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2007-06 Ops
MINUTES OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Technical Services Orange County Sanitation District Wednesday, June 6, 2007—5:00 p.m. A meeting of the Operations Committee of the Orange County Sanitation District was held on June 6, 2007, at 5:00 p.m. In the Sanitation District's Administrative Office. (1) ROLL CALL A quorum was declared present, as follows: Operations Directors Present: Staff Present: Larry Crandall, Chair Jim Ruth, General Manager Cathy Green, Vice Chair Bob Ghirelli, Assistant General Manager Charles Antos Nick Arhontes, Dir. of Operations & Maintenance Don Bankhead Jim Herberg, Director of Engineering Patsy Marshall Lorenzo Tyner, Director of Finance and Roy Moore Administrative Services David Shawver Lille Kovac, Committee Secretary Steve Anderson Tod Haynes, Engineering Manager Don Webb Matt Smith, Engineering Manager Constance Underhill John Linder, Engineering Manager Doug Davert, Board Vice Chair Juanita Skillman Norbert Gala Operations Directors Absent: Michael Gold Harry Sidhu James M. Ferryman, Board Chair Others: Alternate Director Bob Ooten Jag Salgaonkar (2) APPOINTMENT OF CHAIR PRO TEM p L�NgKTHE OFFEICBE E COUN1�' Og9F� No appointment was necessary. 0R 9�ATIUN DI ICT JUN 27 2007 (3) PUBLIC COMMENTS There were no public comments. BY: (4) REPORT OF THE COMMITTEE CHAIR Chair Crandall reported that the Steering Committee had traveled to Sacramento to meet with various legislators on SB 645 Design Build and SB 55 Florez bill. Minutes of the Operations Committee June 6, 2007 Page 2 (5) REPORT OF THE GENERAL MANAGER General Manager, Jim Ruth, did not give a report. Michael Gold briefly reported on the status of SB 645, the negative editorial against it, and efforts to clear misinformation about the bill's intent. Director of Finance and Administrative Services, Lorenzo Tyner, briefly provided highlights of the budget update for 2007-08, in anticipation of budget approval at the June Board meeting. (6) CONSENT CALENDAR ITEMS a. MOVED, SECONDED, AND DULY CARRIED: Approve minutes of the May 2, 2007 Operations Committee meeting. b. OP07-54 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to approve 1)Approve the payment of annual National Pollutant Discharge Elimination Permit(NPDES) Fee of$128,500 to the State Water Resources Control Board for the period July 1, 2006 through June 30, 2007; and 2)Approve Resolution No. 07-XX, Establishing Policy for the Payment of Mandatory and Statutory Fees Greater Than the Limits Established in Resolution No. OCSD 07-04 and in Future Updates to the Delegation of Authority. C. OP07-55 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to approve a Facilities Use Agreement with the Southern California Coastal Water Research Project to conduct microbiology testing using OCSD microbiology laboratory facilities for a shared benefit to both OCSD and SCCWRP, at no additional cost to OCSD. d. Item pulled for discussion. e. Item pulled for discussion. f. OP07-58 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to approve out-of-country travel for four Orange County Sanitation District employees (Morris Ying, Joe Chester, Jim Harris, and Adam Almasri)to witness factory testing of pumps, variable frequency drives and motors, in connection with Headworks Replacement at Plant No. 2, Job No. P2-66, and all travel, lodging, and per diem costs to be paid by J.F. Shea Construction, Inc. 'Minutes of the Operations Committee June 6, 2007 Page 3 Non-Consent Calendar g. OP07-56 Director of Operations and Maintenance, Nick Arhontes, presented a report Identifying dangers and risks to the Field Operations personnel while accessing Sanitation District easements for maintenance, and the need for resolution to be adopted. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to adopt Resolution No. XX, Adopting a Policy Regarding Maintenance of Unobstructed Access to District Easements. h. OP07-57 Director of Engineering, Jim Herberg, briefly reported that this Item allows for time extensions with no change in dollar amounts. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: (1)Approve Amendment No. 3 to Cooperative Projects Grant Program Contract No. 0127 with the City of La Habra providing for a time extension and change in scope with no additional funding; and, (2)Approve Amendment No. 1 to Cooperative Projects Program Contract No. 0503 with the City of Placentia providing for a change in scope and reallocation of funds. (7) ACTION ITEMS a. OP07-59 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to approve an exception to Resolution No. OCSD 07-04, Section 5.04, authorizing the following: 1) Approve Professional Design Services Agreements with Carollo Engineers; Dudek; Earth Tech, Inc.; Infrastructure Engineering Corporation; Lee & Ro, Inc.; Metcalf& Eddy/AECOM; Pacific Advanced Civil Engineering, Inc.; ProjectUne Technical Services, Inc.; RBF Consulting; RMS Engineering & Design, Inc.; Spec Services, Inc.; TMV Systems Engineering;Tran Consulting Engineers;Water 3 Engineering, Inc.; and Willdan and Associates,for services necessary In supporting Facilities Engineering projects, commencing July 1, 2007, in an amount not to exceed $200,000 for each agreement, for a total amount not to exceed $3,000,000;and, 2) Approve three one-year optional renewals. b. OP07-60 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1)Approve a budget Increase for Rehabilitation of the 14th Street Pump Station, Contract No. 5-51, in the amount of$857,521 for a total project budget of$10,617,357; 'Minutes of the Operations Committee June 6, 2007 Page 4 2)Approve a budget increase for Rehabilitation of the"A" Street Pump Station, Contract No. 5-52, in the amount of$278,824 for a total project budget of$9,935,824;arid, 3) Ratify Charge Order No. 4 for Rehabilitation of the141°Street Pump Station, Contract No. 5-51, and Rehabilitation of the"A"Street Pump Station, Contract No. 5-52,with Kiewit Pacific Company, authorizing an addition of$550,837 and 50 calendar days, increasing the total contract amount to$12,824,241. (8) INFORMATIONAL ITEMS There were no informational items. (9) REPORT OF DIRECTOR OF ENGINEERING Director of Engineering, Jim Herberg, reported that the Project Management office is gaining recognition for its innovative processes, and several agencies including the Los Angeles Department of Water and Power and San Diego County Water Authority have visited the Sanitation District to observe how we manage our CIP projects. Matt Smith was invited to attend meetings with the New York Water and Wastewater Authority to explain how the Sanitation District manages its projects (10) REPORT OF DIRECTOR OF OPERATIONS AND MAINTENANCE Director of Operations and Maintenance, Nick Arhontes, briefly reported on the progress of the North County Yard office space optimization plan; the expected completion of the chemical storage tank relocation project at Seal Beach Pump Station by June 30; and the successful partial shutdown and repair of the ocean ouffall on May 18. The Committee will be given a brief presentation in July on the scope and complexity of the repair. Staff is also working on a comprehensive report of the event for their use in future planning and repair efforts on the ouffall. (11) REPORT OF DIRECTOR OF TECHNICAL SERVICES Director of Technical Services, Ed Torres, reported full compliance by the Sanitation District for biosolids and ocean monitoring as required by the state. Fact sheets summarizing both programs were provided to the Directors. Mr. Tortes also reported advantages to the Sanitation District in recent rulings due to existing federal and state legislation taking precedence over local ordinances re biosolids. Mr. Torres also reported on the recent Orange County Grand Jury Report titled"Orange County's Beaches; An Environmental Scorecard,"where the report of water quality is good at Orange County beaches, as demonstrated in the annual reports; however, beach closures are primarily due to sewage spills. Staff will prepare a response to the report and will brief the Directors on the response. -Minutes of the Operations Committee June 6, 2007 Page 5 (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) CONVENE INCLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 a There was no closed session. (15) FUTURE MEETING DATES The next Operations Committee meeting is scheduled for Thursday, July 12, 2007, at 5:00 p.m. (16) ADJOURNMENT The Chair declared the meeting adjourned at 5:55 p.m. Submitted by: j[,+��� klui I Lilia Kovac Committee Chair H-.Wept\agenda\Commmees\Operagons Committee\Opemtons 2007W6071060607 Opemflws Minutw.doc POPIopl������ MP V OUR ENVIRONMENT ONE MILESTONE AT A TIME BUDGET UPDATE .L` Fiscal Year 2007-08 -► ORANGE COUNTY SANITATION DISTRICT, CALIFORNIA Orange County Sanitation District, California Budget Update Fiscal Year 2007 -08 S A N I rA T�O2 Q 9 90r FpT/h�� E - Vision Statement — "To maintain world-class leadership in wastewater and water resource management." GFOA Budget Presentation Award - G�9 GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Orange County Sanitation District California Forthe Fiscal Year Beginning July 1, 2006 PmNem Executive Dirccbr - The Government Finance Officers Association of the United States and Canada IGFOAI presented a Distinguished Budget Presentation Award to the Orange County 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 — that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. Table of Contents OCSDService Area................................................................................._..........._.._.............................. Boardof Directors............................................................................................................................ Board Committees.......................................... .,....... ...................................................................... iii _ Orange County Sanitation District Organization Chart................................................................... iv AdministrativeOfficials....................................................................................................................v Message from the General Manager............................................................................................. vi r FinanceSummary............................................................................................................1 Financial Overview fi Budgetary Issues...........................................................................................2 Where the Money Comes From..................... ........................................................................_......6 r Revenuesby Category.....................................................................................................................6 Wherethe Money Goes...................................................................................................................8 Expensesby Category,.......... .._............................................................_.._...................................B StrategicPlanning ........................................................................................................ 10 r Capital Improvement Program Overview................................................17 Debt Financing Program.........................................................................................19 L OperatingExpenses....................................................................................................20 L Departments ...... ........... .. ................................................................................................24 Summary................................................ .......... ............... ...._......................................................24 L Office of the General Manager......................................................................................................26 Administrative Services ................................................................................................................28 TechnicalServices .........................................................................................................................30 Engineering....................................................................................................................................32 L Operations and Maintenance........................................................................................................34 Appendix .. CashFlow Projection....................................................................................................................A-1 Capital Improvement Program Summary.....................................................................................A-3 ProjectSummary..........................................................................................................................A-4 r Capital Improvement Expenditure Graphs...................................................................................A-5 Summary of Capital Requirements...............................................................................................A-6 NewProject Descriptions...........................................................................................................A-12 Capital Equipment Budget Summary.........................................................................................A-15 r Capital Equipment Budget Detail ...............................................................................................A-17 Listing of Proposed Purchases Over$100,000..........................................................................A-18 Self-Funded Insurance Plans......................................................................................................A-19 `. Historical Staffing Summary.......................................................................................................A-20 Historical Staffing Detail..............................._........................... .... ...........................................A-21 AppropriationsLimit ............................................ ......................................................................A-29 MiscellaneousStatistics.............................................................................................................A-30 r Wastewater Treatment Process r L OCSD Service Area — LA GF:uye ¢ O ryB"9"pr HABRA B-EA 'ce "O„• OC — � • �ry1 ��2 YORBA a FULLERTON PLACENTIA .LINDA L BUE A ARC o PALMA CYPRESS `� �r' eVILLAo PAR LOS STANTON 'ORANGE ALAMITOS GARDEN AL GROVE T CH STMINSTER _ SANTA A ANA UNTAIN ; TUSTI - • u HUM TINGTON°CSD anon ,© BEACH 1 0 bOSTA ® p r MESA • IRVINE CSD seamen 9 N — Plant No.2 -• „1 PORT , A BEACli s 4 5 MR. ocao ma•—IM.—Mplgrm vrr antl,rve viper a ua.n ur. uer_s inMs�.om — OCSD Service Area Boundary OCSD Pump Station (16 total) GSCLIMER. M........J by Cranpa CwnlY Sanilalian UtlM Thn mryis YbrdeJ lry grapLiW reprmmlargn unN Ib lwdol xurrxy — q ur.rree Iry m.r..r mapper mo:T nw.ertl anJ w�roM slgrlM mr a eua to mean coore�.Ne valiix,beanrq*n tiaaxes Vorrgm al Ini:JerrveJ pMua cmran gwgupLgal iNumTgn mpyrgMM by Thvnau Bmllrer: PII RyMs Rmrvee. SWRCE XSD GS D...T—.&.h-20M REVISED 0319TW7 - a OCSD Board of Directors Agency, : o:y Active D n " eo, Anaheim....................................................................Harry Sidhu Brea...........................................................................Roy Moore Buena Park................................................................Patsy Marshall L Cypress.....................................................................Phil Luebben Fountain Valley..........................................................Larry Crandall Fullerton....................................................................Don Bankhead L. Garden Grove............................................................Bill Dalton Huntington Beach.....................................................Cathy Greenr Irvine..........................................................................Steven Choi La Habra....................................................................Steve Anderson I Ls Palma....................................................................Mark Waldman Los Alamitos.............................................................Ken Parker Newport Beach.........................................................Don Webb V� Orange ......................................................................Jon Dumitru Placentia....................................................................Constance Underhill L Santa Ana..................................................................Sal Tinajero Seal Beach ................................................................Charles Antos V Stanton......................................................................David Shawver Tustin.........................................................................Doug Davert —Vice Chairman L Villa Park....................................................................Richard A. Freschi Yorba Linda--..........................................................Jim Winder � Sanitary/Water Districts ~ Costa Mesa Sanitary District....................................James M. Ferryman—Chairman Midway City Sanitary District ...................................Joy L. Neugebauer L• Irvine Ranch Water District.......................................Darryl Miller I County Areas Member of the Board of Supervisors.......................Chris Norby r L L IN L OCSD Board Committees ee r 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 Dumitru 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 r Operations Committee Larry Crandall, Chair r Cathy Green,Vice Chair Steve Anderson Charles Antos r Don Bankhead Patsy Marshall Roy Moore David Shawver r 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 t) Darryl Miller(Alternate 2) r Cathy Green (Alternate 3) r Organization Chart _ F Fr _ General 7Ad.ueat,,u,!snauve lecdrncal bManagement s Services Admmrst ration Operationsh Process Administration Admmiseation Maintenance EngineerinU b al Planning Administration Odor Control Assistant ement Environmental General Manager Compliance fi Protect Regional Assets Plain No. 1 Administration ts, Regulatory Alfeirs Manngemart &Services Operations firdeds,tearyauva singb Office Antral aIs Environmental Collection Plant No.2 Board Services emem Lem a s fi Engineering b Facilities ry Construction OperationsOcean Monimring OpeationsbPat Maintenance Mechanical Information Office ces Source Control Facdams Reliability& Engineering Fecift'es Maintenance Safety and Health tion Project Maintenance Support Services Technology Management Seances r Electrical fi Process Instrumentation Engineering Maintenance Odor Control r this L r ® r Administrative Officials Management Team r General Manager.................................................................James D. Ruth _ Assistant General Manager............................................. Robert P. Ghirelli General Counsel........................................................................Brad Hogin r Director of Finance and Administrative Services ................Lorenzo Tyner Director of Technical Services.......................................Edward M. Torres Director of Engineering.................................................James D. Heiberg Director of Operations B Maintenance.....................Nicholas J. Arhontes 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 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 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 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 r 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 r 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 475 tons of daily biosolids committed 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 r 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 L 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 r 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. r James D. Ruth General Manager r r r r r r r r r r r r r r r r r r - 2007-08 Budget Update Finance Summary r r 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 in construction projects as the District continues The agency's two treatment plants, located to move towards meeting full secondary treatment Fountain Valley and Huntington Beach, process standards by December 31, 2012 and incurs costs about million gallons of wastewater each day ,+ related to the Groundwater Replenishment program. generatteded by approximately 2.5 million people in 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 The cost per million gallons of wastewater treated. ` in the areas of ocean monitoring, ocean discharge and treatment levels, water reclamation and Ian industry-wide performance measurementl, is conservation, urban runoff diversions, increased expected to increase in fiscal year 2007-08 to $1,478, 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 ICIP) 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 r 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 to be approximately$8 million and $9 million Staffing in 2006-07 and 2007-08, respectively. Reflecting the organization's commitment to r 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 r of 20 positions to lower pay grade levels.Although personnel costs will increase primarily as a result r © r 2007-08 Budget Update r Capital Improvement Groundwater Program (CIP) (GWR) System r The total CIP cash flow outlay for FY 2007A8 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 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 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 Districts total costs. outlying pumping stations, and rehabilitate and upgrade 29 trunk sewer improvement projects. Moving Towards • Optimize the production of Power and Biosolids Secondary Treatment at each of the treatment plants. 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, 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 r by December 2012. 11)the possibility(no matter how remote)that bacteria from the ocean outfall may at times reach Five Projects Drive the CIP the shoreline,l2) 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. 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. Two of the larger Collection System related projects Construction of the facilities to meet secondary 9 Y P 1 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, capital As a result of operational efficiencies, ca respectively. P P 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 of 725 agencies encompassing all counties within California. Financial Summary - Overview 8 Budgetary Issues . ;11 . - _ Cost Allocation - ($2.5)M The operations budget for the collection, treatment, Increase in cast 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 all slightly, the overall increase to the operating budget Operations and Maintenance Department. is primarily attributable to five specific areas: Personnel Costs - $4.OM L Although staffing is being proposed at 634 full time Operating Expenses equivalents, a reduction of ten from the prior year, costs will increase$4.0 million as a result of recently +8.8% approved collective bargaining agreement impacts, including medical and other benefit cost increases. $142.5M $138.2M — The other significant increase in personnel cost is the$700,000, or 6.7 percent increase in retirement 7premiums.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 2007.06 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$11.6 million from FY 2006-07. V biosolids disposal become less accessible. Utilities - $800,000 O&M Variable Costs Despite reductions identified in natural gas utilization, 0 Power ■Disinfection Chem. total utilities casts will increase due to rising electricity costs. This represents a 8.8 percent ■Biosolids Removal ■Water increase over the 2007-07 approved budget. ❑Chemicals ICoag Fa odor) ■Natural Gas Operating Materials $20M & Supplies - ($2.3)M As the requirement for better quality effluent increases, so does the need for chemicals(primarily $1 OM bleach)to treat the region's wastewater. These decreases are due to projected unit increases on the various chemicals used throughout the plant facilities that are expected to average 10 percent. $am FY 2005.06 FY 2006-07 FY 2007.08 FY 2011-12 Moving to full secondary treatment will increase the District's need for the removal of biosol,ds 1r and purchased energy. are lal S ajt3pdnjaBpnj3 : 0 OO Financial Summary - Where the Money Comes From Where the Money Comes From Debt Proceeds $300.OM 31 % Fees 6 Charges _ $201.2M 20% Beginning Reserves $369.2M 38% Property Taxes $58.9M/ _ 6% Other $30.7M - Interest 3% $16.3M r 2% r Revenues by Category (in millions) _ 2007-08 2006-07 2007-08 Proposed F�B Approved Approved Revisions _ serves $519.4 $364.3 $369.2 Service Fees 154.5 170.1 171.5 _ User Fees 17.1 16.9 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 1 _ Total Revenue $820.6 $971.6 $976.3 Financial Summary Revenues by Category The District has a variety of revenue sources available for operating and capital expenses. r 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 r • 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 District's share • Other Miscellaneous Revenue of this revenue is dedicated for the payment r • 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 As result of its Reserve and Investment Policies, for the previous two fiscal years preceding 2006-07. r 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 General Service Fees - $172M 2005-06allocation. User fees are ongoing fees for service paid Interest Earnings - $16M 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 - $26M These fees are for both Single Family Residences _ (SFR)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 Large industrial and commercial properties that reimbursement on capital projects, and $3 million r 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 Debi 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 , II of c T I I IVI Grley -70e CIP .. $302.7M 31% perating Expenses $142.6M Ending Reserves 15% $463.1 M 47% Debt Services $65.3M Intradistrict 7% .. Transfers $2.6M 0% Expenses by Category _ (in millions) 2007-08 _ 2006-07 2007-08 Proposed F7Capital Approved Approved Revisions mprovement Program $266.1 $338.8 $302.7 — Debt Service 54.4 65.5 65.3 Operating Expenses 131.3 138.2 142.6 Intradistrict Transfers 4.5 2.6 2.6 Subtotal $456.3 $545.1 $513.2 Ending Reserves 364.3 426.5 463.1 Total Expenses $820.6 $971.6 $976.3 Financial Summary Expenses by Category The District budgets its funds in five distinct areas: r 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 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. - Operating Expenses r The proposed budget allocates resources to operate, maintain and manage our sewage collection, treatment and disposal system and i r for any associated administrative or technical requirements. _ Intradistrict Transfers Expenditures related to other affiliated agencies. r Reserves The CIP includes projects such as replacing tour miles of The District budgets for reserves for various potential 50 year oldsewers with new to foot diameter coy—,n' e needs including cash flow,operating contingencies, r capital improvement and replacement and catastrophic loss. The reserve levels are governed by District policy. r Strategic Planning 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 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. ` 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 L 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 Ir' 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" Learning/Teaching —Talents, Skills and Abilities r 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 •s 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 ` 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 "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 es 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 r We are a value-based organization dedicated and for our behavior. We use measurable short-term to upholding and consistently demonstrating and long-term goals.We use methods that regularly the attributes affirmed in our Guiding Principles." 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. i philosophy of the employees of the District. r Balance They were developed by a multidivisional committee We achieve balance in what we do.Work matches comprised of employees at all levels. All employees were offered the opportunity for input and the Guiding our capacity to perform it. We look for economies Principles consolidated all information received into of operation without sacrificing quality or causing be 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 y initiatives that improve environmental quality or service in the community we serve. r y 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 community of interest. Staff and management communicate freely, openly and honestly to solve During strategic level risk assessment and mitigation workshops conducted at the beginning of 2006, problems and to achieve constructive change. the Executive Management Team identified 37 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 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. 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. 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 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 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 ,. wastewater systems. external threats. Environment Stewardship OCSD Long-Term Planning OCSD will participate collaboratively in the protection 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 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 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 +� other interrelated, long-term goals will remain as the District continues to construct the facilities required to reach full secondary treatment. 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 '- become the more available, more expensive, biosolids management options. The biosolids long-term goal will continue until a viable, cost-efficient, and effective method of reuse is available. Strategic Planning Long-Term Goals r 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 y 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 L close to those required on December 31, 2012. Asset Management Asset Management continued in this fiscal year and focused on reliability centered 6. 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. eiosolids Management This is an ongoing process that will continue to be a challenge as more land becomes unavailable for Class B reuse options. r 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. r 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 r 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 r 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 demandsr 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. I r V r ® r 2007-08 Budget Update Strategic Initiatives - Short-Term Goci:, 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 Complete Local Sewer Services-District staff completed the Local Sewer Service Revenue Adequacy Study P Report and all required tasks. Secondary Treatment Interim Operations-The secondary facilities are producing the best quality 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. Business Plan-The 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. r 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 state regulations. Manage and Optimize a Sustainable Biosolids Program-The team continued work on the original plan.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 r 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 r 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 in Kern County is viable for at least 18 more months, or through at least June 2008; and exercised 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 r 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 d 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 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 NDMA = < 150 plot NDMA = < 150 ppt concern in Plant No. 1 secondary effluent: 1,4 Dioxane = < 2ppb 1,4 Dioxane = FY06-07. NDMA = No reported exceedence and 1,4 Dioxane < 2ppbb =2.5 December 2006 3. Thirty-day geometric mean of total colifcrm bacteria <1,000 mpn <1,000 mpn in effluent after initial dilution. FY06-07'301 mpn with dilution factor of 180:1 4. Percent of source control permittee compliance with >90% permit >90% permit r. permit conditions: compliance compliance FY 06-07.96% OCSD will manage flows reliably. FY 06-07 Target FY 08-12 Target r 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 April FY2005-062 years in peak wet once per 3 years in r 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. 100% 100% FY06-07. 100% W OCSD effluent will be recycled. FY 06-07 Target FY 08-12 Target 8. Treated effluent reclaimed: 4%(10 mgd) 28%(70 mgd) L FY 06-07. 1.7%(2.46 mgd) OCSD will implement a sustainable biosolids FY 06-07 Target FY 08-12 Target 1 management program. 9. National Biosolids Program Certification for Environmental Maintain NDB Maintain Management System. Certification I 10. Percent of biosolids beneficial reuse 95% beneficial reuse 100% LI FY 06-07. Beneficial Reuse-Beneficial Reuse-97%, 5%landfill 100% Landfill-^ Class "B"-26% Class 'A/EQ"- 71% 40% 60% YrI I I 2007-08 Budget Update Environmental Stewardship _ OCSD will improve the regional watershed. FY 06-07 Target FY 08-12 Target r 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 perday FY06-0T. 101.3 ce OCSD will protect the air environment. IY 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 FY06-07• 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 FY06-07:Plant 1 - <25 Plant 2- >25 r 7. Air mass emissions permit compliance, % 100% 100% FY06-07: 100% r OCSO 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 withint hour 100% 100% Collection System within 1 working day r 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 r Strategic Planning - Business Principle OCSD will exercise sound financial management. FY 06-07 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 C/Pprogram requirements y„ 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 <then 0EM r FY06-07: <O&Mexpenses expenses 4. Annual SFR user fee increase Not more than 15% Not more than 1. FY 06-07. 9.6% 15% 5. Annual user fees Sufficient to cover all OEM Sufficient to cover FY 06-07:Fees > O&Mexpenses requirements all O&M r requirements 6. Annual increase in collection, treatment, and disposal <10% <10% costs per million gallons r FY 06-07. 7.9% 7. Annual variance from adopted reserve policy <5% <5% r FY06-OT. 7.9% 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% r FY06-07. >90% 10. Dig Alert response within 48 hours 100% 100% FY06-07: 100% 12. Public Records Act requests within 10 working days 100% 100% FY 06-07: 100% `s 13. Post Board/Committee Agenda Packages 72 hours prior 100% 100% to meeting FY 06-07: 100% r Work lace Environment OCSD will take care of our people. FY 06-07 Target FY 08-12 Target 1. Training hours per employee 45 45 FY 06-07.43.33 r 2. Employee Injury Incident Rate 7.4 Industry Average FY 06-07:4.2 OCSD;O&M 7.5 <3.75 per 1000 his. <3.75 per 1000 hrs. se r We 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 Cash 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 39.73 . 3 from the CIP to the current rate structure program. Design Construction 25656.0 1,617617.9 The updated CIP includes 79 large capital projects Capital Equipment 2.2 16.0 and 27 special projects with a 14-year expenditure Total $3027 $2 4fi5. 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$87 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$372,000 million sewer rehabilitation project was delayed and$1.00 million, respectively.A total of$39.9 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 to three more years. Finally, operational workarounds There are currently 29 projects in the Design Phase with proposed capital outlay spending in . were developed to delay another$147 million in solids and gas processing projects up to five years. The two largest projects in the Design Phaasesere 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, S9.1 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 to establish a research program for the next ten years, $350.000 to investigate the 2o The two most significant protects in the condition of the sewers in Los Alamitos Boulevard. construction tion phase are the Secondary Activated and$500,000 to relocate staff based on the results Sludge Facility 2 at Plant 1 and the Trickling Filters of a recent space planning study. at Plant 2 projects with a projected current year 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 justifications for the capital improvement projects budget total$302.7 million,an increase of of$ which are new in this FY 2007-08 budget update. percent from last year's cash flow request of$266.1 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. r Construction of new facilities at Treatment Plant No. 2 he in Huntington Beach. r r r r r Me NO r IN all Debt Financing Program The maximum level of variable rate obligations Debt Financing incurred by any District should not exceed the r 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 ,r 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 r of Participation (COP). COPS are repayment agency. In order to maintain this rating, the District obligations based on lease or installment sale adheres to its 2001 Debt Policy and coverage ratios requirements. This agreement. The COP structure was selected over in the management Board-adopted policy serves as r other structures because COPS are not viewed the agency's guide n the gement 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 r 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 Fixed-rate debt can be either traditional minimum coverage ratios of 1.25.The minimum or synthetic in form: coverage ratio is the ratio of net annual revenues available for debt service requirements to total e Fixed-Rate Debt traditionally has a final maturity annual debt service requirements for all senior lien r 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 Future Debt Financing ,a typically has a lower interest rate("coupon") 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 .. a 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 component can be swapped to a fixed rate. funding of the ten year$2.5 billion capital This form of fixed-rate debt achieves a balance improvement program. r between short and long-term interest costs Capital Financing and is frequently a less expensive form of debt. In some markets,this form of fixed-rate debt is $4o0M less expensive to issue than the more traditional OF form of fixed-rate debt described above. S30010 Variable-rate debt can be traditional or synthetic: $200M e Variable-Rate Debt traditionally has either a long New Debt r or short nominal maturity, but the interest rate S100M resets periodically. Typically, the intervals for interest rate resets are daily,weekly or monthly, sOM but any period is possible. 2000 2009 2010 2011 2012 2013 2014 r e 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,fixed-rate issue debt fees.and prevent spiked increases in any one year, r can be created From affixed-rate issue by means of a floating-rate swap. r in Operating Expenses - Su17in1ary of Operating & Maintenance Exp;v;es 7-082006-07 2007-08 sed Category Approved Approved ons Salaries and Benefits $74.4 $75.99.9Operating Expenses 21.9 25.4 3.1 Contractual Expenses 17.3 17.9 21.4 r 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 1.4 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 Cost Allocation (17.3) (17.3) (19.8) Total Operating Expenses $131.4 $138.2 $142.5 r Salaries, Wages & HMO plans, the dental insurance plan,and the life Benefits - $79.9M and disability insurance premiums.The proposed v 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. We 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 employer's 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 District will pay 3.5% on behalf of each employee. million gallons of bleach in 2006-07. However, 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 , L. 2007-08 Budget Update plants to improve solids removal efficiencies in the Repairs and 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 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 es within the treatment plants; hydrogen peroxide, power costs by approximately$822,000 annually. munatic acid, and bleach are the primary odor control chemicals used within the collection system, The cleaning and rehabilitation of four digesters to maximize treatment plant capacity is budgeted A reduction of$700,000 is being proposed from at$1.4 million. the previously approved $6.6 million 2007-08 budget for odor control chemicals due to recent declines Utilities - $9.9M as in unit costs. The overall cost for utilities is a significant Contractual Services - $21AM component of the operating budget. The overall cost for utilities is anticipated to increase The major component of this category is biosolids by$800,000 over the previous approved removal and transport costs. Contracts have been 2007.08 budget. executed with firms for agricultural reuse of residual solids. Since the closure of the Coyote Canyon • Natural Gas-Natural gas is purchased 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 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. r 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 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. Nearly all the power required to operate Plant No.2 is generated by the District's Central Power Generation Facilities. r Operating Expenses - Professional Services — S3.7M Insurance — 52.6M 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 r 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 annual regulatory fees assessed by the SCAQMD, Training and Meetings — $1 .4M are recorded with this category. Expanding activities of regulatory agencies have required increased Board member and staff travel y GronfsToMemberCiTies - $2.SM in recent years. It is expected that considerabletravel 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. from$2.5 million in FY 2005�06 to$2.0 million in r 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 projects sponsored by a member agency to eliminate Human Resources Division of the Administrative r 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 and to repair or replace poor performing, aging local and materials for staff; expansion of our supervisory r 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 r contribution to an eligible project. Most member and control systems, Laboratory Information agencies of the District are eligible to participate Management System ILIMSI.Computerized in this program. For 2007-08, up to a total of$2.5 Maintenance Management System fCMMSI. 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 L 2007-08 Budget Update es Research and Moni Overall, this category of costs is expected es to remain stable over the next fiscal year. Research and monitoring expenditures consists of contract services to carry out the extensive ocean monitoring es program required by the EPA under provisions of the District's(NPDES)permit; air quality monitoring costs; the District's contribution to the Southern California Coastal Water Research Project(SCCWRP) Aff!fi; being conducted under a joint power agreement with other Southern California municipal dischargers; _ and also provide for increased operational and ocean es research and evaluation to develop optimum operating parameters in treatment plants. ses Administrative Expenses - $1 .51M The Nezissa is a custom designed and built ocean moniro'm� These accounts include supplies, postage. and research vessel.It holds and operates specialized ocean sampling equipment that will enable OCSD to Conduct core technical journals and publications, forms, small and regional monitoring and spacial studies along the coastline. es office equipment, 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. see The continuing effort of the Public Information Office to improve public education programs about the District's activities is also reflected in the budget ses 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 es allocation to the capital project where the related work was performed. Departments - Summary Expenses by Department (in millions) - 2007-08 2007-08 2006-07 Originally Percent Updated Percent C Budget Proposed Change Proposed Change minstration Units r 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 (18.6%) Engineering 3.1 3.8 22.6% 3.3 (13.2%) r Operations 8 Maintenance 81.0 85.1 5.1% 93.0 9.3% Sub-Total $106.5 $112.0 5.2% $115.1 2.8% r Total $129.2 $135.6 5.0% $139.9 3.2% Less: Operating Revenue (5.1) (5.1) 0.0% (5.1) 0.0% r Grand Total $124.1 $130.5 5.2'Yo $134.8 3.3°k 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%) r 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 8 Maintenance 300.3 300.3 0.0% 292.75 (2.5%) Sub-Total 517.5 517.5 0.0% 506.25 (2.2%) Total FTEs 644.0 644.0 0.0°h 634.00 (1.6%) 2007-08 Budget Update Administration Units Operating Units Office of the General Manager Technical Services Budget$6.6M—Staffing 30.25 FTEs Budget $18.SM—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. 8 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 $18.2M— 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(IPMC)to supplement 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 r for contract administration and procurement, Budget $93.OM—Staffing 292.75 FTEs oversees all personnel management activities 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 'FTE = Full-Time Equivalent Position r r r Office of the General Manager - Service Description The mission of the Office of the General Manager is to provide general oversightGeneral -1 �. of the District's operations; set or approve standards, policies and procedures; and Administration establish the overall goals and strategic plan of the District to meet the District's mission. General Manager The office reports directly to the Board r of Directors. r In addition to the line departments, this depart- Public r ment oversees District-wide functions in the Board DI ffice areas of: Safety& Health, Public Information, Directors Adm nist irative Legislative Affairs, and Board Services(Clerk Services of the Board). Safety and Health provides expertise, support r General and guidance to protect employees,the public, Counsel General Technical the environment and assets through develop- ouns Manager Services ment and implementation of comprehensive Officand cost effective safety, health and security r systems, policies and procedures. Engineering Public Information Office provides services and implements programs to meet the r communications needs of both internal and external audiences for the District. The division Operations u plans and implements media relations, Web site Meimenancn 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. r r Operating Expense 2007-AProposed 06 2005-06 2006-07 Origind r, Category Actual Budget ProposdPersonnel $ 684,697 $ 746,300 $ 757,20Chemicals& Other Supplies 95,469 275,500 284,00Professional/Contractual Services 135,811 200,000 200,00Research& Monitoring 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) (323.650) r Total $ 1,016,669 $ 2,379,600 $ 2,482,660 $ 6,582,520 ® r 2007-08 Budget Update Service Description r 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 IFTE Positions The Legislative Affairs Office also manages state and federal legislative r 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 Administrative/Clerical 5.25 r appropriations. Other 4.101) Board Services includes the Clerk of the Board office, reception, meeting Total 30.25 planning, audio visual and conference room setup, records management,and r mailroom support. Services include supporting the Board of Directors,acting Staffing Trends as filing officer for Statement of Economic Interests, receiving and processing 1 .25 summons and complaints filed against the District; and, preservation and r protection of the District's records for public, private and governmental use, 1 t 24 1 including coordination of all Public Records Act requests. t 1 Budget Overview r 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 t 1' 11 106 2007 t 1' departments into the office of the General Manager and adding 2 positions Adjusted for the record iti-organitiation to be filled at management discretion. Specifically,the Legislative Affairs, horn 8 departments to 5 departments. Board Services, Public Information Office, and Safety B Health were moved from other departments into the General Manager's Office. Performance Objectives / Measures District Staffing Growth r e 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 year 2007-08. 3% 2% e Maintain 100% compliance with terms and conditions of our permits 1% and local, State and Federal regulations. 0% e Deliver 80%+ of each fiscal year's CIP budget principles. -1% r • Provide public outreach for OCSO's Capital Improvement projects. -2% 2004 2005 2006 2007 200E e Maintain a safe and healthy work environment and implement security The District remains committed to comply measures to with Homeland Sit requirements. providing increased quality and service _ p y ome Security re qremen 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. r • 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 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 S.ni.ft Management; Contracts, Purchasing,6 Materials Financial Management; Human Resources; and Board of imart Information Technology. �, Directors Financial Management oversees and Purchasing& Minerals administers all District funds and accounts. anigament Programs include treasury management and a, General General Technical debt financing, accounts receivable and payable, Counsel Manager ServicesResiances user fees, payroll, accounting for fixed assets, Office Informationcoordinating the capital and operating budget Technology process and risk management. las Contracts, Purchasing, &Materials Engineednq Management is responsible for contract administration and procurement for all District r departments. Additionally,this division manages the District's warehouses, receiving Operations O and maintaining inventory. and distributing rese 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 Near customer support related information technology assets and services, networking and infra- structure, telecommunications operation and maintenance and network and programming and database systems development. Operating Expense 207Updated 07-08 2005-06 2006-07 OridatedCategory Actual Budget ProosedPersonnel $ 13,880,756 S 14.128,300 $ 14,44 ,760 se Chemicals 8 Other Supplies 1,805.529 2.676.840 2,643,440Professional/Contractual Services 2,019,442 2,449,260 2,326,760Research 5 Monitoring 0 0 0 Repairs 6 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 _ Cost Allocation (3,034,178) (2,038,180) (2,038,180) (1,814,130) Total $ 18.175,464 $ 20,253,870 $ 21,050,220 $ 18,210,280 r 2007-08 Budget Update 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 HE 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 Supervisors/Professionals 60.50 included with the Human Resources Department have been reassigned • t r 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&Maintenance 0.0t shows a decrease of 26.0 full-time equivalent positions and a related Total 97.50 cost reduction of$2.8 million. Performance Objectives / Measures Staffing Trends t k r . Minimize proposed current and future annual rate increases through the use of debt financing while meeting the operational and capital 102 50 101 50 needs of the District. 95.5 97.50 r . 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 2005tip 2007 2008 r budget presentations. Adjusted for the recent re-organization • Obtain the 2007 "Achievement of Excellence in Procurement" (AEP) from 8 departments to 5 departments. award by meeting all national requirements. r • Continue the inventory cycle count program and maintain a 97% accuracy rate or better. Ro;iness Transa<tions r . Maintain 100% California State Government Code compliance 55,000 for all treasury investments. . Develop and implement a Leadership Academy. 50,000 — — — r • Develop and implement a Succession Management Program. 45,000 — — — — . Complete the Enterprise Information Technology Strategic Plan r and begin implementing its recommendations. 40,000 2002 2003 2004 2005 2006 . Create an Information Technology Governance Committee. France processes more than 50,000 r . Complete Category 1 8 2 Service Level Agreements(SLA)@ 100% checks,deposits and Invoices annually. and Category 3 8 4 @ 90%. r . Maintain an average uplime 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. r General General Environmental Laboratory and Ocean Counsel Manager Monitoring provides laboratory services Oflice supporting operational compliance,and environmental monitoring activities and is responsible for the district's ocean Engineering r monitoring program. r Source Control i5 responsible for administering and enforcing the District's wastewater Operations 5 discharge ordinance and federal pretreatment Maintenance regulations to control industrial discharges r into the sewer system. The division manages the district's urban runoff diversion program, FOG(fats. oils and greases)program, and non-industrial 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 r Personnel $ 12.836,393 $ 14,011.000 $ 14.310.200 $ 14.372.250 Chemicals 6 Other Supplies 4.292,006 4,304,790 4,994,030 1,037,830 r Professional/Contractual Services 883.791 1,758,000 1,359,000 714,000 Research 6 Monitoring 1,306,634 1,340,030 1,424,390 1,505,440 r Repairs 6 Maintenance 237,509 313,970 322,640 242.920 Utilities 279,227 319,100 346,100 390.000 _ Other 255,257 293,400 304,4GO 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 r r 2007-08 Budget Update Budget Overview 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& Maintenance Department for FY 2007-08. Authorized HE Positions Further, reorganization of the Technical Services Department has created the need for 4 new Environmental Supervisors. These supervisors will be Managers 4.00 responsible for the Biosolids, Regulatory Compliance,Air Compliance and 11 Ocean Monitoring Programs. The supervisors will assist division managers 11 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 Et 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 r equivalent positions. There is also a related cost reduction of$4.3 million, Staffing Trends mainly from transferring the costs for odor-control chemicals to the Operations It Maintenance Department. 119.00 r 11 111.00 0 Performance Objectives / Measures • Ensure reporting divisions achieve 90%+ of the year's performance objectives. 10 115 2006 200700 r • Ensure Technical Services Department's expenditures are managed Adjusted for the recent re-organization within 90%- 100% of the proposed budget. from 8 departments to 5 departments. r • Ensure reporting divisions achieve 90%+ of strategic goals and objectives. r r b. r OCSD operates the Environmental Sciences Laboratory(ESL). Built in 1991 specifically as a laboratory building.this two levelsteel r and concrete building occupies approximately 20,000 square feet. r r r r Engineering Department Service Description .. The Engineering Department is responsible for delivering projects through skilled staff se by proactive project planning, effective project delivery, effective communication, critical thinking and technical expertise.The Engineering Department is comprised of four divisions: as Office of the Engineering Administration provides General management to all Engineering Divisions. r Manager Planning provides evaluation and review Ato the engineering data management, master D planning for the District regarding the Capital Administrative Improvements Program (CIP) Program,water r Services resources management, and the District's California Environmental Quality Act review. In addition, this division provides oversight r Technical to annexations, connection permitting, Services easements, and agency agreements. Emineenag Asnanismoon Project Management Office manages the r Planning design and construction of new collection Praiser and treatment and disposal facilities plus the Management 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& stage through the closeout of construction. Maintenance Facilities, Engineering and Construction provides Via Engineering administration, design, inspection, and other preect Management necessary services to the Project Management 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. r Operating Expense 2007-08 2007-08 2005-06 2006-07 Originally Updated Category Actual Budget Proposed Proposed r Personnel $ 11,196.201 $ 12.455,000 $ 12.715.600 $ 14,449.100 Chemicals B Other Supplies 189,875 237,310 250,350 255,550 Professional Contractual Services 128,824 71.400 74,260 87.770 Research B Monitoring 0 0 0 0 Repairs B Maintenance 5,842 24.000 24,240 13,440 se Utilities 14.665 21.000 21,840 17,000 Other 3,410,168 2.013,690 2,514,430 2,514.880 r Cost Allocation (10.528,078) (11,771,090) (11,771,090) (13,999,090) ® Total $ 4.417,497 $ 3,051,310 $ 3,829,630 $ 3.338,650 r - 2007-08 Budget Update r tiludyel vvervievv r 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 IFTE Positions 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 60.90 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 0.00 costs being charged to capital projects. Total 104.50 Performance Objectives / Measures se • Expend minimum 90% of project annual Capital Improvement Program Staffing Trends (CIP)cash flows for FY 2007-08. 104.50 ses • Ensure that reporting division's expenditures are managed to less .75 than 100% of proposed budgets. 79.75 se • Process 95% of connection permits within one day of request. 00 • Meet 80% of project milestones. r • Reduce program change order performance towards goals established by change order Management Plan dated 10/13/05. Adjusted for the recent re-organgation • Complete 50 to 65 projects in Facility Engineering Program, ses ses Improved es Treatment $79M r Replacement/ Additional Rehabilitation Capacity $123M $53M Support se $1IM In 2006-07,the Engineering Department will be responsible for$266 million r in capital expenditures. r Operations and Maintenance Department r Service Description The Operations and Maintenance Department is responsible for collecting, conveying and �. treating wastewater, reusing or disposing of the treated wastewater and all residuals. M and providing care to all facilities. The OEM Department consists of nine divisions:Operations and Maintenance Administration provides leadership and Directorrss Administrative Board oversight to all Operations and Maintenance . Services divisions. Regional Services Support coordinates r General sewer system issues with member Counsel General Technical cities and agencies, provides routine technical Manager Services support and a CIP liaison role with Engineering Office r 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 IN,. , , 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. r Facilities Maintenance manages the non- process infrastructure systems of the two 100-acre treatment facilities, and maintains fleet equipment, crane and rigging services and the motor pool. Process Engineering provides technical r support to all staff relating to air,water and solids issues. Operating Expense 2007-08 2007-08 2005-06 2006-07 Originally Updated Category Actual Budget Proposed Proposed Personnel $ 28.364.795 $ 33.058,100 $ 33,674,800 $ 34.766.850 Chemicals&Other Supplies 13.757.955 17.613,490 20,458.480 22.320.190 Professional/Contractual Services 13,732,088 16,341,900 16,971,900 21,433,950 Research 8 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 Other 320,901 375,860 375.150 455,250 r Cost Allocation (2,789,727) (3,489,340) 13,489,340) (3,891,880) Total $ 65.699,716 $ BO,953,830 $ 85,094,550 r 2007-08 Budget Update Service Descriptiotl 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 HE Positions operations, support of the CIP and coordination of construction work. � Manager 4.00 Mechanical, Reliability and Maintenance Support Service So ervisors/Professionals 77.50 is responsible for maintaining and repairing all mechanical equipment in the treatment plants, rebuild, welding and fabricating services, managing Administrative/Clerical '.25 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 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 20052006 2007 200B Collection Facilities Operations and Maintenance,and Facilities Maintenance previously shown within the Regional Assets and Services Department have Adjusted kir the recent raonganimfion been consolidated into the OEM department. For the following reasons, the Operations E 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: OCSD Moves Closer to • The Odor Control Program has been moved to the OEM Department Full Secondary tr... !. from the Technical Services Department, resulting in an increase of odor control chemical costs of S3.9 million within the 90 OEM Department, Bio-oxygen Demand ,. • Due to process optimization, the total cost of chemicals (including :E So those used for the odor control program)shows a net decreaseIs of$2.1 million from the approved budget. ;✓ 30 Suspended Solids • Due to unit cost increases and to higher estimated biosolids, contract services for biosolids hauling are estimated to increase g $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 Federal Clean Water Act defines S1.0 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 shaving, and new AOMD regulations. • Payments to support the groundwater replenishment program are estimated to increase by$0.5 million due to the need to provide treatment for NDMA contaminants. Operations and Maintenance Department (continued) _ Performance Objectives / Measures • Achieve 100%compliance with water, solids, air,and energy permits. • Maintain Total Injury Frequency Rate at or below industry averages r for the various crafts and trades. • Manage 08M expenditures to within 96-100% of the approved budget and related risk levels. • Comply with the staffing plan allowed for 06M and CIP support needs. • Provide the GWR System with "spec water" per the OCSD/OCWD Agreement and manage its waste streams while minimizing risks to the NPDES Permit and Consent Decree. r • Complete the FY 07/08 elements of the staff supported Asset Management Plan with available resources. r r r r r r r ® r 2007-08 Budget Update Appendix L Cash Flow Projection L Orange County Sanitation District Consolidated Cash Flow Projections V Preliminary Prelbnlrery Prallminery Preliminary Prelletlrory Preents., Ommoditon QLQft Wm 9a10 10-11 11-1z 12-13 v Reassess: (lareral Uer Fae 164.575.000 Iatm.m 205,837.M 233.320.000 264.471,000 2BH,384,000 ParmIRall User F W aae 16,184.0 20,05COW 22.]43.000 25,7W,WO 29=.Wo 33,OW,OW 1*d Frailest,Taxes(5%yr) W.W0,000 61,845,000 8C,031,000 68,184,W0 T1,593,000 r5 W.1T3,0 New COP Issues molmlwo 270,000,000 190,000,000 140.OW,WD 100,000.m 100.000,000 Intend Revenue(4%) 16,319,000 18,196,000 18'sadd00 20,200,000 21.M.000 22.115.000 Capital Fadlille Capadly Chortles 11,524000 12,144,000 12,802,000 13,496A00 14,22Q000 14.999,OW Ome,Revenues 3T,682,920 W.999,W0 2T,6W,Wo 27AKW0 28,891.600 29.520,W0 V Revenues 6D7,180,9W 594,809,1100 542,583,500 52e.800,61:0 527.761.600 574.277,600 Requirement.: Oper B Mtce Exp(>0%Ys) 139,973,400 153,005.000 166099UW 178,887,000 191,801,000 208.517.000 lei capital Improvement Pregmm 302,714,OW 353,08T,OW 235,922,000 W2,554,000 179.483.000 150.0"1 Repi,RaND B Rel - 1,000,W0 3.000.000 70.896.000 COP Service(5.0%,30 y,$) W.2T3.720 85.814,050 1D2,554,400 114,914,480 123.193.280 "0.053,BW IN 011ie,Requirements 5,250.900 2,614,600 2,814,600 2.614,000 2,B11.BW 2,BU,WO Rapulrements 513,221,020 594.583,600 506.490,050 497.780,080 sl O.W18W 583,3.. Revenues-R9gWrements W.959,900 225,920 38.393.wo 31,020.52D 21.589.120 11.018,320 led A¢umuletW Fend.: eeeinnirgol Yee, 36A153,340 410.113,240 463.339,160 499.732,6110 5W,7M.200 SSBA20,920 End W Year 463.113.240 483.339.160 499.732.680 539759.200 55B,422,9W 569,441,240 V Consolidated Reserve Poll, 414.731,720 461.402,WD 496,871.480 527436.480 5W.226.280 %9.801,680 Over(Under)Reserve Ready 48.381.520 1.937.080 1.D61.200 3,316.720 8.186,840 (3W,440) y 9eww,Servirn Us-Faea' Avg SFR Annual User Fee $192.00 S2W.02 $225.82 $254.95 S297.84 8324.54 Percan a,Chenga 9.2T% 9.90% 12.90% 12.90% 12.90% 12.75% Taal Equivalent Dwelling Units 991I.W5,95 9907,883.02 $911.514.55 5915,160.61 W18,821.25 $922,490.64 SFR Conneesen Fee $4.517 S4.743 54900 $5.229 $s4W $5.285 O,NI,dino COPS S1,076.470.000 $1.325,165,000 S1.4W.344.W0 $1,593,099W0 S1,6WA21.000 011.716.438,0111) L Avea9e Daly Flow,mild 250 254 252 2% 262 264 Real Policy a% 50%Next Year OparatiN 89,981,000 78.504.000 82,050,000 88.334,000 95.801,0W 104274.001) 10%Next Year OPeratu, 13,907,000 15,301.00D 15,410,00) 17,6W,001) 19,180,000 20.BN= 100%Next Year AUG COP Svc. 65,273,720 55474.08D 102,854A80 114.914.4110 123,1W,2W 1W,553,590 50%averegs CIP bal b 2020 86,508,000 19.003.00D 75.416,000 )2.]T8,0W W 20,M9.0 65.T211000 Shedterm CIP.OWRS MR a 10%Outstanding COP* 107,1147,000 132511,001) 148,034.000 159.310,000 10.043.000 171,64si Slit®S5Tmm INPUT 57,000,000 57,000,000 57.000.000 57.000.000 57,000.003 51.0W.0W Reel B Patent,a 2%ly' 54,121,000 55,"3,000 W.301.000 57A33,000 50.582000 W.754.000 la/ Total 454731,120 501.402.WD 538.611A80 W.438,400 590,2W.200 609.6011680 COP Ratios Sr Use Coverye.Min 1.25 239 I'm 1,71 1.23 1.so 1.02 tin Additional Bonds.1.25 239 1.86 1,71 1.73 1,80 1.92 L A- 1 L r 2007-08 Budget Update r Orange County Sanitation District Consolidated Cash Flow Projections r Preliminary Preliminary Preliminary Preliminary 10 Year Description 13-14 14-15 15-16 16-17 lam as Revenues: General User Fees 316.513.WO 334.621.000 353.765.000 374,005,000 $ 2,728,063,000 Permitted User Fees 34,9]3,000 36.974.000 39.089.000 41,325,WO Wt,434,OW Property,Taxes(5%yr) 78.932.000 82.879.000 81F.023.000 91,374,030 740,840,000 -u New COP Issues W,000.000 - - - 1,150,000.000 Interest Revenues(4%) 22,920.001) 23.779,OW 24,186.000, 24,821.000 212.752,000 Capital Facilities Capacity Charges 16,812.000 16.669,000 17,572.000 181525.Wo 147.767." Omer Revenues 42,578.600 27.731.600 W.142.6W 37.126.W0 318.174.320 -4 Revenues 561.728.600 522.653.600 551.777.BW W7.176.600 5,599,050.320 Requirements: Oper B War Exp(].0%yr) 222.756.000 238,235,000 2W,493.000 2".291,OW 2.028,870,40d r Capial lmprovemerd Program 75.545.000 37,84Q000 43,109.000 23.n7,OW 1,BOB4Ot5,000 Repl.Rehab S Refurb 81,012,030 93,095.000 105.482.000 119,670,000 473.855,000 COP Service(5.0%.W ym) 149,766.680 137,107.280 137.053.480 138.468,21H) 1,185,057,440 Other Requirements 2,614,600 2,614.600 2,814600 2,614,600 28,791,300 a- Requirements 531,694,280 508.897,43W sai.a. .Wo 561,818.880 5,322,569.140 Revenues-Requirements 30,034,320 13,]55.]20 7,025,520 25.357,720 278,481,180 as Acwmulated Fund.: Beginning of Year 569,441,240 599.475.560 613,231,280 620,258,800 W9,153,340 End of Year 599p75.560 613.231,280 620.256,1100 645.614.520 645.614.520 r ConsolMated Reserve Policy 598,178,880 588.212,2W 684,4]0,460 801,645,280 $ 601,645,280 Over(Under)Reserve Polity 3.295880 24,019.000 25.786.320 43.969.240 r Sewer service User Fees: Avg SFR Mna.l User Fee $341.74 $359.85 $378.92 $399.W Percentage Change 5.30% 5.30% 5.W% 5.30% r Equivalent Dwelling Units 926.187 929.891 933.611 937.34E SFR Connection Fee $6.M3 W.336 $6.674 $7.007 Outetendmo COP a $1.708.816.OW $1.663.253.0W $1,615,891.000 $1.561.247.000 -� Average Daily Flow,-go M 268 270 272 Redlands Polity as W%Next Year Oparaeng 111,378.000 119.1181000 128.247,000 138.646.0W 10%Next Yew Opondro 22,278.OW 23.824,000 25.649,000 27.729,000 100%Next Year AUG COP Svc. 149,766,680 137,107.253 137,053.480 138,466,280 60%average COP bad to 20M 63,927,000 63,670.000 61,546,000 591000,000 r Shoo term COP.GWRS - - - - OSR®10%Outstanding COPe 170.682,000 166.325,000 161,565,000 156.12 .000 SFI a$57mm INPUT 57.000,000 57.000,000 57.000.000 57.000.13W RepI$Refurb a 2W, 50.949,000 62.168,000 63.411.000 64.679.0W r Total 636.W8,580 629.212,280 634.470.480 641.645.280 COP Ratios Sr Lien Covered,Min 125 1.82 1.95 2.03 2.10 r Additional BOr1tls.1.25 1.82 1.95 2.03 2.10 r A-2 r L CIP Summary Original FY 2007-08 Budget 338,818.100 % Change Projects Completed or Canceled (5,523,000) (1.63%) New Projects 1,803,000 0.53% 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% Ind Revised FY 2007-08 Budget 30.2 713 7� (10.68%) I Original Total Budget 2,450,651,200 % Chancre 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%) L Changes to Capital Equipment (606,200) (0.02%) Revised Total Budget 2,465,861.000 0.62% V V 1.. L L L.i L L L LI A-3 L r 2007-08 Budget Update Project Summary FY 2007-08 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 Headworks 40,618,550 13,357.750 233.700 - 54,210,000 Primary Treatment 4,480,600 - 538,400 - 5,019,000 r Secondary Treatment 10,846,500 75.973,070 11,739,430 - 98,559,000 r Solids Handling 8 Digestion 11,515,200 12,169,000 162,800 - 23,847,000 Ocean Oudall Systems 1,485,500 - 1,485,500 - 2,971.000 utility Systems 2,292,750 1.374.250 4,515,000 5,225,000 13,407.000 r Odor Control Related Projects 160,000 - - - 160,000 Plant Automation 8 Computerization 1,762,000 - 166,250 2,248.750 4,177.000 Process Related Special Projects - 195.000 - 2.094,000 2,289,000 r Miscellaneous B Support Projects 4,104,100 655.700 40,500 2.015.700 6,816.000 r Water Management Projects - 15,641,000 - - 15.641,000 ,r Strategic 8 Master Planning 111.750 311.750 111,750 111,750 647,000 Research 8 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 57,839,755 13,900.475 302,713,700 r r A-4 r Capital Improvement Expenditure Graphs 15.019.000 f81L000 $71,091,OW Pnmery R.t. SlraleOicb Me let Plannm, Cdletlbns peephole. 02% 235% $23.$aT000 $2231.700 Wins HeMl,W B O9esinm Eympmenl 79% 0 7% $I some Door cooled Prolepla 9.05% $51,210.000 HeaOxvrks 179% 51.615000 Reel&Development 0.5% $a,177A00 Plent Aulamelion 6 $"559.000 W Cpmpeve=on So.d.ry Tmlmenl I n% 326% $15.W.000 Weer MenpemMl P.I. 5.2% 56,816 WO MiecellaMweB $13,107.MO 9uppon Proleae uUte,5yeleme 2.25% $2.971,000 d $2.289,000 OMan commit Systems pretense Related Prgets 10% 076% Total FY 2007-08 Capital Improvement Expenditure by Process -$302,713,700 $121.402.795 Improves Tremmenl nn 1°a $S1,8397 Atltlilio Capa, city 19 19.1% $11900.475 suppon a 6% $109,570,675 Replawmenl I Re plohlavon 36 2% Total FY 2007-08 Capital Improvement Expenditure by Type -$302,713,700 A- 5 r 2007-08 Budget Update r Summary of Capital Requirements—Collection System Improvement Projects r Original Revised Original ReVwd Total Total 200748 200748 project Project Project Cashnow Cashaow Nem Number Budoet Budget Budget Budget Number r Co0ecdons Rain and BmW Sheet Sewn ErdaeYgn 01-101 5.UZODD 3.787,Dm 622,000 5W.00D 1 Same Ana Trunk Sewer Rehab. 01-17 18,432,000 19.717,000 2D38,000 988.00D 2 r Carbon Cnyn Sewer and Pump Sin.Abandonment 02-241 8,318,030 9,612p00 6.712,000 2.128,Om 3 Sama Ana River lnlercepmr Realignmend and Rol. 0241 9,583,m0 10.382,000 492,O00 W7,000 4 Soda Ana Sher lmemepiar 2005 Emergency Repairs 02414 3.767.000 - - . Complee r Same Ana River lneceptor 2006 PMeceon Repairs W41.5 3,348.ODD 200.000 - 98.ODO 5 Taft Branch Impr emenls 0249 MA00 1.019.000 20,= - 6 Eucid Reliellmprovemmb-Reach'A' 02-52 23,050,000 22.050.000 224.000 - 7 Newhope-Placentia B Cyprea6 Trunk Replacennenls 0265 6,623.M 6,623.000 164,000 218.000 8 RehabftW 0ikh So.By Ackng Ab Jumper 0268 5.267.0M 7,726,000 197.000 713AW 9 Fu9otan6ma lmerceph,Satyr RelW 02-71 855,Om 946.000 29.000 - 10 r RehaMTilaGon of line Westside Pump Slabbn 0352 8291,000 8,840.000 1.015.000 1,817.D00 11 Westside Relief lmerceptod Los Alamibs MH Rehab D3.55 11,704.DDO 11,704,000 - - 12 r Rehahldabon of Megnalm Trunk Sewer 03.58 28,806,000 28,769,DOD 1.107.000 1.169,000 13 MBW-Holda Trunk Sewer Refie1 0359 9.412,000 10.200.000 - - 14 Beach TMnklKoa lMacepke Sewer Relief 0360 17,815.000 19.415.000 - - 15 r Balm Trunk Sewer ReabOAalim 0547 7,873,Om 7.873.000 373,E 384.000 16 Replacement of tla Bien Poled Pump Slaton D549 34.079,W0 34,079.000 529.000 4,882.000 17 Replacamad of Ba Rocky point Pump Slation OS50 3g952.00D 30.952.000 vao,000 1.452,030 18 r Relumblaban of the 14N Strati Pump Station 05-51 9,673.ODD - - - Canplate RehabOilation of ft W Sheet Pump Slabon 0552 9,657,OOD - Compade RelabBlabon of Ba Bay Brilge Pump Station OS53 2,465,000 926,000 300.000 434,mp 19 '-� Bilb Pohl Face Man RehabBbtion 05.58 22,775,ODO 24,392,000 28.000 237.000 20 Newport Force Mein Cmelhion Asysmcmt 0660 650,000 650.DW 310.OD0 20.000 21 Bayside Dirty Impmvemenl 0561 2.875,000 3.318.000 355.000 370.000 22 Realign B Rehab of Big Canton castle Trunk Sewer 0562 3.811,000 - - - Complete Dover pie Trunk Satyr ReEtl 0563 6.378.000 6,378.000 742,000 465,m0 23 r putrid 6 Trunk Saver Reef 06-17 1,884,000 2050,000 221,OOD - 24 Fairvlaw Road Trunk Beare Rebal 06.18 9257.000 10.029,000 290.000 - 25 Surtlbrtr baerceper Manhole Rehab, 07-21 3294,000 - - - Complete r GeW Red HB Trunk Sewer Relo®eon-Phase1 07-32-1 2.393.000 1,667,OW - 1,063.000 26 Goer-RedhM Syshere ovamane,Reach B 07-37 11.763,000 16,120,000 6.461,000 2.483.000 27 Retabilafion of College Aw.Pump BWimn 0747 7.976,000 11,404.D00 1,171,000 2,357.000 28 Browrdng Subtrumc Sewn ReW 0760 3.605.000 3.920.000 11ZODO - 29 CorrUnued A-6 r Summary of Capital Requirements Summary of Capital Requirements—Collection System Improvement Projects Orillvl Revised Original Revised Total Total 2007-08 2007-08 Project Project Project Cash0ow Cash0ow It.. Number Bull Budget Budget Budget Number Collections(Continued.) County Island Annezation add CEQA Doaonene5on 0741 250,000 350,000 - 150000 30 w Von Narman Tmnk Sewm Relief 0742 328,000 328,000 - - 31 Edilgen'l Chia Trunk Improvements 11-25 4,176,000 4.176,000 - - 32 Coast Tmnk Sew.Rehabilitation 11-26 10,950OU0 10,4E0.000 688,000 424,000 33 r Lake Avenue Interceptor Sesser Relief 11-31 4X25,000 - 491.000 . Canceled OCTA Sewer Relocation Projects 15-01 397,000 397,000 - 14,0p0 34 V NOM County Colec0ons Yard 1504 10,090.000 10.213.000 - 1.000.000 35 Manhole Rehabilitation and Assessment Program 15-05 1.540.000 1240,000 940.000 410.000 36 Fac80es Engineering Projects-Collections FE-C.W 5.400,0O11, 7,650.000 146.000 949.000 37 r Replacement of the Ellis Ave.Pump Stn 1-10 79.319,000 79,509.000 24.453,000 36,639,000 38 BushaN Trunk Sewer Rehabilitation 1.241 69,456,000 68,396.000 7.189,OD0 8.519.000 39 Los Alam0os Blvd.Sewers Condition Assessment SP-126 - 350.000 - 130,000 40 kr Total Collections Proecls We V r r b1 Ir r r r r A-7 r 2007-08 Budget Update Summary of Capital Requirements—Treatment System Improvement Projects Original Revised Original Revised Total Total NOT48 2007418 Project Projem Project Caeh80w CashRow Nem Nmeber Budget Budget Budget Budget Number Headwohs Headworks Rehab.and Expansion at Plant No,1 P1-105 16.050.000 1),65),000 58,000 - 41 Headwvtks Rehabi0lalioNRefunblsbmeni P1-71 5,159,N0 9,156.000 696.000 ))9,000 42 Hendwhs lmDrevementa at Plant No.2 P2£6 257.762.000 257,782.000 74,538.000 53A31.000 43 Headwodu Total 278,971,000 2M.95.00 75.292,000 50,210,000 r Primary Treatment Pri,Clarinets 16-31 8 Related Facilities P1-37 90,92),000 M.528.000 - 673.000 44 s Pdmary Treatment ReMblRefum P280 58,1187,000 37.230.000 312,000 4,346.Opp 45 Pdmary Treatment Total 149,814,000 1347M.OM 31Z M 5,018,OM Secondary Treatment New Secondary Treatment Stakm at Plant No P1-102 265,846,000 266,789,000 51,078.000 29,195000 46 se Activated Sludge Plant Rehabilitation P1-82 47,013.000 46.133.000 5.999.000 8.419.000 47 Rehabilitation ofA roiled Sludge Plant at Plant 2 N-74 17,916.000 17,306,01)0 6.169.00D 6,537,0011 48 Trickling Fillers at Plant No.2 P2.90 248.531,W0 221,192.000 52.792,000 54.307,000 49 Oxygen Plant Rehabilitation SP-72-1 ISAM 15Q000 - 1001000 50 r Secondary Treatment TOW STB.MSM0 551.5)0.000 116.038.O110 M.SSB.OM Sold.Handling 8 Digestion Sludge Digester Rehabilitation at Plant 1 Pi-IM 54 916.000 58,410.000 1,553,000 2.340.000 51 Sludge Dewalemg and Odor control at Plant l P1101 IM683.000 143.547,000 3.990.000 7,609,000 52 Truck Wash and Dewalcring Beds at Plant No.1 PI.106 4,36100 3,146.000 3,150.000 2,562.000 53 Solids Storage aM Truck Loading Facility P2-60 15,822,000 16,141M - 414.000 M r Rehabililation of Said.Storage Silos C 8 o at P2 P2-89 23,143.= 23,143.000 72TM 682.0gg 55 Plant No.2 Pdmary Sludge Fend System Project P2-91 22,487.000 25,766,01)0 13,988.000 8,055.000 56 r Digester Rehabilitation at Plant No,2 M-91-1 33,411.000 M.148O00 1.Boo" W.000 57 Sludge oewaering and Odor Conant at Plant 2 M-92 59.520,000 51,696,000 - - SO r Replacement of Drt ng Beds and Truck Wash at Plant No.2 M-97 4,197,000 4.651,001) 3.599000 1,390.000 59 Dgeslers-F-and-G'Liner Replacement at Treatment Plant W SP-117 2,60D.000 - - - Complete Solids Handling B Digestion Total 355,140,800 357,6/6,000 28.607,000 23,847,000 A- 8 L Summary of Capital Requirements Summary of Capital Requirements—Treatment System Improvement Projects r Original Revised Original Revised Total Total 2001-08 200748 Project Project Prole" Caah0ow Cashnow Item Number Social Budget BudOat Budget Number Ocean Outlall Systems Effluent Funding Batch Annex J-72 62.131.000 W.401.000 3.149.00(1 2.971,WD 60 1� OOBS Rehabilitates,Assessment Study J-99 200.000 - - - Compete Ocean Outall Systems Total 62,M1,000 W.47.000 3.149.000 2.971.000 y thilty Systems _ Arc Flash Hagan Evaluation J-1w 160.000 - - - Complete t� helmets Gas Lire Rehebdbatlon J-106 3,172.000 3.752t000 343,000 - 61 Cengen Cooling Water Stetson Replacement J-109 - 9.O104.000 - 372,00) 62 V Standby Power and Rettabiaty Modificatgns J-3;.1A - 19.609.m - tell 0 63 Cable Tray Improvements at Parks 182 J41 29,899,O00 29,899,0ro 66,000 1,239.= 64 Air Oaaliry Improvements J-T9 >.lW.M 911681= - 74,OOD es Central Gessalron Aulornmicn J-231 13.5W.000 12.%S.00D 2,446.O1(o 1,613,000 66 Fire Suppreselon for Servers and Equip at Pt 3 92 J-96 921.000 921.M - 710.000 62 L Eleclticel Power Distribution System Improvements J-98 8.529.000 8,992.000 241,000 - 60 Plant 166kV Substation PI-92 13,487.000 15,893.000 10,015,4100 9.030,000 69 r Gas Compressor Building Upgrades el Plant No.2 P2 79 T.W.000 - 4,822.M Complete ENcbicel Equipment Refurbishment and Protection SP 81 4,410,Do0 4,296.0pD "am 188.000 10 as, Plant l Plant Water VFD Replacement SP-94 1,286.0011 - - Complete UBllty systems Total 90.228,000 119.579.000 19A113.000 13A07.000 w Odor Control Related Projects Rehabilite0on of Odm Control Facilities J-71.8 44,137.000 42,107,000 5.000 160,000 21 Digester Gas Building Odor Consul Protect P1.110 100.000 - - - Complete see, Oder Central for New Solids Track Loading SblYOn P2-95 - - - - Canceled - Pismi Treatment Odor Control Replacement P2-98 - 28,460.000 - - 22 Lj Odor Conbol Related Projects Total 44.237.000 71.29T.000 5,000 Illegal i Process Related Spetltl Projects rl Plan O8M Manual B SOP Propel-PacalI SP53 4.M.000 3,750.000 1.200.000 1,100,000 73 Carnation Management Slc 1 l 4.667A00 4,667,000 I.M. 00 994.000 24 tssl Special Projects:Anaerobic Baffled Reactor(MR) SPAo2 455.000 455.000 10510U0 145.= 75 Spoctal PreJacls:Bichat,ng Filer(BTF) SP-90-7 850.000 M.000 10,000 50000 76 ass Process Related Special Projects Total 9,972.000 9.T22.000 2.319.000 2,289.000 V A-9 tr r 2007-08 Budget Update r Summary of Capital Requirements—Treatment System Improvement Projects r Original Revi¢ed Original Revleed Total Total 2001,418 200740 Project Project Project CasbRPw Ca.hlow Item Number Budget Budget Butlpet Butlpet Number Plant Automation 8 Compu plimalon r SCAM NIabrian Replacement 1103 558.000 - 210.000 - Complete Time Entry System J-104 310.000 - - - Complete r Pamir MonitmW and Contact Syxleme J 33 6.76SAN a035,000 4.227.000 1.311.1)(10 71 Feb,Ones,ad!Grease(FOG)Somaere Pt-108 100,000 100.000 - 23,000 19 Smm,Ic lM0tmabon Architecture(SIA) SP-03 L995,000 1,%g000 - 288,000 79 r IMemeVlntronot Devebpmenl SPJl9 850.000 850.000 - 80000 80 CMMB System Replacement SP-100 3.789.000 3.789,000 2.381.000 665,000 81 r PDS2D Somi Replacement SP-103 250.000 20,000 - - 02 Environmental Compliance Awv aran.Program SP-104 983,000 9CJ.000 - 300,000 83 Dlsauler Recovery SP-111 21,000 - - - Canceled! r Geographic Information System SP-15 4,157.000 4.157.M 410,000 520,Uc0 04 Nem ark Equipment Upgrade SP-89 2.804.000 2,804,000 599.000 930.000 85 r Plant Automation B ComVuteriaaNen Total 22.383,000 22.783.000 T.833.000 4.177.000 Mfiamllanapua a Support Prolecb r Facilities Engineering Projects-Joint Fad 182WIM 21.200,000 441,000 1J593J1% 86 Facil6las Engineering Projects-PlaMI FE-Pt 18,300.000 18.20o.o00 754,000 697,000 87 r FecilOias Engineering Prolecb-plane 2 FE-132 18,200.000 18.200.000 423,000 658.000 BB Temporary Upgratles To Plant Secum,Ble ere J-108 - 1.350.000 - 41,000 89 Laboratory Rehabilitation J-88 1,652,0W - - . Complete r l.al,ortor, rt6luhmaM al Plead No.1 J-97 W51M 417,000 - 162,000 % Regional FOG Connd CoOecbm at Rent W.1 P1-101 3,150000 3,150,000 137,M) 137,0O11 91 all plead No.2 LanducePing Project F2-95 440.000 "01011 - 173.D00 92 control Center Space Allocation Study sp-116 60.%0 - - - Complete Office Space Planning Study SP-127 - 5110.000 - 150,000 93 r Integrated Sacuriy Access Control System SP-120 - 450.000 - 110.000 99 Small Cap.Equip,Replacement Pro ecl SP34 3.250.000 12.508.000 - 2,000.000 95 r Asset Management Program S"8-2 51100,000 5.575.000 750,000 750100D all, Warehouse Relmention project SP-TT 600.000 600,000 118=0 120,000 9? Me 2 Malnlenance Will,Mudiications SP-98 522.000 339,000 151,000 217,000 Is r Mlucelleneeus 8 Support projects Total 89.80.000 82.929.000 27/4.000 6.816.000 r A- 10 r Summary of Capital Requirements Summary of Capital Requirements—Treatment System Improvement Projects Original Revised Original Revised i..i Total Total 2007-08 200748 Project Projact Project Cash6ow Cash0ow Item Number Budget Budget Budget Budget Number Wager Management Projects hei Groundwater Repleniabmenl System J-36 240551,000 246.094,OM 22,696,000 15,641,000 99 Water Management Projects Total 248,551,000 246,086.000 AMOAM 16,661,000 V Strategic d Master Planning Treaunent Plant Stratagc Plan Update J-102 3,620000 3,620.000 530,001) 4O7,000 1M ass Orange County Biosolids ProdWun SiWg Study SP-105 400,000 400.000 150,000 211D,000 101 Strategic 6 Master Planning Total 4,020,000 4A20.OM MAN 66T.M0 r Research a Development USSR Bnre,Management Grant Project SIP-116 IOOND 1M.Mo - 35,W3 102 Ir,4 Research Sbagegic Plan SP-120 120.000 365,p00 - 260.000 103 Supemxygerelion of PA.,Influent SP-121 150,000 aso.wal - 210.00 104 we, Manner Plot Plant Satety and Contrd Stratum Upgrades SKIM 105.000 M.000 - 50.000 105 Digester OptimOa0m SP-In 75,000 230,OM - 90,00D 1W Opea0orel Research Pmnts.20D7-0e SP-125 - IaXKUo0 - 1.000,000 107 ar+ Research S Development Total SMAM 11,635,OM 1.a45.000 Total Treatment and Disposal Protests 1,914,911 1,953,045,000 V%IM,MO M,3U,M0 as, Capital Equipment Purobeses 15,606,200 16.000,OM 1.5KIN 2231]00 Total Collection,Tmagment and Disposal Projats 1200 zt 18 0 V In Septum0er 2006 Me Board Vanslened 3450,000 mom Meeting protects b fund new ressarch projects. Ie.r sei hd 6e tr r A-11 u FY 2007-08 Budget Update — Project Name&Number Los Alamitos Blvd.Sewers Condition Assessment-SP-126 Project Category Collections Faci0lles Project Budget: 5350,000 r Description This project will conduct an extensive condition assessment of the three sowers in Los Alamitos Boulevard to determine the extant of the existing damage to the sewers,better estimate the timing for needed repairs.and recommend the most cost effective method of rehabilitation. Justification In 20D6.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 sal are infiltrating into these pipes. - Project Name It Number Cringer,Cooling Water System Replacement-J-109 Project Category Utility Systems Project Budget: 59.094,000 — Description This project will Improve the 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 the Central Generation Engines and reduce water consumption by replacing the existing once-through coding systems with a mom efficient system. J.tfflcatlon ass This project will substantially reduce the amount of water consumed by process equipmere systems,resulting in an estimated savings of$500,000 annually. The chemist currently buys reclaimed water to cool mechanical equipment This water is expensive and contains chemicals that damage equipment. The compact is set to expire in 2012. The suggested changes will eliminate Oe need to purchase reclaimed water due to use of closed xxx loop systems with cooling lowers. na Project Name&Number Temporary Upgrades To Plant Security Barriers-J-108 Project Category Mbcallaneous&Support Projects Project Budget: $1.350,000 Description This Project provides approximately 13,000 feet of perimeter security fencing around each of the treatment plants. — The fencing will replace or enhance deficient areas to improve site security at the each of the treatment works, At Reclamation Plant Ni fencing will be provided on the front and backsides of the plant along Ellis,Wad and Garfield Avenues. Perimeter fencing will also be installed along the Santa Ana River Channel and potions of the Talbert Marsh of Treatment Plant N0.2. Justification In 2005,OCSD conducted a security assessment survey to determine the Districts security vulnerabilities. One of the major recommended security improvements for the Districts facilities was a perimeter tamer design at — Plant Nos. 1&2. An improved barrier will serve as a structural banner against inpuders and protect vital plant infrastructure and District personnel. These temporary measures will allow OCSD to immediately be in compliance with a number of proposed regulations and will be in place until permanent structures can be designed and funded. xxx A-12 r CIP New Project Descriptions Project Name S Number oMice$pece Planning Study-SP-127 y Project Category Miscellaneous B Support Projects Project Budget: $500,000 Description y This project will develop a space plan for staff housed at Reclamation Plant No.t. The study will look at eziseng space deficiencies,ongoing staffing changes and planned operational and capital improvement panning needs over the next ten years. The study will also consider existing space planning for efforts at Treatment Plant No.2 and the NOMM County Yard. y JustBlcatlon 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 treatment upgrades in the Capital Improvement Program. The We project will also allow appropriate work groups to be oc-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. y Project Name S Number Integrated Security Access Control System-SP-123 y Project Category Miscellaneous S Support Projects Project Budget: $450,000 Description lawThis project will replace the existing access correct 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 examine surveillance to ensure that the overall security system is integrated. Also,the existing control center should have access to all security systems for y monitoring and security maintenance. Justl0cetlon In 2005.the District conducted a security assessment survey to determine the District's seventy,vulnerabilities. The focus of the study was W ensure that the District could comply with proposed regulations for critical infrastructure. One of the major recommendations was to replace the existing security systems lo minimize intrusions due to antiquated security technologies. The other recommendation was to provide for a central location where security could be effectively monitored and maintained. y y Project Name S Number Operational Research Projects,200749-SP-125 Project Category Research B Development Project Budget: $10.000.000 ' y Description This is a fund for operational research projects that have not yet been identified.As directed by OCSD management.an annual allocation will be made to fund research projects.For 2007-08,the Research Strategic Plan will identify projects and topics for research.Specific Projects then will be idenbfied and developed to be be furled from this budget. Justification These funds will be used for various research projects designed to improve operational efficiency,reduce costs, y improve safely,or fill important information gaps.The results will support O&M and provide information needed by Engineering for future planning and design work.The projxts Will be individually budgeted and tracked within the overall line item allocation. r r A-13 y FY 2007-08 Budget Update r r This page was intentionally left blank. r r r r A- 14 r r Proposed Equipment Budget Summary r Proposed Equipment Budget 2007-08 L. r Trucks& Other Mobile Machine Eq Comm Vehicles Eq &Tools Equipment Department 09410000 09610001 09410002 09410003 d Contracts, Purchasing 8 Materials Management - - Facilities Maintenance Services 570.000 - - - Environmental Assessment - - - - r Environmental Sciences Laboratory - - - - Operations& Maintenance Process Engineering - - 375,000 - Plant No.2Operations - - - - yy Mechanical. Reliability, &Maintenance Support Svcs - - - instrumentation&Electrical Maintenance - - - - Customer and Network Support as Total Proposed Capital Equipment 570.000 375,000 y Ir Is, r Le as r r We as A- 15 Yr FY 2007-08 Budget Update r Proposed Equipment Budget r 2007-08 r Instr/Test SaferyB 170ke Fix ComWler 2007-08 Equipment Traffic Eq 8 Eq Equipment Proposed Department 09410004 09410005 09410006 09410007 Budget Contracts, Purchasing 8 Materials Management - - 27.000 - 27.000 Facilities Maintenance Services - - - - 570,000 Environmental Assessment 299,500 - - - 299.500 Environmental Sciences Laboratory 82,100 - - 82.100 Operations 8 Maintenance Process Engineering - - - - 375,000 r Plant No.2 Operations - - 20.000 - 20,000 Mechanical,Reliability,8 Maintenance Support Svcs 39,300 - - - 39,300 r Instrumentation 8 Electrical Maintenance 168,000 - - - 168.000 Customer and Network Support 650,800 650,800 Total Proposed Capital Equipment 588,900 47,000 650,800 2,231.700 r r r r r A- 16 r y Proposed Equipment Budget Detail I V Proposed Equipment Budget Detail Proposed Division Eq.ip..nI Typ. Equip.Bud,.t L 230-Contracts. Purchasing 8 Materials Management File System for Public Works Administration 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 Total 570,000 bw 620 - Environmental Assessment Water Column Sampler-Replacement 70,800 Coastal Monitoring Mooring- Replacement 228.700 r Total 299.500 630 - Environmental Sciences Laboratory I Replacement Autoclave 64,700 v Wastewater Samplers(3) 17,400 Total 82.100 Enninearm Turnkey Portable Scrubbers at P1 (carryover from FY 06-07, not additional budget request) 100,000 Turnkey Portable Scrubbers at P2(carryover from FY 06-07, not additional budget request) 275.000 V 373.000 840-Plant No.2 Operation. Desks/cabinets for Ops Center Lab Office 8 Ops Miles Office at P2 20,000 85 ellabillh, &Maintenance Support CSI 52M Minilab with AMS Machinery Mgr and 3-day Tdbology Startup Svc 39,300 860-Instrumentation 8 Electrical Maintenance P1 Bus Duct Replacement(2)(#1) 21,600 r P1 Diversion Flow Meter(#2) 38,700 P1 Primary Effluent Pump Station (PEPS) Flow Meter(#4) 38,700 PAS Actuators(8)(#3) 69,000 168,000 `+ 930 - Customer and Network Suogort Replacement Telephone/PBX System 431,000 Camera Equipment, Div 420(2) 21,500 V Server Obsolescence Program(7 Servers) 85.000 Succession Planning-write software 45,000 Dias for Board Room Audlo/Video System 5,900 Streaming Audio Software(from FY 06-07. monies used for Board AV V so additional monies needed) 12,800 Software/Services for Learning Management System (from FY 06-07. monies used for Board AV in 06/07) 18.000 - MultIFunctionPrinter for GW RS trailer(Div 770) 10,000 860 VAX Server 21,600 64 Total 660,800 Total Proposed 2007-08 CORF Equipment Budget 2,291.700 W i V I ' A-17 V 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 r 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 oullined in each Fiscal Years annual budget,to include capital equipment,shall be bid and awarded directly by the Contracts/Purchasing Manager.' The r annual authorization amount for a multi-year contract is determined in the year the contract is bid8el. Therefore,the contract authorization amount indicated herein is valid only when the contract is bid/let 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 r 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. Contract Change Order r Description of Services or Supplies Division Authorization Contingency(l) Chemical Contracts Anionic polymers for solids removal 8W1840 f 269.000 Dili Catonic polymers for solids removal $301840 1.590.000 0%(2) r Ferric chloride $301840 4,011.260 0%(2) Caustic soda for disinfection and odor control 830/840/420 602,800 0%(2) Hydrogen peroxide for disinfection and odor control 8301840 1,521,000 0%(2) Bleach for disinfection and odor control 830/840 8.767.600 0%(2) r Magnesium hydroxide for odor control 420 663,000 0%(2) PRISC for odor control 420 2.939,000 0%(2) Sodium bisulfile for dechlormalion No 461.000 0%42) Other Contracts r un8orm 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% CCTV tape rating contract 420 360.000 10% r Manhole structure coating services 420 300,000 10% Mehl of way management services 420 175,000 10% Dig alert program contract 420 215,000 10% Manhole to manhole relining 420 300.000 10% r Manhole frame 8 cover replacement services 420 240.000 10% Groundskeeping services contract 430 304,000 10% Custodial services contract 430 452.100 to% Gasoline and lubricants-cardlock fuel contract 430 282.000 to% r Process area preventive maintenance/painting program 430 424.000 to% Compressed naturel gas 430 236,000 10% Security services contract 153 436,000 10% Hazardous waste services 153 130.000 10% r Co.OMP benthic infauna taxonomy 630 157,500 10% Physical oceanographic 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% Oxygen plant services 840 328.500 10% aw 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 860 1,000,000 10% r 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 sea 150.000 10% r Printshop managed service program 930 280.000 10% Total Contracts with Board Pre-Approval 5 48.203.410 Hob 1: The charge order wntilgency h:for the lifetime of the contract and is based on the annual author¢ad amount in Ind year as contract is Wall.[For eumple.a three-year contract anion,is authouned for an annual conlrict amount of$300.000,with a 10%charge order -w contingency must be initially blather for less than or east to 6300.000:over the life of the contract,(he halal charge orders may cal exceed 10% of 3300.000.or$30.000.1 Note 2: Once a chem cid contract is biNkt,there is no increase in unsocial allowed without Board appteval. aw A- 18 Self-Funded Insurance Plans 6. SELF-FUNDED INSURANCE PLANS The General Liability and Property program and the Workers'Compensation program have been in existence L since 1979 and currently provides for the District to be partially self-Insured for general liability and workers' compensation. The in-lieu premiums charged to the operating divislons are the revenue source for these programs. Expenses primarily consist of settlement claims, legal fees and excess loss Insurance premiums. 6. Ending Reserve Balances are projected at$57 million. General Liability and Property • The District's current excess general liability insurance coverage is$25 million with a self-insured retention y of$250,000. • The District's current property insurance coverage is $1 billion for perils of fire and$175 million for perils of •+ 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. y • 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. 1•n 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. Lr • In order to maintain the reserve balance of$2 million for the Workers'Compensation program, appropriations for in-lieu premiums charged to operating divisions are recommended at$559,400 for FY y 2007-08. FY 2007-08 Self-Insurance Program Budget t" General Liability Workers' Total &Property Compensation Self-Insurance DESCRIPTION OR ACCOUNT TITLE Program Program Program �+ Beginning Reserves $ 55,000,000 $ 2,000,000 $ 57,000,000 Revenues V 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 Total Revenues 2,055,200 559,400 2,614,600 Expenses Benefits/Claims 200,000 200,000 400,000 Contractual Services 1,200 30,000 31,200 Legal Services 300,000 50.000 350,000 Professional Services 5,000 25,000 30,000 V Policy Premium Expense 1,549,000 254,400 1,803,400 Total Expenses 2,055,200 559,400 2,614,600 Excess Revenue(Expenses) Ending Reserves $ 55,000,000 $ 2,000,000 $ 57,000,000 `+ r A- 19 L r Historical Staffing Summary 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 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 r Public Information Office 7.00 7.S0 9.00 7.50 7.00 Safety&Health 7.D0 7.00 8.00 8.00 8.50 Department Subtotal 24.50 24.50 24.50 25.00 30.25 tie Administrative Services Department Administrative Services 2.00 2.00 2.00 200 2.00 Financial Management 18.00 20.00 20.00 19.00 18.00 r Contacts, 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 Department 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.D0 16.00 17.50 Environmental Laboratory&Ocean Monitoring 37.00 37.00 37.00 38.00 48.50 Source Control 40.00 40.00 40.00 39.00 40.00 r Environmental Compliance Services 11.001 18.001 1&00 21.50 - Department 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 17.00 Engineering&Construction 48.00 58.00 64.00 63.50 58.50 r Facilities Engineering Project Management 11A0 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 CD0 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 4225 41.75 r Plant No.2 Operations 45.50 46.50 47.50 4Z50 46.00 Mechanical,Reliability,&Maint.Support Services 55.50 58.50 58.50 73.00 74.00 Instrumentation&Electrical Maintenance 64.50 54.50 54.50 68.00 71.00 r 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 31.00 32.00 30.00 19.00 17.00 Department Subtotal 287.25 295.25 1 297.25 300.251 292.75 Grand Total-All Deparb. nts 598.00 1 629.00 1 644.00 1 644.001 634.00 A-20 r V Historical Staffing Detail Authorized Authodzed Authorized Approved Proposed FTEs FTEs FTEs FTEs FTEa La Division&Position 201) ON 2004 05 200506 2006-07 2007-06 Office of the General Manager 110 General Management Administration General Manager 1.00 1.00 1.00 1.00 1.00 Assistant General Manager - - - 1.00 - Management Discretion - - - - 4.00 Secretary to the General Manager 1.00 1.00 1.00 1.00 1.00 Intern 0.50 y Total General Management Administration 2.00 2.00 2.00 3.00 6.50 150 Assistant General Manager Administration Assistant General Manager - - - - 1.00 Legislative Affairs Liaison - - - - 1.00 V Principal Financial Analyst - - - - 1.00 Grants Specialist - - - -Electrical Technician Technician II - - - - - Intern kr Total Asst.General Management Administration 3.00 151 Board Services(formerly division 570) Director of Communications&Administrative Services - 0.50 - - - y Administrative Services Manager 1.00 - - - - Board Services Supervisor - - - 1.00 - Clerk of the Board - - - - 1.00 Utilities Management Specialist 1.00 - - - - 6w 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 - - - y 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 3.00 2.00 2.00 2.00 Total Board Services 8.50 8.00 5.50 6.50 5.25 152 Public Information Office(formerly division 560) Director of Communications&Administrative Services - 0.50 - - - Communications Manager 1.00 - - - - y 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 - - - 0.50 - I 1r Total Public Information Office 7.00 7.50 9.00 7.501 7.00 153 Safety&Health(formerly,division 530) Safely&Health Manager - - - - 1.00 Safety&Health Supervisor 1.00 1.00 1.00 1.00 1.00 �a Safety&Health Specialist 2-00 2.00 2.00 2.00 2.00 Security&Emergency Planning Specialist - - 1.00 1.00 1.00 - Senior Safely&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 Safety&Health 1 7.00 7.00 8.00 8.00 8.50 h.l Total Office of the General Manager 2450 N.50 24.50 1 25.00 1 30.25 V A-21 V FY 2007-08 Budget Update r Authorized Authorized Authorized Approved Proposed FTes FTEs FTEs FTEs FTEs Division 8 Position 2003-04 2004-05 2005-06 2008-07 2007-08 Administrative Services Department 210 Administrative Services r Director of Finance 8 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 Accountant/Staff 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 20.001 20.00 19.00 18.00 r, 230 Contracts,Purchasing S Materials Management Contracts 8 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 1.00 1.00 1.00 1.00 1.00 Materials Control Supervisor 1.00 1.00 1.00 1.00 1.00 Senior Contracts Administrator 0.60 1.50 4.50 4.50 5.50 Contracts Administrator 1.00 1.00 3.00 4.00 r Senior Buyer 1.00 2.00 2.00 3.00 2.00 Buyer 2.00 2.00 2.00 1.00 2.00 Staff Analyst 1.00 1.00 - -Administrative Assistant 1.00 2.00 4.00 4.00 5.00 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.D0 Storekeeper Assistant 1.00 r Total Contracts,Purchasing 8 Materials Management 19.50 22.50 27.50 29.50 31.50 240 Human Resources(fonnedy division 510,520,540,550) Director of Human Resources 1.00 1.00 1.00 1.00 - Human Resources 8 Employee Relations Manager - - - - 1.00 r 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 r Security and Loss Control Representative - 1.00 - - - Senior 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 - Interne for agency 9.00 9.00 9.00 - - r Planned Recruitment Fashion Pool($max) 1 2.22 2 0000. 2. 2.00 Total Human Resources25.00 27.00 28.00 1 19.00 I 15.00 r A-22 r Historical Staffing Detail AutM1orized Autharued Authorized Approver) Propoesd FTEs FTEs FTES FTEa FTES Division 8 Position 200304 2004-05 2005.08 1 200601 2007-08 r 930 Information Technology Admin,Customer S Network Support(formerly tlivision.910,920.930) Director of Information Technology 1.00 1.00 1.00 1.00 - Informetion Technology Systems&Operations Manager - - - 1.00 Executive Assistant 1.00 1.00 1.00 1.W 1.00 V Office Assistant - - 1.00 1.W - Information Technology Manager 1.00 1.00 1.00 1.00 1.00 Information Technology Supervisor 1.00 1.00 1.00 1.W - Principal Information TechndogyAnalyst 1.00 1.00 1.00 1.00 2.00 Senior Information Technology Analyst 3.00 3.00 3.00 8.00 4.00 V Information Technology Analyst 111 6.00 7.00 7.00 5.00 3.00 Information Technology Analyst 11 1.00 1.00 1.00 1.00 1.00 Information Technology Analyst 1 1.00 1.00 1.00 1.00 2.00 Stag Analyst - - - - 1.00 r Information Technology Technician 11 1.00 - 1.00 2.00 Information Technology Technician 1 2.00 2.00 2.00 1.00 Total Administration,Customer 8 Network Support 19.00 19.00 20.00 20.00 18.00 US Information Technology Programming S Database Systems y Information Technology Manager 1.W 1.00 1.00 1.00 1.00 Principal Information Technology Analyst 3.00 3.00 3.00 5.00 5.00 Senior Information Technology Analyst 3.00 4.00 4.00 4.00 4.00 Information Technology Analyst 111 5.00 4.00 4.00 2.00 2.00 v Total Programming 5 Database Systems 12.00 12.00 12.00 22,00 12.W 950 Information Technology Prosase Controls Integration Process Controls Manager 1.00 1.00 1.00 -Senior Engineer 1.00 1.00 1.00 - - PrincipallnformstionTechnologyAnalyst - 1.00 1.00 Engineer 4.00 4.00 4.00 - - Senior Information Technology Analyst 3.00 2.00 2.00 - - Information Technology Analyst 111 4.00 4.00 4.00 Trial Process Controls Integration 13.00 13.001 13.00 Total Administrative Services Department t0e." 115.501 122.50 101.50 97.50 Technical Services Department 610 Technical Services Administration v Director of Technical Services 1.00 1.00 1.00 1.00 1.W Senior Affer Liaison - - 1.00 1.00 . Senior Swiaer - - - . 1.00 Senior Environmental perm m - - . 1.00 - Senior iva,AsnmentelSpecialist - - 1.00 . - r� Executive Assistant 1.W 1.00 1.00 1.50 1.00 Intern 4.60 Total Technical Services Administration 2.00 2.00 4.00 9.60 3.00 620 Environmental Assessment r Environmental Assessment Manager 1.00 1.00 1.00 1.00 1.00 Chief Scientist 1.00 - - - - Environmental Supervisor 1.00 - - - 3.00 Legal 8 Regulatory Affairs Liaison 2.00 1.00 1.00 1.00 2.00 we, Senior Engineer - _ _ 1.00 Senior Scientist 1.00 2.00 2.00 2.00 1.00 Engineer - - - - 1.00 Scientist 2.001.00 - - - L.I Boat Captain - - 1.00 1.W - Regulatory Specialist 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 Y. Environmental Specialist - 1.00 2.00 2.00 - Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Office Assistant 1.00 1.00 - - - Intern - - - 1.00 1.50 Ell Total Environmental Assessment 21.00 15.00 15.00 18.00 1T.50 1111 A-23 I Lll r FY 2007-08 Budget Update as Author izad Aufferized Authorized Approved Proposed FTEs FTEa FTEs FTEa FTEs Division 6 Position 20011-04 Z004-OS 2005.06 20 7 2007436 ee 630 EnNronmenbl Sciences Latoril Latooratory Manager 1.00 1.00 1.00 1.00 1.00 Operations Manager - - - - - LaboratorySectionSupervlsor 4.00 4.00 4.00 4.00 3.00 as Environmental Supervisor - 1.00 LIMS Administrator 2.00 2.00 2.00 2.110 1.00 Senior Scientist 1.00 1.00 1.00 1.00 3.00 Soot Captain 1.00 Scientst 2.00 2.00 2.00 2.00 2.00 as Principal Ernironmental Specialist - - - - 2.00 Principal Laboratory Analyst 9.00 9.00 9.00 9.00 10.00 Senior Environmental Specialist - - - - 3.00 Senior Latooralory Analyst 7.00 7.00 7.00 8.00 I1.00 r Environmental Speaallsl - - - - 1.00 Laboratory Analyst 6.00 6.00 6.00 5.00 3.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Laborelary Assistant 3.00 3.00 3.00 3.00 3.00 program Assistant 1.00 1A0 1.00 I 1.00 1.00 as Intern 1.00 1.50 Total Environmental Sciences Laboratory 37.00 37.00 37.00 38.00 48.50 US Source Contml Source Control Manager 1.00 1.00 1.00 1.00 1.00 r Engineering Supervisor 1.00 1.00 2.00 2.00 2.00 Senor Engineer 1.00 I.W - - Senior Regulatory Specialist 1.00 1.00 1.00 1.00 1.00 Engineer 4.00 6.00 7.00 7.00 5.00 ea Regulatory Speclallst 1.00 1.00 1.00 1.410 2.00 Source Control Supervisor 1.00 1.00 1.00 1.00 1.00 Assoaab Engineer III 8.00 5.00 3.00 3.00 1.00 Principal Environmental Specialist 3.00 3.00 3.00 2.00 2.00 Senior Environmental Specialist - - - - 1.00 ass Source Contra Inspector 11 12.00 12.00 12.00 12m 12.00 Environmental Specialist 1.00 1.00 1.00 1.00 - Adminlloa0ve Assistant - 1.00 1.00 1.00 1.00 Environmental TeUniclan 2.00 2.00 2.00 2.00 3.00 r Program Assistant 5.00 4.00 4.00 4.00 4.00 Office Assistant 1.00 1.00 11.00 1.00 Im Taal Source Contra 'WILM 40M 40.00 39.00 40.00 980 Environmental Compliance Services r Engineering Manager 1.00 1.00 1.00 1.00 - Engineering Supervisor - - 1.00 1.00 - Legal S Regulatory Affairs Liaison - 1.00 1.00 1.00 - Senior Engineer 2.00 2.00 1.00 1.00 - r Senor Scientist 1.00 1.00 1.00 1.00 - Engineer - 1.00 2.00 3.00 Regulatory Specialist - 1.00 2.00 1.00 - Associate Engineer 111 3.00 3.00 2.00 2.00 - Principal Environmental Specialist - - 1.00 1.00 as Associate Engineer 11 - 1.00 - Senior Environmental Specialist 2.00 5.00 3.00 4.00 - Environmental Specialist - 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 - r Environmental Technician 1.00 1.00 tA0 1.00 - intern 1.50 Taal Environmental Compliance Services 11.00 16.00 16.00 21.50 Tool Technical Services Department 111.00 112.00 114.00 119.00 109.00 as Engineering Onartrnent 710 Engineering Administration Director of Engineering 1.00 1.00 1.00 1.00 1.00 Senior Engineer 1.00 1.00 1.00 1.00 - Engineer - - - - - Executive Assistant 1.00 1.00 1.00 1 1.00 1.00 Total Engineering Administration 3.00 3.00 3.00 1 3.00 2.00 se A-24 y Historical Staffing Detail y AutMdos,! Av0lorixed Auawriced Approved ho0osed FTEs FTEa FTEs "E. FTEs Division B Position 2003g4 200s415 2004 2 07 2W7-0e y 740 Planning Engineering Manager 1.W 1.W 1.00 1.00 1.00 Engineering Supervisor - 1.00 1.W 1.00 1.00 Senor Engineer 1.00 1.00 1.W 1A0 Engineer 1.00 1.00 1.W 1.W 200 Principal Engineering Data Management Specialist - - - 1.00 - Senior Engineering Data Management Specialist 1.W 1.W 1.W 1.W 1.00 Engineering Data Management Specialist 1.W 1.00 1.00 - - Assadale 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 Ent,min ring Associate 1.00 1.00 1.W 1.00 2.00 Engineering Data Management Technician II 2.W 2.00 3.W 3.W 3.00 Engineering Assistant It 2.00 2.00 1.W 1.W - r, PAministrative Assistant 1.00 1.W 1.00 1.00 1.00 Engineering Assistant) 1.00 1.00 1.00 2.OD Total Planning 14.00 18.00 15.00 16.00 16.00 TW Project Management Critics y Engineering Manager 1.00 1.00 1.W 1.W 1.00 Engineering Supervisor 1.00 1.00 1.00 1.W COD Capital Improvement Program Project Manager 8.00 8.00 8.W 8.00 7.00 Principal Engineering Data Management Specialist - - - - 1.W PnnciPel Stag Anal st - 2.00 2.00 2.00 2.00 y Goat Estimator - - - - 1.W Senior Engineering Associate - 1.00 _ _ _ Ptanned,5cheduler - - 1.00 1.00 1.00 Senlor Staff Analyst 1.00 - - - - �rl Engineering Assistant II 1.75 1.75 0-75 0.75 1.00 PAministrative Assistant 1.00 2.00 1.00 1.00 1.00 Office Assistant 1.00 1.00 1.00 1.00 1.00 Total Project Management OR,e 14.75 17.75 15.75 15.75 17.00 y ]W Englneeritrg&Constr ic8on Engineering Manager 1.00 1.00 1.00 1.W 1.00 Engineering Supervisor 4.00 4.00 4.00 4.00 4.01) 1 Senior Engineer 4.00 7.00 5.00 7.00 8.00 Senior Construction Inspection Supervi sor - - 1.00 1.00 1.00 Its, Construction Inspection Supervisor 2.00 2.00 3.00 3.00 3.00 Engineer 11.00 12.00 13.00 12.00 10.00 Senior Engineering Associate 1.00 2.00 2.00 2.00 1.00 Cost Estimator - - 1.00 1.W - Vr Planner/Scheduler - - - 1.00 - Assaciate Engineer III 3.W 4.00 4.00 4.00 4.W Senior Construction Inspector S.W 8.00 9.00 9.W 7.00 Assodata Engineer 11 - - 1.00 Engineering Assocate 1.00 - 1.00 1.W - Cora:Wdion Inspector 6.00 10.00 9.W 8.W 10.00 Engineering Assistant ll 2.W 3.00 3.00 3.00 3.00 PAministmniva Assistant 4.00 4.00 4.00 3.00 3.00 Engineering Assistant 1 1.00 1.00 1.00 1.00 1.00 1r Once Assistant - - 1.00 1.00 1.00 Intem 1.W 1.W Total Engineering B Conspuction 48.00 W.00 54.00 83.W W.50 770 Facilities Engineering Project Management Engineering Manager - - - - 1.00 Engineering Supervisor _ _ - - 1.00 Senior Engineer - - _ 1.00 Engineer _ _ _ _ S00 Associate Engineer 111 - - - - 1.00 Associate Engineer II - - - - 1.00 Administrative Assistant 1.00 Total Facilities Engineering Project Management - - - - 11.00 y Total Engineering Department TOTS 9A78 98.75 98.25 104.W A-25 y r FY 2007-08 Budget Update r Authorized AuNorized Authorized Approved Proposed r FTEs FTEs FTEs FTEs FTEs Division&Position 2003 200"5 2005-08 2008-07 2007-08 Operations&Maintenance Department 910 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 - UUliliesManegementSpecialisl - 1.00 2.00 1.00 - ir Executive Assistant 1.00 1.00 1.00 1.00 1.00 Total Operations&Maintenance Administration 2.00 4.00 6.00 4.00 2.00 410 Regional Assets&Services Administration Director of Regional Assets&Services - - 1.00 1.00 - r 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 r Principal Staff Analyst - - 1.00 1.00 1.00 Engineer - - 1.00 1.00 - SeniorEngineeringAssociate - - 1.00 1.00 1.00 Executive Assistant - - 1.00 1.00 1.00 r Administrative Assistant 1.00 1.00 Total Regional Assets&Services Administration 2.00 2.00 8.00 8.00 8.00 420 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 1.00 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 ll 1.00 1.00 1.00 - - r, Lead Mechanic 3.00 3.00 4.00 4.00 4.00 Senior Mechanic 6.00 S.00 8.00 9.00 9.00 Mechanic 11.00 11.001 8.00 7.00 1 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 - Senlor Maintenance Supervisor 1.00 1.00 1.00 1.00 1.00 Engineer 1.00 1.00 - - r 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 - - r Lead Mechanic 2.00 2.00 2,00 1.00 1.00 Lead Welder/Fabricator 1.00 1.00 1.00 - - Machlnist 1.00 1.00 1.00 - Auwrnotive/Heavy Equipment Assistant - 1.00 1.00 1.00 r Automotive/Heavy Equipment Technician 3.00 4.00 3.00 3.00 3.00 Equipment Operator 3.00 3.00 3.00 3.00 2.00 Senior Mechanic 2.00 2.00 3.00 - - Welder/Fabricator 2.00 2.00 2.00 - - r Lead Facilities Worker 3.00 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 AssistanUDispalcher 1.00 Total Facilities Maintenance Services 31.00 32.00 30.00 1 19.001 17.00 A-26 r 6r Historical Staffing Detail 6. Authonzed Authorized Authorized Approved Proposed FTEs FTEs "Es "Es FTEs Division 5 Position 2003 2O04-05 2 06 2006-0] 2007-06 61 SW Operations&Maintenance Process Engineering Engineering Manager COO 1.00 1.00 1.00 1.00 Engineering Supervisor - - 1.00 1.00 1.00 Senior Engineer 3.00 3.00 3.00 3.00 2.00 V✓ Senior Scientist 0.50 0.50 0.50 0.50 0.50 Engineer 5.00 6.00 5.00 5.00 - Principal Financial Analyst 1.00 1.OD - - - Regulatory Specialist - - - - 1.00 Associate Engineer 111 2.00 2.00 2.00 2.00 2.00 L Associate Engineer 11 - - - - - Senior ErrvironmentalSpecialist 1.00 1.00 1.00 1.00 3.00 Administrative Assistant COO 1.00 1.00 1.00 - '. Engineering Assistant I - - - - - y Environmental Technician - - - - 1.00 Intern 0.50 Total Operations 8 Maintenance Process Engineering 14.50 15.50 14.50 14.150 12.00 I 830 Plant No.1 Operations aw Operations Manager 0.50 0.60 0.50 0.50 - ChiefPlantOperator 1.00 1.00 1.00 1.00 1.00 Operations Supervisor 8.00 8.00 7.00 7.00 7.00 Senior Plant Operator 14.00 14.00 16.00 16.00 16.00 1 Plant Operator 14.00 14.00 14.00 14.00 14.00 Administrative Assistant 0.76 0.75 0.75 0.75 0.75 Control Center Technician 3.00 3.00 3.00 3.00 3.00 Total Plant No. 1 Operations 41.25 41.25 42.25 42.25 41.75 1 NO Plant No.2 Operations Operations Manager 0.50 0.50 0.50 0.50 - Chief Plant Operator 1.00 1.00 1.00 1.00 1.00 Operations Supervisor 7.00 7.00 8.00 7.00 7.00 Senior Plant Operator 11.00 12.00 11.00 12.00 12.00 Ire Plant Operator 23.00 23.00 24.00 24.00 23.00 Equipment Operator 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Control Center Technician 1.00 1.00 1.00 1.00 1.00 V Total Plant No.2 Operations 45.50 46.50 47.50 47.50 46.00 00 Mechanical,Reliability,8 Maintenance Support SeMces Maintenance Manager 0.50 0.50 0.50 1.00 1.00 Senior Engineer - - - - 2.00 as Senior Maintenance Supervisor 1.00 1.00 1.00 1.00 1.00 Reliability Maintenance Coordinatoraechnician - 1.00 - - - Engineer - - 1.00 1.00 2.00 Utilities Management Specialist - - - 1.00 Maintenance Supervisor 5.00 5.00 5.00 7.00 7.00 we Maintenance Specialist 3.00 3.00 3.00 7.00 7.00 Associate Engineer III - - - - 1.00 CMMS Technician II 2.00 2.00 2.00 6.00 6.00 Lead Electrical Technician - - - 1.00 - yal Lead Power Plant Operator 1.00 1.00 1.00 - - Electrical Technician II - - 2.00 - Lead Mechanic 3.00 3.00 3.00 5.00 5.00 Lead Welder/Fabricator - - 1.00 1.00 Power Plant Operator II 9.00 9.00 9.00 - - as, Machinist - - - 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Senior Mechanic 27.00 29.00 30.00 34.00 33.00 Welder/Fabdwtor - - - 2.00 2.00 6w Engineering Assistant l - - 1.00 1.00 1.00 Senior Maintenance Worker 1.00 1.00 1.00 1.00 - Mechanic 1.00 1.00 - - 1.00 j Program Assistant 1.00 1.00 - - - led Office Assistant 1.00 1.00 Total Mechanical Maintenance 8 Power Production SS.SO 58.5e Sam ]3.00 74.OD I., A-27 L r FY 2007-08 Budget Update r Aulhonied Aulhonaed Authonied Approved Proposed FTEa FTEs FTEs FTEa FTEs Division 6 Position 2003A4 2004-05 200SO6 200&07 2007-08 r 8W Instrumentation 8 Electrical Mainte mnee Maintenance Manager O.W 0.50 0.W - - Preeass Conhcla Manager - - - 1.W 1.00 Engineering Supervisor - - - 1.00 1.00 r Senior Maintenance Supervisor 1.00 1.00 1.00 1.W - Maintenance Supervisor 6.00 6.00 6.W 5.00 5.W Maintenance Specialist 3.00 3.W 3.W - - CMMS Technician ll 2.W 2.00 2.00 - - r Senior Engineer - - - 1.00 2.00 Engineer - - - 4.00 2.00 Principal Informaton Technology Analyst - - - 2.00 2.00 Senior Information Technology Analyst - - - 2.00 3.W Information Technology Analyst III - - - 3.00 2.00 Grants Specialist - - - - - LeadPewerPlantOperetor - - - 1.00 1.W Lead Electrical Technician 2.00 3.00 3.110 2.00 4.W Lead lnsWmentation Technician 2.00 2.00 2.00 2.00 2.00 r Infama0on Technology Analyst ll - - - - 2.00 Electrical Technician ll 17.01C) 16.01) 16.00 14.00 15.00 Inswmentation Technician ll 19.00 19.00 19.00 19.00 19.00 Power Plant Operator ll - - - 9.00 9.00 r Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Office Assistant 1.00 1.00 1.W Total Instrumentation 3 Electrical Maintenance 54.50 64. 28 50 64.50 68.00 ]1.00 Total Operations&Maintenance Department 2T4.26 252.25 4.25 300.25 292.75 r Grand Total,All Departments 598.00 629.00 644.00 644.00 634.W r r r r r r A-28 6. Appropriations Limit years to refund any remaining excess or to Appropriations Limit obtain a successful override vote. Article XIIIB of the California State Constitution, y 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. of proceeds of taxes that state and local I" 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. y 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 the amount of tax proceeds that were authorized adopt, by resolution,an appropriations limit for the 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 L+ 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 par capita income,or the in the limit is based upon population changes �. 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: 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 y 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 V more than$100,000 and an expected life individual limits 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 y 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. fiscal year. They then have two more V V A-29 V Miscellaneous Statistics General Information Year of Formation......................................................... 1948 2006-07 Assessed Value......................................$239.0 billion Form ofG.vc..c.t................County Sanitation Distinct Miles of Sewers...........................................................581 mile. Authority................... .......Section 4700 ct.seq. Off-Plant Pump Stations..........................................................16 ...I................I...California"calth&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 St.ff(Full-Time Equivalent),......................644.00 Treatment Information WIN Inflovin( Flow to Total Primary 2005-06 Influum BOO (''pewit, oinparium(in mgd) Plant No. I ..........................280 milligrams per liter Plant No. 2 ..........................210 milligrams per liter 40 312 25. 2005-06 Influent Suspended Solids: 300 250 204 229 20050 Ise Plant No I ................................279 milligrams per liner too 1 -1 Ira' i Plant No. 2................................252 milligrams per liter IN s. 2005-06 Effluent BOO..............................49 milligrams Per liter L 11-1 1 PI-1 2 T.1v1 2005-06 Effluent Suspended Solids..........34 milligrams per liter 92006.07 E.I.Ino..nt ac.picity-P flmary T metmen( 1003-06 Bi..Iids Beneficially Used...............234.024 war tons Primary Treatment Capacity(includes standby): 2006-07 Estimated Average Daily Influent: Plant No. I................................................204 mild Plant No. I......................................................90 mgd Plant No. 2................................................ 168 med Plant No. 2....................................................... 139 m,J TOTAL....................................t7 mud TOTAL........................................... Secondary Treatment Capacity: Electricity Generated: Plant No. I................................................ 110 mgd Plant No. I................................._.........35.444.000 kwh Plant No. 2................................................ 90 mod Plant No. 2..........................................66,544,000 kv, TOTAL.................................... TOTAL.............................1yIfflagjWh u,d ns1t,.,1Wn,wct, k.h oI.%o,,,,h.r Financial Information 2007-08 2007-08 2005-06 2006-07 Originally Updated Actual Projected Proposed Proposed Fees and Charms, One-Time 3-Bedroom Residence Connection S2.890.00 $4,360.00 $4,578.00 S4,517.00 Average Annual Single-Family Residence Fee S151.00 S165.80 S182.05 $182.00 District's Avg.Sham of Ad Valorem Pmpcny Tax 1.601/6 2.80% 2.80% 2.80% Cost to Collect,Treat,&Dispose of I Million Gallons SI,216.77 51,263.84 S 1.430.17 SI.478.011 Summary of COP Issues, December 1992 Refunding S 160.600.000 August 2003 Nc.Money S 280,000,000 September 1993 Refunding 46,0010,000 March 2006 New Money 200.000.000 August 2000 Refunding/No.Money 218.600.000 May 2007 Refunding 95.180,000 Total Outstanding COP Balance 7/1107 795.105,000 A-30 e.PRIMARY TREATMENT Fallowing preliminary treatment.the mstewal R basins(for about two hours)where liquids an r solids cache and are scraped oft the bottom,a of the top of the basins.The materials that at f MR EMISSIONS CONTROL a + processing facilities.Adding coagulants to the 3./ o solids resulting in'advanced primary'It Chemical and biological scrubbers 1 U hatis either pumped to secondary he / clean the air extracted from the various the i heated eMpem. enclosed treatment facilities. 2.CHEMICAL ADDITION _ Hydrogen peroxide is added to the incoming wastewatiI to help reduce hydrogen solids and control odors. Chemical coagulants are added to the wastewater to enhance the primary setting processIt I 01 / _... / 1. PRELIMINARY TREATMENT Wastewater passes through bar screens that trap and remove large and nonorganic materials It men flows into grit chambers 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 5.SECONDARY TREAT Advanced _ ;l Advanced primary treated wastewater is pumped to aeration basins where microorganisms,called activated sludge.consume the remaining organic solids.The wastewater is then pumped _t into setting basins where the activated sludge seines out.Most at it is scraped of the bottom and returned to the aeration basins to regenerate this process,and the excess is sent to solids processing. Trickling lifters provide similar treatment with microbes INDUSTRIAL REUSE `� living on media. 10.^ � y — • Wr We We call s'LANDSCAPE IRRIGATION 01 j\. retycb that or into th and inl IN1 A: „ M V1Q »'`"e' er — ' ..""E"` . .� �• .. ,,,-._� , art! eeli¢— — t LANDFILL pumped to large settling ` bids separate.The heavier COMPO T i is lighter material is skimmed _ invited are sent to solids wastewater improves settling d wastewater.The treated LAND APPLdTION III facilllles or blended into r. 8. SOLIDS PROCESSING Solids removed during the treatment processes are Dumped into digesters wads coney undergo omual made up ai[n for methane, w daYich i Hag the solids convert to a gas mostly matle up al methane,which is 'i sent to our own energy recovery facilities. moo The remaining solids are pumped to dewatering facilities to achieve a 23 percent solid material(with a cake-Ilke �~ �, consistency)called hit land The Lion as a are recycled / for direct land application fo a soil amendment or used 1c make fertilizer. 7 n also if sent to ca composted or sent to f a landfill if necessary. v_ 7.ENERGY RECOVERY .� In our Central Power Generation Facility, -- , the methane gas derived from the digesters is used to power engine-generator units that produce the electricity used as the energy �^n ri�_ source to operate both treatment plants. ®® NA PAP �^ n � S.OCEAN OUTFALL wastewater PUMPING STATION The d eared wastewater after di both plan Is � blended and Dumbed after disinfection and dechlornation pact C into a large ocean autiall pipe.This facility has the capacity to pump 480 million gallons of treated wastewater a day,which helps us handle stormwater loaows,and will meet our rapacity needs for many years. 9.OCEAN OUTFALL .� The ocean oulfa pipe is 10 reel in i eter, miles loop and safety discharges discharges h w treated wastewater at at a depth 1 RECLAMATION of 200 feet.The last mile of the pipeline Is a diffuser secondary-treated wastewater to the section with hundreds of krtnoles.which provide a may Water District for advanced treatment and high rate W dilution with smZa nding raawacar. the water district has two treatment plants e reclaimed water that is either injected tundwnr table to black seawater -� `•- it used for landscape hall lio �- 'ial processes. - — • �_ iSION BARRIER i IL u L L L' U L L' L L L ORANGE COUNTY SANITATION DISTRICT Finance Department 10844 Ellis Avenue U Fountain Valley, California 92708-7018 (714) 962-2411 www.ocsd.com N C O L Jc FY 2007 = 08 Budget v m d � 9 � y Update � E a E � U a 1,4 S p N I TgT�oy a ? 9 4 I ¢ n o � A h THE June 6, 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: Adopted FY 07-08 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 Y.V SPHI)a)) Distributed at the Op rations Answerst Committee 6 oV Meeting Ocean Monitoring rrogram Who is the Orange County Sanitation District? The Orange County Sanitation District QCSD)treats an average of 233 million gallons of wastewater per day from 2.5 million people and approximately 1,000 businesses and industries in central, north, and west Orange County. OCSD operates two treatment plants, one in Fountain Valley and one in Huntington Beach. Sewage is transported to the two treatment facilities by 580 total miles of OCSD- owned sewers throughout the service area. Treated wastewater is slowly released through a diffuser(a series of 503 portholes) located along the last 6,000 feet of our 5-mile ocean pipeline. This 10-foot diameter outfall pipeline rests on the ocean floor at a depth of 200 feet offshore of Huntington Beach. To meet our mission of "protecting the public health and environment,' OCSD maintains an ongoing ocean monitoring program,which is overseen by the United States Environmental Protection Agency and the California Regional Water Quality Control Board. The ocean monitoring program covers about 35 square miles of coastal ocean and over 11 miles of beach, stretching from Seal Beach to almost Laguna Beach. Special regional monitoring studies cover a much broader area that ranges from Point Conception, west of Santa Barbara, to Mexico. Program results provide an extensive amount of data for evaluating the effects of OCSD's wastewater release to the environment. What We've Learned (1985-2005) Biological Communities Natural features of the area, such as ocean depth, sediment grain size, and the presence of submarine canyons, account for most of the spatial distribution patterns seen in the animals collected. Findings show that the types and number of animals found near the ocean pipeline are comparable to regional reference areas in southern �. JLf California, demonstrating that the biological communities are not degraded by the daily tIfta .l release of treated wastewater from the ocean pipeline. The animals(invertebrates)that live L in the sediments such as worms, clams, brittlestars, and snails have shown few changes in recent years, indicating that they are now in equilibrium with the present discharge and Orange environmental conditions. While fish numbers have increased from lows seen during the Sanitation District most recent El Nino/La Nina cycle, the overall long-term temporal trend has been a gradual decrease in numbers and types of fish. This decrease has been seen regionally and is most Vision — likely primarily due to large-scale changes in the ocean environment. Fish health remains To maintain triarld-class very high with rare incidences of either external (e.g., fin rot)or internal (e.g., liver pathology) diseases. The changes observed by OCSD over the past three decades have been consistent and water numurce with historical and regional trends and are not considered indicative of ocean pipeline effects. management � 1 �i •h 1995 1995 2005 Abundance of the pollutlomsemitiva red brlttlestar(Amphlodla vaica) A.. around the Ocala ocean pipeline. •.-'�w Offshore Water Quality and Shoreline Monitoring Due to the very high 1"44 Ellis Avenue levels of dilution, the discharge of treated wastewater four miles offshore has shown few Fountain Valley, CA effects. Those seen have been within the range of natural variability and not considered r ' a - environmentally harmful. Changes due to the plume were typically seen only at or very for more information near the discharge end of the pipeline and below the surface, typically greater than 30 feet. Water currents and temperature stratification—the amount and rate of change in temperature from the surface to the bottom—are the primary factors in determining the location of the or visit our web site 0csDt032e07/0me<ar ...continued on other side pops 1 discharge plume. Current direction tells us whether the plume is going up-or down-coast, while the speed and duration of the current speed and direction tells us how quickly and how far the plume travels. Stratification, a natural layering of water, prevents the plume from coming to the surface during all but a few hours of the year. At the beach, OCSD measures the levels of bacteria in the water on almost a daily basis. Occasionally,values '-- at the beach exceed state standards and the beach is posted or closed to water contact. Often these high levels of bacteria are associated with winter rains and the runoff from OCSO'a ocean Monitoring inland areas.While no beach closures have been associated with the offshore discharge, Vessel Nerussa in August 2002, OCSD began to disinfect the treated wastewater to allay any concerns that the subsurface plume might affect the beach under any circumstance. Since disinfection began, the levels of bacteria around the pipeline have been extremely low; below our ability to measure them. However,we have seen no systematic changes in either the amount or _ patterns of beach bacteria, supporting previous conclusions that OCSD's offshore discharge has not affected the beach. Sediment Quality and Toxicity The release of treated wastewater into the ocean does not have an appreciable effect on sediment texture. However, the ocean pipeline structure represents one of the largest artificial reefs in California and is abundant with a variety of animal life seen only on hard (rocky) structures.The slightly coarser sediments Testing sediments seen at the pipeline are probably from the scouring of fine grain sediments by currents near the ocean pipeline and settling of biological debris(shells)from animals living on the pipe. Levels of sediment contaminants associated with wastewater discharge shows a decreasing trend since 1985 attributed to increased pollution control efforts by OCSD that eliminated or reduced the amount of contaminants at the source before it reaches the treatment plants. Decreasing trends in sediment contaminants are mirrored by increasing trends in the abundance of pollution intolerant organisms like britllestars. Toxicity testing of the treated wastewater and sediments continue to show few effects and no patterns related to the pipeline. . = Frequently Asked Questions Is it Safe to Swim in Our Coastal Waters? To date, data shows that the ty 4eoiecti i Hh.surround treated wastewater released does not affect recreational swimming areas. However, pia.a ma eudaona 9 swimmers and surfers should be aware that bacterial contamination is common, especially near storm drains and river mouths, after heavy rainstorms. Are the Fish in Our Coastal Waters Safe to Eat? OCSD's ocean monitoring program has shown that treated wastewater discharge does not cause health department ;a 1 advisories against eating fish caught from local waters. There are advisories against eating some kinds of fish in Southern California, including a few found within our monitoring area. These advisories are due to other contaminants such as mercury and DDT. Is the Orange County Sanitation District Protecting the Environment? Yes. We approach environmental stewardship on a regional level, not just worrying about the environment around our discharge pipe but also impacts to land, Monitoring nsn population air, and energy. We are doing everything possible, in terms of both policy and technology, and health to protect the air, land, and marine environment. 0 o ° ° ° ° °o / 0 Monllatln 9lall 771 ling C[unH 9mp.Ibn pbNn ° Regional Monitoring- Special Studies- Core Water Quality Stations Point Conception to the Mexican Border Central Bight Water Quality Program OCSD/g328 W/OMP.[dr pcga 2 etv saxrp�r • Distributed at the Operations Answers t0 CommittelNeeettng6 • Biosolids Management aNF Policy: OCSD strives to recycle its biosolids using sustainable options while protecting public health and the environment. The Orange County Sanitation District(OCSD)believes that ensuring continued diversity in our contractors, products, management options and regions creates stability and sustainability in our biosolids program. Our overall goal is to create a sustainable, cost-effective, and environmentally sensitive biosolids program. This philosophy is intended to keep program costs under control for the long term. We promote a standard of excellence for biosolids and assure the proper oversight of this practice. Our program continues to evolve; OCSD recently developed a Long-Range Biosolids Management Plan that includes developing and implementing in-county and regional uses of this product. What are Biosolids? Biosolids are nutrient-rich organic matter resulting from the treat- ment of wastewater. Biosolids result when the suspended and dissolved solids in wastewater (sewage sludge)are settled through the treatment process. These solids are then treated to remove pathogens(germs that cause disease)and odors. This stabilization process also yields gas that fuels most of our treatment operations. OCSD's biosolids are recycled and used on farm fields like fertilizer to improve and maintain productive soils and stimulate plant growth. Our program also includes more advanced technologies such as composting, lime stabilization, and soon,fuel pellet production. OCSD is the first public wastewater agency in the nation certified by the National Biosolids Partnership(www.biosolids.org)for our biosolids environmental I management system(EMS).The EMS, designed by the National Biosolids l Partnership (NBP), U.S. Environmental Protection Agency(EPA)and other clean water partners, is based on International Standards Organization (ISO) 14001. ISO developed the management system to assist organizations in continuing to improve their organization, communications, minimize negative impacts to the environment, and maintain compliance with applicable laws and regulations. OCSD's biosolids EMS follows these principles. Orange County Sanitation District Premium Product Quality OCSD's award-winning Source Control program strictly controls metals and other constituents discharging to the sewer.As a result of their dedication, Vision — the wastewater entering the treatment plants meets drinking water standards for metals. To maintain zucrld-class Therefore, OCSD's biosolids leadership in unramate, meet "exceptional quality" andwaterresmirce standards when it comes to 24%(azwckks IM °zweek) management metals.The metal levels Class nweean:Faamaae umesraea°ea Winter 2006-07 present in biosolids are vanda=Tule Rana comparable to background Locatlona:Kam cwmy.CA NV soil and chemical fertilizer Future Location Commlenaal:SSeucks,115o lonsFxeek levels. In addition,the Chas A Pmdad:ox Fuel biosolids treatment process CA• Waal.;ua,T« • Location:San semardno county.cA both inside the plant and the 40%p°mrns,nso tonvweeq natural composting process Chars,APmaucC Cwpoar `ti AZ are designed, regulated, and ve(.oacady'nemWn curry cA tested to confirm that CCSD 26%(46 was.115°tons aek) Class 6 Product Farmland Fedillzing 10844 compost products meet vendee Tore Rana Fountain • _- m pathogen standards. ]a/°pp3°pq �aama:coma cowry,Az 1 : 1 : CleasA Pradutl:Canaael Current Biosolids Vansbr.9yrugm o t Wosu:alrenide Caunry.CA $/e lSwW.tzs bra/week) for more information Management Locations ew le Paa cauur.Az cl...a Proauclaanaal In alas:Tars Rarcll ca OCSD currently manages and Lnm;oa:rune curny,Az or visit our - transports its biosolids to the reuse locations identified on the map. ...continuetl on nen page OCSD/030607/Bieselida_Mam°emenl.cdr poet r Committed to Safe Practices Biosolids must meet strict regulatory standards established by the United States Environmental Protection Agency(EPA), as well as state agencies and local ordinances.The Clean Water Act sets criminal and civil penalties for not meeting the standards. In addition, OCSD's inspection and contractor oversight programs help to assure that quality management practices are followed. OCSD's Biosolids EMS helps us to go above and beyond the regulations to ensure _ our products and practices are safe and beneficial. Biosolids Processing OCSD's Responsibility: OCSD ensures high-quality biosolids in the following ways: • Inspections and data analysis verify that all OCSD biosolids meet the strict requirements before they leave the treatment plants. • Program requires contractor oversight to meet extensive monitoring and reporting requirements. • Off-site biosolids treatment facilities and trucks are regularly inspected by OCSD staff. Biosalids Management Contractor's Responsibility: ir', ,, ion • Ensure the site Is properly permitted and use or further processing of biosolids are done in a safe and/or regulatory compliant manner. • Adhere to all federal, state, and local regulatory requirements including setbacks, groundwater monitoring, crop and harvesting restrictions, ? _ 9 record-keeping and reporting requirements. Go beyond minimum requirements based on local condition indicators. • Meet OCSD standards regarding integrity and safety of the trucks. Trucks must be regularly washed, properly tarped and secured. • Demonstrate proper training of their employees to ensure performance Fertilized Farmland Inspection of contractual tasks and duties in a safe manner. Truck drivers are trained (non-rood crops) in the proper handling of biosolids and spill response in the event of an accident. • Route trucks with the least impact to roads, traffic, schools and rLL. residential communities. • Demonstrate conformance with OCSD's Biosolids EMS. • Be active within the local community. Promptly respond to any residential concerns, questions and input. Long-Term Biosolids Planning Due to increased regulations, or bans through- Compost Field Inspection out the state, and significant cost increases, OCSD reviewed available management options for our biosolids to ensure long-term sustainability of our program. EnerTech was selected to turn a portion of our biosolids into a fuel for burning in cement kilns using heat and pressure.The certified green fuel is a coal substitute for cement kilns, and the leftover ash is then used as an ingredient in cement. OCSD's Long-Range Biosolids Management Plan, finalized in December 2003, •;ti encompassed the following criteria that are present in the winning EnerTech contract: of • Beneficial reuse(net energy production from biosolids); • Regional option (in-county options are even better); Biosollds Pellets • Environmentally sensitive-air, water, land, visual blight, road traffic, sound. (used as fertilizer or fuel) Reduce truck traffic, both number of trucks and distance traveled. Reduce energy consumption, i.e., electricity, heat, gasoline, etc.; • Sustainable over the long term; • Viable; • Provides benefits to local city and community, and commits to being a "good neighbor'; • Reasonable cost; and Cement Factory Kilns • Variable amounts of biosolids can be accepted. ...continued w next page OCS0/030607/11iovell Mnnagerrent.dr pepe2 Compost Applications: Using Biosolids Products In Our Own Backyard OCSD is encouraging its member agencies and the public to use biosolids-based compost products in Orange County. Compost is a consumer-friendly product that creates healthy plants while saving water, an important resource in Orange County. Bringing the biosolids- based product generated by cleaning Orange County's water back to Orange County, is an environmentally responsible way to close the"clean-water loop." Increasing the compost market in Orange County will help to create a sustainable biosolids program, and keep biosolids-related costs to ratepayers under control.As part of the Long-Range Plan, OCSD also negotiated a long-term contract with Synagro, Fountain valley Recreation who met similar criteria, to create high-quality compost for various markets, and Cultural Censer including retail outlets. Soil with Compacted Soil Biosolids Compost (unh talaty) (healthy) tlm_q dii°a� riahad sc0aaea`oay aGry This soil has insufficient soil structure Soil panicle.form separate clumps for plant gmvAh and a prone to erosion, and any pockels of sr.hke a sponge. allowing water to be absorbed Landscape all Ol Facilities and held in the it Nationwide Leader OCSD is a leader in the wastewater •a.•.rr-•rm•rry' it industry by continuing to participate in and help direct efforts UMNI of several national, state, and local water associations and various technical committees. OCSD actively encourages other agencies to implement environmental management systems, adopt quality management practices, and build relationships with interested parties. _ The Environmental Protection Agency recognized OCSD's leadership with the 2004 National Clean Water Act Recognition Award, Biosolids Exemplary Management Awards Program. Public Participation OCSD encourages public input on our N' p, wam we and management practices. We respond and track all input. Contact Deirdre Bingman, Bagged compost available at Biosolids EMS Coordinator, at(714)593-7459 or dbingman@ocsd.com. Visit our nurseries and garden centers Web site at www.ocsd.com/environmental/biosolids/for more information and to sign up for biosolids updates under E-Noti/y. a Public Outreach and Education OCM/030607/gi...lid,Managememsdr page 3 Distributed at the Operations Committee 4, v Meeting June 6, 2007 MEMORANDUM TO: Board of Directors FROM: Jim Ruth, General Manager SUBJECT: Orange County Register Editorial and IBEW Picketers On Monday June 4, 2007 there was an editorial (attached) in the Orange County Register as a follow-up to the mostly positive story that appeared on Friday June 1, 2007 about our design- build legislation. The editorial opined that SB 645 "bars non-union bidding" and that there was a "disturbing amount of collusion between the union and District staff." The article ends with a quote from Eric Christen who has appeared at a few board meetings to express his opposition to our bill and works with the Association of Builders and Contractors (ABC). Staff has decided not to respond to this editorial because doing so would give unnecessary credibility to the false points and misinformation of the article. The Register editorial omits the key facts and points that would have presented a more complete picture. Also the Register failed to contact anyone from OCSD to respond to the matters raised. For your information only, here are some important points to remember about our design-build legislation and why the Register got it wrong. The Register states: "Democrats, doing the unions' bidding, have attached an amendment to the bill that essentially cuts nonunion contractors out of the bidding process. This refers to the "template language" of the bill that all design-build bills in Sacramento must have in order to pass. While such references to an apprenticeship would not be included in a perfect world, the reality of Sacramento politics is that a compromise was developed between Republicans and Democrats for these provisions and both are fine with the outcome. One of the biggest champions of this template and language is Republican Senator Dave Cox. The Register continues: "Such apprenticeship programs have traditionally been provided only by unions, and the union-dominated California Apprenticeship Committee gets to decide whether new programs are needed." The Chair and Board of Directors Page 2 June 5, 2007 ABC has often used this tactic of muddling together statewide statistics and Orange County specific ones. Here in Orange County, ABC provides nonunion apprenticeship training programs and has been doing so for a number of years. ABC's own Web site states that apprenticeship training is required on public projects, louts the benefits of training and encourages people to attend. Moreover, the 17 percent figure of non-union contractors in California fails to account for the number of contractors doing public sector work,on water/wastewater projects, in Orange County. Only one large contractor bidding on OCSD projects over$10 million in the past few years has been a non-union shop. Finally, the Register discusses what It calls a disturbing amount of collusion by citing one letter from nearly a year ago. This is disingenuous because it fails to note the high level of discussion among OCSD staff(which was part of the public records request by ABC)about the apprenticeship requirements and their potential impact to OCSD. The article also fails to mention the letter I sent to the IBEW expressing our belief that their original proposal set the bar too high for us and would result in less competition. The Register chose one phrase from one letter that does not paint a complete picture of our efforts to secure design-build and failed to note the significant give-and-take that occurred and demonstrated no collusion or discriminatory behavior. As many know, the IBEW and OCSD have had our disagreements over the years including implementing design-build. It is clear that the Orange County Register is doing the bidding of ABC with this editorial and like their tactics, relies on false information and inaccurate statsitics. If passed, our design-build legislation would be applied to one or two projects per year and only to those at the highest dollar amount. Claims about discrimination are a red herring because it is unknown which contractors will decide to bid and the scores of other non design-build projects will be unaffected. In short,there is no discrimination. We strongly believe that design-build specifications will save OCSD and the rate-payers time and money and it is very clear that ABC's primary intent is to kill all design-build bills in Sacramento and they are using the Register as their mouthpiece. Picketing Helix Electric On Monday and Tuesday, picketers from the International Brotherhood of Electrical Workers (IBEW)were at Plant Two and other non-OCSD job locations around Orange County protesting Helix Electric and their use of non-union labor. The focus of the picketing is Helix Electric and not specific to OCSD. The editorial and the picketing are unrelated. JDR:mg Attachment 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 Operations Committee meeting to be held on June 6, 2007, was duly posted for public inspection in the main lobby of the District's offices on May 30, 2007. IN WITNESS WHEREOF, I have hereunto set my hand this 30' day of May 2007. Lille Kovac Clerk of the Board Orange County Sanitation District H:\DEPT\AGENDA\POSTING\COMMITTEE POSTING CERTIFICATION FORM.DOC ORANGE COUNTY SANITATION DISTRICT p 11141 H52 2412411 he: miipwbij ..acad... NOTICE OF MEETING wex�.pwe.wm mpllyep.W..e: Hn S.HC 11 OPERATIONS COMMITTEE rp'In`a°r"11, la Engineering, H272B SIV Operations & Maintenance, and Technical Services serve smrw: 7 H1144 elr^ Pounpnn il, .1A fh HZ70 5 701e ORANGE COUNTY SANITATION DISTRICT eMereer Aepnolee WEDNESDAY, JUNE 6 2007 - 5:00 P.M. MI. DISTRICT'S ADMINISTRATIVE OFFICES amrmnn 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708 Huron PerA www.ocsd.com hamlam V"Ilay Puuw enn /NlTltllr 1]1111p HunriNllnu 9aunb Irvina la ""hr'I The regular meeting of the Operations Committee of the Board of Directors of I fl PIIIIIIB In^Alennlns Orange County Sanitation District will be held at the above location and time. Nuu9uut Hnacir I II'dllllfi Henca n Me Hwll Haenh hTanlanr mrmn lhlGl 1'atl K vbn 1 uula :ponty at arenpa mlbry piaerloes i Monrwnr u I . IXµ, Wsur Olrtrlcee Irvry u: Hanrrr To maintain world class IeaCerehip in wastewater and water resource management. OPERATIONS COMMITTEE MEETING DATES OPERATIONS COMMITTEE BOARD MEETING DATE MEETING DATE 06/06/07 06/27/07 07/12/07 07/18/07• AUGUST DARK 08/22/07 09/05/07 09/26/07 10/03/07 10/24/07 11/07/07 11/28/07 12/05/07 12/19/07' JANUARY DARK 01/23/08 02/06/08 02/27/08 03/05/08 03/26/08 04/02/08 04/23/08 05/07/08 05/28/08 `Meetings are being held on the third Wednesday of the month. ROLL CALL OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Technical Services Meeting Date: June 6. 2007 Time: 5:00 p.m. Adjourn: COMMITTEE MEMBERS (13) Larry Crandall Chair Cathy Green ice Chair Steve Anderson Charles Antos Don Bankhead Patsy Marshall Roy Moore David Shawver Harry Sidhu Constance Underhill Don Webb 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 O er. & Maintenance Bob Ghirelli, Assistant General Manager Jim Herber , Director of Engineering Ed Torres, Director of Technical Services Lorenzo Tyner, Director of Finance and Administrative Services Lille Kovac, Committee Secretary Tod Ha nes John Lander Matt Smith H:WeptiagendalCommitleeslOpem ions Commltlee\Operations 2007W60A02.Roll Call.doo AGENDA REGULAR MEETING OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Technical Services ORANGE COUNTY SANITATION DISTRICT June 6, 2007 - 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 a. FY07108 Budget Update (6) 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 2, 2007 Operations Committee meeting. b. OP07-54 Recommend to the Board of Directors to approve 1)Approve the payment of annual National Pollutant Discharge Elimination Permit (NPDES) Fee of $128,500 to the State Water Resources Control Board for the period July 1, 2006 through June 30, 2007; and 2) Approve Resolution No. 07-XX, Establishing Policy for the Payment of Mandatory and Statutory Fees Greater Than the Limits Established in Resolution No. OCSD 07-04 and in Future Updates to the Delegation of Authority. (Book Page 15) - Book Page I Operations Committee 06/06/07 Page 2 C. OP07-55 Recommend to the Board of Directors to approve a Facilities Use Agreement with the Southern California Coastal Water Research Project to conduct microbiology testing using OCSD microbiology laboratory facilities for a shared benefit to both OCSD and SCCWRP, at no additional cost to OCSD. (Book Page 17) d. OP07-56 Recommend to the Board of Directors to adopt Resolution No. XX, Adopting a Policv Reaarding Maintenance of Unobstructed Access to District Easements. (Book Page 19) e. OP07-57 Recommend to the Board of Directors to: (1)Approve Amendment No. 3 to Cooperative Projects Grant Program Contract No. 0127 with the City of La Habra providing for a time extension and change in scope with no additional funding; and, (2)Approve Amendment No. 1 to Cooperative Projects Program Contract No. 0503 with the City of Placentia providing for a change in scope and reallocation of funds. (Book Page 20) f. OP07-58 Recommend to the Board of Directors to approve out-of-country travel for four Orange County Sanitation District employees (Morris.Ying, Joe Chester, Jim Harris, and Adam Almasri)to witness factory testing of pumps, variable frequency drives and motors, in connection with Headworks Replacement at Plant No. 2,Job No. P2-66, and all travel, lodginq, and per diem costs to be paid by J.F. Shea Construction, Inc. (Book Page 26) END OF CONSENT CALENDAR g. Consideration of items deleted from Consent Calendar, if any. (7) ACTION ITEMS a. OP07-59 Recommend to the Board of Directors to approve an exception to Resolution No. OCSD 07-04, Section 5.04, authorizing the following: 1) Approve Professional Design Services Agreements with Carollo Engineers; Dudek; Earth Tech, Inc.; Infrastructure Engineering Corporation; Lee& Ro, Inc.; Metcalf& Eddy/AECOM; Pacific Advanced Civil Engineering, Inc.; Projecti-ine Technical Services, Inc.; RBF Consulting; RMS Engineering & Design, Inc.; Spec Services, Inc.;TMV Systems Engineering; Tran Consulting Engineers; Water 3 Engineering, Inc.; and Willdan and Associates, for services necessary in supporting Facilities Engineering projects, commencing July 1, 2007, in an amount not to exceed $200,000 for each agreement, for a total amount not to exceed $3,000,000; and, 2) Approve three one-year optional renewals. (Book Page 27) Book Page 2 Operations Committee 06/06/07 Page 3 b. OP07-60 Recommend to the Board of Directors to: 1)Approve a budget increase for Rehabilitation of the 14th Street Pump Station, Contract No. 5-51, in the amount of$857,521 for a total project budget of$10,617,357; 2)Approve a budget increase for Rehabilitation of the "A" Street Pump Station, Contract No. 5-52, in the amount of$278,824 for a total project budget of $9,935,824; and, 3) Ratify Change Order No. 4 for Rehabilitation of theta Street Pump Station, Contract No. 5-51, and Rehabilitation of the "A" Street Pump Station, Contract No. 5-52, with Kiewit Pack Company, authorizing an addition of$550,837 and 50 calendar days, increasing the total contract amount to $12,824,241. (Book Page 30) (8) INFORMATIONAL ITEMS (9) REPORT OF DIRECTOR OF ENGINEERING (Jim Herbem) (10) REPORT OF DIRECTOR OF OPERATIONS AND MAINTENANCE (Nick Arhontes) (11) REPORT OF DIRECTOR OF TECHNICAL SERVICES (Ed Torres) (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) CLOSED SESSION ..............................--......-.........-..-..--...-......---_..............._..--..._-.........---._...._.-......._...._.....-...._._...-..........-.....-..--..-.......-.... ....................._........_.... _ iDunng the course of conducting the business set forth on this agenda as a regular meeting of the Committee,the :Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, :pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6,as noted. 'Report relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) .employee actions or negotiations with employee representatives; or which are exempt from public disclosure :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 the Committee takes final actions on any of these subjects,_the.minutes w ill reflect all required,disclosures,of information. ........ ................-....... ........................................_..........-. .............. ............._...._....-..--. a. Convene in closed session. b. Reconvene in regular session. C. Consideration of action, if any, on matters considered in closed session. Book Page 3 Operations Committee O6/06/07 Page 4 (15) FUTURE MEETING DATES The next Operations Committee meeting is scheduled for July 12, 2007, at 5:00 p.m. (16) ADJOURNMENT Book Page 4 Operations Committee 06/06/07 Page 5 Agenda Posting: In Accordance with the requirements of California Government Code Section 54954.2, 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 item 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 Operations Committee on specific agenda items or matters of general interest. As determined by the Chair, speakers may be deferred until the specific item 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 item 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 Adjournment: 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. Notice to Committee Members: For any questions on the agenda or to place any items on the agenda,Committee members should contact the Committee Chair or Secretary ten days in advance of the Committee meeting. ;Committee Chair Larry Crandall (714)593-4400 slcrandallQaol.com :Committee Secretary: Lilia Kovac (714)593-7124 Ikovac(cZocsd.com ':General Manager Jim Ruth (714)593-7110 jMh(fDocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rghirelli(a msd.com ;Director of Technical Services Ed Torres (714)593-7080 etonres(g)ocsd.mm ;Director of Engineering Jim Herberg (714)593-7020 iherbergAocsd.com IDir.of Operations and Maintenance Nick Arhontes (714)593-7210 namomestaocsd.com Book Page 5 Operations Committee Rolling Agenda Report Calendar Date Dept z — Aetlon or Description of Report Information July TS Long Range Biosolids Master Plan Information • Incineration • In County Composting Take Back Program Key Air Quality Issues Information July TS • Diesel Engine • Climate Change/Greenhouse gases •Air Toxics July TS Research Strategic Plan Contract Award Action July O&M WDR Plan and Development schedule for SSMP Action July O&M Potable Water System Analysis for Plant No. f —Award Action of RFP M:b PnagendMCammmees Opendlions Commftteebpennons 200T MA0/.050e0]Rolling Agenda.doc Book Page 6 MINUTES OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Technical Services Orange County Sanitation District Wednesday, May 2, 2007—5:00 P.M. A meeting of the Operations Committee of the Orange County Sanitation District was held on May 2, 2007, at 5:00 p.m. in the Sanitation District's Administrative Office. (1) ROLL CALL A quorum was declared present, as follows: Operations Directors Present: Staff Present: Larry Crandall, Chair Jim Ruth, General Manager Cathy Green, Vice Chair Bob Ghirelli, Assistant General Manager Charles Antos Nick Arhontes, Dir. of Operations& Maintenance Don Bankhead Jim Herberg, Director of Engineering Patsy Marshall Lorenzo Tyner, Director of Finance and Roy Moore Administrative Services David Shawver Penny Kyle, Clerk of the Board Harry Sidhu Tod Haynes, Engineering Manager Constance Underhill Matt Smith, Engineering Manager Doug Davert, Board Vice Chair John Linder, Engineering Manager Carla Dillon Operations Directors Absent: Gary Prater Chuck Winsor Steve Anderson Simon Watson James M. Ferryman, Board Chair Bob Bell Don Webb Juanita Skillman Norbert Gaia Others: Joe Forbath, General Counsel Alternate Director Bob Ooten Jag Salgaonkar Gino Rapagna (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. Book Page 7 Minutes of the Operations Committee May 2, 2007 Page 2 (4) REPORT OF THE COMMITTEE CHAIR Vice Chair Green, who presided over the meeting until Chair Crandall arrived, did not give a report. (5) REPORT OF THE GENERAL MANAGER Lorenzo Tyner, Director of Administrative Services provided an overview and update of the FY07/08 Budget. He noted that the budget would be presented in June for approval by the Board of Directors. (6) CONSENT CALENDAR ITEMS a. MOVED, SECONDED,AND DULY CARRIED: Approve minutes of the April 4, 2007 Operations Committee meeting. b. OP07-37 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to approve Professional Services Agreements with Bush and Associates Inc.; Forkert Engineering & Surveying, Inc.; and RBF Consulting, providing for on call surveying services supporting capital projects, Specification No. PSA-2007-001, for a three-year period for an amount not to exceed $800,000 for each agreement ($2,400,000 total). C. OP07-38 MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to approve Professional Services Agreements with Geomatrix Consultants, Inc.; Ninyo & Moore Geotechnical & Environmental Sciences Consultants; and Smith-Emery Laboratories providing for on-call material testing services supporting capital improvement projects, Specification No. PSA-2007-002,for a three-year period for an amount not to exceed $800.000 for each agreement ($2,400,000 total). d. OP07-39 MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to approve Professional Services Agreements with Electrical Reliability Services and Hampton-Tedder Technical Services providing for on call electrical system testing services supporting capital improvement projects, Specification No. PSA 2007-003, for a three-year period for an amount not to exceed $400,000 for each agreement($800,000 total). e. OP07-40 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 4 to the Professional Services Agreement with Ninyo & Moore Geotechnical and Environmental Services Consultants providing for additional services for Materials Testing and Geotechnical Engineering Services, Specification No. PSA-2003-175, for an additional amount of$50,000, increasing the total contract amount not to exceed $590,000. Book Page 8 Minutes of the Operations Committee May 2, 2007 Page 3 f. OP07-41 MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to: 1)Approve Amendment No. 3 to the Professional Services Agreement with Malcolm Pirnie providing for construction support services for Primary Treatment Rehabilitation/Refurbishment, Job No. P2-80, for an additional amount of$2,468,510, increasing the total amount not to exceed $9,870,653; and, 2)Approve a 2.0% contingency for amendments to said agreement ($197,400). g. OP07A2 MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to: 1)Approve Amendment No. 1 to the Professional Services Agreement with the Black &Veatch Corporation to provide construction support services for Secondary Activated Sludge Facility 2 at Plant No.1, Job No. P1-102, for an additional amount of$7,418,462, increasing the total amount not to exceed $25,314,925; and, 2)Approve a 1.07% contingency for amendments to said agreement ($271,400). h. OP07-43 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1)Approve Amendment No. 6 to the Professional Services Agreement viNt Malcolm Pirnie, Inc. for additional construction support services for Replacement of Ellis Avenue Pump Station, Job No. 1-10, providing for an additional amount of$561,630, increasing the total amount not to exceed $5,559,364; and, 2)Approve a 5%contingency for amendments to said agreement ($278,589). i. OP07-44 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1)Approve Amendment No. 2 to the Professional Services Agreement with Earth Tech providing for construction support services for Truck Wash and Dewatering Beds at Plant No. 1, Job No. P1-106, for $106,496, increasing the total amount not to exceed $359,372; and, 2)Approve a 4%contingency for amendments to said agreement ($14,375). J. OP07-45 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1)Approve Change Order No. 1 to Purchase Order No. 102520 OB for the Purchase of Hydrogen Peroxide, Specification No. C- 2006-277, issued to U.S. Peroxide, providing for a unit gallon price increase from $1.47 per unit gallon to$1.607 per unit gallon, plus tax for the contract period July 1, 2007 through June 30, 2008; and, 2)Authorize a 10% contingency for change orders to said purchase order. Book Page 9 Minutes of the Operations Committee May 2, 2007 Page 4 k. OP0746 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to ratify Change Order No. 2 to Purchase Order 102687-OA issued to NRG Engine Services, LLC,for Central Generation Engine Overhaul Project, Specification No. S-2006-308, for additional work, authorizing an addition of$180,000, increasing the total purchase order amount to$759,034. (7) ACTION ITEMS a. OP07-47 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1)Approve a budget amendment for Plant No. 2 Primary Sludge Feed System, Job No. P2-91, in the amount of$1,852,700, for a total budget of$24,339,815; 2)Approve Amendment No. 3 to the Professional Services Agreement with Brown and Caldwell, providing for construction support services for $577,687, increasing the total contract amount not to exceed $3,596,697; and, 3)Approve a 1.5%contingency for amendments to said agreement ($54,000). b. OP07-48 MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to 1)Approve an increase in the Construction Budget for Plant No. 2 Primary Sludge Feed System, Job No. P2-91, in the amount of$1,314,500, increasing the total Project Budget to$25,654,315; 2)Approve plans and specifications for Plant No. 2 Primary Sludge Feed System,Job No. P2-91, and Primary Treatment Rehabilitation and Refurbishment, Job No. P2-80, on file at the office of the Clerk of the Board; 3)Approve Addendum Nos. 1, 2 and 3 to the plans and specifications; 4) Receive and file bid tabulation and recommendation; 5)Award a construction contract to Shimmick Construction for Plant No. 2 Primary Sludge Feed System, Job No. P2-91 and Primary Treatment Rehabilitation and Refurbishment, Job No. P2-80, for a total amount not to exceed $36,764,000; 6)Approve an 8.75%contingency for change orders to said construction contract($1,427,500)for Job No. 132-91; and, 7)Approve an 8.75%contingency for change orders to said construction contract($1,789,300)for Job No. P2-80. Book Page 10 Minutes of the Operations Committee May 2, 2007 Page 5 C. OP07-49 MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to. 1)Approve Amendment No. 1 to the Sole Source Agreement with Southem California Edison for engineering services, fees, materials, and labor for 66kV Substation at Plant No. 1, Job No. P1- 97,for an additional amount of$1,150,000, increasing the total contract amount not to exceed $7,202,000; 2)Approve a decrease to the Southern California Edison Monthly Added Facilities Charge of$440 for a total monthly amount of$15,292; and, 3)Approve a 5% contingency for amendments to said agreement ($360,100). d. OP07-50 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1)Approve Amendment No. 7 to the Professional Services Agreement with Integrated Program Management (IPMC) Consultants, a joint venture of Parsons Water and Infrastructure Inc., and CH2MHILL, Inc.,for Program Management Services for the Capital Improvement Program for an additional five year period through FY2011-12; and, 2)Approve an additional amount of$15,997,936 for FY2007-08, increasing the total contract amount not to exceed $76,089,975. e. OP07-51 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to Authorize sole source procurement required to maintain, service, or replace existing Original Equipment Manufacturer equipment in OCSD facilities that cannot be substituted due to functionality and integration with existing systems, or are available from only one source for manufacturers. The following equipment, parts and services from the listed Original Equipment Manufacturers (OEM) are pre-approved as sole source items: • AANDERA DATA INSTRUMENTS—Current meter • ALFA-LAVAL— Heat exchangers for digesters • AMERICAN SIGMA— Liquid samplers • AM-LINER®PVC—Sewer lining • ASHBROOK(BELLMER/WINKLER)—Sludge belt fitter presses • BASLER— Electrical protective relays and regulators • BIO-MERIEUX— Bacterial identification system • CALIFORNIA RECREATION COMPANY—Vessel Nerissa slip fees • CHESTERTON—Mechanical seals for process equipment • DEZURIK WATER CONTROLS— Process valves • EATON-Variable frequency drives for process pumps • ENTRONICS (ROLLS ROYCE)—Central Generation engine controls • GOULD(ITNEOMANS—Processpumps • LECO—GC Time of Flight mass spectrometer • LIMITORQUE—Process valves • MARLOW—Process pumps Book Page I I Minutes of the Operations Committee May 2, 2007 Page 6 • MOYNO—Process pumps • MUFFIN MONSTER—Sludge grinders • NATIONAL FILTER MEDIA/FILTER BELTS—Sludge bait fitter press belts • PERKIN ELMER—ICP Mass Spectrometer • PUTZMEISTER—Sludge transfer pumps(truck loading plant 2) • ROBICON—Variable frequency drives for pumps • ROTORQUE—Valve actuators • SANCON 100 Epoxy/Urethane—Coating system • SCHWING—Sludge transfer pumps (truck loading plant 1) • SEABIRD—Ocean Monitoring instrumentation • SKALAR—BOD robotics • SPARLING INSTRUMENTS—Process flow meters • TELEDYNE—RD instrumentation • THERMO ELECTRON— ICP Atomic Emission Spectrometer and GC Mass Spectrometer • TURBLEX—Aeration blowers • VAUGHN— Process pumps • WATERS CORPORATION —Liquid chromatograph mass spectrometer The following additional proprietary providers are pre-approved: • Arc Wireless— Paging services • BEC—Building Electronics Control System • Bentley-Microstation CAD drawing program • Business Objects—Business Objects Software • ESRI—GIS Software • FileNet Corp. — Electronic Document Management System • First American Real Estate—Online Geographic— Realquest Report • IBM —Hardware Maintenance AS400 • IPI Gram Tech — Informatioa Software • Labware—Laboratory Information Management System • Oracle/JD Edwards— Enterprise One Materials, Equipment and Services • Oracle—Oracle Database • Rand McNally -Thomas Brothers Maps • RBMWARE— Software and 2310 vibration analyzers • TMV Systems—SCADA Historian • Workforce—Time Entry Director Bankhead abstained. Book Page 12 Minutes of the Operations Committee May 2, 2007 Page 7 (8) INFORMATIONAL ITEMS a. OP07-52 Capital Improvement Program Overview Jim Herberg, Director of Engineering, provided an overview of the Capital Improvement Program. b. OP07-53 Grit& Screenings Removal, Specification No. 5-2006-308 Nick Arhontes, Director of Operations and Maintenance, advised that the current vendor does not want to continue with their current agreement at the current prices. As such, a new contract must be in place by June 12, 2007. A public bid process is underway and due to the timing, he requested that the awarding of the new contract be moved to the board for consideration of approval in May. (8) REPORT OF DIRECTOR OF ENGINEERING Director of Engineering, Jim Herberg, did not give a report. (10) REPORT OF DIRECTOR OF OPERATIONS AND MAINTENANCE Director of Operations and Maintenance, Nick Arhontes, noted that the City of Fullerton received the Medium Sized Collection System of the Year Award from the California Water Environment Association that was announced at the CWEA Annual Conference held in Ontario recently. He also advised that the ocean ouffall would be shut down on May 18'for repairs due to corrosion in one location. Directors requested he come back with a presentation on the planning and preparation for the event, findings, and actions taken during the shut down. He also advised that the architectural firm had begun work on the North County Yard office space plan and he was expecting four conceptual layouts for staff review and comment by the end of May. This is an important first step in determining how many other OCSD staff could possibly be relocated to the Garden Grove location, beyond the initial needs of the Collection Facilities O&M staff currently in Huntington Beach. (11) REPORT OF DIRECTOR OF TECHNICAL SERVICES Director of Operations, Ed Torres, was not present. Book Page 13 Minutes of the Operations Committee May 2, 2007 Page 8 (12) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY The following supplemental agenda item was considered in closed session: Confer with Legal Counsel re existing litigation (Government Code Section 54956.9(a)) Case: Travelers Casualty and Surety Company, at al. v. OCSD, San Diego Superior Court, Case No. GIC873347, re Plant 2 Solids & Storage Truck Loading Facility, Job No. P2-60 (13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (14) CONVENE INCLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) The Committee convened in Closed Session at 5:52 p.m. pursuant to Government Code Section 54956.9(a). Confidential Minutes of the Closed Session held by the Operations Committee have been prepared in accordance with California Government Code Section 54957.2, and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. RECONVENE IN REGULAR SESSION: The Committee reconvened in regular session at 6:04 p.m. (15) FUTURE MEETING DATES The next Operations Committee meeting is scheduled for June 6, 2007, at 5:00 p.m. (16) ADJOURNMENT The Chair declared the meeting adjoumed at 6:04 p.m. Submitted by: /' J'�6""""A�'1�'4 Penny M <yle Clerk of the Board H9depfogendalCommittees\Operations CommlO e\Oirtmfions 200710507\05040407 Opemdons Minuf s.dm Book Page 14 OPERATIONS COMMITTEE MeeOngDate TootolDlr. O6/O6/07 06/27/07 AGENDA REPORT Item Number Ran Number oro7-w Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Operations and Maintenance SUBJECT: PAYMENT OF MANDATORY AND STATUTORY FEES GENERAL MANAGER'S RECOMMENDATION 1. Approve the payment of annual National Pollutant Discharge Elimination Permit (NPDES) Fee of$128,500 to the State Water Resources Control Board for the period July 1, 2006 through June 30, 2007; and 2. Approve Resolution No. 07-XX, Establishing Policy for the Payment of Mandatory and Statutory Fees Greater than the Limits Established in Resolution No. OCSD 07-04 and in Future Updates to the Delegation of Authority. SUMMARY • The National Pollutant Discharge Elimination Permit (NPDES) is a result of the 1972 Federal Water Pollution Control Act, commonly known as the Clean Water Act (CWA) which created the system for permitting discharges to waters of the United States. • Under the NPDES program, all facilities which discharge pollutants from any point source into waters of the United States are required to obtain a permit. • The State Water Resources Control Board invoices annually for the Sanitation District permit fees which are $128,500 for this fiscal year. • Based on discussions with the staffs from the California Association of Sanitation Agency and the State Water Resources Control Board, a large increase in fees is expected in future fiscal years, perhaps as high as double the current amount. • Staff recommends approval of this payment and also recommends approval of Resolution No. 07-XX for payment of this and other Sanitation District permit fees because of the statutory and mandatory status of these fees. PRIOR COMMITTEE/BOARD ACTIONS None Form No.owmx PwBee:WNtm] Page 1 Book Page 15 ADDITIONAL INFORMATION Funds for the subject fees are budgeted annually as a part of the O&M Department's operating expenses for the OCSD owned regional collection and treatment facilities as defined in the NPDES Permit No. CA0110604, Order No. R8-2004-0062, effective October 31, 2004 through October 30, 2009. Other fees that are budgeted for added regulatory permits for the collection systems and odor control facilities are within the current DOA. FOIT H0.OW102i RaWW'.MIM7 Page 2 Book Page 16 OPERATIONS COMMITTEE Me 1111Dale ToBn.OrDn. AGENDA REPORT 06/06/07 W 17 Item Number Item Number Orange County Sanitation District OP07-55 FROM: James D. Ruth, General Manager Originator: Ed Torres, Director of Technical Services SUBJECT: FACILITIES USE AGREEMENT WITH THE SOUTHERN CALIFORNIA COASTAL WATER RESEARCH PROJECT (SCCWRP) GENERAL MANAGER'S RECOMMENDATION 1. Approve a Facilities Use Agreement with the Southern California Coastal Water Research Project to conduct microbiology testing using OCSD microbiology laboratory facilities for a shared benefit to both OCSD and SCCWRP, at no additional cost to OCSD. SUMMARY • SCCWRP is a joint powers agency focusing on marine environmental research and includes members from regulatory agencies, regional wastewater treatment agencies, and storm water management agencies from Ventura, Los Angeles, Orange, and San Diego counties. • OCSD is a founding member agency of SCCWRP. • OCSD will benefit from direct participation in SCCWRP research projects, enabling OCSD to maintain a leading role within SCCWRP in the evaluation of ocean discharges on public health and the environment. • SCCWRP will benefit in a cast savings of$100,000 for construction of a new microbiology laboratory at their facility and they will have direct access to several sophisticated instruments owned by OCSD. • The term of the Agreement is indefinite and includes an exit clause that will allow either agency to cancel the agreement with reasonable notification to the other party. PRIOR COMMITTEE/BOARD ACTIONS None. Form No.DW 102-2 Rm1eeo oamtml Page 1 Book Page 17 ADDITIONAL INFORMATION The recommended action is statutorily exempt from the California Environmental Quality Act under Public Resource Code Sections 15060 and 15378 because the action will not result in a direct or reasonably foreseeable indirect physical change in the environment. Form N. rnvnoaz �+W OLJIq) Page 2 Book Page 18 OPERATIONS COMMITTEE Meeting DM Te Ba.nr Dv. 0610610, O6/27/07 AGENDA REPORT Rem Number roan Number OP07-56 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator. Nick Arhontes, Director of Operations &Maintenance SUBJECT: Easement Policy GENERAL MANAGER'S RECOMMENDATION: Adopt Resolution No. OCSD 07-XX, Adopting Formal District Policy Regarding Maintenance of Unobstructed Access to District Easements. SUMMARY: Obstructions and encroachments on District easements interfere with the District's property rights and prevent District staff from safely, efficiently, and effectively operating and maintaining its sewer lines by hindering, limiting, or preventing access to manholes, preventing necessary truck access, and creating safety hazards for District employees. PRIOR COMMITTEE/BOARD ACTIONS: N/A ADDITIONAL INFORMATION: The District is subject to the conditions set forth in the Statewide General Waste Discharge Requirements for Sanitary Sewer Systems ("WDRs") issued by the State Water Resources Control Board. The WDRs require the District to take all feasible steps to eliminate sanitary sewer overflows ("SSOs"). In order to reduce, prevent, and mitigate SSOs, the WDRs require the District to develop and implement a Sewer System Management Plan to properly manage, operate, and maintain all parts of its sanitary sewer system. Further stated in the WDRs, the District must possess the necessary legal authority to ensure access for maintenance, inspection, or repairs for portions of the sanitary sewer system lines owned or maintained by the District and to enforce any violation of its ordinances. In order to comply with the WDRs, the District must be able to access District easements in order to inspect clean, service and repair all lines within its sanitary sewer system. H:Wepragenda\CarvnWtt XOpembti CWMIfieetOpembi 200710007106.07-56.Easement Rwolubon.Eoc FOM No.DW 102 2 Re Womlm? Pagel Book Page 19 OPERATIONS COMMITTEE Meeting Date To Od.oFOir. 06/06/07 O6/27/07 AGENDA REPORT Item Humber Item Number OP07-57 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering SUBJECT: COOPERATIVE PROJECTS GRANT PROGRAM GENERAL MANAGER'S RECOMMENDATION (1) Approve Amendment No. 3 to Cooperative Projects Grant Program Contract No. 0127 with the City of La Habra, providing for a time extension and change in scope with no additional funding; and (2) Approve Amendment No. 1 to Cooperative Projects Program Contract No. 0503 with the City of Placentia, providing for a change in scope and reallwation of funds. SUMMARY • The Cooperative Projects Grants Program (Program) provides funds to local agencies for projects that reduce or eliminate inflow and infiltration (1/1) to the sewer collection system. • The City of La Habra requests Amendment No. 3 to Cooperative Projects Program Contract No. 0127 (Contract No. 0127) for a time extension and change in project scope, including relining up to an additional 1,454 feet of pipeline to avoid impacts from open trench excavation and minimize project costs. • The City of Placentia requests Amendment No. 1 to Cooperative Projects Grant Program Contract No. 0503 (Contract No. 503) to revise the project scope and reallocate funds from preconstruction monitoring to the construction project. • This item does not change the Orange County Sanitation District's (Sanitation District) costs. PRIOR COMMITTEE/BOARD ACTIONS In November 2005, the Board of Directors approved Amendment No. 2 to Contract No. 0127 with the City of La Habra. As part of the Cooperative Projects Grant Program, the Board of Directors also approved grant funding to the City of Placentia in May 2006. Form NO.W 1P FWI 03N1A7 H:1dep0agende\Committees\Opemlions Committee\Operstions 200710607M.07-57.Co-Op Proj.doc Page 1 Book Page 20 ADDITIONAL INFORMATION CITY OF LA HABRA The City of La Habra (City) has been identified as having a high level of 1/1 by the Sanitation District's long-term flow monitoring efforts. Presently, the Cooperative Projects Grant Program Contract No. 0127 states that 2,904 linear feet (LF) of sewer pipe is to be relined and 1,454 LF of sewer pipe removed and replaced. To minimize public impacts from open-trench construction, Amendment No. 3 to Contract No. 0127 will provide for relining of approximately 1,454 LF of pipe in-lieu of replacement for a total sewer relining of up to 4,358 LF of pipe. The Closed Circuit Television (CCTV) prepared by the City and their city-wide flow monitoring will be substituted for site-specific flow monitoring identified under Contract No. 0127. The substitution of CCTV for flow monitoring is anticipated to provide the same base flow results as stipulated in the Contract cost. The City will also require a 90-day time extension to process this Amendment and to re-advertise the modified project. Contract No. 0127, as amended, will serve to reduce 1/1 at both the local and regional levels of the sewer system, minimize impacts to the public, and provide significant time and cost savings benefits to the overall Project. The grant funding for Contract No. 0127 remains unchanged. CITY OF PLACENTIA The City of Placentia (City) has been identified as having a localized 1/1 problem that is no longer supported by the existing storm drain and sewer systems. During storm events, severe street and manhole flooding has substantially increased potential sewer overflows and threaten public safety. As part of the existing Cooperative Projects Grant Program, Contract No. 503 (Contract) the City is required to provide pre-construction site-specific flow monitoring. As a result of last winter dry weather conditions, the City did not have an opportunity to effectively implement flow monitoring in the area. To keep the project moving on schedule, Amendment No. 1 to the Contract will provide for pre-construction CCTV of the sewer and storm drain systems in lieu of the pre-construction flow monitoring; in some cases smoke testing in low risk areas representative of existing pipe conditions may also be used. Under this Contract, funds for the pre-construction monitoring efforts will be reallocated to the construction improvements. The Contract, as amended, will serve to avoid the threat to public safety, reduce 1/1 at the local and regional levels, in addition to providing environmental benefits to the overall project. The grant funding for this Contract remains unchanged. ATTACHMENTS 1. Letter from the City of La Habra 2. Letter from the City of Placentia Form No.ownoaa R...OWW H:\oept\agenda\Commfttew\Operations Commfaee\Opemtlom 2007\0607\06.07-57.Co-Op Pmi.00c Page 2 Book Page 21 �p,TY Op City of La Habra, PUBLIC WORKS "A Caring Community" 621 W.Lwnberr Road m All o: 16 P.O.Box 337 Le Hobe.CA 90633.0337 ENGINE C!'t~jjY Offkv:(562)905.9792 ._1 <GI ��:.-.L'i Fax:(562)691-1626 April 16, 2007 Mr. John Linder Engineering Manager Orange County Sanitation District 10844 Ellis Ave. Fountain Valley, Ca. 92708 Subject: Request for Revisions to Cooperative Projects Program Contract No. 0127 Phase 1 Sewer Rehabilitation-Downtown Area Dear Mr. John Linder The City of La Habra hereby requests that the Orange County Sanitation District consider allowing some revisions to the Cooperative Projects Program Contract No. 0127 Phase 1 Sewer Rehabilitation-Downtown Area . These revisions will basically maintain the same end result of reducing infiltration and inflow (1&1) to the local wastewater collection system and signfioantly reduce the cost of construction. The City realizes that the revisions, as requested, will require an additional amendment to this Contract. The following revisions are requested for OCSD's consideration for Contact No, 0127: 1. The City would like to submit our CCTV inspection report of the before and after condition of the 4358 LF of pipeline instead of submitting a flow monitoring report as stipulated in Section 9-C of the Contract. The City conducted a Flow Monitoring Study in 2004 under Cooperative Project 0106 for the entire City which provided for 19 monitoring stations. The results of this flow monitoring study indicated that this project area generates infiltration to the sewer system based on the field data collected. To do another flow monitoring effort would be a duplication of effort and add extra cost to the project without providing any better information than already exists in the 2004 study. The City's city-wide 2001 CCTV inspection for this project area shows evidence of infiltration from the mineral deposits accumulated in the fractured areas of sewer mains. Additionally, the 2004 flow monitoring study and the past studies by OCSD for the La Habra area indicates that the City sewer system receives an increase flow during the 1 Book Page 22 storm events which indicate that inflow is also a problem in the City. Therefore, the installation of the leak proof covers and rehabilitation of the manholes will help reduce inflow. 2. The City also requests a change in the method of installation of up to 1454 feet of sewer pipe. The original contract called for replacement of the existing sewer pipe by open trench method. Upon re-evaluation of the pipe condition, it is requested that the City be allowed to use a more cost effective, improved method that uses trenchless technology (lining) and avoids open trench excavation. This trenchless method utilizes a flexible pipe which is inserted through the manholes and then pressurized to take the form of the existing pipe. This trenchless method, commonly used today by several wastewater agencies, provides significant cost savings to the project by reducing construction cost and costs associated with traffic control. 3. The City also would like to request a 90-day extension in the Contact completion date to allow time to award and construct this project, using the branchless technology. The current Contract calls for construction completion by September 8, 2007 and project deliverables/reimbursements by November 1, 2007. The 90-day extension would change the construction completion date to December 7 2007 and the project deliverables/reimbursement date to February 1, 2008 Should OCSD approve the necessary Contract revisions, the City's intent for utilizing the grant funds will remain the same, in that the proposed work will result in a new pipeline to replace the existing pipe to reduce I&I into the sewer system. On behalf of the City of La Habra, I would like to thank all your staff members, all of whom have been very helpful and responsive to City's staff in working through the details to get this project moving forward. The City of La Habra sincerely appreciates the efforts of the OCSD Board in working with the City on several previous and current Cooperative Projects Program Contracts. If you have any questions regarding this request or should require any additional information, please feel free to call me or Eldon Davidson at(562) 905-9792. Since/rely, Steve Castellanos Director of Public Works Cc: Angie Anderson, OCSD Jim Burror, OCSD 2 Book Page 23 +n•°mele.n IM cl, tzl= MOypr °lAy fNT1A CONSTANCE UNDERHILL ` Cuun<Ift w.: I ; ky^r JOSEPH V.AGUIRRE Clo Aeminfs"Wr SCOTT P.BRADY ROBERT C.DOMINGUEZ { RUSSELL J.RICE . . GREG SOWARDS i 401 E°II CA°Pm°n Avenu•.°Iaelnlb.e•lll°rnl•...0 April 25.2007 Mr.John Linder Engineering Manager P.O. Box 8127 10844 Ellis Avenue Fountain Valley,CA 92708 Re., Cooperative Project Contract No. 0503—City of Placentia, Walnut Avenue Drainage Project Deer Mr. Linder: The City of Placentia (City) has entered into a Cooperative Project Contract agreement with Orange County Sanitation District (OCSD) to Complete an Inflow and Infiltration (1&I) reduction program. The project is called the Walnut Avenue Drainage Project and involves repair and rehabilitation of sewer and stonn drain systems to eliminate a significant I&I problem in the Walnut Avenue area. One of the conditions of the grant is to provide pre and post construction flow monitoring. Due to the dry weather conditions this winter,the City has not had the opportunity to use a flow meter in the affected area. This area is prone to flooding during times of significant rain fall, which creates excessive 1&I problems in the affected area, as well as public safety concerns from the flooded streets and homes. Our Maintenance Supervisor responds to this area and estimates 308,500 gallons of inflow occur during a flooding event,which is accompanied by significant rainfall. The City is eager to keep the project moving on schedule and resolve the many issues located in the Walnut Avenue area As an alternative to pre- construction flow monitoring, the City proposes to provide the following project pre- construction justification: • Pre end post construction Closed Circuit Television(CCTV)documentation of the sewer and storm drain pipelines • Photo and newspaper article documentation of severe flooding in the immediate project area • Smoke testing of the existing sewer to demonstrate areas of I&1• 1 Book Page 24 *To prevent risks to the public and City liabilities from smoke damage to existing home interiors,the City prefers to complete smoke testing in select areas of low risk to provide a representation of the existing pipeline conditions. The area selected for smoke testing will occur along the most significant portion of the Walnut Avenue Project. However, should the cost of smoke testing not be feasible, or at least close to equal of the originally proposed Bow monitoring, the City requests that no monitoring or testing be used in the preconstruction period and all funds be transferred to construction of the project. The project area is located in an older part of the City that is skeptical of City intrusion. The City will make every effort possible to conduct testing, but will ultimately rely on the residents to allow the City access. As mentioned previously, the City is eager to proceed with this project due to public safety reasons and to significantlyreduce I&I in the collection system. The cost sharing provided in the Cooperative Agreement makes this project financially feasible for the City. A rapid response from OCSD regarding the proposed pmeonstruction monitoring alternatives will be greatly appreciated. If there are any questions or comments,please do not hesitate to call or email me at(714) 993-8245 or mmcconahaawlacentiaore. Sincerely`, n /,ram / Michael McConaha Senior Administrative Analyst City of Placentia Attachments Cc Andrew Muth,City of Placentia Robert Kreg, Dudek 2 Book Page 25 OPERATIONS COMMITTEE Meeting Dare To ad.of IN 06/06/07 06/27/07 AGENDA REPORT RmNun'"" 1Oei'H"n"ef OP07-58 Orange County Sanitation District No aeadwarks FROM: James D. Ruth, General Manager Originator: James D. Herberg, Director of Engineering Project Manager: Pam Koester SUBJECT: HEADWORKS REPLACEMENTS AT PLANT NO. 2, JOB NO. P2-66 GENERAL MANAGER'S RECOMMENDATION Approve out-of-country travel for four Orange County Sanitation District employees (Moms Ying, Joe Chester, Jim Harris, and Adam Almasri) to witness factory testing of pumps, variable frequency drives and motors, in connection with Headworks Replacement at Plant No. 2, Job No. P2-66, and all travel, lodging, and per diem costs to be paid by J.F. Shea Construction, Inc. SUMMARY • The components of the pumping system (pumps, motors, and VFDs)will be tested individually at factories in Canada, Brazil, and Japan beginning in late June 2007. In addition to individual tests, tests of the combined systems will occur in Brazil and Japan beginning in October 2007. • No prior approval is required for staff to travel to Canada to witness the testing that will occur there. However, in accordance with the Orange County Sanitation District's (Sanitation District) Delegation of Authority, Resolution No. 07-04, for travel outside North America, staff requests approval to travel to Brazil and Japan for the tests that will occur in those countries. Staff anticipates two trips to Brazil (one for the individual motor test and one for the combined motorNFD test) one trip to Japan (for the pump test, as well as the combined system test), and one trip to Canada (for the VFD test). • This item is within the project budget. ADDITIONAL INFORMATION One of the key components of the Headworks Replacement project is the pumping system. The individual components of the system, as well as combined tests on the components together, are factory tested to ensure that the specified performance and quality requirements have been met at the factory prior to installation in the field. Factory test results aid in identifying potential problems prior to installation and prevent delays associated with installation, startup and commissioning of the pumps in the field. The Contractor, J. F. Shea, Construction, Inc., shall bear the costs associated with travel for staff to witness factory testing in accordance with the terms of the construction contract. AA:TH:lg:kf:gc H:Wep6a9enda\Commidees\0pem1ions Commift a\Operations 2007TG07106.0738.P2-66.dw Page 1 Book Page 26 OPERATIONS COMMITTEE MeeanpDate ToSd.ofDir. O61OM7 0027107 AGENDA REPORT Item Number Item Number OP07-59 Orange County Sanitation District Misc.& r "y` Support Ptolects FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Christopher MacLeod SUBJECT: PROFESSIONAL SERVICES AGREEMENTS FOR FACILITIES ENGINEERING CONSULTING SERVICES GENERAL MANAGER'S RECOMMENDATION Approve an exception to Resolution No. OCSD 07-04, Section 5.04, authorizing the following: 1. Approve Professional Design Services Agreements with Carollo Engineers; DUDEK; Earth Tech, Inc.; Infrastructure Engineering Corporation; LEE & RO, Inc.; Metcalf& Eddy/AECOM; Pacific Advanced Civil Engineering, Inc.; ProjectLine Technical Services, Inc.; RBF Consulting; RMS Engineering & Design, Inc.; SPEC Services, Inc.; TMV Systems Engineering; Tran Consulting Engineers; Water 3 Engineering, Inc.; and WILLDAN and Associates to be determined for services necessary in supporting Facilities Engineering projects, commencing July 1e', 2007, in amounts not to exceed $200,000 for each agreement, for a total amount not to exceed $3,000,000; and 2. Approve three one-year optional renewals. SUMMARY • Board Resolution 07-04 allows between five and ten consulting firms to be selected and sets a maximum annual limitation of$200,000 for each Agreement. It also allows these Professional Design Service Agreements (PDSA) to be extended for up to two additional, one-year periods. The resolution also delegates to the General Manager and Director of Engineering authority to solicit proposals for design engineering services to complete Facilities Engineering Projects and award individual Task Orders up to $100,000. • During this past year, the list of ten consultants was not sufficient due to consultant attrition, consultants deciding not to propose, and contracts that reached maximum limits. In order to maintain a viable list of firms, staff recommends increasing to 15 firms. • The Sanitation District has recently set up a Fast-Track Engineering group to complete the Facility Engineering, Maintenance Capital, and Emergency Project work. It is the goal of this group to more than double the smaller project output to reduce or eliminate Book Page 27 the three to four year backlog of work. Increasing the number of consultants supports this allocation of resources. • Two of the fifteen firms recommended are electrical engineering firms and they will be used for electrical related Facility Engineering projects when appropriate. • Proposals were solicited and ranked. Staff selected 15 firms and recommends that they be issued Agreements. • A Request for Proposal (RFP) was developed in addition to a distribution list of 54 potential firms capable of performing the requested services. The solicitation was also publicly advertised by IMS, a marketing clearinghouse for consulting firms which resulted in an additional six RFPs being distributed. • The Sanitation District received 28 responses. After review by Staff, 15 engineering consultants were recommended for consideration by the Board of Directors. If approved, each engineering firm will receive a PDSA to provide engineering studies, construction design services, and construction support services on an as-needed basis, in an amount not to exceed $200,000 annually. • This item has been budgeted. PRIOR COMMITTEE/BOARD ACTIONS Not Applicable ADDITIONAL INFORMATION The RFP was initially sent to 54 consulting engineering firms and advertised. After the initial mailing, additional letters were sent to consulting firms that showed an interest in our advertisement, expanding our letter to 60 firms. The Sanitation District received a total of 28 proposals from the consulting community. All proposals were independently reviewed by an in-house review committee of five senior staff. Proposals were graded in various weighted categories including Project Approach, Understanding of the Scope of Work, Plan for Managing and Performing the Work (Timeliness), Applicable Related Project Experience, Applicable Staff Qualifications, Team Organization, Use of Subconsultants, Proposed Schedule (Responsiveness). The following summarizes the ranking: CIVIL I WASTEWATER I PROCESS GHD, Inc. 893 Carollo Engineers 1409 AKM Consulting Engineers 892 Earth Tech, Inc. 1383 Water 3 Engineering, Inc. 1311 Engineering Resources of So California,Inc. 845 LEE&RO,Inc. 1302 Integrated Design Services,Inc. 832 Dudek 1291 J C Haden and Associates,Inc. 823 Pacific Advanced Civil Engineering,Inc. 1236 SUN Engineering Services,Inc. 806 Train Consulting Engineers 1187 G&F Consulting Engineers,Inc. 806 RMS Engineering&Design, Inc. 1144 DAVID EVANS and ASSOCIATES, Inc. 773 WILLDAN 1141 TMAD TAYLOR&GAINES 730 Infrastructure Engineering Corporation 1121 REIF Consulting 1116 ELECTRICAL I I&C ProjectUne Technical Services, Inc. 1069 SPEC Services, Inc. 1244 Metcalf&Eddy I AECOM 1055 TMV Systems Engineering 887 Strategy to Action 1048 ITF Engineering 737 Book Page 28 South Coast Systems, Inc. 732 SURVEY Guide Surveying, Inc. Did nor Hank This item has been budgeted. (Line item: Section 8, Page 7, Item 37; Pagel 0, Items 86, 87, 88, 95; and Page 11, Item 107). Award Date: 06/27/07 Contract Amount: $3,000,000 JDH:CM:MAE:bm:gc H.\depl\agenda\Commitlees\Operations CommineelOperations 2007\OS07\07-59.Facilities Eng.doc Book Page 29 OPERATIONS COMMITTEE Meeting Date Tced.cfolr. 06/06/07 O6/27/07 AGENDA REPORT ttemNum0e tOemNume OP07 60 Orange County Sanitation District McallectIons Facilities FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Umesh Murthy SUBJECT: REHABILITATION OF THE 14th STREET PUMP STATION, CONTRACT NO. 5-51, AND REHABILITATION OF THE "A" STREET PUMP STATION, CONTRACT NO. 5-52 GENERAL MANAGER'S RECOMMENDATION 1. Approve a budget increase for Rehabilitation of the 14th Street Pump Station, Contract No. 5-51, in the amount of$857,521 for a total project budget of $10,617,357. 2. Approve a budget increase for Rehabilitation of the "A" Street Pump Station, Contract No. 5-52, in the amount of$278,824 for a total project budget of $9,935,824; and 3. Ratify Change Order No. 4 for Rehabilitation of thel4th Street Pump Station, Contract No. 5-51, and Rehabilitation of the "A" Street Pump Station, Contract No. 5-52, with Kiev& Pacific Company, authorizing an addition of$550,837 and 50 calendar days, increasing the total contract amount to $12,824,241. SUMMARY • This contract is for construction of a new 14t" Street Pump Station at 1510 W. Balboa Boulevard and construction of a new"A" Street Pump Station at 810 W. Balboa Boulevard in the City of Newport Beach. The existing pump stations were about 50 years old and did not meet current standards of performance and safety. • Lee & Ro, Inc. prepared the plans and specifications, and the construction contract was awarded to Kiewit Pacific Company on September 22, 2004. • Change Order No. 4 includes seven items of added work. There is one reimbursable design error and five nonreimbursable design errors associated with this change order. The contract includes liquidated damages of$1000 per day and no bonus provisions. The contract is 100% complete. • This item has been budgeted, but there are insufficient funds and a budget increase is required. Page 1 Book Page 30 PRIOR COMMITTEEIBOARD ACTIONS The contract was awarded to Kiewlt Pacific Company by the Board of Directors on September 22, 2004. Please refer to the attached Change Order Status Report. On April 25, 2007, the Board of Directors approved a 6.2% Contingency ($725,262) for change orders to the subject contract. However, this contingency did not account for contractor claims that were not resolved at the time. ADDITIONAL INFORMATION Contract Schedule Contract Start Date: November 10, 2004 Original Contract Completion Date: June 7, 2006 Total Number of Change Orders to Date: 4 Current Contract Completion Date: December 1, 2006 Days Subject to Liquidated Damages: N/A Liquidated Damages Assessment: 0 Calendar Days Change Order No. 4 Content Item No. Description Amount Days T Contract No. 551 1 Compensable Delay $448,000 10 Other Contract No. 552 Install Vent Lines for U/G Nonreimbursable 2 Electrical Vault $ 6,328 0 Design Error Miscellaneous HVAC Duct Nonreimbursable 3 Changes $ 7,000 0 1 Design Error Contract No. 551 and No. 552 4 Trim Stainless Steel Wetwell Nonreimbursable Slide Flanges $ 2,871 0 Design Error Nonreimbursable 5 Change in Size of Anchor Bolts $ 978 0 Design Error 6 Electrical and Instrumentation/Control 30 Nonreimbursable Changes During Commissioning $ 76,934 Design Errors Nonreimbursable 7 Electrical and Instrumentation/Control 10 Reimbursable Design Changes During Commissioning $ 8,726 Errors Reimbursable Total—Chan a Order No. 4 1 $650,837 50 Page 2 Book Pagc 31 Item 1 —This item is for is for Compensable delays that were identified in Change Order NO. 1, Item 1, at the June 28, 2006 Board Meeting. The contractor, at that time, reserved his rights to ascertain what portion of the time is compensable. The original contract completion date is June 7, 2006. The work associated with the 14t" Street Pump Station architectural revisions were implemented in March of 2006. The changes delayed both progress on the building and the installation of electrical gear inside the building. In addition, the delays prevented the completion of the project before the beginning of the summer, during which time the contract did not allow traffic lane closures on Balboa Boulevard. The existing pump stations are located on Balboa Boulevard and had to be demolished under the contract. As a result, the contract could not be completed until after the summer. Based on the Time Impact Analysis (TIA) and delay costs that were submitted by the contractor, Staff negotiated compensable time delays of 112 days at $4,000 per day for a total of$448,000. The daily extended overhead costs have been reviewed by an independent auditing service (Mayer, Hoffman, McCann P.C.) and they have found the cost components and rates at $4,000 per day to be acceptable. This change order complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted, but there are insufficient funds (Line item: Section 8, Pages 27 and 28). A budget amendment in the amount of$857,521 is being requested for Contract No. 5-51 and $278,824 for Contract No. 5-52. These funds are being requested to cover change orders and staff labor to support added construction activities beyond the original completion date. The proposed source of funding is from the Sanitation District's Capital Improvement Reserves. While the contract is complete, a claim has also been submitted for differing site conditions asserting that the dewatering requirements for the installation of the 10 Street Pump Station Sewer were greater than anticipated, primarily due to the presence of coarser grained sands than indicated in the contract documents and undisclosed lenses of sea shells. Staff is reviewing this claim. COMPENSABLE DELAY COSTS SUMMARY Delays in Days $ Per Day Total Delay Costs Contractor Proposal 128 $4,816 $616,393 Staff Estimate 80 $4,000 $320,000 Negotiated Costs 1 112 $4,000 $448,000 ATTACHMENTS Change Order Status Report JH:UM:bm:kf:bm H:\depl\agenda\Committees\Operations Commtttm\Operations 2007\060T07-50.5-51 551&c Page 3 Book Page 32 CHANGE ORDER STATUS REPORT REHABILITATION OF THE 14TH STREET PUMP STATION REHABILITATION OF THE "A" STREET PUMP STATION CONTRACT NOS. 5-51 AND 5-52 APPROVAL CONTRACT CONTRACT COST PERCENTAGEa(DAYS) (DAYS) IZED TIME ITEM DATE COST TO DATE INCREASEATE YS)CONTRACT 11/10/2004 $11,697,780 $11,697,780 0.00 75CO NO. 1 6/28/2006 $141,364 $11,839,144 1.21% 88CO NO. 2 12/202006 $256,079 $12,095,223 3.40% 02CO NO. 3 3282006 $178,181 $12,273,404 4.92% 2CO NO.4 Pending $550,837 $12,824,241 9.63% 2 EDMS:0038322M 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