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Home My WebLink About2008-03 ADM MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, March 12, 2008, at 5:00 P.M. A meeting of the Administration Committee of the Orange County Sanitation District was held on March 12, 2008, at 5:00 p.m., in the Sanitation District's Administrative Office. (2) Following the Pledge of Allegiance, a quorum was declared present, as follows: ADMINISTRATION COMMITTEE STAFF PRESENT: MEMBERS: Lorenzo Tyner, Director of Finance and DIRECTORS PRESENT: Administrative Services Mark Waldman, Chair Mike While, Controller Phil Luebben, Vice Chair Penny Kyle, Committee Secretary Bill Dalton Bob Bell Rich Freschi Bob Geggie Don Hansen Rich Spencer Joy Neugebauer Randy Kleinman Chris Norby Rich Spencer Christina Shea Sal Tinajero OTHERS PRESENT: Jim Winder Brad Hogin, General Counsel Jim Ferryman, Board Chair Jim Holobaugh,Aon Insurance Tom Harvey,Aon Insurance DIRECTORS ABSENT: Jon Dumitru Darryl Miller Doug Davert, Board Vice Chair (3) APPOINTMENT OF CHAIR PRO TEM {RF LED IINN THpE �ffiICgE FF� No appointment was necessary. CRANOE COUNtt SA I A�ON DISTRICT (4) PUBLIC COMMENTS MAR 26 2008 There were no public comments. BY. , (5) REPORT OF THE COMMITTEE CHAIR Chair Waldman did not give a report. (6) REPORT OF THE GENERAL MANAGER General Manager, Jim Ruth, was not present and no report was given on his behalf. Nlinuies of the Administration Committee February 13, 2008 Page 2 (7) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES Lorenzo Tyner, Director of Finance and Administrative Services, did not give a report. (8) REPORT OF GENERAL COUNSEL Brad Hogin, General Counsel, did not give a report. (9) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the February 13, 2008 meeting of the Administration Committee. END OF CONSENT CALENDAR (10) ACTION ITEMS a. ADMOS-06 Randy Kleinman, Principal Financial Analyst, provided an overview of the District's history of workers' compensation and general liability insurance program, and analysis of cost savings for managing in-house. It was determined that Liberty Mutual be the insurance carrier for the general liability and workers' compensation insurance program. Directors requested that staff provide annual review of all OCIP costs. MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve a contract with Liberty Mutual as the insurance carrier to insure the District's Owner Controlled Insurance Program for General Liability and Workers' Compensation, for a five-year program, at a cost not to exceed $18,000,000, in a form approved by General Counsel. (11) INFORMATIONAL ITEMS a. ADM08-07 Information Technology Strategic Plan. Rich Castillon, I.T. Manager, provided an overview of the Information Technology Strategic Plan. (12) CLOSED SESSION There was no closed session. (13) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY Minutes of the Administration Committee February 13, 2008 Page 3 There were none. (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (15)ADJOURNMENT The Chair declared the meeting adjourned at 6:11 p.m. The next regular Administration Committee meeting is scheduled for April 9, 2008, at 5 p.m. Submitted by: All'� Z,. 4 Penny Kyle Committee Secretary STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and the Agenda for the Administration Committee meeting to be held on March 12, 2008, was duly posted for public inspection in the main lobby of the District's offices on March 5, 2008. IN WITNESS WHEREOF, I have hereunto set my hand this 5th day of March, 2008. Penny M. Kyl Clerk of Board Board of Directors Orange County Sanitation District HADEPnGMO\150\151\BS\FORMS\AGENDA CERTIFICATION.ADMIN.COMMITTEE.DOC n ORANGE COUNTY SANITATION DISTRICT V1419.eF4;1 NOTICE OF MEETING "'°' ""' i"I` ADMINISTRATION COMMITTEE an...eo.a.mm Finance, Human Resources and Information Technology 1n.nlla. r P ) V'*BW FUXILun VUley ;P b2J2B Bi2J .twat vdd.: Wb4496 Amin ORANGE COUNTY SANITATION DISTRICT FLrn3n V.tl4ry.U W]flB Int9 Ap� WEDNESDAY, MARCH 12, 2008 - 5:00 P.M. crcl.. DISTRICT'S ADMINISTRATIVE OFFICES aranern; 10844 ELLIS AVENUE ar.,a FOUNTAIN VALLEY, CALIFORNIA 92708 tlr,An. n."i W W W.00SD.COM IMuea,: {,MN1®O1 UaNP.f lv6Artrm Ilanh.rl ulna H;enin;pv bnrva, A regular meeting of the Administration Committee of the Orange County Sanitation District will be held at the above location, date a NBnt4a and time. IMApe Vli:r'nba Snrta Ana SNI(JrMUM1 9 A,Trin rYlyll Nlla Ibrt Yuta I n.w County of 8renge 8enitary Oletricev f:ac Mean A4rLvoY Ihy Wner Dbtriaa Irvrnn {inacF To maintain warlticless IeatlereAip in wastewater entl water resource management. SIY b a b b iy C.7F N ADMINISTRATION COMMITTEE MEETING DATES Meetina Date Board Meetina Dates March 12, 2008 March 26, 2008 April 9, 2008 Apr1123, 2008 May 14, 2008 May 28, 2008 June 11, 2008 June 25, 2008 July 9, 2008 July 23, 2008 August -, 2008 Dark August 27, 2008 September 10, 2008 *September 17, 2008 October 8, 2008 October 22, 2008 November 12, 2008 *November 19, 2008 December 10, 2008 *December 17, 2008 January -, 2008 Dark January 23, 2008 February 13, 2008 February 27, 2008 *Meetings being held the third Wednesday of the month. ROLL CALL ADMINISTRATION COMMITTEE Finance, Human Resources and Information Technology Meeting Date: March 12, 2008 Time: 5:00 p.m. Adjourn: COMMITTEE MEMBERS (14) Mark Waldman Chair Phil Luebben Ice Chair Bill Dalton Jon Dumitru Rich Freschi Don Hansen Darryl Miller Joy Neu ebauer Chris Norb Christina Shea Sal Tina'ero Jim Winder James M. Ferryman Board Chair Doug Davert Board Vice Chair OTHERS Brad Ho in, General Counsel STAFF Jim Ruth, General Mbecretary er Bob Ghirelli, Assisteneral Manager Nick Arhontes, Dir. Operations& Maintenance Jim Herber , DirecEngineering Ed Torres, Directochnical Services Lorenzo Tyner, Dirof Finance and Administrative Se Penn M. Kyle, Clthe Board Lille Kovac, CommecreteJeff Reed, Humanurces and EmployeeRelations Mana eMike White, Contr CiDocuments and Setlingstxeroa Local Settings\Temgorary Intemet Flles\OLK78M Roll Call.doc AGENDA REGULAR MEETING OF THE ADMINISTRATION COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, MARCH 12, 2008, AT 5:00 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 92708 www.ocsd.com (1) PLEDGE OF ALLEGIANCE (2) DECLARATION OF QUORUM (3) APPOINTMENT OF CHAIR PRO TEM, IF NECESSARY (4) PUBLIC COMMENTS (5) REPORT OF COMMITTEE CHAIR (6) REPORT OF GENERAL MANAGER (7) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES (8) REPORT OF GENERAL COUNSEL (9) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specrfically removed from same, as follows: a. Approve minutes of the February 13, 2008, meeting of the Administration Committee. Book Page I March 12, 2008 Page 2 END OF CONSENT CALENDAR b. Consideration of items deleted from Consent Calendar, if any. (10) ACTION ITEMS a. ADM08-06 Recommend to the Board of Directors to authorize the General Manager to negotiate and award a contract to an insurance carrier to insure the District's Owner Controlled Insurance Program, for a five-year program, at a cost not to exceed $18,000,000, in a form approved by General Counsel. (Book Page 8) (11) INFORMATIONAL ITEMS a. ADMOB-07 Information Technology Strategic Plan. (Book Page 17) (12) CLOSED SESSION During 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, i pending or potential litigation,or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6,as noted. 1 Reports relating to (a) purchase and sale or real property; (b) matters of pending or potential litigation; (c) employee actions or negotiations with employee representatives; or which are exempt from public disclosure I under the California Public Records Act, may be reviewed by the Committee during a permitted dosed session i and are not available for public inspection. At such time as final actions are taken by the Committee on any of these subjects,the minutes will reflect 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. (13) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (15) ADJOURNMENT: The next regular Administration Committee meeting is scheduled for April 9, 2008, at 5 p.m. Book Page 2 March 12, 2008 Page 3 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 Administration Committee on specific agenda hems 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 hem is requested to be removed from the consent calendar by a Director of staff member, there will be no separate discussion of these hems. 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 hems 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 hems 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 Clerk of the Board ten days in advance of the Committee meeting. Committee Chair. Mark Waldman (714)827-1959 Committee Secretary: Lille Kovac (714)593-7124 IkovacQocsd.com General Manager Jim Ruth (714)593-7110 inMg('locsd.00rn Assistant General Manager Bob Ghirelli (714)593-7400 ruhirelli@ocsd.00m Director of Finance and Lorenzo Tyner (714)593-7550 Itvner@ocsd.can Administrative Services Human Resources and Employee Jeff Reed (714)593-7144 ireed0)ocsd.com Relations Manager H:WepMsdt2lMCRANEWDMINISTRATI0N COMMITTEE MIN 20DBVAARCH08 AGENDA PREPARATION MATER S105.Admin AgmdaAoc Book Page 3 m _ March 12, 2008 ADMINISTRATION COMMITTEE AGENDA CALENDAR Item Action April Local Sewer Service User Fees Action IP Telephony (VOIP) Procurement And April Replacement Of Nortel PBX Phone System Action April Health Insurance Update Information Labor Relations - MOU Reopeners on Health April Labor & Substance Abuse Information April Property, Liability, and Workers' Compensation Information Insurance Renewal Update April FY 2008-09 and FY 2009-10 Budget Update Information April Wastewater Rates for Industrial Discharge Action May FY 2008-09 and FY 2009-10 Budget Update Information May Staffing Requests- Reclassifications Action June Proposed FY 2008-09 and FY 2009-10 Budget Action June Wastewater Rates for SAWPA Discharge Action Property, Liability, and Workers' Compensation June Insurance Renewal Action June Staffing Requests - Reclassifications Action Book Page 4 MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, February 13, 2008, at 5:00 P.M. A meeting of the Administration Committee of the Orange County Sanitation District was held on February 13, 2008, at 5:00 p.m., in the Sanitation District's Administrative Office. (2) Following the Pledge of Allegiance, a quorum was declared present, as follows: ADMINISTRATION COMMITTEE STAFF PRESENT: MEMBERS: Jim Ruth, General Manager DIRECTORS PRESENT: Bob Ghirelli, Assistant General Manager Mark Waldman, Chair Lorenzo Tyner, Director of Finance and Phil Luebben, Vice Chair Administrative Services Bill Dalton Mike White, Controller Jon Dumitru Lilia Kovac, Committee Secretary Rich Freschi Bob Geggie Don Hansen Paul Loehr Darryl Miller Joy Neugebauer OTHERS PRESENT: Chris Norby Brad Hogin, General Counsel Christina Shea Christine Telish, PIMCO Jim Winder Paul Reitz, PIMCO Jim Ferryman, Board Chair Richard Kikuchi, Lance, Sol[& Lunghard Doug Davert, Board Vice Chair DIRECTORS ABSENT: Sal Tinajero (3) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (4) PUBLIC COMMENTS There were no public comments. (5) REPORT OF THE COMMITTEE CHAIR Chair Waldman welcomed new members Directors Shea and Hansen. (6) REPORT OF THE GENERAL MANAGER General Manager, Jim Ruth, did not give a report. Book Page 5 Minutes of the Administration Committee February 13, 2008 Page 2 (7) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES Lorenzo Tyner, Director of Finance and Administrative Services, did not give a report. (8) REPORT OF GENERAL COUNSEL Brad Hogin, General Counsel, did not give a report. (9) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the December 12, 2007 meeting of the Administration Committee. Directors Hansen and Shea abstained. END OF CONSENT CALENDAR (10) INFORMATIONAL ITEMS a. ADMO8-01 Investment Management Strategies Christine Tallish and Paul Reitz from PIMCO, briefly presented the past performance investment strategy review and results of portfolio performance, which outperformed the Sanitation District's investment policy baseline. (11) ACTION ITEMS a. ADM08-02 MOVED, SECONDED AND DULY CARRIED: 1)Approve a Purchase Order Contract with Lance, Soil & Lunghard, Certified Public Accountants renewing the second year of a two-year option for internal auditing services covering the period of March 1, 2008 through February 28, 2009 in the same not to exceed amount of$58,670 that was approved in the prior year; and 2) Direct Lance, Soil & Lunghard to perform specific internal auditing assignments as the Administration Committee deems necessary. b. ADM08-03 After a brief discussion and clarification of the intent, the motion was revised to bring back to the Administration Committee staffs long-term recommendation as needed. It was then: MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to authorize the expiration of the Additional Retiree Benefit Account(ARBA) agreement with Orange County Employees Retirement Book Page 6 Minutes of the Administration Committee February 13, 2008 Page 3 System (OCERS), and direct staff to administer the ARBA benefits to retirees and to report back to the Committee staffs long-term recommendation as needed. C. ADMOS-04 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to authorize Jim Ferryman, OCSD Chair, to enter into an agreement with Woodruff, Spradlin & Smart for legal services, appointing Bradley R. Hogin as Principal General Counsel with a rate schedule of $255/2351200/105 and automatic annual CPI increases. d. ADMO8-05 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve the budget assumptions to be used for the preparation of the FY 2008-09 and FY 2009-10 two-year budget. (12) CONVENE INCLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957(b)(1). There was no closed session. (13) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Director Norby presented a brief overview of a tour of biosolids plant and field application in Kern County, and recommended that a group tour and public meeting be scheduled to meet with local lawmakers for land use discussions. Board Chair Ferryman reported that he had accepted a resolution of commendation from the Metropolitan Water District issued to the Orange County Sanitation District for the Groundwater Replenishment System. (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (15)ADJOURNMENT The Chair declared the meeting adjourned at 6:20 p.m. The next regular Administration Committee meeting is scheduled for March 12, 2008, at 5 p.m. Submitted by: li Kovac Committee Secretary Book Page 7 ADMINISTRATION COMMITTEE rWIN Ode I To e0.of Dlr. oyv/m os/zs/os AGENDA REPORT a"nNane' UM14tui6er AM" Orange County SanbWon District FROM: Jim Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance & Administrative Services SUBJECT: OWNER CONTROLLED INSURANCE PROGRAM GENERAL MANAGER'S RECOMMENDATION (1) Authorize the General Manager to negotiate and award a contract to an insurance carrier to insure the Sanitation District's Owner Controlled Insurance Program, for a five-year program, at a cost not to exceed $18,000,000, in a form approved by General Counsel. SUMMARY The Administration Committee and Board had previously authorized the use of a consultant to analyze the feasibility of implementing an Owner Controlled Insurance Program (OCIP), and the hiring of a broker/administrator to assist the Sanitation District in setting up and managing an OCIP. Due to the economies of scale,the consultant estimated that an OCIP could save the Sanitation District as much as $12 million in workers' compensation and general liability insurance premiums, and in claims administration costs, as compared against having the construction contractors provide these insurance coverages on each individual capital project. Currently, each contractor is required to provide the workers' compensation and general liability insurance, and include these costs within their bid proposal. As such, these construction insurance costs are already included within each individual construction project budget. Since the OCIP is expected to be less costly than the traditional approach, the approval of an insurance carrier contract is not expected to have an additional budget impact. The OCIP carriers are asking between $4 and $5 million as a minimum premium, along with additional charges for each claim to be administered. There is a maximum exposure to OCSD of$16 to $18 million, depending on how many claims come in, and which carrier is chosen. Because the Capital Improvement Program is already in progress, every month of delay potentially reduces the savings generated by the OCIP as construction projects are initiated outside of the OCIP umbrella. In order to capture as many capital projects within the OCIP, staff has directed Aon, the OCIP broker/administrator, accelerate the marketing of this OCIP and to acquire quotes from all the carriers who insure OCIPs. Page 1 Book Page 8 Aon solicited quotes from AIG, Liberty Mutual, Old Republic, Ace, and Zurich. Zurich no longer provides insurance to construction programs such as the Sanitation District's that utilizes more than one contractor. The terms included in Ace's proposal were less advantageous than the others. Old Republic's quote was very responsive for a $900 million construction program. However, due to the construction start-up of two very large construction projects, the Sanitation District had to lower its assurance of a 5-year, $900 million construction program to $450 million. Two finalists, AIG and Liberty Mutual, both sizeable insurers, have proposed programs with many facets to them and have indicated a willingness to negotiate the details. Each proposal is for a "loss sensitive program" where OCSD would pay a minimum premium and additional money depending on the number of claims and other factors. The volatility of the insurance market is such that details for a large program such as this are best negotiated at the time when the OCIP is ready for implementation. Staff is working with Aon to finalize the terms of these two proposals and will be providing a recommendation on the selection of an insurance carrier at the Administration Committee meeting. It is requested that the General Manager be authorized to negotiate with the finalists and to select a carrier based on the best combination of price, insurance policy features, company strength, company reputation, and other salient factors, and to report to the Administration Committee next month as to the rationale for his choice. PRIOR COMMITTEE/BOARD ACTIONS On June 13, 2007, the Administration Committee approved the release of a request for proposal for the administration of an Owner Controlled Insurance Program, CS-2007- 34613D, covering the Sanitation District's $2.5 billion capital improvement program. On October 24, 2007, the Board Approved a Professional Services Agreement with Aon Risk Services Inc., for an Owner Controlled Insurance Program Broker/Administrator (OCIP), Specification No. CS-2007-34713D, in an amount not to exceed 0.3955% of total construction value (minimum of$150,000/yr.), for a one-year period, with four additional one-year renewal options. ATTACHMENTS 1. Administration Committee Agenda Report choosing Aon Risk Services, Inc., as OCIP Broker/Administrator. 2. OCIP Feasibility Study— Summary. JDR:LT:MW:RK:lc Page 2 Book Page 9 ADMINISTRATION COMMITTEE Mpg AGENDA REPORT Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: SELECTION OF AN OWNER CONTROLLED INSURANCE PROGRAM BROKER/ADMINISTRATOR GENERAL MANAGER'S RECOMMENDATION Approve a Professional Services Agreement with Aon Risk Services Inc., for an Owner Controlled Insurance Program Broker/Administrator(OCIP), Specification No. CS-2007-34713D, in an amount not to exceed 0.3955% of total construction value (minimum of$150,000/yr.), for a one-year period, with four additional one-year renewal options. SUMMARY A consultant was previously hired to assess the feasibility of an owner controlled insurance program (OCIP). The consultant found that an OCIP would be feasible and likely save the District considerable money. The District Board of Directors then approved the release of an RFP to solicit proposals from qualified OCIP broker/ administrators. The following four firms submitted a proposal in response to the District's RFP: Proposer Cost as a % of Total Estimated Construction Value $500 mil. • Alliant Insurance Services, Inc. • 0.3700% • Aon Risk Services, Inc. • 0.3955% • Arthur J. Gallah er& Co. • 0.2700% • Kaercher Campbell &Associates • 0.3001% After review of the competing proposals and interviews of these four experienced OCIP broker/administrators, a panel of seven evaluators (representing District departments such as Finance, Risk Management, Safety, Engineering, and Purchasing) chose Aon Risk Services, Inc. (Aon). Aon was able to demonstrate that they were the leader in the field of OCIP brokerage/administration with far more experience than any other proposer. Although Aon's proposal is slightly more costly than the other proposers, staff believes that the additional cost will be more than offset through savings in the actual insurance premiums resulting from Aon's superior brokerage services and through Aon's claims management and safety and loss control programs. Fonn No.n 1M nen,ea'.Mimi Pagel Book Page 10 provides coverage for job co owner controlled insurance. Th s would eliminate the burden of the construction contractorsite construction projects. from having to provide workers' compensation and general liability insurance as part of their bid proposal. This also allows for possible centralized purchase of other types of insurance such as builder's risk and pollution liability, if appropriate. An OCIP centralizes and coordinates construction project insurance and coordinates loss control and loss prevention. An OCIP would virtually eliminate multiple insurers, cost duplication, stacked markups, potential cross litigation, gaps in coverage, inadequate limits, and uninsured contractors. An OCIP generally will produce noticeable savings compared to the overall project bids submitted by the individual contractors due to economies of scale. Also, the OCIP manages the overall capital improvement safety program to ensure that all contractor employees are properly trained in safety. Advantages of an OCIP include: • Better control over claims, litigation and settlement negotiations • Competitive advantage for minority, small and specialty contractors • Volume purchase equates to lower insurance rates • Elimination of hidden subcontractor mark-ups • Cash flow earnings on deferred premium and loss payment • Dividends or returned premiums based on favorable claims reporting Aon, as the broker/administrator, will assist OCSD in procuring appropriate insurance policies from one or more major insurance carriers who insure OCIP's, such as: • ACE • AIG • Arch Insurance • Liberty Mutual • Lloyds of London and London Companies • St. Paul • Zurich Insurance The cost described above for Aon's services involves features which may not become relevant, and therefore the cost may be less. It includes extra cost for another'': FTE safety person as well as the maximum possible incentive award to Aon if losses are extremely low. It also includes the purchase of certain insurance policies that OCSD may decide against, depending on the premium and terms that insurers may offer. If any of these items do not become relevant, the actual cost would decrease. In addition, the minimum of$150,000/yr. only becomes relevant if construction drops to an unexpectedly low level. Aon has indicated a willingness to instead reduce the availability of personnel dedicated to the OCIP, which would reduce that minimum. F.I NO.DW iw3 ReV OW1X7 Page 2 Book Page I I PRIOR COMMITTEE/BOARD ACTIONS On June 13, 2007, the Administration Committee approved the release of a request for proposal for the administration of an Owner Controlled Insurance Program, CS-2007- 34613D, covering the Sanitation District's $2.5 billion capital improvement program. ADDITIONAL INFORMATION This complies with authority levels of the Sanitation District's Delegation of Authority. Insurance is budgeted as part of each project's overall cost and this program is intended to reduce that cost. F..No.OW Iw] Feri 011(7 Page 3 Book Page 12 0_1= . 7A5IP,III-Y 5 SUMMARY Summary Background Orange County Sanitation District (OCSD) directed this study to determine If an Owner Controlled Insurance Program (OCIP)would provide sufficient benefits to justify the use of this technique for financing certain risks arising out of its capital improvement program(CIP). In addition to the analysis of potential OCIP benefits, this study analyzes certain other Insurance needs associated with the construction program. The Capital Improvement Program The Orange County Sanitation District's Capital Improvement Program Involves the expenditure of $1.87 billion over a fifteen-year period to upgrade and maintain is wastewater treatment infrastructure. A large number of projects are scheduled. Some Involve heavy civil construction; others are primarily upgrades and renovation of facilities. The largest of the projects are budgeted at over a quarter billion dollars.The smallest we noted on the schedule is$100,000.A list of projects is provided In Exhibit 2-OCSD COP Projects Scheduled on page 7. Work on the various projects frequently will spread over several years. Projects will start and stop during the fifteen-year period. According to information obtained in our interviews, It is possible that additional projects will be added over the intervening years. As a part of the public infrastructure, OCSD requires continuous ongoing maintenance some of which can be characterized as construction work. The amount of this work might be sufficient to qualify for an ongoing OCIP even without a specific capital Improvement program. Wlrstls oclP? OCIP Is a technique for consolidating the workers'compensation Insurance and general liability insurance coverages for most participants In a construction program. From an underwriting standpoint, it is a way to underwrite the project Itself, rather than underwriting each of the individual companies participating. Consolidation Increases the volume of Insurance premium for a single insurer or Insurance group and should generate discounts on that basis alone. There is one insurer, Instead of possibly dozens, and one Insurance broker instead of possibly hundreds. If losses are kept low, additional savings can accrue to the OCIP sponsor (the project owner). A variant of this concept Is called a 'contractor controlled Insurance program' In which a contractor or construction manager acts as sponsor. The alternative to consolidation is the so-called 'conventional" approach where each party purchases Its own workers compensation and general liability coverages. Depending on its relationship to others in the overall program, the participant agrees to Indemnify, defend, and add other parties to Its liability ORANGE COUNW SANffAn0N DISTRICT 1 Book Page 13 OCIP FEASIBILITY STUDY SUMMARY policies as additional insureds. In a conventional situation, the owner of the project acquires some protection through this process of indemnification and additional insured status. Findings and Conclusions OuattIlMgibrOCIP The OCSD CIP qualifies for a type of OCIP called a 'rolling OCIP' The nature of the work is mostly civil construction and lends itself to "project underwriting' The size of the construction budget easily meets the critical mass required to make a consolidated construction Insurance program feasible. There are no legal or regulatory Impediments to an OCIP for this program. Cost We conclude that OCSD could save money through an OCIP. The extent of savings is conditioned on a number of variables,the most significant of which is keeping claim costs low. Savings based purely on volume (economies of scale) are probable for the primary Ilnes of coverage but at high loss laves would be offset by administration and 'excess liability Insurance costs so that savings could be minimal or non-existent in a worst-case scenario. However, even at the highest loss levels, the program could be arranged so that OCSD essentially would be no worse off financially for having chosen an OCIP. This technique is called 'stop-loss Insurance. It is a standard feature of contemporary OCIPs. The cost of this feature is Included In our financial forecasts in this report. The market for construction services is a factor in considering OCIP. In California construction Is steady but appears to be tapering off in the commercial sector and declining significantly in the residential sector. This trend bodes well for OCIP sponsors. It increases competition among contractors. High demand for construction services enables contractors to be choosier in selecting projects to bld. It also means contractors are less Inclined to be as competitive in their pricing. Theoretically, these conditions make it lass likely that contractors will aggressively remove from their bids the cost of insurance provided by the owner under an OCIP. Competition In construction services markets means owners enjoy more competitive pricing. Offering to replace the contractors Insurance program provides an opportunity for the contractor to make their bid even more competitive as Insurance costs we a significant price component for construction services. While there are a number of variables to consider Be outlined in the chapter 'Cost/Benefit Analysis of Altematives beginning on page 23, our estimates show probable savings in the range of $B to $12 million over the next five years. This conservative estimate is based on an expected loss ratio (losses, to maximum premium) of 50% or lass. Lower losses produce more saving, higher losses yield less saving. We have tried to use conservative assumptions regarding contractor deductions, contractor probable premium rates, OCIP maximum rates and cost of administration and excess insurance. GRANGE COUNTY SANITATION DISTRICT 2 Book Page 14 OC IP F1ISi.11I1'1 STUUV SUMMARY Coverage At least as important as the potential for cost savings Is the benefit of a reliable source of protection from losses arising out of the project. Construction Is an industry characterized by significant hazards and resultant high level of losses.A project owner is Introduced Into this environment by virtue of the construction contract. The owner becomes a target for the many employee injury suits and cross actions Inherent in this Industry.This is especially true when the owner is a highly visible community Institution viewed as having"deep pockets' In a conventional Insurance situation (i.e.. without an OCIP), the owner must rely on the contractor's Insurance and indemnification agreement. The contractor agrees to indemnify the owner and add the owner to its insurance policy. Our experience as consultants and expert witnesses is that this indemnification process Is prone to failure and fraught with hidden complications, frustration and cost,especially in a large loss situation. Insurers are highly averse to providing broad coverage to additional insureds, i.e., those parties added to a policy as a result of a contractual requirement. Over the past decade or more, there has been a major effort on the part of the Industry to reduce Its exposure in this arena. Standard liability policy forms, additional Insured endorsements and statues have undergone significant revisions—all intended to reduce the scope of coverage to additional Insureds. We encourage an excess liability insurance program that would provide no lass than a $100 million per occurrence and aggregate (annual policy total) limit. Preferably, OCSD should obtain $200 million or more in total limits. Recommendations We recommend the use of an OCIP for the OCSD Capital Improvement Program. The OCIP should include • Workers compensation for all construction contractors, • General liability for contractors, construction managers and the owner, and • Excess liability Insurance with a limit of$100 million or more. In addition to the OCIP, OCSD should consider arranging builder's rise Insurance, possibly through its current all-risk property Insurer. Even if the all-risk insurer Is willing to write the coverages, OCSD should still make competitive comparisons with other insurers for a master builder's risk program. Other coverages are discussed in this report including professional liability and pollution liability insurance. These should be considered individually. In the report we discuss the decision criteria forthese,coverages. To market the OCIP, OCSD would need to select an OCIP insurance broker. This Is a highly specialized sector of the Insurance brokerage services market and only a few insurers have adequate resources, experience and ability to provide the required service need to effectively assemble and manage an OCIP. We recommend competitive selection of a single broker. ORANGE COUMY SANITATION DISTRICT 3 Book Page 15 OCiC rEnS�BIU ,Y SIIDY S Uhl NLRY As an option, OCSD should consider separating OCIP marketing from administration. This would involve two procurements — one for brokerage services and one for OCIP administration. This alternative could also be presented as an option in a single bid package thereby allowing proposers to bid on administration, brokerage or both. OR GE CO'JN SAennTION DISTRICT 4 Book Page 16 ADMINISTRATION COMMITTEE Meeting Date To ad.or Dir. 03/12/08 AGENDA REPORT Dem Number Dem Numbx ADMOB-07 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance &Administrative Services SUBJECT: INFORMATION TECHNOLOGY STRATEGIC PLAN GENERAL MANAGER'S RECOMMENDATION Informational Item. SUMMARY The Information Technology Strategic Plan (ITSP) aligns Information Technology with OCSD's mission, vision, and business goals, and establishes the overall goals and direction of the IT efforts at OCSD. In 2006, IT began an RFP process to outsource the effort of completing OCSD's first ITSP refresh since 1996. The proposed solution was to award approximately$250,000 to Gartner Group to develop the plan. In 2007, the decision was made to create the plan using existing OCSD, IT resources and a minimum amount of consulting services. The attached three-year ITSP is the culmination of the endeavor to create the plan that will reinvent IT. The creation of the ITSP involved the following actions: • Access the current state of IT. • Access the needs of the agency to enable OCSD to fulfill the OCSD Strategic Plan. • Determine the gaps between the current state and the technology needs of the agency. • Determine general and specific solutions to fill those gaps. Based on the above actions, a new mission and vision was developed for the IT division. New IT Guiding Principles were developed that reflected the new direction and focus for IT. Specific goals and levels of service were defined that IT needed to achieve to realize the vision of OCSD. Finally, recommendations were developed to budget for specific efforts. Richard Castillon, the District's Information Technology Systems and Operation Manager will make a presentation at the Administration Committee Meeting on the ITSP and to discuss IT's strategy going forward. FDm,No.P 102.3 PevNei 03MI107 Page 1 Book Page 17 PRIOR COMMITTEEIBOARD ACTIONS N/A. ADDITIONAL INFORMATION None. ATTACHMENTS 1. Information Technology Strategic Plan JDR:LT:RC F.No.o ima aemea:owfro� Page 2 Book Page 18 ORANGE COUNTY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, Califomia 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 Owner-Controlled Insurance Proqram 008 Distributed at (� Administration Committee Owner-Controlled — Meeting Insurance Program Saving Money on Construction Insurance 6 March 2008 What is an OCIP? ♦ Consolidates ?Yp Workers'Compensation and General Liability Insurance ♦ One large "umbrella"policy OCSD's Large Construction Program Makes a Good Candidate ♦ Completed a feasibility study last summer ♦ Consolidation increases volume and allows the economies of scale(cost savings) ♦ One insurer instead cf dozens wq 1 Owner-Controlled Insurance Program March 12, 2008 We Qualify for a "Rolling" OCIP ♦ Vanety of projects starting at different limes ♦ Many other public entities have done a rolling or a regular OCIP Feasibility Study Indicates the Potential for Significant Cost Savings ♦ Estimated$8-12 million OCSD cost savings ♦ Dependent on claims • GWR System's OCIP saved-$S million • "Stop loss.feature limits downside risk OCIP Will Decrease the Construction Contract Cost ♦ OCIP costs will be allocated separately to each CIP Project IW/C and G/Ll ♦ Projected net savings of 1-2%on each CIP Project a I�y 2 Owner-Controlled Insurance Program March 12, 2008 Selection of OCIP Administrator e Commees approved hiring an OCIP Broker-Administrator • last autumn ♦ Aon was chosen based on experience OCIP Administrator ♦ Acts as broker ♦ Gets quotes • ♦ Advises on carders ♦ Administers OCIP Risks and Positives e It canners have'minimum premium' requirements,costly to cancel many projects ♦ OCIP subject to'stop-loss' ♦ Better relations with contractors in case of lawsuit against contractor or District ♦ Cost savings could lead to lower sewer servbe fees in future 3 Owner-Controlled Insurance Program March 12, 2008 Comparison of Competitive Carriers Liberty Aid Mutual ♦ Minimum Premium $3.6 M $2.7 M pt no Memel • Composite Rate $4.70 $3.52 (per$100 payvYO ♦ Program Max $12.5 M $11.0 M (euetl on as W million new oam rxflon) ♦ Fortune 500 Ranking e 9 e 95 Staff Recommendation Recommendation by the Committee that the Board select Liberty Mutual as the carrier for the District's Owner Controlled Insurance Program (general liability/workers comp)-choice subject to approval of Agreement by General Counsel- In an amount not to exceed$18 million Quotes Coming in for Other Smaller, But Needed, OCIP Insurance Policies Board will be asked to approve: • Builder's risk NTE$2 million ♦ Excess liability NTE$1.5 million • Pollution liability NTE$300.000 4 Information Technology Strategic Plan March 12,2008 Distributed at Administration C Information Technology Meeting ommittee Strategic Plan 6 March 2008 Plan Development ♦ Identify OCSD requirements through OCSD Strategic Plan and LOS ♦ Analyze and identify IT's assets and services ♦ Identify business units'requirements ♦ Identify gap to reduce/eliminate ♦ Create Plan budget OCSD Requirements: Mission ♦ We protect public health and the environment by providing effective wastewater collection,treatment, and recycling ♦ Differs from the former mission which was 'to maintain world-class leadership" Information Technology Strategic Plan March 12,2008 OCSD Requirements: Vision ♦ Triple bottom line: ....to produce optimum financial,environmental and societal results ♦ Cooperating with other stakeholders.... ♦ ....using safe and effective processes and systems ♦ Developing the best possible workforce.... IT Mission We enable the Orange County Sanitation District to achieve its vision and levels of service by maximizing the contribution of technology solutions IT Vision We are recognized for our leadership and technical proliciencies and for our ability to seamlessly partner with our customers to create and deliver high quality services and sound business solutions that are consistent within our industry. Information Technology Strategic Plan March 12, 2008 IT Vision (mntlnmd) These services are delivered through a robust infrastructure that is modem,secure, responsive, reliable,and available. IT Guiding Principles • Adapt and implement a set of bast practices as defined in recognized IT programs ♦ Utilize a broad collection of partners to act as virtual team members • Make the best possible business decisions, use a business driven consultative approach IT Guiding Principles I—un-M • Increase commitment to stay on top of new, emerging technologies and practices • simplify solutions to lower ongoing maintenance and support costs Information Technology Strategic Plan March 12, 2008 strategic coal al: Modernize Our Telecommunications Systems ♦ Replace existing PBX telephone system • Provide a unified massaging infrastructure ♦ Provide an egecllve public address system ♦ Pruvidecellularsmadphonelechnology • Provitle remote wrinectivityto field slalf stretaglccoala]: Deploy an Enterprise Content Management Solution ♦ Define a structure and process • Develop a soawam IramewoA ♦ Identity and install soXware and hardware ♦ Develop a forts library architecture ♦ Execute the ECM plan at an ante""level sbatagla Goelaa: Develop Emergency Operations & Business Continuity Sites • Develop a business mntinuity l recovery plan ♦ Identity and amhitaol a business recovery sile • Identity and architect an enrargenty operations site • Identify and install eanvare and hardware • Viduafize applicabons to shorten recovery time Information Technology Strategic Plan March 12,2008 Strategic Goal aa: Improve the Networking Infrastructure ♦ Architect and Implement a new plain process network • Implement a data storage solution • Create a wireless campus process area ♦ Install a new interplant fiber optic line ♦ Provide,networking to the new With County Yard Strategic Goal 115: Address Enterprise Obsolescence • Replace the CMMS System • Plan to replace the SCADA System • Plan to replace the ERP System ♦ Plan to replace the P&ID System • Replace obsolete major enterprise hardware ♦ Replace obsolete sewer desktop systems strategic Goal as: Address Critical Infrastructure and Cyber Security ♦ Define and identify critical information • Secure appropriate Information ♦ Develop system to share Information with appropriate parties • Ensure SCADA system is protected ♦ Implement Information Security Program ♦ Maintain IT beat practices codification Information Technology Strategic Plan March 12, 2008 Strategic Goal a1: Design & Deploy Collaboration Tools ♦ Arehlted and Implement collaboralion tool suites ♦ Implement enterprise watch capabilities ♦ Select an integrated workflow platform • Design and implement a solution to monitor key agency performance indicators IT Services ♦ Technology applications • IT organization and services ♦ Staffing ♦ Funding • IT decision making ♦ Govemancecommittees ♦ Pmjed Management Office Financial Planning & Implementation Plan • Based on CIP model ♦ Prioritized based on relation to OCSD strategic plan goals and business needs ♦ Budget assumptions are inline with the OCSD budget • Plan operates on the two-year budget cycle ♦ Three-year floating plan Distributed at 03 / Q� Administration Committee Meeting 'v P Orange County Sanitation District Information Technology Three-Year Strategic Plan January 2008 — Moo'•\ ML _ _ _ _ _ - - • 1 t 1 _ _ _ V V V V V V V V Orange County Sanitation District V Information Technology Three -Year Strategic Plan v v v v v v V v v v v v v Lr v v v v v January 2008 v Orange County Sanitation District V 10844 Ellis Avenue, Fountain Valley, CA 92708 714-962-2411 w .ocscixorn V Y„� TABLE OF CONTENTS v r' INFORMATION TECHNOLOGY STRATEGIC PLAN PROJECT TEAM ........ II MESSAGE from THE IT SYSTEMS and OPERATIONS MANAGER........... III EXECUTIVE SUMMARY...........................................................................W OCSD MISSION and VISION................................................................... 1 OCSD Mission Statement................................................................... 1 OCSD Vision Statement..................................................................... 1 INFORMATION TECHNOLOGY MISSION and VISION.............................2 ..� Information Technology Mission Statement.......................................2 ,d Information Technology Vision Statement.........................................2 Information Technology Guiding Principles.......................................2 W GOALS and OBJECTIVES........................................................................4 StrategicGoals .................................................................................4 r, Telecommunications System.......................................................4 Enterprise Content Management (ECM)........................................ 5 r' Emergency Operations And Business Continuity.......................... 5 Network Infrastructure................................................................6 EnterpriseObsolescence.............................................................6 �►' Critical Infrastructure and Cyber Security..................................... 7 r, Collaboration Tools..................................................................... 7 .� SERVICES............................................................................I.................. 8 .W INFORMATION TECHNOLOGY APPLICATIONS.....................................8 Infrastructure..............................................................................8 Hardware....................................................................................8 ..� Systems Software And Utilities ....................................................9 Enterprise Applications ............................................................. 10 DepartmentalApplications........................................................ 11 INFORMATION TECHNOLOGY ORGANIZATION and SERVICES............ 12 .r Staffing..................................................................................... 12 Funding.................................................................................... 15 Departmental Applications........................................................ 15 INFORMATION TECHNOLOGY DECISION MAKING............................. 16 ,r Technology Governance Committees......................................... 16 Project Management Office (Itpmo) ........................................... 17 TechnologyStandards............................................................... 18 ,r Computing Policies And Procedures .......................................... 18 FINANCIAL SUMMARY and IMPLEMENTATION PLAN.......................... 19 �►' Strategic IT Budget For FY 2007.2008............................................20 �✓ Future IT Central Operating Budget.................................................21 �►' Strategic IT Budget For Future Fiscal Years......................................22 V V V V INFORMATION TECHNOLOGY STRATEGIC V PLAN PROJECT TEAM V V Lorenzo Tyner.................................Director of Finance&Administrative Services Rich Castillon.................._..............ITSysmm and Operations Manager John Swindler....................._...........IT Manager V Mike Herrera...................................Principal ITAnalyst Robert Thiede.................................Principal IT Analyst V Rob Michaels...................................Principal IT Analyst V Paul Krzysiak....................................Principal ITAnalyst Pongsakdi Cady...............................Principal IT Analyst V Eric Hsieh........................................Principal ITAnalyst V Henry Salgado.._..................._........Principal IT Analyst Pinky Burke..................._................IT Strategic Plan Coordinator V v V V v V V V V V V V V V v V V V V V v V V V if V V✓ V V MESSAGE from the IT SYSTEMS and OPERATIONS MANAGER V During the last decade,the Information Technology(PI)Department has operated w effectively to provide mditional IT services and technologies to the OCSD. V Changing times,in both business and technology arenas,require us To e Ive and create a new environment where we change our focus from pure technology To W business needs,where tasks include relationship aspects in addition to technical V proficiencies,and where hard skills are supplemented with soft skills. As business V processes change to gain efficiency,it is essential for IT to cut across organizational boundaries,become stewards of corporate information,and implement systems that enforce these new business processes. IT is aligning our success through the development and execution of the Information Technology Strategic Plan(l7SP).The Plan defines the mission, ,d vision,guiding principles,goals,and services that support the business strategy of OCSD. This IT Strategic Plan is based on a shared vision that focuses on creating V a collaborative computing environment,modernizing our current hardware and V software systems,securing our data and infrastructure,and recovering the agencies `r business processes during an emergency. V It is an important milestone To include the centralized IT budget process in this V strategic plan. Line items for annual technology operating and capital expenses will be forwarded To the IT Executive Steering Committee for budgetary approvals. V This aspect of the strategic plan is modeled after the current Capital Improvement V Project(CIP)process where requests are scored,funded,and prioritized using a V quantitative scoring process. Efforts remain for business unit and IT staff collaborating to strengthen business requirement and resourcing confidence levels of proposed line items.The Strategic Plan for IT should be viewed in concert with V OCSD's Strategic Plan and the Districts budget. Together,these documents plan V for information technology now and in the future. We will review and update this plan annually to adjust goals and expenditures as changing conditions dictate. v' I am grateful to the IT team and the many people and executive sponsors in the V OCSD community who contributed their time,ideas,and feedback TO the strategic planning process. I extend special thanks to Robert Irvin of the City of Los ,r Angeles Sanitation Bureau and Pete DeLisi,the Academic Dean of the IT Technology Executive Program at Santa Clara University for consulting, guiding an mentorin , id'g g me through the process of creating this plan. V Respectfully submitted, V Richard A.Cestillon IT Systems and Operations Manager V iii V V v v v v EXECUTIVE SUMMARY Beginning in the fall of 2007, the Information Technology(M division initiated V the process of creating an Information Technology Strategic Plan(ITSP). The V purpose of the ITSP is to align IT with the Orange County Sanitation Distriu's y j (OCSD)mission,vision,and business goals and to establish the overall goals and direction of the IT efforts at OCSD. This IISP closely follows the new Orange V County Sanitation District Five-Year Strategic Plan. As a result,business and IT V goals are closely aligned and technology decisions will be made cooperatively in y improve the efficiency and effectiveness of all OCSD's programs. Included with the ITSP are the new IT mission and vision statements which create the baseline 1.0 for goals and objectives of the plan. sod V The process began with senior IT staff interacting with senior technical staff in all divisions in determine their business needs and explore business process improvements. Once this information was gathered,the IT Systems and L' Operations Manager met with all division managers to validate the information V and get their input on current and future technology needs required to support v their respective operations. These sessions were fcllowed-up with identical meetings with all of the department heads. Subsequent Managers/Fxe:wive 1.0 Manager team members validated specific technology needs required to fulfil the V goals and levels of service defined in the OCSD Strategic Plan. As a result,the ITSP addresses the objectives and challenges facing Information Technology and V OCSD now and into the near three years.They include: L • Participate as business leaders at the enterprise level • Integrate tightly with OCSD's business units v • Address solutions from a business perspective at the enterprise balcony t.•' • Enhance visibility of compliance of Key Performance Indicators(KPIs) t•✓ using business intelligence tools V • Enable decision makers to make better informed decisions by making yr usable data readily available using electronic content management V • Look for opportunities to create a "greener'environment through V efficient use of power and cooling • Use governance models to make decisions on proposed Urge technology V efforts V • Identify annual technology budget requirements • Reduce"islands of information"with integrated database solutions ty • Continue to promote and update our Geographic Information System ts„ (GIS) V This ITSP will be updated annually to reflect and support the latest OCSD goals 1.0 and changing levels of service. This is the opportunity,using best practices,in V enhance the way OCSD serves its mission of protecting the public health and the environment by providing effective wastewater collection,treatment,and recycling using well planned and managed information technology. V tv W OCSD MISSION and VISION OCSD MISSION STATEMENT The OCSD Mission Statement is the basic foundation that defines why the Orange County Sanitation District exists. "We protect public health and the environment by providing effective wastewater collection, treatment, and recycling." OCSD VISION STATEMENT ,r The Vision Statement supports the Mission Statement by expressing a broad r philosophy of what the Orange County Sanitation District strives to achieve now and in the future in the delivery of services to our customers,vendors,other agencies,the general public and each other. The Orange County Sanitation District is committed to: . Making decisions in an open and honest way to produce optimum financial,environmental and societal results. ..� . Cooperating with other stakeholders to protect the ocean and regional water resources for the people we serve. ,r . Beneficially recycling wastewater,biosolids and other resources using safe and effective processes and systems. W a Developing the best possible workforce by providing employees with opportunities to advance their careers through enhanced growth, responsibility,and professional development. d 1W 1.0 W W � f INFORMATION TECHNOLOGY MISSION and VISION Information Technology Mission Statement We enable the Orange County Saturation District to achieve its vision and levels of service by maximizing the contribution of technology solutions. Information Technology Vision Statement We are recognized for our leadership and technical proficiencies and for our V ability to seamlessly partner with our customers to create and deliver high quality services and sound business solutions that are consistent within our industry. �a These services are delivered through a robust infrastmi ture that is modem,secure, responsive,reliable and available. V To achieve this vision,the IT division is committed in the following guiding `+ principles. Information Technology Guiding Principles v These guiding principles are formed from a broad and highdtsel perspective. They will guide IT for many years to come, irrespective of changes in its goals,strategies, type of work,or the top management. V • Adopt and implement a set of best practices as defined in recognized IT programs V Using best practices such as the Information Technology Infrastructure Library(ITIL)provides operational guidance that enables our IT organization to achieve system reliability,availability,supportability,and manageability of IT products and technologies.Using these practices in guide our organization, 4 we will be able to assess our current IT service management maturity, prioritize the processes of greatest concem,and a V p gre apply proven principles and best practices to optimize the management of our various platforms. • Utilize a broad collection of partners to act as virtual IT ream members V This virtual extension of the IT staff provides consulting and partnering as V well as hardware,software,networking,hosting,and support services. In the future,external partners will be the primary owners and suppliers of select technologies which will focus on their core competencies of building and running applications. Interfacing with our peers will provide networking V opportunities and coalitions to sole common problems while sharing resources. v z v W vtd continued Information Technology Guiding Principles V d a Make the best possible business decisions in which IT staff uses a business driven consultative approach V IT is no longer just a service provider;we cross organizational boundaries and therefore need to develop relationships while becoming intimately familiar V with the business processes of the divisions that we support. IT staff needs to r' become stewards of corporate information and partner with our customers to r, generate ideas for business innovation. 'd a Increase ITs commitment to proactively,stay on top of new and emerging ,r technologies and practices to ensure quality and cost effective solutions V As IT moves from being an "IT service provider"towards a"valu"dded r' business parmer",we must have practical awareness of current applications, platforms,and technologies in order to offer technology solutions. IT will move to ctosstraining staff and will invest in technical mining to ensure V competencies. V r, a Simplify solutions to lower ongoing maintenance and support costs 'd Support costs greatly exceed initial procurement costs. IT will standardize on hardware and software and move to consolidate the number of servers. Whenever possible,we will avoid customizing commercial off the shelf r software and instead,encourage business process change to match the software. We will use an enterprise approach in designing and integrating ,r solutions and avoid building islands of information. V V V W V V V V V V V V V V 3 v W v V V V GOALS and OBJECTIVES Strategic Goals W V Completing the following goals enable OCSD to provide effective wastewater ia✓ collection,treatment,and recycling. These goals target areas that will effectively V enable IT to fulfill our mission of maximizing the contribution of technology V solutions. In order to keep the goals as meaningful as possible,we have limited their horizon to the next 36 months. In some cases,full implementation of a goal or objective will require additional objectives that haw not yet been included in V this document or budgetary resources that are not yet available. The underlying goals and objectives will be evaluated during the initial undertaking of this strategic Plan and updated annually. Solutions specific to divisional needs NOW identified during the ITSP interview process are identified in the Financial Section V of this strategic Plan. `, Goal 1: Telecommunications System %' W OCSD's current PBX telephone system,the Nortel Option 66, is V, obsolete and has been experiencing numerous operational issues. The PBX will be replaced with an Internet Protocol(IP)enabled system that is integrated with our network and email system,and a voice mail system ry that convert the messages to digital files. A new PC based operator console will provide enhanced functionality to benefit the citizens who call OCSD. Our current Public Address system operates only in select V areas and does not reach the majority of OCSD staff. Additions to the V system will ensure that emergency announcements will be audible in normally occupied buildings. Telecommunication systems will be v extended to field staff through wireless networking and staff will have W reakime connectivity to OCSD's computer network from their work areas. V Objecti« 1.1: Replace the existing PBX Telephone ucth an IP Enabled W System V Objective 1.2: Provide a Unified Messaging Infrastructure y Objective 1.3: Provide an effective Public Addreas System to addrerc emergency communications V Objective 1.4: Provide Cellular Smart Phone Technology where v appropriate V Objective 1.5. Provide remote connectivity to field staff V V W V V V 4 W W Goal 2: Enterprise Content Management (ECM) A common need that was identified by all departments is to facilitate collaboration with smff and outside parties and supply amen to information that is essential to organizational goals. Solutions are required to effectively implement business processes and provide dam repositories on key performance indicators. There also needs to be a simple library where forms can be accessed,filled out,sent,and authenticated in a paperless environment. A comprehensive ECM solution will address records management,document management, image management,content management,workflow,and collaboration. Objective 2.1: Define structure and process that the enterprise wiU adhere to Objective 2.2: Develop a software framework that can support the .� process and stricture defined above Objective 2.3: Identify and inmll plug{n software applications Objective 2.4: Identify and procure appropriate hardware Objective 2.5: Deoelop a forms library amhitemare Objective 2.6: Execute the ECM plan at an enterprise level r, Goal 3: Emergency Operations And Business Continuity OCSD has been prudent in developing solutions to recover water .� treatment processes in the event of an emergency. The current r, Emergency Operations Center(EOC)lacks significant technology to coordinate OCSD's operations with outside agencies. Such technology must be identified,acquired,and implemented in our current and .� future EOC. A business continuity plan that prepares business functions for future incidents that could jeopardize the organization's core mission and its long-term health needs to be developed. This includes creating an offsite location where operations essential to OCSD would be relocated. This site requires computing and telecommunication resources and dam be made available to continue operations. Objective 3.1: Be a leader on the team that develops the Business Recovery Plan Objective 3.2: Identify and architect a Business Recovery Site Objective 3.3: Vinualize application wherever possible to shorten recovery time �s Objective 3.4: Identify and architect an Emergency Operation Site Objective 3.5: Identify, procure and install appropriate software and hardware for each site r✓ 5 �r y y y V V Goal 4: -Network Infrastructure 4, The wastewater treatment process facilities are currently undergoing major capital improvements. Much of the equipment has built-in y intelligence and must be connected to the process network as inputs to V local computer resources. The information is eventually input in to the Supervisory Control and Data Acquisition(SCADA)system,which needs to be isolated from the office network. The current process y network needs ro be greatly expanded to handle the increase in secure y mffi. Fail safe connectivity between Plant 1,Plant 2,and the new North County Yard needs to be designed and installed. The process V areas of the plant shall be covered with wireless communication access y to the network to allow staff access to the computing resources required to fulfill their mission. With this increased data growth,new data V storage capacity will be calculated and installed. V V Objective 4.1: Architect and implement a new Plant Pros,Nenvorlt V that meets the required capacity and security requirements V Objective 4.2: Create Wireless Campus Process Areas for each V Treatment Plant `y Objective 4.3: Architect and implement a Data Storage Solution that V addresses current and future data grmuth Objective 4.4: Install a new Interplant Fiber Optic Line V Objective 4.5: Provide neavork connectivity for the new North County V Yard V Goal 5: Enterprise Obsolescence y v Major OCSD enterprise software systems are nearing the end of their y supported live span. Studies will be scheduled to determine the - replacements of select systems along with aasaciated budgets required to V design,install,and support such systems. Hardware systems that are at V end4--life include engineering based largaformat scanning,plotting, y and printing systems as well as server and desktop systems. y Objective 5.1: Replace the current Computerized Maintenance V Mamsement System y Objective 5.2: Develop a plan to replace the current SCADA System Objective 5.3: Develop a plan to replace the current Enterprise Resource V Planning(ERP)System Objective 5.4: Develop a plan to replace the current Piping and V Instrumentation Diagram(P&ID)System V Objective 5.5. Replace the obsolete major enterprise hamltvan y Objective 5.6: Replace the obsolete server/desktop Systems v y �r 6 V V v v .r Goal 6: Critical Infrastructure and Cyber Security The Department of Homeland Security recognizes the Water/Waste vJ Water sector as a critical infrastructure. As such,we partner within the sector to design and improve the security of the nation's critical 1.0 infrastructure. We will developplan to reduce a p cyber threats and d vulnerabilities as well as protect critical information from the general public. Objective 6.1: Define and identify information that is required to be secured ,d Objective 6.2: Secam appropriate information from the general public Objective 6.3: Develop systems to make information available to appropriate panic Objective 6.4: Ensure the SCADA system is protected in accordance udth national standards Objective 6.5: Implement Information Security Pmgmm Objective 6.6. Maintain "Bat Practice"certification Goal 7: Collaboration Tools v The latest generation of collaboration tools can offer a lot of value to teams,workgroups,and departments as they tackle projects and try to get their work done with a more advanced set of content tools than , O simply e-mail and file shares. Collaboration technologies have the potential m radically redefine the way knowledge workers 100 collaborate with reams and individuals resulting in increased V organizational effectiveness. For example,collaboration tools increase communisation with others in the organization by posting bulletins, discussion lists,surveys,blogs,wikis,or announcements and gathering 10 feedback;foster team collaboration by giving team members a place to 11.0 share ideas and work on projects together;enable the ability to check documents in or out,track changes to documents,keep multiple versions of documents,and mg documents with memdata;enable the ,ad abilityto aummare business processes p by creating workflows and routing ..W documents and forms for approval;and easily access the business `, information needed for decision+naking by utilizing enterprise search technologies and increasing visibility of dynamic dashboards using key `.d performance indicators(KPI). 1.0 r, Objective Th Architect and implement collaboration tool suites yr Objective 7.2: Implement enterprise search capabilities across systems Objective 7.3: Select an integrated uwkflow platform Objective 7.4: Implement and design a comprehensive perfomance management solution that allows the organization to drive execution and more effectively monitor performance and ICPls 7 v v v v SERVICES The following pages define the computer,network,application and related- infrastructure environment at the Orange County Sanitation District.These - resources support a user population of approodmarely,725.Roughly,625 of these are employees;the balances are contractors. V 1. INFORMATION TECHNOLOGY APPLICATIONS tr V This section of the I7SP identifies the technology areas for which Information Technology is responsible. The standards for these particular areas change often and are available through Information Technology management. yr V I.I.INFRAS'1RUCiVRE V Low-voltage cabling and radio systems that carry voice or data packets and associated peripherals are the responsibility of the IT division. 1.1.1. DATA AND VOICE CABLES:Cables in the facilities that are V used to carry dam or voice traffic to or from servers,workstations, telephones,or video devices. 1.1.2. MICROWAVE SYSTEM: The radio system that connects the V treatment facilities. 1.1.3. CABLE DISTRIBUTION AND MANAGEMENT: The racks V and patch panels that interconnect the cable systems throughout V the facility. 1.1.4. FIBER OPTIC CABELING:The fiber that connects buildings V and process areas throughout the facilities. V 1.1.5. WIRELESS ACCESS: Wi-Ft and cellular coverage to our devices V capable of receiving these signals 1.1.6. PROCESS PERIPHERALS: Fiber to copper transducers used in the process areas. Lr V 1.2.HARDWARE - V These arc the physical devices making up a computer system. IT maintains standards for the device and its configurations. V 1.2.1. TELEPHONE SYSTEM: The voice communication system in use v at our facilities. It includes the PBX,deskrop phones,and cellular phones. y 1.2.2. RADIO SYSTEM: Includes the radio transmitter,repeaters, V consoles,and hand-held radio units. 1.2.3. PUBLIC ADDRESS SYSTEM: Speakers,amplifiers,and t►' interfaces that broadcast messages to staff. `. 1.2.4. NETWORK DISTRIBUTION: Routers,switches,and other V network devices that manage traffic on our dam and voice network. V 1.2.5. FIRE&SECURITY SYSTEMS: Cameras,sensors,monitors, alarm panels,and card access devices that connect to our life safetysystems. v v 8 V ta✓ 1.2.6. SERVERS: File servers,web servers,application servers,database servers and virtual server hosts distributed throughout the facilities. ,d 1.2.7. COMPUTER WORKSTATIONS: Personal computers(PCs), notebooks,and tablet computers assigned to OCSD staff. 1.2.8. PRINTERS: Printers and multifunction devices used to print, fax,and scan documents. 1.2.9. NETWORK STORAGE&BACKUP: Devices that backup and store date associated with the servers. 1.2.10. CELLULAR DEVICES: Cell phones and Personal Data Assistants(PDAs)assigned to designated staff. 1.2.11. REPROGRAPHICS:This includes management of the Copy Center that provides copying/reproduction services staffed by dedicated personnel.This also covers management of all Xerox s' multi-function printers including service maintenance and equipment supplies. 1.2.12. MAILROOM:This includes processing of incoming and outgoing mail as well its internal and external mail distribution. 1.3.SYSTEMS SOFTWARE AND UTILITIES These include the software used by the hardware devices and are configured and maintained by IT. The tools and utility software defined below constitute the IT software;they are used to provide interfaces and ,s integration between enterprise and departmental applications and serve to ,d fill the functional gaps in commercial off th"helf software. 1.3.1. SERVER OPERATING SYSTEMS: The operating systems that run on the file,web,application and back end servers at OCSD. 1.3.2. WORKSTATION OPERATING SYSTEMS: The operating system versions currently supported for PCs,notebook,and tablet computers in use at OCSD. 1.3.3. PDA SYSTEMS: The operating systems used in PDAs at OCSD. 1.3.4. DATABASE ENGINES: The database engines for all of OCSD's r' informational databases. 1.3.5. REPORT WRITING SOFTWARE: The report writing tools that allow users to access the informational databases. 'r 1.3.6. TELEPHONE CONFERENCE BRIDGE: This allows OCSD to host activities where multiple users call a to8•free phone number to participate in an audio teleconference. 1.3.7. APPLICATION DEVELOPMENT TOOLS: The programming languages used to develop software applications. 1.3.8. WEBSITE MANAGEMENT TOOLS: The tools used to create and manage content of OCSD's Internet and intranet. 1.3.9. INTERNET MONITORING TOOLS: The tools used to manage and monitor access to outside websues. 1.3.10. NETWORK SECURITY TOOLS: The firewalls,routers,and J intrusion detection systems that protect OCSD's network from viruses,Spam,spyware and unauthorized entry. v. 9 100 v V 1.3.11. SYSTEM MANAGEMENT TOOLS: The tools used to distribute V and monitor applications and patches and to monitor and control V system readiness. 1.3.12. HELP DESK TOOL: The application that receives and tracks cwJ calls to the Service Desk. 1.4.ENTERPRISE APPLICATIONS These are the software systems that are used for general business functions throughout OCSD and are not a solution for a specific business unit. 1.4.1. DESKTOP OFFICE SYSTEMS: b 1.4.1.1. Word Processing V 1.4.1.2. Spreadsheets v 1.4.1.3. Presentations and Graphics 1.4IA Email 4.0 1.4.1.5. Calendaring W 1.4.2. WEB BROWSERS: 1.4.2.1. Internet Web Browser V 1.4.3. ELECTRONIC MESSAGING SYSTEM: 1.4.3.1. Email system y 1.4.4. ENTERPRISE CONTENT MANAGEMENT(ECM): V 1.4.4.1. Records Management 1.4.4.2. Document Management 1.4.4.3. Image Management V 1.4.4.4. Content Management 1.4.4.5. Workflow v 1.4.4.6. Collaboration 40 1.4.5. VOICE MAIL: `, 1.4.5.1. Telephone voice mail 1.4.6. IN7ERNET SERVICES 1.4.6.1. Public website content management two 1.4.7. INTRANET SERVICES `, 1.4.7.1. Internal website content management 1.4.8. ENTERPRISE RESOURCE PLANNING(ERP)SYSTEM 1.4.8.1. Finance module V 1.4.8.2. Payroll module v 1.4.8.3. Human Resources module 1.4.8.4. Purchasing module 1.4.8.5. Warehouse module V 1.4.9. GEOGRAPHIC INFORMATION SYSTEM(GIS) y 1.4.9.1. Create and distribute GIS content 1.4.10. BUSINESS INTELIGENCE TOOLS 1.4.10.1. Create and distrbure complex data reports y 1.4.11. CABLE MANAGEMENT SYSTEM: V 1.4.11.1. Document filer optic cable information and locations 1.4.12. DATA WAREHOUSE: 1.4.12.1. Document and store treatment plant process V information V v V /0 W V V V r, 1.4.13. CITIZEN RELATIONSHIP MANAGEMENT(CRM)SYSTEM: 1.4.13.1. Document,store,and route citizen complaints and comments ,aw 1.4.14. TIMEKEEPING 1.4.14.1. Electronic Time Sheet W 1.4.15. Mathematical Analysis r' 1.4.15.1. Statistical Analysis 400 1.4.15.2. Mathematical Simulations 1.5.DEPARTMENTAL APPLICATIONS V These are the major applications that are implemented and operated for the benefit of specific business units,even though access to certain ,r modules may be distributed to other business units. IT and/or the . Process Control Integration groups initiate integration of these applications into other processes. V 1.5.1. Operations and Maintenance 'r 1.5.1.1. Supervisory Control& Data Acquisition(SCADA) System 1.5.1.2. Computerized Maintenance Management System (CMMS) `.' 1.5.1.3. Fleet Management System ,ter 1.5.1.4. O&M electronic library 1.5.1.5. Vibration Monitoring 1.5.1.6. Thermal Imaging 1.5.1.7. Reliability Based Maintenance 1.5.1.8. Computerized Emission Management System 1.5.1.9. Electrical Load Monitoring Program 1.0 I.5.1.10. Energy Management r' 1.5.1.11. Engine Control System ,.W 1.5.1.12. Dig-Alert 1.5.1.13. Monthly Summary of Operations 100 1.5.1.14. Truck weighing r' 1.5.2. Engineering 1.5.2.1. Project Management 1.5.2.2. Pmgmm Control System 1.5.2.3. Computer Aided Design(CAD) 1.01 1.5.2.4. Flow Modeling 1.5.2.5. Schedule Analyzer 1.5.2.6. Capital Improvement Program 1.5.2.7. Construction Management W 1.5.3. laboratory 1.0 1.5.3.1. Laboratory Information Management System(LIMS) 1.5.3.2. Chromatography data system 1.5.3.3. Instrumentation specific applications 1.5.4. Technical Services 1.5.4.1. Ocean Monitoring 1.5.4.2. EPA Permitting and Reporting 1.0 1.5.4.3. Source Control ,.W 1.5.4.4. Fan,Oils,and Grease(FOG) 1l v V W 1.5.4.5. Biosolids Tracking 1.5.4.6. Environmental Compliance and Awareness Program (ECAP) y 1.5.5. Finance W 1.5.5.1. General Ledger 1.5.5.2. Accounts Payable 1.5.5.3. Accounts Receivable 1.5.5.4. Budget V 1.5.5.5. Fixed Assets 15.5.6. Payroll 1.5.5.7. Purchasing 4W 1.5.5.8. Warehousing V 1.5.5.9. Contract Management V 1.5.6. Human Resources 1.5.6.1. Position Control 1.5.6.2. Employee Information V 1.5.6.3. Applicant Tracking V 1.5.6.4. Succession Management 1.5.6.5. Performance Management V V 2. INFORMATION TECHNOLOGY ORGANIZATION AND SERVICES y The Information Technology Division is organized in a framework m V effectirvely address the mission,vision and goals of the organization. OCSD is committed to provide resources(people, training, funding,facilities and V resources)necessary to provide a level of support necessary to support V the goals and appliwtions identified in the prior sections. y 2.1.STAFFING V In developing the IT organizational structure,services and solutions V are identified that are essential to provide OCSD business units y with the structure necessary to support their missions. V 2.1.1. IT Management 2.1.1.1. Inforrwnon Technology Systems and Operations Manager W This position is the Information Technology ,d Leader who at the enterprise level,works with other departments to develop strategies to achieve organizational goals and make the enterprise more '�✓ effective. This position provides leadership,vision V and perspective to allocate and support technology resources. This position partners with industry peers,suppliers,and solution providers. 2.1.1.2. Infomwtion Technology Manager This position manages daytoday customer support W for all aspects of the division while providing V programming and support to address the IT portfolio of projects. This position is the primary y liaison between the project development team and 12 W W the operations groups, and covers configuration management and software control and r distribution. 2.1.1.3. SaffAnalyst This position provides a variety of analytical and administrative duties in support of IT management. This position coordinates the following outsourced services: • The Reprographics Center • Mailroom • Maintenance contracts • Printer repairs 2.1.1.4. Administrative Assistant 4W This position performs a variety of secremrial,advanced clerical,and routine administrative work in support of 101 IT staff. I.W r, 2.1.2. IT Services The IT Services function ensures that all of the IT services being provided to customers are aligned to the customers' need for them. This role is fulfilled by a team of Principal IT Analysts who act as business analysts and interface r, regularly with the various business units. 2.1.3. Infrastructure Support This team proactively supports the evolving enterprise „W architecture and ensures that plans are in place to meet the r, new and changing requirements of running the business from a networking backbone, telecommunications, hardware, and software perspective. They support enterprise architecture, infrastructure engineering,capacity .d management, the telephone system, and the life safety(fire and security)systems. Additionally, they provide technicians to support desktop hardware. 1.1.3.1. Principal lnfomtation Technology Analyst r' This position is the team leader and interacts directly with IT Management. 2.1.3.2. Senior lTAnalysts These senior level staff members provide highly r' advanced infrastructure support. 2.1.3.3. ITAnalysts These staff members provide specialized infrastructure support. 2.1.3.4. IT Technician This position provides rechnical assistance to system men for computer and network related problems and W installs,troubleshoots, repairs,and maintains ..� telecommunications,dam, and computer equipment. 13 v v v v v 2.1.4. Customer Support This team includes the service desk incident,and problem management functions while providing production support for custom and commercial off-th"helf applications. 2.1.4.1. Senim ITAnalya ay This position is the team leader and interacts directly V with IT Management and the customers. 2.1.4.2. ITAmlytu These analysts staff the Support Desk and provide specialized hardware and software support. V 2.1.5. IT Operations This team provides production-systems tasks necessary to V run 1T on a daily basis. Enterprise operations roles include V, dedicated specialties such as messaging, system administration, tape backup and restore,server support, and V database administration. law 2.1.5.1. Principal Infmmarion Technology Analyst V This position is the team leader and interacts directly V with IT Management. 2.1.5.2. Senior lTAnalysrs V These senior k el staff members provide highly V advanced operations support. 2.1.5.3. ITAnalyscs These staff members provide specialized operations support. V V 2.1.6. Security The primary goals of the Security function are to protect information from being compromised and ensure data confidentially,integrity,and availability. V 2.1.6.1. Currently,this function is housed within the Operations function. Ideally,the Security role should administered by a separate ream. V V 2.1.7. Solutions This team provides software development and deployment V required to successfully deliver technology solutions,while minimizing risk and producing high quality results. The team functions through a disciplined approach to managing V technology projects based on industry beat practices in software development and project management. 2.1.7.1. Principal lnj6nnarion Technology Amber V This position is the ream leader and interacts directly V with rr Management,the IT Services Team,and the V customer. V V /4 V r, 2.1.7.2. Senior IT Analysts These senior level staff members provide highly r' advanced programming and solutions support. This .m level also manages the IT Project Management Office and the associated IT Project Portfolio. 2.1.7.3. ITAmlysn These staff members provide specialized programming support. W 2.2.FUNDING Funding for IT assets is generally centralized and contained in the IT budget. Select enterprise technology solutions or larg"cale improvements are funded through the Capital Improvement ,r Program(CIP). CIP efforts that contain technology are approved r, through IT and contain line items to cover IT related software and hardware and the associated acquisition, management, and support costs. The associated budgets are: 2.2.1. Operating Budget for salaries and other expenses less than $5,000 and a life leas than five years budgeted on an annual basis are recognized through the ITSP. .,.� 2.2.2. Equipment Budget for equipment(including software) r, greater than$5,000 and a life of at least than five years budgeted on an annual basis;these expenses are recognized through the ITSP. `aW 2.2.3. Capital Improvement Program Budget for salaries and other expenses permining to and recognized in a specific project. 2.3.DEPARTMENTAL APPLICATIONS The appropriate IT Service Team member identifies solutions to departmental business needs. The business unit technical leader works with the IT Service Team member to create a business case. The solution must support installation of an IT approved platform and hardware. Depending on the cost of the solution and the resource requirements, the solution is approved by either the IT Technical or IT Steering Committee before it is added to the ITSP. v The IT Steering Committee approves the budget and assigns the effort to the appropriate budget year. Included in the solutions costs are: hardware and software acquisition costs, third party consultant costs, annual licensing costs, and antral maintenance agreement costs. As required, IT will provide or participate in project management and in conjunction with the vendor, install the application, if required, configures the database,and integrates with other departmental and enterprise systems. IS y y y y 3. INFORMATION TECHNOLOGY DECISION MAKING y IT Governance is the set of authorities,processes and procedures whereby key y strategic and operational decisions are made and aligned with OCSD's strategic plan and business goals. OCSD uses IT Governance to: oversee V information technology invesmtents;identify business needs that are candidates for technology solutions;develop enterprise information strategies, y policies and standards;structure how OCSD aligns IT strategy with business strategy;review,authorize,sponsor and prioritize enterprise technology efforts V from a business perspective;stay abreast of project progress and resolve high V level issues;ensure all stakeholders and interests are taken into account and y that processes provide measurable results;and build and maintain IT relationships with OCSD's business units. �d V 3.1.TECHNOLOGY GOVERNANCE COMMIES 3.1.1. Infornmtion Technology Steering Committee y OCSD has established an Information Technology Steering Committee comprised of members of the Executive Management V Team and the IT Operations&Support Manager. The V committee supports the development of enterprise information y strategies,policies and standards;overseeing information technology investments;and creating a secure and efficient information management environment.This must be done in die V proper context of business strategies and operational y requirements. In discharging its responsibilities,the Committee shall have the sole authority to,and shall,do the following: V • Identify business needs that are candidates for technology V solutions y • Review,authorize,sponsor and prioritize enterprise V technology efforts • Authorize Technology CIP,CORF and special Operating V Budgets y • Stay abreast of project progress and resolve high level issues • Provide feedback or direction to staff y • Gain better understanding of Information Technology and y' how it can be used at OCSD y 3.1.2. Infommtion Technology Technical Committee V This committee was formed to support the IT Steering Committee and to represent line of business units in respect to V business processes and their integration with technology. In sr discharging its responsibilities,the Committee and its members y shall have the responsibility and authority to,and shall,do the following: V V Committee Roles • Help to identify and coordinate enterprise technology needs y • Understand the basic levels of technology and impacts on V integration V • Develop a method to score project requests V t.: 16 V haJ • Identify,manage,and report on risks • Coordinate lower level technology procurements 'r • Push IT projects and CIP budgets forward • Help to assemble, recommend and prioritize the IT portfolio • Review Service Level Agreements(SLAB) • Recommend common platforms and standards • Develop Performance Measures • Conduct research and/or gather resource requirements r, requested by the Executive IT Steering Committee • Implement the Executive IT Steering Committee's directives W • Ensure value delivery for projects and efforts(benefits promised are delivered) Individual Roles • Be the units businesses technology and information resource r' and champion • Understand technology solutions that are being provided for by IT in your business unit • Understand and document your business processes • Provide subject matter expertise to your business unit and as required,be the liaison to IT support staff • As a team,work together and mentor with IT Principal Analysts • Identify,communicate,and coordinate business needs to the team and technical committee • Gather requirements and translate them into business solutions • Provide project justifications • Participate in project management of your projects • Be knowledgeable of your units data and storage requirements • Be a training resource for core applications • Work with IT to implement application software upgrades • Communicate with your business units 3.2.PROJECT MANAGEMENT OFFICE(ITPMO) The IT PMO methodology is based on the Project Management Institutes Body of Knowledge(PMBOIQ and is responsible for identifying and implementing project management best practices.The project processes and standards are published in the Project Managers Manual.The IT PMO also maintains project focus,management visibility,and performs .� quality control and assurance on IT related projects.All major IT projects are reviewed monthly. Required project elements include project charters, scopes of work,work breakdown structures,communication plans, issue logs, meeting minutes and status reports. Current support efforts include managing IT project enhancement requests and new project requests,coordinating with the IT Technical 17 v V v v Committee,maintaining the scheduled and future IT projects portfolio `, listing,scheduling and forecasting IT resources,conducting project gate V reviews,publishing the monthly IT Roadmap Report and portfolio statistics. V V 3.3.TECHNOLOGY STANDARDS V OCSD has set technology standards that can be supported and updated V on a regular basis. Then standards are available through Information Technology and are used as required for Requests for Proposals(RFPs) V and Scope of Works(SOWs). The standards apply to: V 3.3.1. Server hardware 3.3.2. Desktop,tablet,and notebook computers V 3.3.3. Server operating systems and revision/patch updates V 3.3.4. Desktop,tablet,and notebook operating systems and revision/patch updates 3.3.5. Databases 3.3.6. Office Systems V 3.3.7. Operating system services V, 3.3.8. Application and server account permissions 3.3.9. Backup applications V 3.3.10. Virtual applications V V 3.4.COMPUTING POLICIES AND PROCEDURES V The Human Resources division maintains OCSD's Policies and V Procedures manual. Policies E90.00-E98.00 contain policies specific to the computing environment. IT and HR staff regularly review then V policies and revise when appropriate. V V V V V V V V V V V v V V V v v 18 V V FINANCIAL SUMMARY AND W IMPLEMENTATION PLAN This section reflects the work efforts identified by OCSD's business units, their financial impacts,and fiscal year implementation schedules. The plan shows an aggressive sequence of events required to make the transformation over a three-year period. The costs and efforts shown to accomplish the specific tasks in this plan are reasonable estimates based on assumptions of activity requirements. They have been developed as planning estimates and not detailed acquisition costs. Annual plan funding is based on agency priorities as identified by the IT Steering Committee along with assumptions regarding rate of change that can effectively be accomplished. The three-year ,y window was chosen based on the rapid changes in technologies. Annual budgeting considerations will most likely change between years but efforts within available funding will continue as the priority dictates. Each year,the IT Steering Committee will review the ITSP projected efforts and determine which item will be approved for the following year. ..� The financial summary will also be updated to reflect the changing needs of OCSD. BUDGET ASSUMPTIONS ,r • The Centralized IT Operating Budget line items will remain consistent with the FY 2007/2008 approved amounts after adjustment for economic inflation W • Requests for small(below$5,000)computer items will be procured based on priority but within the allocated budget • Request for programming services that are above the efforts internal staff can provide will be accomplished through professional services based on priority but within the allocated budget • Computer items over$5,000 with a useful lifetime greater than three years will be procured through the Centralized Computer Equipment Capital Budget. These line items are subject to approval through the r' normal budgeting process • Software,hardware,or services that are directly related to Capital „r Improvement Project efforts will be charged against the specific W project(s) • Priorities will be determined by the IT Steering Committee based on the goals,vision,and Level of Service as defined by the OCSD Strategic Plan 19 v v v STRATEGIC IT BUDGET for FISCAL YEAR 2007-2008 v This table reflects IT-related projects that were budgeted for the current fiscal year(FY) 2007.2008. Estimated Est. V Project Goal Servicevel category cost labor Budget Service Comments V ($) Ihovrs CMMS Replacement ITSP 3,789.000 200 CIP Multi-year y Gap analysis to quantify how Land Records IS 30,000 60 CIP many documents need to be loaded into the LRIS and cast of implementation. Migrate Map Product Generator 130,000 750 CIP Outsoue programming V✓ Risk Analysis Software Annual V (Pertmaster) SP/BP Variance from 40,000 60 CIP Engineering Reserve by various riou Reserve Polity CiPs Workflow& Routing ITSP 75,000 500 CIP Plug-in for SharePoint More video monitoring and 25,000 60 Equipment Multi Year y recording, Pump Stations PBX Upgrade ITSP 430,000 30 Equipment In progress Remote Connectivity ITSP 10,000 20 Equipment Included in Central IT budget V SCADA VAX Hot Spare ITSP 20,000 20 Equipment For Disaster Recovery. `, Email Upgrade ITSP 20,000 100 Operating External Consulting Support Automated Backup of PLC acllities U rary version control r CodePlan 4,500 40 Operating PLC code I V Customer Relationship Odor Respond to Using Microsoft CRM 3. Management System Control Public 6,000 500 Operating Need to upgrade to version Complaints 4when available. FIR Applicant Tracking 15,000 100 Operating NeoGov Online bidding SP/BP 20,000 50 Operating Hosted solutions are available and widely used V Solid VPN Connectivity ITSP 10,000 30 Operating Pilot in process V Space Planning Space 400 Operating Support Moves Planning Systems Center Upgrade ITSP 5,000 100 Operating Need to add software V' licenses V Unified&instant IT 5,000 40 Operating Licenses Only V messaging V V d 20 W W FUTURE IT CENTRAL OPERATING BUDGET � (FY 2008-09/FY 2009-10/FY 2010-11) Information Technology identified the routine projects for implementation in the next three fiscal years.These projects are repetitive and are currently being implemented. ,r FY 0"9 FY 09-10 FY 10-11 r, Est. Est. Est. Est. Est Est. gCategory ud et Project Cost labor Cost labor Cost labor g Comments Isl Ikounl Isl Ihounl Isl Ihounl d r, Server/Storage 125,000 150 125,000 150 125,000 15 Equipment Servers,backup$, Obsolescence and storage W Desktop 275,000 700 275.000 700 275,000 70C Operating PCs,notebooks, Obsolescence laptops,printers Hardware&software Maintenance 1,550,000 100 1,705,000 100 1,875,500 100 Operating licensing and r' Agreements maintenance contracts Non-PC hardware, Office Automation 175,000 500 175,000 500 175,000 500 Operating software,licenses, peripherals Professional External Services 300.000 300,000 300,000 Operating Programming W Support Copy Center and Reprographics/ 383,000 50 385,000 50 387,000 50 Operating mail room Mail Room equipment, personnel,&postage d yr SCADA 50,000 75 50,000 75 50,000 75 Operating Workstations, Obsolescence monitors, peripherals Telephone 230,000 100 250,000 100 250,000 100 Operating Landline,cellular and broadband r.' W r 21 yr V V STRATEGIC IT BUDGET for FUTURE FISCAL YEARS (FY 2008.09/FY 2009-10/FY 2010-11) V V Information Technology identified the routine projects for implementation in the next three V fiscal years.These projects are repetitive and are currently being implemented. Legend. ITSP -IT Strategic Plan SP -Strategic Plan BP -Business Plan BAC -Business Accountability Charter V Est. Est. V Leve Budget Project Goal Niceice Cost labor Category Fiscal Year Comments V IS) (hours) ERP Replacement ITSP 10,000 300 Operating 20082009 Study Only V Study v Data Compliance Na 360 CIP 2008-2009 Based on consultant V recommendation V Discovery Naased on consultanta 2000 CIP 2008-2009 recommendations Environmental Permit Used SherePoint for ECAP V Compliance Awareness ECAP Compliance 0 1000 CIP 2D08-20D9 pilot. Possible Federal Funds Program(ECAP) V Extranet Interagency 40,0D0 100 CIP 2008-20DD Data lMegrotion Lr Agreements L: increase in plant data 50,000 100 CIP 2008-2009 P/O Network Upgrade-SP89nts Increase in Pdmavera 8 `.� Contract Manager SP/BP 30,000 20 CIP 2008-2009 Funded by various Engineering (licenses) CIPs V V IT Service Management ITSP 45.000 500 CIP 2008-2009 Best Practices 4s' Land Records IS 110,000 120 CIP 2008-20D9 Complete Phase 2 V V More CAD workstations 20,000 CIP 2008-2009 Funded by various Engineering v CIPs V New process network 800,000 250 CIP 2008-2009 SP-89 V Data Archiving ITSP 5.000 100 Equipment 2008-2009 Need architecture identified Increased Storage(Eng ITSP 10.000 4 Equipment 2008-2009 Add storage to existing system V 8 Lab) IncreaseConvert existing VAX-resident (SCAOA) Storage 30,000 100 Equipment 2008-2009 data for input into Historian V SCA SQL Server. V More video monitoring 8 recording,Pump 25," 60 Equipment 2008-2009 Multi Year Stations V n V V STRATEGIC IT BUDGET for FUTURE FISCAL YEARS (FY 2008-09/FY 2009.10/FY 2010-11) Est. Est. .� Project Goal Level of Budget f Service Cost Labor Category Fiscal Year Comments ($) ISI (pours) r' More video monitoring& 60,000 60 Equipment 2008-2009 Multi Year recording,Security .� Portable Video +Security 20,000 20 Equipment 2008-2009 Canned solution Monitoring Replace Obsolete ITSP 35,900 10 Equipment 2008-2009 Large format devices Plotters 8 Scanners Vehicle/License Plate ,r Recognition +Security 20,000 40 Equipment 2008-2009 Multi Year. Identify areas .� Video Monitoring +Security 20,000 100 Equipment 2008-2009 Identify end users Solution Intranet Redesign ITSP 20,000 250 IT Central 2008-2009 External Programming Operating W Archiving historical d records 320 Operating 2008-2009 External Programming Biosolids tracking Blosolids Biosolids system Program Certification 8,000 70 Operating 2008-2009 External Programming rr Dashboards BACs 40,000 480 Operating 2008-2009 External Programming Digital Photo Management/digital 0 200 Operating 2008-2009 Use SharePoim. Based on diagram image consultant recommendations MW management Digital video recording 8 editing 6,000 10 Operating 2008-2009 Identify end users W Electronic wire 10,000 100 Operating 2008-2009 Pxtemal Programming payments(vs.checks) Engineering budget 130 Operating 2008-2009 Continue with programming 1.0 information table efforts vd Engineering Electronic documents(vs.current $spent Move to system.Will `►' 40,000 200 Operating 2008-2009 decrease sp with OCB. multiple copies with wet External programming required � signatures) Use of a standard 3rd party r, Host bid data 5,000 15 Operating 2008-2009 that hosts bid information for government HR Performance Reviews 15,000 100 Operating 2008-2009 Study underpay JD Edwards Level 3 vd SupportITSP 50,000 Operating 2008-2009 External Programming yr 23 d v V V STRATEGIC IT BUDGET for FUTURE FISCAL YEARS V (FY 2008-09/FY 2009-10/FY 2010.11) V Level of Est. Est. Budget Project Goal Service Cost Labor Category Fiscal Year Comments V' I$I Ihoursl g ry V Lab access to SCADA Permit 5,400 60 Operating 2008-2009 6demal Programming V Data Compliance V Online Policy 8 Procedures V Specifications, 200 Operating 2008-2009 External Programming L, Compliance Library, Lessons LearnedMID V study Replacement study ITSP 15,000 80 Operating 2DDB-2009 Study Only V Records Management 8 SP/BP 20,DD0 200 Operating 2008-2009 6m deal Programming V Waiting for Water Sector r"'r SCADA Security 10,0D0 80 Operating 2008-2009 SCADA Practices to be V defined. AW44A is taking the lead. Secondary SCADA/Historian Treatment 5,000 150 Operating 20D8-2009 Consulting Services for new V Interface installatn Standards io V Work with DHS and other water V agencies to determine which V Secure public +Sewriry 50 Operating 2008-2009 infomlation is exempt from the information public information act based on V critical infrastruUiue information. V' Source Control Self Industrial V Monitoring Program Compliance 3,600 40 Operating 2008-2009 Need to examine buy vs. build V Discharge Standardized forms with workflow1000 Operating 2008-2009 External Programming V V Succession Succession 80 Operating 20D8-2009 Modifications by in-house staff Management Software Plan V This is a means for sharing V V Virtual Live Meeting 1,000 ZO Operating 2008-2009 desktops and presentations with staff internal and external to OCSD V Agenda Automation 60,000 100 Equipment 2009-2010 Dependent on ECM plan- fir' Agraeya V CoGen SCADA on 60,000 40 CIP 2009-2010 P/O Network Upgrade-SP89 V process network V Compliance 8 Air Emissions networking 20,000 40 CIP 2009-2010 P/O Network Upgrade-SP89 points V 24 V V W STRATEGIC IT BUDGET for FUTURE FISCAL YEARS WY 2008-09/FY 2009-10/FY 2010.11) Level of Est. Est. Budget .r Project Goal Service Cost Labor Category Fiscal Year Comments r, I51 Ihounl Connectivity to North 60,000 80 CIP 2009-2010 Voice and data connectivity County Yard ESCADA on process 50,000 40 CIP 2009-2010 P/O Network Upgrade-SP89 r.' network New Interplant fiber ITSP 200,000 40 CIP 2009-2010 Included in Engineering CIP r' Notebooks for field staff 200,000 CIP 2009-2010 P/O CMMS Upgrade Replace Pump Station 125,000 120 CIP 2009-2010 P/O Network Upgrade-SP89 s' Network W Upgrade Engineering 100,000 150 CIP 2009-2010 Conversion,training and Document Management implementation W Upgrade Physical +Security 150,000 200 CIP 2009-2010 Electronic perimeter Q P1 Security W Wireless Campus ITSP 60,000 60 CIP 2009-2010 P/O Network Upgrade-SP89 Control Center Video ResCollection ore Display 11,600 40 Equipment 2009-2010 New big screen displays in CC Service Increased Storage Construct an enterprise image (Imaging) 15,000 80 Equipment 2009-2010 library More video monitoring and recording,Process 40,000 40 Equipment 2009-2010 Multi Year Areas More video monitoring `.W and recording,Pump 25,000 60 Equipment 2009-2010 Multi Year Stations Remote capture of buoy 10,000 20 Equipment 2009-2010 More information coming data r✓ d Scan 8 Store Solution 35,000 10 Equipment 2009-2010 SSnnner software hardware and Vehicle/License Plate +Security 20,000 40 Equipment 2009-2010 Mulct Year, Identify areas ..� Recognition Connectivity to field data 50,000 80 Operating 2009-2010 Increase infrastructure units Data access between Industrial Laboratory and Source Compliance 40 Operating 2009-2010 In-house programming 1.0 Control Discharge 25 V V V STRATEGIC IT BUDGET for FUTURE FISCAL YEARS V (FY 2008-09/FY 2009.10/FY 2010.11) V V Level of Est. Est. Budget Project Goal Cost tabor Fiscal Year Comments Service ISI (Iwersl CategoryV JD Edwards Level 3 ITSP 50,000 Operating 2009-2010 Consulservices V Support V Online design Operating 2009-2010 Add-on to onine bidding V solicitation SCADA Replacement ITSP 25,000 500 Operating 2009-2010 Study Only V V SCADAIHislonan Secondary Enhancements and V Interface Treatment 5.000 150 Operating 2009-2010 Standards modifications over three Years V Industrial Source Control online Unknown Additional this time. Compliance Operating 2009-2010 A permit applications Discharge Additia l analysis required Business Continuity V' Plan SPIBP 250,000 250 CIP 2010-2011 Location: North County Yard V Emergency Operations ITSP 200,000 2000 CIP 2010-2011 Hardware&software Center(EOC) V Employee self-serve 38,000 100 CIP 2010-2011 Revisit in FY 2010-2011 V, Human Resources 300.000 600 CIP 2010-2011 Revisit in FY 2010-2011 1`0 Information System `.V Labor Relations tracking 25,000 100 CIP 2010-2011 Revisit in FY 2010-2011 V Leave of Absence V backing 25,000 100 CIP 2010-2011 Revisit in FY 2010-2011 V Online 10,000 100 CIP 2010-2011 Eommerce initiative Receivable able V Increased Storage ITSP 10,000 40 Equipment 2010-2011 Additional storage for CCTV (CCTV) video recordings More video monitoring V and recording,Process 40,000 40 Equipment 2010-2011 Multi Year V Areas V Multiple Monitors 80,000 Equipment 2010-2011 Delay to year 3 V Vehicle Tracking 40,000 40 Equipment 2010-2011 Best Practices Wastehauler Automation 75,000 150 Equipment 2010.2011 Revisit in FY 2010.2011 V JD Edwards Level 3 ITSP 50,000 Operating 2010-2011 External Programming Support V SCADA/Flistorian Secondary Enhancements and Interface Treatment 5,000 150 Operating 201U-2011 modifications over three years V V V 26 V V �r v yr yr �r �r �r tAd (i4r (4r i�r yr �r t�r Iti �.r �r �r ORANGE COUNTY SANITATION DISTRICT �aJ 10844 Ellis Avenue Fountain Valley, California 92708-7018 (714) 962-2411 lyd www.ocsd.com