material with a cake-like */ , consistency)wiled bicsolids.The biosolids are recycled for direct land r used application as a soil Bill or uals to make fertilizer sent to can also he composted or sent to f a landfill if necessary. 7. ENERGY RECOVERY rIn our Central Power Generation Facility, the methane gas derwed from the digesters AA is used to power engine-generator units that •. `C produce the electricity used as the energy source to operate both treatment plants. 8.OCEAN OUTFALL wastewater PUMPING STATION The blended an wastewater after di both plants Is blentlatl and pumped after disinfection and tlechlotlnation into a large mean outfall pipe.This facilM has the capacity to pump -- ^h^ 480 million gallons of treated wastewater a day,which helps us handle -^ Y stormwater inflows.and will meet our capacity needs for many years. ti g. OCEANAUTFALL ocean The ocean outfall pipe is 10leel in diameter,live mila6- > long and safety discharges treated wastewater at a de Ef6QECLAMATION of 2DO feet.The last mile of the pmeg el ddgluser. de condary-treated wastewater to the section with hundreds of Itheles,w1p male lOL I Water District for advanced treatment and high rate W chidden wi IIIdIpusseeder..�. j— - i.The water district has two treatment plants ' ideufpclaimed water that is either injected )rc dwater table to black seawater -� .o. -sed for landscape irrigal still processes. r W ON BAflflIEfl " L' L L LI ORANGE COUNTY SANITATION DISTRICT y Finance Department 10844 Ellis Avenue Fountain Valley, California 92708-7018 (714) 962-2411 LI www.ocw.com Distributed at the Administration Committee o 7 Meeting FY 2007 = 08 Budget Update VpvNSV SANfTgT�Oy c> a 4 2 n O -f q h THE June 13, 2007 Orange County Sanitation District Highlights of the proposed budget include : ♦ Second year update of the two-year budget ♦ Staffing Level Review — 634 Positions ♦ Reduction of 10 positions and 20 reclassifications ♦ Capital Improvement Program (CIP) ♦ No significant change from last year's $500 million reduction ♦ Strong financial positioning — maintaining AA Bond Rating While revenues will remain constant, CIP expenditures will decrease . Revenues: Adopted FY 07-08 Fees & Charges $200 M $201 M General Income $107 M $106 M Debt Proceeds $300 M $300 M Total Revenues $607 M $607 M Expenditures; Adnn#ed __ EY._0Z-o8 CIP (including Debt Service) $402 M $368 M Collection , Trtmt & Disposal $138 M $140 M Central Agency Costs! $ 5 M $ 5 M Total Expenditures $545 M $513 M '- Includes self insurance requirements. Most of the District's resources (72%) are related to the Capital Improvement Program . Adopted Proposed Capital Improvement Prog. $ 339 M $ 303 M Debt Service $ 65 M $ 65 M Operating Cost $ 112 M $ 115 M Administration Cost $ 24 M $ 25 M Central Agency Cost $ 5 M $ 5 M Total Expenditures $ 545 M $ 516 M The Capital Improvement Program can be divided into five distinct areas . FY 07-08 1 . Secondary Treatment Facilities $ 98 M 2 . Groundwater Replenishment System $ 16 M 3. Treatment Plant Rehab / Upgrades $ 118 M 4. Collections Costs $ 71 M Sub- Total $ 303 M 5 . Debt Service $ 65 M Total $ 368 M $ 140 million (27%) of the proposed 2007-08 Budget is allocated to Operating Expenses . Adopted Proposed Capital Improvement Prog. $ 339 M $ 303 M Debt Service $ 65 M $ 65 M Operating Cost $ 112 M $ 115 M Administration Cost $ 24 M $ 25 M Central Agency Cost $ 5 M $ 5 M Total Expenditures $ 545 M $ 513 M Operating and Administration costs will increase by $2 .4 million (1 .8%). Adopted Proposed Proposed FY 07-08 FY 07-08 Change Salaries & Benefits $ 75.9 M $ 79.9 M $ 4.0 M Chemical & Other Supplies 25.4 23.1 (2.3) Contractual Services 20.9 24.2 3.3 Repairs & Maintenance 10.4 9.0 (1 .4) Utilities 9. 1 9.9 0.8 Research & Monitoring 1 .4 1 .5 0.1 Other Expenses 9.7 10. 1 0.4 Cost Allocation (17.3) (19.8) (2.5) Sub-Total $135.5 $137.9 $ 2.4 Prior Year Carry Over 0.0 2.0 2.0 Total Operating & Admin $135.5 M $139.9 M $ 4.4 M The majority of the expenditure changes will occur in five expenditure categories : Proposed Changes 1 . Salaries & Benefits $4.0 M 2. Chemicals & Other Supplies ($2.3)M 3. Solids & Waste Disposal $2.7 M 4. Repairs & Maintenance ($1 .4)M 5. Utilities $0.8 M Salaries and Benefit costs will increase primarily due to recently approved employee contracts and benefit costs . Adopted Proposed Proposed FY 07-08 Change FY 07-08 Total Salaries & Benefits $ 75.9 M $ 79.9 M $ 4.0 M Chemicals costs related to treating effluent are projected to be less than anticipated . Adopted Proposed Proposed FY 07-08 Change FY 07-08 Disinfection $10.0 M ($1 .0)M $ 9.0 M Odor Control 6.6 (0.7) 5.9 Coagulants 6.3 (0.4) 5.9 Other Chemicals 2.5 (0.2) 2.3 Total Chemicals $25.4 M ($2.3)M $23. 1 M Biosolids hauling costs continue to rise, increasing the contract services budget. Adopted Proposed Proposed FY 07-08 Change FY 07-08 Solids Removal $13.4 M $0.9 M $14.3 M Residual Solids / Grit 0.6 1 .8 2.4 Other Contract Services 6.9 0.6 7.5 Total Contractual / $20.9 M $4.3 M $24.2 M Professional Services OCSD operation plants will decrease their Repairs and Maintenance budget. Adopted Proposed Proposed FY 07-08 Change FY 07-08 R&M — Services $ 4.1 M $(0.5)M $3.6 M R&M — Materials 4.6 (0.7) 4.0 R&M — Other 1 .7 (0.2) 1 .5 Total R&M $10.4 M ($1 .4)M $9.0 M The Utilities budget is increased , as electricity and natural gas costs continue to rise . Adopted Proposed Proposed FY 07-08 Change FY 07-08 Electricity $6.4 M $0.6 M $7.0 M Natural Gas 1 .0 0.3 1 .3 Water 1 .5 (0.1 ) 1 .4 Other 0.2 0.0 0.2 Total Utilities $9. 1 M $0.8 M $9.9 M Next Steps ♦ Presentation and budget adoption at the June Board meeting Questions opvNIy SANITgr/oy 2 P Q � o A h FCr,NG ' THE, Orange County Sanitation District www.ocsd .com ORANGE COUNTY SANITATION DISTRICT PM NOTICE OF CANCELLATION OF MEETING (714)962-2411 [714)962d356 ADMINISTRATION COMMITTEE Finance, Human Resources and Information Technology mulling.dare.: P.O.B.8127 Fountain Vall,CA 9272B-8127 8Isn164EbAvee ORANGE COUNTY SANITATION DISTRICT ountain Valleµ 04 92708-7018 Member WEDNESDAY, JULY 11, 2007 -5:00 P.M. A,...1. 411, DISTRICT'S ADMINISTRATIVE OFFICES cities 10844 ELLIS AVENUE Anshaim FOUNTAIN VALLEY, CALIFORNIA92708 Brae Buena Perk W W W.00SD.COM Lypress Fopntem Valley Fullerton Garden G}orn, Huntington Beach 1,and A regular meeting of the Administration Committee of the Orange r La Habra County Sanitation District is cancelled. Le Palma Los Alamitos Newport Beach Orange contends Sent.And Seel Beach Stanton Timun Va.Park Y.rba Linde County of Orange genlcery Districts Caste Meso Midway City Water Districts Irvine Panch To maintain world-class leadership in wastewater and water resource management.