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HomeMy WebLinkAbout2008-05 ADM MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, May 14,2008, at 5:00 P.M. A meeting of the Administration Committee of the Orange County Sanitation District was held on May 14, 2008,at 5:25 p.m., immediately after the Special Board Meeting, in the Sanitation Districts 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 Nick Arhontes, Director of Operations and Phil Luebben,Vice Chair Maintenance Bill Dalton Lorenzo Tyner, Director of Finance and Jon Dumitru Administrative Services Rich Freschi Mike White, Controller Don Hansen Lille Kovac, Committee Secretary Darryl Miller Norbert Gaia Joy Neugebauer Bob Gaggle Chris Norby Randy Kleinman Christina Shea Jeff Reed Jim Winder Juanita Skillman Jim Ferryman, Board Chair Doug Davert, Board Vice Chair OTHERS PRESENT: Brad Hogin, General Counsel DIRECTORS ABSENT: Don McLean Sal Tinajero (3) APPOINTMENT OF CHAIR PRO TEM H No appointment was necessary. TFILEED INpK OF OFFICE RFFp OFiAN6E COUNf`/92'i KN!DIASTRICT (4) PUBLIC COMMENTS MAY 2 H 2O08 There were no public comments. SY: (5) REPORT OF THE COMMITTEE CHAIR Chair Waldman did not give a report. (5) REPORT OF THE GENERAL MANAGER General Manager, Jim Ruth, did not give a report. Minutes of the Administration Committee May 14, 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 April 9, 2008 meeting of the Administration Committee. b. ADM08-13 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to Adopt Resolution No. OCSD 08-06, Adopting the Updated Records Management Program Policies and Procedures, Retention Schedule and Record Series Definitions for the District's Records Management Program, Authorizing Destruction of Obsolete Records,and Repealing Resolution No. OCSD 07-08. END OF CONSENT CALENDAR (10) ACTION ITEMS No items were considered. (11) INFORMATIONAL ITEMS a. ADM08-14 Annual Renewal of the District's Major Insurance Programs for 2008-09 Don McLean of Alliance Insurance, briefly reviewed the current market rates for the insurance programs, as they are still fluctuating on a downward trend,with final rates to be favorable and available for the June meetings. b. ADMO8-15 2008-09 and 2009-10 District Budget Director of Finance, Lorenzo Tyner, provided an overview of the proposed operating budget in a summary format, highlighting the major categories and effects on the two-year budget. Minutes of the Administration Committee May 14, 2008 Page 3 (12) CLOSED SESSION There was no closed session. (13) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,IF ANY 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 AND FUTURE MEETING DATES The Chair declared the meeting adjourned at 6:20 p.m. The next regular Administration Committee meeting is scheduled for June 12, 2008. at 6:00 p.m. Submitted by: Lilia Kovac Committee Secretary Department Summary General Manager 2007-08 2006.07 Revised 2007-08 200&09 2009.10 Description Actual Budget Projected Proposed Proposed Salaries,Wages,8 Benefits $ 2,962,859 $ 3,508,600 $ 3,579,700 $ 4,009,080 $ 4,293,258 Administrative Expenses 216,669 314,620 255,900 215,038 217,352 Printing 8 Publication 44,647 65,940 46,510 56,250 56,260 Training 8 Meetings 86,154 379,420 268,000 297,860 305,380 Operating Materials 8 Supplies 102,534 80,960 80,650 96.650 94,650 Contractual Services 342,795 643,400 684,320 637,602 637,802 Professional Services 268,074 616,000 452,317 412,500 393,750 Research 8 Monitoring - - - - - Repairs 8 Maintenance 2,574 5,500 3,050 3,575 3,600 Utilities 112,963 120,000 121,000 125,000 132,000 Other Materials, Supplies,and Svc. 38,064 805,930 51,045 899,645 905,715 Capital Grants to Member Agencies - - - - - Cost Allocation (325,547) (323,650) (321,550) (143,500) (145,200) Net Operating Requirements 3,851,776 6,216,720 5,220,942 6,609,700 8,894,567 Budget Overview: The significant factor affecting the overall decrease and then increase in the departmental budget is related to the General Managers contingency and reappropriations. FY 2007-08 Projected spending does not reflect use of contingency dollars budgeted. The increase in the FY 2008-09 Proposed budget is the net result of decreasing the General Managers contingency to 0.5%percent of the Distncrs overall non-salary related operating budget and restoring reappropriations to 0.5%percent of the same budget base after having been allocated out of the FY 2007-08 original budget to arrive at the FY 2007-08 revised budget. Distributed at the Administr tion Committee 5 0 V Meeting Department Summary Administrative Services 2007.08 2006.07 Revised 2007-08 2008.09 2009-10 Description Actual Budget Projected Proposed Proposed Salaries,Wages, &Benefits $ 11,042.848 $ 12,827,760 $ 12,001,828 $ 12,922,700 $ 14.731,500 Administrative Expenses 657,671 913,690 840,320 778,935 764,709 Printing&Publication 315,903 470,650 464,150 400,950 401,050 Training&Meetings 903,312 911,630 894,281 935,770 935,955 Operating Materials&Supplies 11,073 11,470 11,025 11,625 11,625 Contractual Services 515,345 718,000 786,383 597,550 602,000 Professional Services 535,238 868,760 710,650 797,325 825,165 Research&Monitoring - - - - - Repairs&Maintenance 1,091,580 1,154,300 1.150,100 1,271.900 1,341,950 Utilities 194,362 201,500 240,000 250,000 250,000 Other Materials,Supplies,and Svc. 1,545,571 2,080,650 2,073,650 991.900 1,161,950 Capital Grants to Member Agencies - - - - - Cost Allocation (1,696,735) (1,814,130) (1,624,930) (1,160,150) (1,169,150) Net Operating Requirements 15,11(3,168 18,344,280 17,547.457 17,798,505 19,856,754 Budget Overview: The decrease in FY 2007-08 Projected is primarily due to staff reallocations during FY 2007-08. For FY 2008-09,the increase is a result of showing the seven added FTE positions in Human Resources for budget purposes. This increase is somewhat offset by a decline in the estimate to be paid to the self-insurance fund for property and general liability Insurance activities. Department Summary Technical Services 2007-08 2006-07 Revised 2007-08 200849 2009.10 Description Actual Budget Projected Proposed Proposed Salaries,Wages,&Benefits $ 13,668,202 $ 14,372,250 $ 14.058,400 $ 14,335.800 $ 15,174,000 Administrative Expenses 51,356 60,660 57,210 58.486 56,786 Printing&Publication 26,373 33,230 22,880 117,900 118,025 Training&Meetings 74,321 89.500 73,027 91.410 89,010 Operating Materials&Supplies 4,008,071 821,940 799,734 843,500 860,110 Contractual Services 279,761 196,000 196,000 252,000 221,400 Professional Services 908,710 568,000 252,000 910,000 499,000 Research&Monitoring 1,426,408 1,572.740 1,096,440 1,426,405 1,409,855 Repairs&Maintenance 242,439 227.920 284,900 292,000 310,750 Utilities 370,775 390,000 390,000 396,000 410,000 Other Materials,Supplies,and Svc. 279,069 299,350 291,532 521,150 548.850 Capital Grants to Member Agencies - - - - - Cost Allocation 422,207 249,550 537,150 3.090 390 Net Operating Requirements 21,757,692 18,681.140 18,059,273 19,247,741 19,698,176 Budget Overview: The decrease in FY 2007-08 Projected is due to staff reallocations during FY 2007-08 as well as reductions in auditing fees,legal services, enviro scientific consulting,and repairs and maintenance. In FY 2008-09, legal services costs Increase due to court ordered CEOA compliance for Kern County litigation. Additionally, repairs and maintenance costs are proposed to return to historic levels in FY 2008-09. Department Summary Engineering 2007.08 2006-07 Revised 2007.08 2008-09 2009.10 Description Actual Budget Projected Proposed Proposed Salaries,Wages, &Benefits $ 11,932,363 $ 14,449,100 $ 14,050,700 $ 15,864,300 $ 16,834,900 Administrative Expanses 85,512 133,220 125,738 141,886 145,535 Printing&Publlcabon 37,726 44,310 36,480 40,124 41,775 Training&Meetings 30,510 48,960 41,940 63,175 63,675 Operating Materiels&Supplies 15,948 29,040 30,170 20,069 20,421 Contractual Services 40,292 3,490 3,490 175,000 65,000 Professional Services 166,555 84,280 90,921 395,700 403,700 Research&Monitoring - - - - - Repairs BMaintenance 6,677 13,440 4,040 4,100 4,161 Utilities 13,222 17,000 17,500 17,000 17,340 Other Materials,Supplies,and Svc. 9,827 14,880 12,190 12,266 12,465 Capital Grants to Member Agencies 2,127,154 2,500,000 2,403,256 300,000 2,064.534 Cost Allocation (11,401,411) (13,999,090) (12,721,790) (14,421,474) (15,243,074) Net Operating Requirements 3,064,375 3,338,650 4,094,635 2.612.146 4,430,432 Budget Overview: There are no significant changes reflected in the FY 2007-08 Projected figures as compared with the budget. In FY 2008-09,the decrease in budget is caused by the reduction in capital grants to member agencies. This decrease is partially offset by an increase in engineering services costs transferred from Regional Assets and Services and by the reallocation of five FTE positions from other departments to Engineering. The staffing increase has minimal net effect on the operating budget because almost all labor costs for the department are allocated to CIP. Department Summary Operations and Maintenance 2007-08 2006-07 Revised 2007-08 2008-09 2009.10 Description Actual Budget Projected proposed Proposed Salaries,Wages,&Benefits $ 31.968,451 $ 34,766,850 $ 35,754,800 $ 36.712,200 $ 38,974,500 Administrative Expenses 84,311 98,550 87,924 131,014 109,140 Printing&Publication 34,402 36,600 34,032 35,800 37,600 Training&Meetings 30,559 73,610 36,463 45,496 46,353 Operating Materials&Supplies 12,547,027 22.114,930 16,846,053 21,396,680 22,745,031 Contractual Services 14,451,947 19,856,550 18,201,650 26,841,000 27,363,500 Professional Services 489,159 1,594,800 1,276,500 1,258,800 833,80O Research&Monitoring - - - - - Repairs&Maintenance 6,223,912 8,932,590 9,301,970 9,749.610 8,432,070 Utilities 7,380,950 9,154,760 7,634,870 8,931,367 9,402,921 Other Materials,Supplies,and Svc. 247,062 455,250 462,265 182,500 186,958 Capital Grants to Member Agencies - - - - - Cost Allocation (3,099,916) (3,891,880) (3,610,980) (4,777,566) (4,969,866) Net Operating Requirements 70,357,864 93,192,610 86,025.547 100,508,900 103,161,907 Budget Overview: The decrease in the FY 2007-08 Projected cost is primarily due to reduced costs of bleach used for disinfection. At the 0me of last year's budget,cost estimates were based on available data suggesting a very high unit price. During contract bidding a new viable vendor provided a much lower unit cost For FY 2008-09,the Increase is primarily related to biosolids costs which will rise due to Increased production combined with a higher unit cost. The Increase in unit cost is due to EnerTech facility starling early in 2009. Further,the FY 2008-09 Proposed budget for other residual solids and waste includes costs for cleaning a total of 7 digesters. Additional Increases are caused by higher costs for bleach,chemical coagulants,odor control,natural gas,and electricity. Distributed at the Administration Committee Operational Budget Line Items S Meeting Administration Committee May 14, 2008 Proposed Operational Budget Line Item Costs (Fiscal Years 2008.09 and 2009-10) e May 14,2000 Existing collective bargaining agreements and an 1%Increase in staffing will increase Salaries. 090N ON09 09-111 1)SALARIES A WAGES $55.7 $$0.6 $64.5 I&)Regular Salaries $55.3 li $60.1 1b)O.anlma $ 1.9 $ 2.2 $ 2.3 1c)Leave Payofla $ 1.5 $ 2.0 S 2.1 Benefit cost continue to Increase at a faster rate. 010x 0809 09 10 2)$ENEPR$ $21.2 $14.4 $25.5 2a)OCER$ $13.3 $14.4 115.4 2b)Group Insurance S 7.1 $ 8.2 $ 9.0 2c)Other $ 0,8 $0] $ 1.1 1 Operational Budget Line Items Administration Committee May 14,2008 General Operating Expenses are primarily related to chemicals. 07-08 M-09 09-10 3)OPERATING EXPENSES $23.1 $22.4 S23.7 3a)Oisiteecllon Chemicals $ 9.0 IS 7.1 If 7.1 3b)Chenucal Coagulates $ 5.9 IS 6.2 S 7.1 3c)0dorcorarol $ 5.9 $ 6] $ 7.2 alosolids Removal represents two-thirds of our Contractual Services expenses. 07f M-09 09-10 4)CONTIIAMASSERVICES$21A $28.5 $28.9 4a)Shctls Removal $14.3 $19.9 $21.8 4b)Omer Residuals S 2.7 $ 4.3 $ 2.9 4c)Grounds Keeping I S 1.2 $ 1.3 $ 1.3 Janitorial l S.wfty Two CenGen engine overhauls will Increase this budget by$1 million. 0708 0509 0 -10 S)REPAIRS 8 MAINTENANCE 510.3 S11.3 $10.1 5a)Materials$Services S 0.8 $ 9.7 If 8.4 5b)Service Agreements IS 1.5 If 1.6 $ 1.7 2 Operational Budget Line Items Administration Committee May 14,2008 Electricity continues to be OCSD's largest Utility expense. 0706 08-0 W10 6)i.niumE$ $9.9 $9.7 $10.2 6a)Poww $7.0 $$9 $6.3 6b)Water $1.4 $1.5 $1.6 Sc)Natural Gas $1.3 $2.0 $2.0 6d)Telephone $0.2 $0.3 $03 OCSD professional services expenses will decrease 25%over the next two years. 0703 0609 0A10 7)PHOFESSIONA SEFIFEEO $3.7 $3.8 $3.0 7a)L"01 services $0.6 $0.7 $03 7o)Engmeenng sewsles $1.1 $1.3 $0.9 7c)Auditand Accoun6rg $0.3 $0.2 $0.2 7d)ErMSci CoasulGng $02 $02 $0.1 7e)EW Suppon l Software $02 $0.4 $0.4 M Advoncy Egons so, "' $0.9 7g)Mar $0.9 so., $0.6 No new funds are allocated to the Cooperative Project Program. 07M 0809 W/O e)COOPENATIVEPNOJECT$ $2.5 $0.3 $2.1 3 Operational Budget Line Items Administration Committee May 14, 2008 Efficiencies will be Implemented resulting In reduced Insurance costs. 07M 04.09 09 M 9)OTHER MTRLSISUPPLIES $2.8 $1.6 $1.6 am Property&General $2.0 $1.0 $1.1 Liability Insuwce eb)Ragulamry OpereOng F., $0.5 SOA $0.5 8c)Olher $0.3 $0.2 $0.2 Approximately 2%of the OCSD operating budget is allocated to training. 0741 ON 09 0G10 10)TRAINING&MEETINGS $1.5 $1.4 $1.4 10a)Tmining $1.1 $1.1 $1.1 1 Ob)MeeOrgs $0.4 $0.3 $0.3 National Pollution Discharge Elimination System (NPDES)requirements drive our research costs. e7436 06419 09-10 11)RESEARCH&MONmG $1.6 S1A $1.4 tta)Emiron MO " $0.8 50.5 $0.5 ttb)Air Quality Maularing $G2 $0.2 $0.2 11c)Omer Research $0.6 $0.7 $0.7 4 STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and Agenda for the Administration Committee Meeting of Orange County Sanitation District to be held on May 14, 2008, was duly posted for public inspection in the main lobby of the Districts' offices on May 7, 2008. IN WITNESS WHEREOF, I have hereunto set my hand this 7th day of May 2008. Lilia'Kovac�., Committee Secretary Orange County Sanitation District HADERTIAGENDAMADMIN COMMITTMAGENDA CERTIFICATION.DOC ORANGE COUNTY SANITATION DISTRICT 1714)S6 P411 NOTICE OF MEETING n. p1° ''1`3b1i ADMINISTRATION COMMITTEE w..m.a.mm Finance, Human Resources and Information Technology Bp Bm Bl ] I:vvnem V.11iey 27 fi212B 812i . 4 B6� . rvan.,avWmru "�0 Vd ORANGE COUNTY SANITATION DISTRICT . sz�oe Ime WEDNESDAY, MAY 14, 2008 - 5:00 P.M. ME.. DISTRICT'S ADMINISTRATIVE OFFICES a,annm 10844 ELLIS AVENUE a:.la FOUNTAIN VALLEY, CALIFORNIA 92708 tLnv.;+�mr w ww.00SD.COM a1.1 hvnfan UaaP.r rnevr.v: (;vlh.n ,irnw H:n1n1,I4m Brag: A regular meeting of the Administration Committee of the Orange fa ulna 9 9 9 County Sanitation District will be held at the above location, date I.Ala,:r!re and time. a .- "va A.. Svv Fiaem NF,WVI w c:i W.PmY Mo.Im:>; eaantr � or..a. Sanitary Ol.tritts f�)R!NC4 M1t:xvn;13y Water Olrttlltte Lwnx Han,': Ts maintain worldcless leatlership in wasrewa[er and waw,resource menagemen:. *jV SRNI,q,, O a N 4 !`l •9� C� C7 a ADMINISTRATION COMMITTEE MEETING DATES Meeting Date Board Meeting Dates 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— 2009 Dark January 28, 2009 February 11, 2009 February 25, 2009 March 11, 2009 March 25, 2009 April 8, 2009 April 22, 2009 May 13, 2009 May 27, 2009 June10, 2009 June 24, 2009 *Meetings being held the third Wednesday of the month. ROLL CALL ADMINISTRATION COMMITTEE Finance, Human Resources and Information Technology Meeting Date: May 14 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 Tinajero Jim Winder James M. Ferryman Board Chair Doug Davert Board Vice Chair OTHERS Bred Ho in, General Counsel STAFF Jim Ruth General Manager Bob Ghirelli, Assistant General Manager Nick Arhontes, Dir. of Operations B Maintenance Jim Herberg, Director of Engineering Ed Torres Director of Technical Services Lorenzo Tyner, Director of Finance and Administrative Services Lilia Kovac, Committee Secretary Jeff Reed, Human Resources and Employee Relations Manager Mike White, Controller KWephagendaWdmin Commiftm000=508M.Rog Call.doo AGENDA REGULAR MEETING OF THE ADMINISTRATION COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, MAY 14, 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 specifically removed from same, as follows: a. Approve minutes of the April 9, 2008, meeting of the Administration Committee. Book Page I May 14, 2008 Page 2 b. ADM08-13 Recommend to the Board of Directors to Adopt Resolution No. OCSD 08-ta, Adopting the Updated Records Management Program Policies and Procedures, Retention Schedule and Record Series Definitions for the District's Records Management Program,Authorizing Destruction of Obsolete Records, and Repealing Resolution No. OCSD 07-08. (Book Page 9) END OF CONSENT CALENDAR G. Consideration of items deleted from Consent Calendar, if any. (10) ACTION ITEMS No items to consider (11) INFORMATIONAL ITEMS a. ADMOS-14 Annual Renewal of the District's Major Insurance Programs for 2008-09 (Book Page 11) b. ADM08-15 2008-09 and 2009-10 District Budget (Book Page 16) (12) CLOSED SESSION During the course of conducting the business set forth on this agenda as a regular meeting of the Committee, j the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation,or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6,as noted. Reports relating to (a) purchase and sale of real property; (b) matters of gentling or potential Iitlgaiion; (c) employee actions or negotiations with employee representatives', or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Committee during a permitted closed session and are not available for public inspection. At won time as final actions are taken by the Committee on any of these subjects,the minutes will reflect all repuired 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 , SUPPLEMENTAL AGENDA ITEMS, OR ITEMS FOR FUTURE AGENDAS, IF ANY (14) ADJOURNMENT: The next regular Administration Committee meeting is scheduled for June 12, 2008, at 6 p.m. Book Page 2 May 14, 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. Al 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 items or matters of general interest. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). Consent Calendar. All matters placed on the consent calendar are considered as not requiring discussion or further explanation, and unless a particular item is requested to be removed from the consent calendar by a Director of staff member,there will be no separate discussion of these items. All items on the consent calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the consent calendar shall be considered in the regular order of business. The Committee Chair will determine if any items are to be deleted from the consent calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee meeting held within five(5)days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adjournment: This meeting may be adjourned to a later time and Items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955(posted within 24 hours). Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at(714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Notice to Committee Members: For any questions on the agenda or to place any items on the agenda,Committee members should contact the Committee Chair or Clark of the Board ten days in advance of the Committee meeting. Committee Chair: Mark Waldman (714)827-1969 Committee Secretary: Life Kovac (714)593-7124 Ikovac(docsci.com General Manager: Jim Ruth (714)593-7110 fruthfflocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rghirelli0,=sd.com Director of Finance and Lorenzo Tyner (714)593-7550 Itvner0ocsd.com Administrative Services Human Resources and Employee Jeff Reed (714)593-7144 ireedCo3ocsd.com Relations Manager HldepaagendaAdmin Committme 2ma1050910.1.051409 Admin Agmda.d= Book Page 3 May 14, 2008 ADMINISTRATION COMMITTEE AGENDA CALENDAR Item Action June Proposed FY 2D08-09 and FY 2009-10 Budget Action June Wastewater Rates for SAWPA Discharge Action June Property, Liability, and Workers' Compensation Action Insurance Renewal Book Page 4 MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday,April 9, 2008, at 5:00 P.M. A meeting of the Administration Committee of the Orange County Sanitation District was held on April 9, 2008, at 5:00 p.m., in the Sanitation Districfs 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 Jim Herberg, Director of Engineering Phil Luebben,Vice Chair Lorenzo Tyner, Director of Finance and Bill Dalton Administrative Services Jon Dumitru Mike White, Controller Rich Freschi Lille Kovac, Committee Secretary Don Hansen Jim Burror Darryl Miller Rich Castillon Joy Neugebauer Norbert Gaia Chris Norby Bob Geggie Christina Shea Randy Kleinman Jim Winder Paul Krzysiak Doug Davert, Board Vice Chair Paul Loehr Jeff Reed DIRECTORS ABSENT: Rich Spencer Sal Tinajero Jim Ferryman, Board Chair OTHERS PRESENT: Brad Hogin, General Counsel Robert Grantham Don McLean Sean Moieny Chris Rouk Toby Weissert (3) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (4) PUBLIC COMMENTS Sean Moieny of Scottel and Chris Rook of NEC addressed the committee members with reference to item 10(a), and stated that the companies they represent provide equipment and services of equal or better value and asked for a delay on issuance of the telephone system contract award. Book Page 5 Minutes of the Administration Committee April 9, 2008 Page 2 (5) REPORT OF THE COMMITTEE CHAIR Chair Waldman did not give a report. (6) REPORT OF THE GENERAL MANAGER General Manager, Jim Ruth, did not give a report. (7) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES Lorenzo Tyner, Director of Finance and Administrative Services, reported briefly on the stock market activity and the Sanitation District's bond insurer's rating may require a speedy debt refinance to retain the AA bond rating, bypassing the Administration Committee and going directly to the Board for approval. Mr. Tyner also advised the committee members that a labor bargaining unit agreement requires that a reclassification change request be made to correct a clerical error, and will be going directly to the Board for approval. Director of Engineering, Jim Herberg, presented a brief overview of the CIP program and its relationship to the budget. (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 March 12, 2008 meeting of the Administration Committee. END OF CONSENT CALENDAR (10) ACTION ITEMS a. ADMOM8 Information Technology Manager, Rich Castillon, presented a brief history of telephone systems and technical problems with the Sanitation District's current phone system. Mr. Castillon also reported that after releasing a nationwide request for information and an ongoing study, and pilot program of phone systems that had been carried at various levels for the last three years, staff is recommending to approve a compatible, suitable, and cost efficient system at 4% above the GSA discounted pricing. Book Page 6 Minutes of the Administration Committee April 9, 2008 Page 3 MOVED,SECONDED AND DULY CARRIED: Recommend to the Board of Directors to: 1)Approve a sole source purchase order to ShoreTel Inc. for the purchase of hardware and software to replace OCSD's telephone system, for a total amount of$375,460; and, 2)Approve a 5%contingency($18,775). By a showing of hands, three no-votes were recorded. b. ADM08-09 The rate study report prepared by Carollo Engineers was distributed to the Directors, and questions about the study results were answered by the Carollo Engineers representatives and the District's Controller, Mike White. MOVED,SECONDED AND DULY CARRIED: Recommend to the Board of Directors to adopt revised methodology for calculating high strength discharger permit rates based upon net revenue requirements that includes a reduction for property taxes paid by customers. Director Dumitru opposed. (11) INFORMATIONAL ITEMS a. ADM08-10 Status on the renewal quotes of the District's Major Insurance Programs for FY 2008-09 Principal Financial Analyst Randy Kleinman, recognized Don McLean of Alliance Insurance,who presented the current insurance conditions, which are favorable to the Sanitation District. Insurance rates for the District's major insurance programs will be submitted for approval in May. b. ADM08-11 FY 2008-09 Benefits Program Renewal Costs Employee Relations Supervisor, Rich Spencer, provided a brief report of health insurance rate increase history and projected rates. Staff will be presenting the new rates at the May Administration committee meeting. C. ADM08-12 FY 2008-09 and 2009-10 District Proposed Budget Update Director of Finance and Administrative Services, Lorenzo Tyner, presented an overview of the proposed budget, highlighting limited growth, a revised CIP program, increased staffing levels, while assuming a strong financial position. (12) CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957(b)(1): The Board convened in closed session at 6:55 p.m. pursuant to Government Code Section 54956.9, Subdivision (a). RECONVENE IN REGULAR SESSION: The Board reconvened in regular session at 7:20 p.m. Book Page 7 Minutes of the Administration Committee April 9,2008 Page 4 (13) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT A request by Director Miller was made to explore methods of calculating actual discharge Flows for accurate billing. Director Norby requested that trips to the District's biosolids facilities be considered for the Board members. (15)ADJOURNMENT The Chair declared the meeting adjourned at 7:25 p.m. The next regular Administration Committee meeting is scheduled for May 14, 2008, at 5 p.m. Suubm�ititttedd by: — L W Kovac Committee Secretary Book Page 8 ADMINISTRATION COMMITTEE M."g gr. T.O5ad.gfob. a5/1, I28= AGENDA REPORT n.m N.mb.l item Number ADMO&73 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Robert Ghirelli, Assistant General Manager SUBJECT: Update of the District's Records Management Policy and Procedures GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 08-xx, Adopting the Updated Records Management Program Policies and Procedures, Retention Schedule and Record Series Definitions for the District's Records Management Program, Authorizing Destruction of Obsolete Records, and Repealing Resolution No. OCSD 07-08. SUMMARY The District's Records Management Program is updated annually to meet new statutory regulations and better serve the operational needs of the District. A Retention Schedule Review Committee was instituted this year, comprised of the Assistant General Manager, Clerk of the Board, Risk Management, General Counsel's Office, and the Records Management Specialist. This Committee will meet quarterly to review requests for Retention Schedule Changes. PRIOR COMMITTEE/BOARD ACTIONS The Board of Directors approved the annual update for the Records Management Program in May 2007. ADDITIONAL INFORMATION The District's Records Management Program documents how long various types of information are to be kept, as dictated by the legal, fiscal, audit or operational needs of the District. As a public agency there is an obligation to effectively manage and maintain the District's information, most of which is classified as public information. Proposed changes for this update focus on the following: New Records Series Land Records: Consolidate property rights records to include Easements, Grant Deeds, Quitclaim Deeds,Abandonments, Condemnations, purchase and sale of real estate. Retention period to be Iffe of the organization. Book Page 9 • Escrow Bid Documents: All records submitted with bid packages for large CIP Projects. Retention period to be life of the project. • Grand Jury Reports: Retention period to be three years. • IT Help Desk Tickets: Documentation for the IT Magic System. Retention period to be 5 years. • Process Data: Information received from internal and external sources and used for process assessment and understanding, optimization, decision making and as a basis of engineering evaluation of process changes. Retention period to be life of the equipment plus 5 years. • Report Repository: A central digital repository for reports and studies that affect the District as a whole, either externally or intemally generated. Retention period to be life of the organization. Revisions: • Incident Records: Revision to definition to specifically identify safety and security incidents. • Various Changes to Existing Record Series: Updating the Office of Record or making minor word changes to the definition as requested by the Business/Operational Unit. If a copy of the Records Retention Schedule or Record Series Definitions is desired, please contact Juanita Skillman, Records Management Specialist at 714-593-7129. Book Page 10 ADMINISTRATION COMMITTEE Meetlng Date To Bd.of Dlr. 05/14/08 AGENDA REPORT Item NumW Item Number ADM08-14 Orange County,Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: QUOTATIONS FOR ANNUAL RENEWAL OF THE DISTRICT'S MAJOR INSURANCE PROGRAMS FOR FY 2008-09 GENERAL MANAGER'S RECOMMENDATION Informational only. SUMMARY The District budget provides funds for the renewal of the following four major insurances: 1) Excess General Liability Insurance 2) All-Risk Property and Flood insurance 3) Boiler 8 Machinery insurance 4) Excess Workers Compensation Insurance The District's Insurance Broker of Record will be in attendance at the May Committee Meeting to provide a status report and preliminary quotations, for consideration, and final quotes will be presented in June. Since the insurance market continues to "soften," the rates may possibly improve a bit between May and June. PRIOR COMMITTEE/BOARD ACTIONS The Board last approved renewal of the above four policies for the period July 1, 2007 through June 30, 2008, at the June 2007 Board meeting. ADDITIONAL INFORMATION Detailed information about the four insurances was provided in an Agenda Report for the April Committee meeting (attached). The District's Insurance Broker will supplement this information in his status report detailing the latest market conditions. Fom No.a 1= R..UJ = Page 1 Book Page I I The most competitive preliminary quotes so far are as follows: 1) Excess General Liability Insurance -$25 Million in limits (same limits as FY 07-08) at a premium of$351,275 (a 4.4 percent, or$16,000 decrease from the prior year) or $30 Million in limits for$370,525. 2) All-Risk Property and Flood Insurance - $1 billion in limits (same limits as ; FY 07-08) at a premium of$469,100 (a 9.4 percent, or$518,000 decrease from the prior year). 3) Boiler& Machinery Insurance - $100 Million in limits (same limits as FY 07-08) for $17,000 (a 9.9 percent, or$1,900 decrease from the prior year). 4) Excess Workers Compensation Insurance- Unlimited limits (compared to $300 Million in limits in FY 07-08) for$175,998 (based on a rate of$0.0030, a 1.0 percent decrease from the prior year rate of$0.003018). As has been the case in recent years, earthquake insurance premiums are unreasonably high. The District received a premium quote in the amount of$1,500,000 to purchase $25 Million in limits with a 5% deductible. Staff will not be recommending earthquake insurance at this price, since risk retention, risk avoidance, and risk reduction measures are more appropriate under these market conditions. ATTACHMENT 1. April 2008 Agenda Report on District insurance. JDR:LT:MW:RK Forth N. owtaxa gM�;pyp ,p� Page 2 Book Page 12 ADMINISTRATION COMMITTEE eetln9 Dare To W of Dlr M . AGENDA REPORT �wc. Ite N be ItemNumber Orange County Sanitahon Dlstnct aortae ro FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: STATUS ON THE RENEWAL QUOTES OF THE DISTRICT'S MAJOR INSURANCE PROGRAMS FOR FY 2008-09 GENERAL MANAGER'S RECOMMENDATION Informational Item SUMMARY The District budget provides funds for the renewal of four major insurances connected with the District's operations: 1) Excess General Liability Insurance 2) All-Risk Property and Flood insurance 3) Excess Workers' Compensation 4) Boiler & Machinery insurance These policy renewals are scheduled to be presented to the Committee at its May Committee meeting. The District's Insurance Broker of Record will present a short status report in April and will be in attendance in May to provide quotations. PRIOR COMMITTEE/BOARD ACTIONS • In June 2007, the Board approved renewals of the major insurance coverages for FY 2007-08. ADDITIONAL INFORMATION 1) Excess General Liability Insurance Program The District's Excess General Liability Insurance Program is currently provided through the California Municipal Excess Liability Program ("CAMEL") and its new sister program, the Alliant National Municipal Liability Program ("ANIMAL"). The District has participated in the CAMEL program since FY 1996-97. This program currently provides the District with a $25 million policy of comprehensive coverage for municipal liability, bodily injury and property damage, and personal injury. The program was structured to also include Employment Practices, and Public Officials Form No.M-102 a RwaeU.awlml Page 1 Book Page 13 Errors & Omissions coverage. The $25 million coverage is per occurrence, with a self- insured deductible of$250,000 per occurrence. Since 1997, the Employment Practices portion of coverage was enhanced from a $2 million sub-limit, to the full $25 million policy limit. The actual insurance coverage currently consists of two separate layers. The first layer is the "Basic" $10 million program with self-insured retention of$250,000. The second layer consists of $15 million of coverage in excess of the first layer of$10 million. ) Excess Workers' Compensation Insurance The District's Excess Workers' Compensation insurance coverage is with the California State Association of Counties Excess Insurance Authority ("CSAC EIA"). This is the fifth year the District has participated in this program or its predecessor. The coverage expires on June 30, 2008. The District's Excess Workers' Compensation Program currently provides coverage to $300 million with a self-insured retention (SIR), or deductible of$500,000. The District's use of Excess Workers' Compensation insurance dates back to 1989-90. At that time, the Fiscal Policy Committee approved a self-insured retention (SIR), or deductible, of$250,000, for such coverage. Due to the hardening of the workers' compensation market, this deductible was raised to $500,000 beginning in FY 2002-03 through a policy with Employers Reinsurance Corporation (ERC) that provided coverage to $25 million with a self-insured retention (SIR), or deductible of$500,000. Staff has reviewed the District's most recent five-year workers' compensation loss history with Cambridge Integrated Services Group, the District's third-party workers' compensation administrator. Staff is seeking workers' compensation insurance renewal with coverages and deductibles at statutory limits. Some additional risk is associated with the CSAC EIA joint powers authority in that a premium surcharge can be assessed to individual members based on an unusually large number of losses occurring outside of the actuarial evaluation estimates. However, historically the CSAC EIA premiums for excess workers compensation have been so much less than competing quotes that even if there were a surcharge, the cost might still continue to be cheaper. 3) All-Risk Property and Flood Insurance The District's All-Risk Property and Flood Insurance Program ("Property Insurance") expires June 30, 2008, and is now up for renewal for FY 2008-09. The All-Risk insurance program provides for comprehensive coverage for the District's real and personal property regarding virtually all perils including fire, flood, and business interruption. Form N. bNn W21 Ro-rsea0.lr✓1N) Page 2 Book Page 14 The District previously carried earthquake insurance as part of its Property Insurance, but in the last few years earthquake insurance has been impossible to obtain or not cost-effective. Currently, the District has earthquake insurance only in connection with some of its buildings under construction. The District's current Property Insurance limits are $1 billion for most perils other than flood and earthquakes, and $175 million for Flood, with many sub-limits for various situations. In order to reach $1 billion in limits, the District's broker had to arrange for nearly a dozen different layers of insurers. The Self-Insured Retention ("SIR") is $25,000 per occurrence for most types of losses. For nine consecutive years, the District's Property Insurance has been with a nationwide joint purchase property insurance program called Public Entity Property Insurance Program (PEPIP); one of the world's largest property programs. It is important to note that this joint purchase property insurance program offers the purchasing power of numerous large public entities without the pooling or sharing of coverages or losses. The District's broker, Alliant Insurance Services, is also acquiring quotes for Earthquake Insurance, and will know by May 14, 2008 if the quotes are cost-effective. 4) Boiler& Machinery Insurance Staff recommends the annual renewal of Boiler & Machinery insurance coverage for the District covering the period from July 1, 2008 through June 30, 2009. The Boiler& Machinery insurance program provides comprehensive coverage for loss caused by machinery breakdown and explosion of steam boilers or other covered process equipment, including damage to the equipment itself and damage to other property caused by covered accident. The District's current Boiler& Machinery insurance program provides coverage ($100 million per occurrence with deductibles ranging from $25,000 to $350,000) for losses caused by covered machinery breakdown (e.g., motors, steam turbines, digesters, co-gen engines). Damages to the equipment, as well as damages to other property and improvements caused by the machinery breakdown, are covered by the Boiler & Machinery insurance. This program augments the District's all-risk property insurance that covers perils such as fire and flood. JDR:LT:MW Fom No.w IU3 aw'uea:awiai Page 3 Book Page 15 ADMINISTRATION COMMITTEE MeeOng Date To Bd.of Mr. 05M,0a AGENDA REPORT Item ADMombe Iem Number ADM08-IS Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: FY 2008-09 AND 2009-10 DISTRICT BUDGET GENERAL MANAGER'S RECOMMENDATION Informational -Item. SUMMARY Discussion of the OCSD FY 2008-09 and 2009-10 Budget was initiated at Administration Committee meeting of April 9, 2008. Additional materials, attached, are now being provided to further this discussion. Included in the materials being provided are line item details for the operating budget. The budget will be presented for adoption at the June 25, 2008 Board meeting. PRIOR COMMITTEEIBOARD ACTIONS N/A ADDITIONAL INFORMATION N/A ATTACHMENTS 1. FY 2008-09 and 2009-10 Budget Summary 2. FY 2008-09 and 2009-10 Budget Development-Additional Detail 3. FY 2008-09 and 2009-10 Position Summary Form No.o 1=3 ar eea:owi W Page 1 Book Page 16 Orange County Sanitation District 2007-08 2006-07 Revised 2007-08 2008-09 2009-10 Description Actual Budget Projected Proposed Proposed Salaries, Wages, &Benefits $ 71,674,723 $ 79,924.560 $ 79,446,928 $ 83,833,080 $ 89,993,858 Administrative Expenses 1,095,519 1,520.740 1,367,092 1,325,359 1,293,522 Printing& Publication 469,051 65D,730 604,052 651,024 654,610 Training &Meetings 1,124.856 1.503.140 1.313,711 1,433,710 1,440,373 Operating Materials &Supplies 16.684,653 23,058,340 17,767,832 22,368,524 23,731,837 Contractual Services 15,630,140 21,417,440 19,871,843 28.503,152 28,889,702 Professional Services 2,367,736 3.731,840 2.782,388 3,774.325 2,955,415 g Research &Monitoring 1,426,408 1.572,740 1,098,440 1,426,405 1,409,855 v Repairs&Maintenance 7,567,182 10,333,750 10.744,060 11.321,185 10,092,531 _ Utilities 8,072,262 9,883,260 8,403,370 9,719,367 10,212,261 J Other Materials, Supplies,and Svc. 2,119,593 3,656,060 2,890,882 2,607,481 2,815,936 Capital Grants to Member Agencies 2,127,154 2,500,000 2,403,256 300,000 2,064,534 Cost Allocation (16,101,402) (19,779,200) (17,742,100) (20.499,110) (21,526,410) Net Operating Requirements 114,147,875 139,973,400 130,949,354 146,764,482 154,028,026 Net Operating Revenue (8,033,660) (5,099,000) (7,640,489) (7,836,000) (8,122,000) Net Operating Budget $ 106,114,215 $ 134,874,400 $ 123,308,865 $ 138,928,482 $ 145,906,026 Cost to Collect/Treat 1 Million Gallons $ 1,268.38 $ 1,478.06 $ 1,507.26 $ 1,654.90 $ 1,738.01 Flow, Million Gallons 83,661 91,250 81,810 83,950 83,950 Flow Per Day, MGD 229.21 250.00 224.13 230.00 230.00 2008-09 AND 20094D BUDGET DEVELOPMENT—ADDITIONAL DETAIL 2007.08 2008-09 2009-10 1) SALARIES AND WAGES $58.7 $60.5 $64.5 1a) Regular Salaries $55.3 $56.3 $60.1 • Includes salaries for 641 and 648 FTE over the next two years. • Vacancy factor set at 5 percent based on trend information. 1 b) Overtime $ 1.9 $ 2.2 $ 2.3 FY 2008-09 overtime increases of$300,000 over FY 2007-08 due to workload and wage rates. $1.8 million of this annual budget is in Operations and Maintenance primarily for required overtime as the plants are in operation 24/7 (vacation, sick, shift overlap), emergencies, unscheduled maintenance, backlog and off-shift construction support. The proposed overtime budget for Plant No. 2 has been expanded to support the additional workload associated with construction projects, increased maintenance support requirements, and the attendant isolations and shutdowns required. The remaining $400,000 to $500,000 is budgeted in the other units and has decreased slightly. 1c) Leave Payoffs $ 1.5 $ 2.0 $ 2.1 As a result of pending retirements, this expense is projected to be higher than budgeted in FY 2007-08 and will remain constant for the next two years. 2) BENEFITS $21.2 $23.3 $25.5 $13.3 $14.4 $15.4 2a) Orange County Employees Retirement System District employees are members of the Orange County Employees' Retirement System (OCERS). The employer's required contribution rate has been increased by OCERS from 20.65 percent to 21.34 percent. 2b) Group Insurance $ 7.1 $ 8.2 $ 9.0 Includes Medical, Dental, Vision, Life Insurance, Medicare, Disability. In FY 2008-09, the proposed group insurance budget includes approximately $12,900 per employee, an estimated 13 percent increase over the prior year. This increase reflects both an estimated premium increase of 10 percent and an increase in the number of covered employees. 1 Book Page IS 2008-09 AND 2009-10 BUDGET DEVELOPMENT—ADDITIONAL DETAIL 2007-08 2008-09 2009-10 2c) Other $ 0.8 $ 0.7 $ 1.1 Includes Workers' Compensation, Tuition Reimbursement, Development Pay and Uniform Rental. Workers Compensation ($100K in FY 2008-09 and $500K in FY 2009-10) is used to maintain the level of accumulated reserves within the workers' compensation self-insurance funds. The new Development Pay Program ($300K) is intended to promote employee efforts that increase job knowledge, skills, and abilities. 3) OPERATING EXPENSES $23.1 $22.4 $23.7 3a) Disinfection $ 9.0 $ 7.1 $ 7.1 The largest cost related to Disinfection is for chemicals, specifically bleach. Sodium Hypochlorite (Bleach)—Over 95 percent of the bleach is used for effluent disinfection. The remaining bleach usage is for odor control, disinfection of plant water, and the control of filamentous organisms in activated sludge in the secondary treatment process. It is anticipated that the District will use 9.2 million gallons and 11.5 million gallons of bleach in FY 2007-08 and FY 2008-09 respectively. The proposed $7.1 million cost over the next two years is an increase of 25 percent over the FY 2007-08 projected cost of$5.5 million due to the following: • Mandated construction shutdowns will require more bleach. • An increase in the chlorine residual buffer capacity is necessary to reduce the coliform spikes caused from interruptions in normal operations during construction events. The new budget for bleach is down 21 percent from the FY 2007-08 budget, however, because at the time of last year's budget cost estimates were based on available data suggesting a very high unit price. During contract bidding a new viable vendor provided a considerably lower unit cost. Unfortunately, with the high cost of oil, unit prices are expected to increase substantially in FY 2008-09. Sodium Bisulflte—Sodium bisulfite is used for dechlorination of ouffall effluent to ensure that no residual chlorine is discharged into the ocean. It is anticipated that the District will use 583,000 gallons and 587,000 gallons of sodium bisulfite in FY 2007-08 and FY 2008-09 respectively. This increased gallonage is caused by increasing the chlorine residual buffer capacity to decrease coliform spikes and increasing bleach use for construction events. 2 Book Page 19 2008-09 AND 2009-10 BUDGET DEVELOPMENT-ADDITIONAL DETAIL 2007-08 2008-09 2009-10 3b) Chemical Coagulants $ 5.9 $ 6.2 $ 7.1 Anionic Polymer-Anionic polymer is added to the primary clarifiers in combination with ferric chloride to enhance primary clarifier performance. The projected usage for FY 2007-08 is 70,000 active pounds at a cost of$214,000. The estimated anionic polymer use for FY 2008-09 is 99,700 active pounds at a cost of $324,000. The increased usage is due to switching to a solution polymer that will offer better performance and will be used in all basins at Plant No. 2. The cost increase is due to the increased usage and expected increase in the unit cost. Cationic Polymer- Cationic polymer is added to digested sludge prior to dewatering in order to improve the sludge and water separation process. Cationic polymer is also added to the waste activated sludge dissolved air flotation thickeners (DAFTs) to improve solid(s) coagulation. Solution polymer will be used in the DAFTs at Plant No. 1 while Mannich polymer will be used in dewatering at Plant No. 1. Mannich polymer is used in both the DAFTs and dewatering at Plant No. 2. Approximately 30 percent of total polymer used for both plants is solution, and the remaining 70 percent of polymer used is Mannich. The cationic polymer usage for FY 2007-08 is projected to be 822,000 active pounds at a cost of$1,390,000. During FY 2008-09, the usage is expected to increase to 1,100,000 active pounds to handle increased solids production from secondary treatment at a cost of$2,233,000. Ferric Chloride- Ferric chloride is an iron salt which is currently used to increase the solids removal efficiencies in the primary treatment process and to control digester hydrogen sulfide. As the amount of ferric chloride is optimized in primary treatment an additional amount of ferric chloride will be added to the digesters to control hydrogen sulfide. The projected ferric chloride usage for FY 2007-08 is 7,100 dry tons which is a 13.5 percent decrease from the FY 2007-08 budgeted usage (8,200 dry tons). The estimated cost for FY 2007-08 is $3,400,000. The proposed ferric chloride usage for FY 2008-09 is 6,900 dry tons, a 3 percent reduction from the FY 2007-08 projection. The estimated cost for FY 2008-09 is $3,615,000. 3 Book Page 20 2008-09 AND 2009-10 BUDGET DEVELOPMENT—ADDITIONAL DETAIL 2007-08 2008-09 2009-10 3c) Odor Control $ 5.9 $ 6.7 $ 7.2 Hydrogen Peroxide— Hydrogen peroxide is used in the trunk sewers for control of sulfides and in the foul air scrubbers to control hydrogen sulfide. The projected usage in the treatment plants for FY 2007-08 is approximately 1,230,000 gallons with an estimated cost of$2,248,000. Hydrogen peroxide usage for FY 2008-09 is estimated to decrease 28.1 percent to 884,000 gallons at a decrease in cost of 27.5 percent to $1,630,000 as a result of a planned conversion to bleach in the plant foul air scrubbers. Sodium Hydroxide (Caustic Soda)—Caustic soda is used in the foul air scrubbers and in the District's main trunk lines tributary to the treatment plants. For FY 2007-08, it is projected that the District will use 529 dry tons of caustic soda in the scrubbers and 446 dry tons in the trunk lines. In treating the trunk sewers for sulfides, it has been determined that 40 percent of the usage and cost applies to the treatment plant and the remaining 60 percent applies to the collection facilities. The projected total cost of caustic soda for FY 2007-08 is $470,000. For FY 2008-09, staff proposes the usage for the scrubbers to be 550 dry tons and the usage for the collection system to be 461 dry tons for a total caustic soda budget of$623,900. Muriatic Acid —Muriatic Acid (hydrochloric Acid) is used to backwash the media in the foul air scrubbers, associated piping and pumps. This cleans deposits caused by hard water, sulfides from the reaction with the foul air, and caustic soda used in the scrubbing process. The projected usage for FY 2007-08 is 49,100 gallons at a cost of $54,600. The FY 2008-09 proposed use is 62,800 gallons with a budgeted cost of $77,000. Odor Neutralizers —Odor neutralizers are used in the solids processing facilities of both plants to mask the odors from the processed bicsolids as they are loaded into the trucks for reuse. In FY 2007-08, the projected budget is $15,000 for approximately 70 gallons of highly concentrated solution. During FY 2008-09, the proposed usage is 35 gallons at a cost of$8,400. Magnesium Hydroxide, Trunklines—Magnesium hydroxide reduces the formation of hydrogen sulfide which causes odor and corrosion. Contract services include supply, operational monitoring, sampling, reporting and on-going maintenance services for odor control chemical dosing systems within the wastewater collection and conveyance system. Usage will be approximately 460,000 gallons and the projected expense for FY 2007-08 is $870,000. In FY 2008-09, the proposed usage is 945,000 gallons at a proposed cost of$1,926,800. Two additional treatment locations are planned in FY 2008-09 and where ferrous chloride and caustic soda were previously used, magnesium hydroxide may be substituted. Unit cost will also be increasing in FY 2008-09. 4 Book Page 21 2008-09 AND 2009-10 BUDGET DEVELOPMENT— ADDITIONAL DETAIL Ferrous Chloride, Trunklines — Ferrous Chloride is used in the trunks to reduce hydrogen sulfide generation. This contract provides supply, operational monitoring, sampling, reporting and on-going maintenance services for odor control chemical dosing systems within the wastewater collection and conveyance system. In FY 2007- 08, OCSD used a patented treatment approach which was a combination of ferrous chloride and hydrogen peroxide. The total projected expense for 2007-08 is $2,375,000. The FY 2008-09 proposed budget is $2,128,000. Treatment of this chemical is expected to decrease slightly with a shift to other chemicals. 2007-08 2008-09 2009-10 3d) Supplies $ 1.0 $ 1.0 $ 1.0 Other supplies budgeted in Technical Services ($663K) include: • Laboratory glassware (various: test tubes, beakers, Flasks, specialty sample collection vessels) • Filtration devices (papers, filter holders, vacuum pumps, etc.) • Solvents for used for organic extraction • Acids and bases used In metals digestion • Reagents used in setting up each specific test (about 100 test types) • A wide variety of standards used in quality assurance of the tests. These include air standards, organic standards, standards for metals, weight standards. • Laboratory specialty gases include nitrogen, oxygen, argon, helium, acetylene, hydrogen, hydrogen sulfide, methane • Disposable items in microbiology used in the culture, enumeration and identification of bacteria • Microbiology growth media • Pipettes, disposable pipette tips, plastic tubing, sample vials, chromatography columns, replacement liners for chromatography, labels for samples, paper for reports, notebooks • Purchase of test organisms for bioassay, toxicity • The laboratory performs about 110,000 tests annually at approximately $7.00 per test. 5 Book Page 22 2008.09 AND 2009-10 BUDGET DEVELOPMENT— ADDITIONAL DETAIL 2007-08 2008-09 2009.10 3e) Gas, Diesel and Oil $ 0.7 $ 0.6 $ 0.7 Gasoline, compressed natural gas, diesel, and oil used in the operation of the mobile equipment, within generators and other operating equipment. 30 Tools $ 0.3 $ 0.4 $ 0.4 Tools and equipment that cost less than $5,000, have a minimum useful life of three years, and are not considered to be capital. 3g) Other $ 0.3 $0.4 $0.3 Other smaller operating expenses collectively reported within this one line item. 6 Book Page 23 2008-09 AND 2009-10 BUDGET DEVELOPMENT— ADDITIONAL DETAIL 2007-08 2008-09 2009-10 4) CONTRACTUAL SERVICES $21.4 $28.5 $28.9 4a) Solids Removal $14.3 $19.9 $21.8 Biosolids— Production for FY 2007-08 is projected to be 250,000 tons. Fuel surcharges from the vendors have increased the unit cost from the budgeted level of $53.48 to $56.00 per ton and these costs may increase further in May and June if fuel prices continue to rise. The effect of this unit cost increase is offset by the decrease in production from a budgeted level of 268,000 tons. The slight reduction in biosolids production predicted is due to operations staff optimization efforts. The total cost for FY 2007-08 is projected to be $14,300,000 as budgeted. For FY 2008-09, biosolids production is estimated to increase at Plant No. 1 by 20 percent due to the increase in treatment with Ellis pump station coming on-line. Plant No. 2 biosolids production is estimated to increase by 8 percent due to an increase in secondary treatment with the completion of secondary upgrade project. The total estimated budget for biosolids will increase by 39 percent to $19,890,000 due to the increase in production combined with the increase in unit cost of 18 percent to $65 per ton. The increase in unit cost is due to EnerTech facility starting early in 2009. OCSD has a contract with EnerTech for 225 tons per day at a cost of$72.40 per ton plus fuel cost adjustments. For FY 2009-10, the total biosolids budget is estimated to increase by 10 percent to $21,840,000 due to an increase in unit cost including fuel cost to haul the biosolids. Biosolids production is estimated to increase by 2 percent due to an increase in flow and secondary treatment. 4b) Other Residual Solids and Waste $ 2.7 $ 4.3 $ 2.9 The other residuals solids and waste category includes disposal costs for grit and screening waste, digester cleaning waste, and hazardous materials. The Grit and Screening budget includes supplying bins to collect then haul and dispose of grit, screenings, and drying bed material to a landfill. The grit is generated from the grit chambers, and the screenings is the material collected off the bar screens. Drying bed material is typically made up of the material cleaned out of pipes in the collection system by District's crews and other city crews in the District's service area. The FY 2008-09 proposed budget for other residual solids and waste includes the cost of cleaning a total of 7 digesters for $3.6 million. This budget is reduced to $2.1 million for FY 2009-10 when 4 digesters are planned to be cleaned. The proposed budget for disposal of grit, screenings and other waste is $730,300 in FY 2008-09 and $754,800 in FY 2009-10. 7 Book Page 24 2008-09 AND 2009-10 BUDGET DEVELOPMENT—ADDITIONAL DETAIL 2007-08 2008-09 2009-10 4c) Grounds keeping/Janitorial/Security $ 1.2 $ 1.3 $ 1.3 This line item represents the total of the District's individual contracted services object accounts for grounds keeping, janitorial, and security services. 4d) Outside Lab Services $ 0.1 $ 0.2 $ 0.2 The District contracts out certain laboratory services that are not cost efficient to perform in-house. Examples include bio-solids testing and hi-resolution mass spectroscopy. The first requires registration and certification which is cheaper to contract out as opposed to hiring and obtaining the skills required to do in-house. The second would require over$1 million in equipment and facilities to complete in-house as opposed to the $20,000 to $30,000 required to complete through an outside laboratory. 4e) Oxygen Plant Operations $ 0.4 $ 0.4 $ 0.4 The District is required to purchase oxygen for plant operations during plant facility shutdowns as a result of the current construction activity. 4f) Temporary Services $ 0.3 $ 0.4 $ 0.4 Temporary services are used agency-wide as a stop gap measure for unplanned terminations of essential staff members as well as for short-term projects that require additional staffing resources. 4g) County Service Fee $ 0.6 $ 0.4 $ 0.4 The County Service Fee is the fee charged by the County of Orange for the inclusion of the District's sanitation fees on the County of Orange Property Tax Bill and for the collection of these fees by the County on behalf of the District. 4h) Other $ 1.9 $ 1.6 $ 1.5 Other smaller contractual services collectively reported within this one line item. 8 Book Page 25 2008-09 AND 2009-10 BUDGET DEVELOPMENT— ADDITIONAL DETAIL 2007-08 2008-09 2009-10 5) REPAIRS AND MAINTENANCE $10.3 $11.3 $10.1 $ 8.8 $ 9.7 $ 8.4 5a) Repairs and Maintenance—Materials &Services Two CenGen engine overhauls to preserve electrical reliability for the treatment plants are budgeted at a total of$800,000. Additionally, $1.5 million is budgeted for planned overhaul, repair, or rehabilitation of major facilities as part of a proactive program to maintain mechanical reliability. Another$1.7 million is budgeted for materials and services related to repairs and maintenance for instrumentation and electrical reliability. There is $1.2 million budgeted for collection facilities repairs and maintenance. This is primarily related to sewer repairs and manhole frame and cover replacement. The plant process painting program has a proposed budget of$1.5 million. The additional $3 million of proposed budget for this category is to cover a wide variety of unscheduled repairs and maintenance as needs arise. Budgets proposed for this work are based on historical experience and cost trends. 5b) Service Agreements $ 1.5 $ 1.6 $ 1.7 All computer related hardware/software maintenance and licensing agreements for the following categories: Service Agreements Amount General/Enterprise Support $340,000 Computing Management Support $210,000 Financial Support $160,000 Process Support $110,000 Microsoft Enterprise License $ 100,000 Engineering Tools $ 80,000 Software Development $ 75,000 GIS Support $ 55,000 Safety/Security Support $ 50,000 Total Computer Related Agreements $1,180,000 Additional service maintenance agreements covering various equipment items are budgeted throughout the District. 2007-08 2008-09 2009-10 6) UTILITIES $9.9 $9.7 $10.2 6a) Power $7.0 $5.9 $ 6.3 9 Book Pace 26 i 2008-09 AND 2009-10 BUDGET DEVELOPMENT—ADDITIONAL DETAIL Electricity—The estimated consumption and resulting costs for electrical energy purchased from Southern California Edison for FY 2008-09 are shown below and total $5,341,000. This budgetary number contains no contingency and excludes the electricity requirements of all pump stations. The FY 2008-09 proposed budget is 5 percent lower than the FY 2007-08 budget. The reduction is due to lower rate estimations for the plants as anticipated rate increases from Edison did not occur. This reduction is tempered by a forecast increase in energy imports because of further reductions in CenGen production and an increase in secondary treatment levels at Plant 2. The estimated consumption values are based on the actual values experienced for FY 2007-08 as shown the following table: FY 2008/09 Estimated Proposed Budget Item Consumption Cost per kWh Value (kWh/year) Plant No. 1 Energy Charges 20,000,000 @$0.08 $1,600,000 Plant No. 2 Energy Charges 21,000,000 @$0.07 $1,470,000 Plant No. 1 Demand Charges $ 850,000 Plant No. 2 Demand Charges $ 120,000 Plant No. 1 Fixed Charges $ 400,000 Plant No. 2 Fixed Charges $ 370,000 Plant No. 1 Control Center 0 @$0.13 $ 10,000 Total Plants $4,820,000 Laboratory 3,300,000 @$0.12 $ 396,000 Administration Building 960,000 @$0.13 $ 125,000 Total 45,330,000 $5,341,000 The proposed budget for electricity for Collections and pump stations adds approximately$600,000 each year for a total electricity budget of$5,935,000. 10 Book Page 27 2008-09 AND 2009-10 BUDGET DEVELOPMENT— ADDITIONAL DETAIL 2007-08 2008-09 2009-10 6b) Water $1.4 $1.5 $1.6 Green Acres Project(Gap) Water— GAP water is made up of secondary treated effluent from the District that is further treated by the Orange County Water District. GAP water is significantly less expensive than potable water and is used in the process wherever possible. The major uses of GAP water include cooling water, solids handling, and landscaping. The proposed budget for FY 2008-09 is $956,500 and includes a 6 percent increase in usage and a 2.5 percent increase in the rate (2.5 percent maximum). The proposed budget for FY 2009-10 is $1,078,900 and includes a 10 percent increase in usage and 2.5 percent increase in the rate. Potable Water—The potable water budget includes the water supplied by the City of Fountain Valley for Plant No. 1 and the City of Huntington Beach for Plant No. 2. Approximately 5 percent of the potable water at Plant No. 1 is used for domestic uses and less than 1 percent is used for irrigation. The majority of the irrigation at both plants uses reclaimed water. Less than 1 percent of the potable water used at Plant No. 2 is for domestic uses due to the relatively small number of employees at Plant No. 2. For FY 2008-09 at Plant 1, both usage and unit cost are estimated to increase by 5 percent; for Plant 2, lower usage is expected to offset unit cost increases. The proposed total potable water cost for FY 2008-09 is $489,400. The proposed budget for FY 2009-10 is based on the proposed budget for FY 2008-09 with a 5 percent increase in both usage and cost per unit at Plant 1 and a 2 percent increase in usage and a 5 percent increase in cost per unit at Plant 2. The proposed budget for FY 2009-10 is $533,000. 6c) Natural Gas $1.3 $2.0 $2.0 Natural Gas—The District's budget for natural gas is $2,042,000 for both FY 2008-09 and for FY 2009-10. This level should be adequate to cover projected use at the predicted natural gas commodity prices. The estimated natural gas to be purchased from SoCalGas and a gas marketer for Treatment Plant Nos. 1 and 2 for FY 2008-09 is shown below. The"core subscription" is natural gas purchased directly from the Gas Company and used mainly for building heating. The natural gas used for central generation is purchased from a gas marketer, Occidental Energy, and transported through the Gas Company conveyance system at an average cost of$0.11ftherm. This total budget is 60 percent higher than the FY 2007-08 budget of$1,279,000. This increase primarily reflects the planned use of more gas for the generating facilities at Plant No. 2 in order to keep three engines running at minimum output levels. 11 Book Page 28 2008-09 AND 2009-10 BUDGET DEVELOPMENT—ADDITIONAL DETAIL Natural Gas FY 2008109 User Estimated Cost Per Total Cost Consumption Therm Plant No. 1 Core Subscription 95,000 therms $0.81/therm $ 77,000 Plant No. 1 Central Generation 70,000 therms $0.94ftherm $ 66,000 Plant No. 2 Core Subscription 18,000 therms $1.06/therm $ 19,000 Plant No. 2 Central Generation 2,000,000 therms $0.94/therm $ 1,880,000 Total 2,183,000therms $2,042,000 2007-08 2008-09 2009-10 6d) Telephone $0.2 $0.3 $0.3 The telephone expense is essentially unchanged 12 Book Page 29 2008-09 AND 2009-10 BUDGET DEVELOPMENT—ADDITIONAL DETAIL 2007-08 2008-09 2009-10 7) PROFESSIONAL SERVICES $3.7 $3.8 $3.0 7a) Legal Services $0.6 $0.7 $0.5 Legal services are the services provided by General Counsel, 7b) Engineering Services $1.1 $1.3 $0.9 These engineering services are generally required to support the District's regional assets and services. 7c) Audit and Accounting $0.3 $0.2 $0.2 These services represent the cost for the District's independent annual financial audit and contracted internal auditing services. $0.2 $0.2 $0.1 7d) Environmental and Scientific Consulting These consulting services support the ocean monitoring program, the fats, oil, and grease inspections and monitoring program, and watershed management initiatives. $0.3 $0.4 $0.4 7e) ERP Support and Software Programming These support costs are required to maintain the District's enterprise resource planning software applications that include human resources, payroll, general ledger and financial reporting, budgeting, fixed assets, accounts payable, accounts receivable, purchasing, inventory, and contract administration applications. 7f) Advocacy Efforts $0.3 $0.3 $0.3 These costs are necessary to promote the District's interests in Sacramento and Washington D.C. 7g) Other $0.9 $0.7 $0.6 Other smaller professional services collectively reported within this one line item. 13 Book Page 30 2008-09 AND 2009-10 BUDGET DEVELOPMENT — ADDITIONAL DETAIL 2007-08 2008-09 2009-10 $2.6 $0.3 $2.1 8) CAPITAL GRANTS TO MEMBER AGENCIES 8a) Cooperative Projects $2.6 $0.3 $2.1 The Cooperative Projects Grants Program co-funds projects sponsored by a member agency to eliminate or reduce inflow and/or infiltration of storm water and groundwater from local wastewater collection lines and to repair or replace poor performing, aging local wastewater collection system infrastructure. The District will fund projects by contributing up to fifty percent matching funds against a member agency's contribution to an eligible project. All member agencies of the District are eligible to participate in this program. Proposed budget is in accordance with program contracts currently in place. $2.8 $1.6 $1.8. 9) OTHER MATERIAL, SUPPLIES AND SERVICES $2.0 $1.0 $1.1 9a) Property and General Liability Insurance The District's outside excess general liability insurance coverage is $25 million with a self- insurance retention of$250,000. The District's property insurance coverage of$1 billion for perils other than flood and fire and $300 million for flood is subject to self-insurance retention of 5 percent per unit of insurance up to $25,000 for fire and $100,000 for flood. The District is fully self- insured for all property damage from the perils of earthquake. The proposed appropriation of$1.0 million is needed to maintain the recommended level of reserve within the general liability and property self-insurance fund. 9b) Regulatory Operating Fees $0.5 $0.4 $0.5 Payments to South Coast Air Quality Management District for operating permit fees. 9c) Other $0.3 $0.2 $0.2 Other material, supplies, and services collectively reported within this one line item. 14 Book Page 31 2008-09 AND 2009-10 BUDGET DEVELOPMENT— ADDITIONAL DETAIL 2007-08 2008-09 2009-10 10) TRAINING AND MEETINGS $1.5 $1.4 $1.4 10a)Training $1.1 $1.1 $1.1 An amount equal to approximately 2 percent of the Regular Salaries budget is allocated to Training. Training activities are coordinated though the Human Resources and Safety & Health Divisions. This category includes ongoing technical and safety training and materials for staff; expansion of the Leadership Academy training program, required training for computerized plant monitoring and control systems and training to allow for a more adaptive and flexible work force. 10b)Meetings $0.4 $0.3 $0.3 The General Manager has reviewed all meeting request budgets for necessity, duplication, and redundancy and has limited this amount to a responsible level. 11) RESEARCH AND MONITORING $1.6 $1.4 $1.4 11a) Environmental Monitoring $0.8 $0.6 $0.5 The budget line item for "Environmental Monitoring" includes costs associated with the District's National Pollution Discharge Elimination System (or NPDES) permit-required ocean monitoring program. This program consists of three elements: Core Monitoring represents routine, long-term sampling that is used to determine compliance with permit criteria and to determine changes in the coastal ocean over time. Strategic Process Studies are non-routine studies that address specific ocean processes or emerging issues that are not readily answered by the Core Monitoring program element. These studies are developed by District staff and approved and incorporated into our permit by the US Environmental Protection Agency, Region IX and Regional Water Quality Control Board, Region 8. Regional Monitoring occurs every 4-5 years and samples the coastal ocean from Point Conception in the north to the US-Mexico Border in the south. This is a cooperative, multi-agency effort; most recently, it included 65 other agencies and organizations. In addition to the funds needed to conduct the permit-required ocean monitoring program, Environmental Monitoring also includes operating funds for the District's ocean monitoring vessel, the MN Nerissa. 15 Book Page 32 2008-09 AND 2009-10 BUDGET DEVELOPMENT—ADDITIONAL DETAIL 2007-08 2008.09 2009-10 11b)Air Quality Monitoring $0.2 $0.2 $0.2 Periodic monitoring and analysis of air emissions requires testing from various sources including the central generation facilities, validation of emissions from continuous monitoring equipment, source testing after CIP installation/modification (i.e. P1 trickling filters, P1 primary basin install and modifications, etc.). Periodically,there is a requirement to test the waste gas flares. 11c) Other Research $0.6 $0.7 $0.7 OCSD contributes annually to research organizations such as the Southern California Coastal Water Research Project and the Water Environmental Research Foundation. 12) ADMINISTRATIVE EXPENSE $1.5 $1.3 $1.3 12a)Small Computer Items $0.6 $0.6 $0.6 In 1999, OCSD consolidated the budget for all non-CIP Office Automation and Small Computer items into a single line item. A baseline figure ($200,000.00) was established based on the routine procurement of items mentioned below: New Computers/Notebooks/Tablets, printers, monitors, Networking equipment, Computer peripherals, Digital equipment, PDAs, Digital Cameras, etc. This budget proposes an additional $435,000 for: • Annual PC Obsolescence Program — $250,000 • SCADA workstation replacements — $50,000 • Portable video monitoring — $20,000 • Engineering document conversion hardware & software—$40,000 • Hardware & software for new Benthic Infaunal Taxonomy Program—$60,000 • HR Performance Review software — $15,000 12b)Memberships $0.3 $0.3 $0.3 The General Manager has reviewed all membership request budgets for necessity, duplication, and redundancy and has limited this amount to a responsible level. OCSD's largest membership costs are for district-wide participation in groups such as the National Association of Clean Water, the Orange County Business Council, the California Association of Sanitation Agencies, the Southern California Alliance of Publicly Owned Treatment Works, the Association of California Water Agencies, and the Center for Demographic Research. 16 Book Page 33 2008-09 AND 2009-10 BUDGET DEVELOPMENT—ADDITIONAL DETAIL 2007-08 2008-09 2009-10 12c) Office Supplies $0.1 $0.1 $0.1 Office supplies include such items as envelopes, letterhead, notebooks, calendars, business cards, pens, and pencils, etc. 12d)Other $0.5 $0.3 $0.3 Other smaller administrative expenses collectively reported within this one line item. 13) OTHER NON-OPERATING EXPENSE $0.8 $1.0 $1.0 13a) Contingency $0.7 $0.4 $0.4 These funds are centrally budgeted and expended through the direct discretion and specific approval of the General Manager to support unanticipated District needs or requests of the Board. 13b) Prior year Appropriations $0.0 $0.4 $0.4 Since the operating budget lapses at the end of each fiscal year, funds need to be set aside for contacts, purchases, commitments, and other legal obligations that have been occurred prior to June 30 in the prior year but goods or services have not been delivered until after June 30 in the new budget year. (Revised FY 2007-08 budget reflects application of these funds.) 13c) Other $0.1 $0.2 $0.2 Other smaller non-operating expenses collectively reported within this one line item. 14) PRINTING AND PUBLISHING $0.7 $0.7 $0.7 14a) In-House Publishing $0.5 $0.5 $0.5 Although the budget provides for some outside reproduction, the majority of OCSD printing activities are completed In-house, reflecting an expanded management information system and administrative requirements. As well as continuing demand by the public and regulatory agencies for information. These activities including printing of District's maps, brochures, Board reports and agenda items, budget materials, etc. 14b)Other $0.2 $0.2 $0.2 Other printing and publishing expenses collectively reported within this one line item. 15) COST ALLOCATION ($19.8) ($20.5) ($21.5) This represents direct and indirect labor, benefits, materials, and services charged to the Capital Improvement Program (CIP) where the related work was performed. 17 Book Page 34 Orange County Sanitation District Position Summary 2007-08 2007-08 2008-09 200940 Department Buffet Projected Proposed Proposed General Manager 30.25 30.25 29.75 30.25 Administrative Services 97.50 98.50 96.50 97.50 Technical Services 109.00 109.00 107.00 108.00 Engineering 104.50 103.50 108.50 109.50 Operations and Maintenance 292.75 292.75 299.25 302.75 Total 634.00 634.00 641.00 648.00 Note: The 7 FTE positions to be added in FY 09/10 have not been determined yet. For budget purposes,the positions and associated costs will actually be shown within the Human Resources Division of the Administrative Services Department. Book Page 35 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