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
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p1° ''1`3b1i ADMINISTRATION COMMITTEE
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Finance, Human Resources and Information Technology
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"�0 Vd ORANGE COUNTY SANITATION DISTRICT
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WEDNESDAY, MAY 14, 2008 - 5:00 P.M.
ME.. DISTRICT'S ADMINISTRATIVE OFFICES
a,annm 10844 ELLIS AVENUE
a:.la FOUNTAIN VALLEY, CALIFORNIA 92708
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A regular meeting of the Administration Committee of the Orange
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County Sanitation District will be held at the above location, date
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and time.
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Ts maintain worldcless leatlership in wasrewa[er and waw,resource menagemen:.
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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