Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
2008-06 ADM
MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Thursday, June 12, 2008, at 6:00 P.M. A meeting of the Administration Committee of the Orange County Sanitation District was held on June 12, 2008, at 6:00 p.m., in the Sanitation District's Administrative Office. (2) Following the Pledge of Allegiance, a quorum was declared present, as follows: ADMINISTRATION COMMITTEE STAFF PRESENT: MEMBERS: Jim Ruth, General Manager DIRECTORS PRESENT: Bob Ghirelli, Assistant General Manager Mark Waldman, Chair Ed Torres, Director of Technical Services Phil Luebben, Vice Chair Lorenzo Tyner, Director of Finance and Bill Dalton Administrative Services Rich Freschi Mike White, Controller Don Hansen Lille Kovac, Committee Secretary Darryl Miller Rich Castillon Joy Neugebauer Norbert Gala Christina Shea Randy Kleinman Jim Winder Jeff Reed Jim Ferryman, Board Chair Doug Juanita Skillman Davert, Board Vice Chair OTHERS PRESENT: DIRECTORS ABSENT: Brad Hogin, General Counsel Jon Dumitru Debby Cherney Chris Norby Sal Tinajero (3) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. 7 jEL�p4E p7�F{EpgEp�gFp OMNOECW�NRA 0 DISIHICT (4) PUBLIC COMMENTS There were no public comments. JUN 25 2000 (6) REPORT OF THE COMMITTEE CHAIR Chair Waldman did not give a report. (6) REPORT OF THE GENERAL MANAGER Director of Technical Services, Ed Torres, reported that the Sanitation District received an Administrative Civil Liability Complaint from the Santa Ana Regional Water Quality Control Minutes of the Administration Committee June 12, 2008 Page 2 Board for the discharge of approximately 28 million gallons of treated and disinfected effluent to the short outfall during a repair activity on April 29, 2006. This item will be submitted to the June Board meeting for approval of settlement agreement. (7) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES Lorenzo Tyner, Director of Finance and Administrative Services, distributed the Sanitation District's investment policy approved in 2007 for the committee members to review for revisions and discussion at a future Administration Committee meeting. Mr. Tyner also reported that an RFP is in process for a bond remarketing agent and will submit a recommendation for approval in the near future. (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 May 14, 2008 meeting of the Administration Committee. b. ADM08-16 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 2 to the Agreement with OCB Reprographics, Inc., for reproduction of plans, photocopying and related services, extending the contract period from July 1, 2008 to December 31, 2008, for an additional amount of$100,000, increasing the total amount not to exceed $425,000. C. ADM08-17 MOVED, SECONDED AND DULY CARRIED: Approve a purchase order contract with Hewlett Packard, for the Purchase of Fifty (50) Cisco POE Switches, Specification No. E-2008-378BD, for an amount not to exceed $170,019. d. ADM08-18 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to: 1) Renew the Sanitation District's Excess General Liability Insurance Program for the period July 1, 2008 through June 30, 2009, in an amount not to exceed$370,525; 2) Renew the Sanitation District's Excess Workers' Compensation Insurance for the period July 1, 2008 through June 30, 2009, with the California State Association of Counties Excess Insurance Authority, at a rate not to exceed .0030 (estimated premium of$175,998 based on current payroll)' Minutes of the Administration Committee June 12, 2008 Page 3 3) Renew the Sanitation District's All-Risk Property and Flood for the period July 1, 2008 through June 30, 2009, in an amount not to exceed $469,100; and, 4) Renew the Sanitation District's Boiler&Machinery Insurance Program for the period July 1, 2008 through June 30, 2009, in an amount not to exceed $17,000. e. ADM08-19 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to adopt Resolution No. OCSD 08-XX, Establishing Use Charges for the Fiscal Year 2008-09 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. END OF CONSENT CALENDAR (10) ACTION ITEMS a. ADM08-20 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve proposed Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 2008-09 and 2009-10 as follows: 2008-09 2009-10 Net Operations, Maintenance &Working Capital $146,771,180 $154,038,030 Worker's Compensation Self Insurance 490,000 535,000 General Liability and Property Self-Insurance 1,506,200 1,606,200 Net Capital Improvement Program 373,657,000 228,907,000 Debt/COP Service 74,623,000 84,297,030 Intra-District Joint Equity Purchase/Sale 3,961,700 (2,099,300) TOTAL $6n1.009.090 $d67.2S3.960 After Mr. Tyner presented a detailed overview of the proposed two-year budget, there was discussion about the possible Impacts from the State Budget and its effect on the Sanitation District's budget. Mr. Tyner indicated that until the State Budget is finalized and adopted, it is unknown how the Sanitation District and ratepayers would be adversely affected if property tax revenues are reduced by the State. (11) INFORMATIONAL ITEMS No items were considered. (12) CLOSED SESSION There was no closed session. > MidUtes of the Administration Committee June 12, 2008 Page 4 (13) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Board Vice Chair and Chair Elect for 2008/09 Doug Davert announced that Director Bill Dalton will be leaving the Administration Committee and appointed as Vice Chair of the Operations Committee. Director Freschi announced his departure from the OCSD Board of Directors, as he was elected to the Serrano Water Board. (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 6:37 p.m. The next regular Administration Committee meeting is scheduled for July 9, 2008, at 5:00 p.m. Submitted by: L�- 'Eilia I ovac Committee Secretary Distributed at the Proposed Budget FY 08-09 and FY 09-10 Administration Committee June 12, 2008 aIOW Meeting Proposed Budget for FY 08-09 and FY 09-10 a1V SAN, 9olFctANN inE 'Ea�SP°aF�2 Orange County Sanitation District June 12, 2008 Highlights of the Proposed Budget ♦ Budget Outlays ♦ FY 07-08 Budget = $513 million ♦ FY 08-09 Budget = $601 million ♦ FY 09-10 Budget = $467 million ♦ Revised Capital Improvement Program (CIP) ♦ 23% increase in FY 08-09 ♦ 39% decrease in FY 09-10 ♦ Increased Staffing Levels — 1% per year, 641 and 648 FTEs ♦ Strong Financial Positioning —AAA & Aa Bond Ratings ♦ Two-Year Budget — Annual Updates Proposed Budget FY 08.09 and FY 09.10 June 12, 2008 Additional Revenue and Debt Financing are Required to Support Needed Capital Improvements Intlows: FY 08-09 FY 09-10 Fees&Charges $201 M (45%) $262 M (54%) General Income $103 M (19%) $102 M (21%) Debt Proceeds $200 M (36%) $120 M (25%) Total Revenues $566 M $484 M Outlays: FY 08-09 FY 09-10 CIP $378 M (63%) $227 M (49%) Debt Service $ 74 M (12%) $ 84 M (18%) Treatment&Disposal $149 M (25%) $156 M (33%) Total Outlays $601 M $467 M Sources of Funds General Income Zer $93 M Fees&Charges )36?%/ $266M General Fees &Charges 55% Income $263 M $98 M -` 47% Debt 20% $ Debt Proceeds $120 M 25% FY 08-09 FY 09-10 Total: S556 Million Total: $484 Million ' Proposed Budget FY 08-09 and FY 09-10 June 12,2008 Most OCSD Revenue is Related to User Fees FY 08-09 FY 09-10 General User Fees $ 192 M $ 211 M Permit User Fees $ 9 M $ 10 M Interagency Sewer Charges $ 40 M $ 22 M Capital Facilities Capacity $ 22 M $ 23 M Charges Total Fees & Charges $ 263 M $ 266 M Most Non-Fee Related Revenues Come from Property Taxes FY 08-09 FY 09-10 Property Tax $ 65 M $ 68 M Interest $ 19 M $ 19 M Other $ 9 M $ 11 M Total Non-Fee Related Revenue $ 93 M $ 98 M Proposed Budget FY 08-09 and FY 09-10 June 12, 2008 Outlays Decrease of Over $100 Million in FY 09-10 Due to Reductions in CIP FY 08-09 FY 09-10 CIP $ 378 M (63%) $ 227 M (4s%) Debt Service $ 75 M (1z ) $ 84 M (is%) Treatment and Disposal $ 148 M (ss%) $ 156 M (33%) Total Outlays $ 601 M $ 467 M ' Proposed Budget FY 08-09 and FY 09-10 June 12, 2008 The Capital Improvement Program Can Be Divided into Four Distinct Areas FY 08-09 FY 09-10 1. Secondary Treatment $ 170 M $ 92 M 2. Replacement/ Rehabilitation $ 122 M $ 100 M 3. Additional Capacity $ 67 M $ 27 M 4. Support $ 15 M $ 10 M ' Total $ 374 M $ 229 M Excludes Intl-District JdM Equity Pumhase(Sale). More Than $148 Million is Allocated to Treatment and Disposal Expenses FY 08-09 FY 09-10 CIP $ 378 M (e3%) $ 227 M (4e%) Debt Service $ 75 M (1z%) $ 84 M (te%) Treatment and Disposal $ 148 M (zs%) $ 156 M (33%) Total Expenditures $ 601 M $ 467 M Proposed Budget FY 08-09 and FY 09-10 June 12, 2008 Total Treatment and Disposal Expenses Increase $23 Million from FY07-08 to FY09-10 + 1z° + 50o S149 M $156 M S133 M FY 07-08 FY 08-09 FY 09-10 Projected Proposed Proposed Total Operating Costs Will Increase an Average of 8.8% from $131 to $154 Over 2 Years Revised Expenses by Category Budget Protected Proposed Proposed (Operating Casts Only,$Millions) FY 07-08 FY Y7-08 FY 08.09 FY 09.10 Salaries and Benefits $ 79.9 $ 79.4 $ 83.8 $ 90.0 Contractual Services 21.4 19.9 28.5 28.9 Operating Expenses 23.1 17.8 22.4 23.7 Repairs and Maintenance 10.3 10.7 11.3 10A Utilities 9.9 8.4 9.7 10.2 Professional Services 3.7 2.8 3.8 2.9 Other Materials.Supplies and Services 3.7 2.9 2.6 2.8 Tratnings and Meetings 1.5 1.3 1.4 1.4 Research and Monitoring 1.6 1.1 1.4 1 A Administrable Expenses 1.5 1.4 1,3 1.3 Printing and Publications 0.7 0.6 O] 0.7 Capital Grants to Member Agencies 2.5 2 A 0.3 2.1 Coal Allocation (19.8) (17.7) (20.5) (21.5) Tolel Operating Expenses $140.0 $131.0 $146.7 $154.0 Proposed Budget FY 08-09 and FY 09-10 June 12, 2008 The Majority of the Expenditure Increase Will Occur in Three Categories Category FY 08-09 FY 09- 110 1. Salaries and Benefits $ 4.4 M $ 6.1 M 2. Contractual Services $ 8.6 M $ 0.4 M s. Operating Expenses $ 4.6 M $ 1.4 M Existing Collective Bargaining Agreements and a 1% Increase in Staffing Will Increase Salaries and Benefit Costs FY 08-09 FY 09-10 Wages + $ 2.4M +$ 4.0M Benefits + $ 2.0 M +$ 2.1 M Total Salaries + $ 4.4 M +$ 6.1 M & Benefits Proposed Budget FY 08-09 and FY 09-10 June 12, 2008 Biosolids Hauling Costs Continue to Rise Increasing Contractual Services Budget FY 08-09 FY 09-10 Solids Removal + $ 5.6 M + $ 1.9 M Other Waste Disposal + $ 2.7 M < $ 1.5 M > Other + $ 0.3M — Total Contractual Services + $ 8.6 M + $ 0.4 M Costs of Chemicals Required to Treat Effluent to Current Levels Continue to Increase FY 08-09 FY 09-10 Chemicals +$ 3.3 M + $ 0.4 M (includes disinfection&odor control) Chemical Coagulants + $ 1.2 M + $ 0.9 M Other +$ 0.1 M + $ 0.1 M Total Operating +$ 4.6 M + $ 1.4 M Expenses Adm Distributat. ed at the _ a�o8 n Committee Meeting IA 'F ORANGE COUNTY SANITATION DISTRICT INVESTMENT POLICY STATEMENT Proposed for Review and Approval By Administration Committee On September 12, 2007 And for Adoption By Board of Directors On September 26, 2007 TABLE OF CONTENTS Section TOPIC Page 1.0 Policy...................................................................................... 1 2.0 Scope..................................................................................... 1 3.0 Standard of Prudence ............................................................ 1 4.0 Investment Objectives............................................................2 5.0 Delegation of Authority...........................................................2 6.0 Ethics and Conflicts of Interest...............................................3 7.0 Authorized Financial Dealers and Institutions ........................3 8.0 Authorized and Suitable Investments..................................... 5 9.0 Collateralization......................................................................9 10.0 Safekeeping and Custody......................................................9 11.0 Diversification.........................................................................9 12.0 Maximum Maturities ..............................................................11 13.0 Internal Control......................................................................11 14.0 Performance Objectives and Benchmarks............................12 15.0 Reporting...............................................................................12 16.0 Investment Policy Adoption and Revision .............................13 Appendix A. Summary of Investment Authorization B. Treasury Management Procedures C. Investment Manager Certification D. Investment Pool Questionnaire (LAIF) E. Board Resolution No. OCSD-05-21, Authorizing the DistrlcPs Treasurer to Invest and/or Reinvest District Funds, and Adopting Investment Policy and Performance Benchmarks F. Monthly & Quarterly Investment Program Monitoring Reports G. Sections of the California Government Code Pertinent to Investing Public Funds H. Glossary of Investment Terms ORANGE COUNTY SANITATION DISTRICT INVESTMENT POLICY STATEMENT 1.0 Policy: It is the policy of the Orange County Sanitation District(OCSD)to invest public funds in a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating expenditure needs, achieving a reasonable rate of return and conforming to all state and local statutes governing the investment of public funds. 1.1. This Investment Policy is set forth by OCSD for the following purposes: 1.1.1. To establish a clear understanding for the Board of Directors, OCSD management, responsible employees and third parties of the objectives, policies and guidelines for the investment of the OCSD's idle and surplus funds. 1.1.2. To offer guidance to investment staff and any external investment advisors on the investment of OCSD funds (see Appendix "A"). 1.1.3. To establish a basis for evaluating investment results. 1.2. OCSD establishes investment policies which meet its current investment goals. OCSD shall review this policy annually, and may change its policies as its investment objectives change. 2.0 Scope: This Investment Policy applies to all financial assets of OCSD; except for the proceeds of OCSD's capital projects financing program, which are invested in accordance with provisions of their specific bond indentures; and such otherfunds excluded by law or other Board-approved covenant or agreement. These funds are accounted for by OCSD as Enterprise Funds as represented in OCSD's Comprehensive Annual Financial Report. 3.0 Standard of Prudence: The standard of prudence to be used by OCSD internal staff, and any authorized investment advisor(s), shall be as described in Section 53600.3 of the California Government Code as follows: Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence underthe circumstances then prevailing, including, but not Page 1 of 14 limited to,the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like alms, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, Investments may be acquired as authorized by law. 4.0 Investment Objectives: The primary objectives of OCSDs investment activities, in priority order, and as described In Section 53600.5 of the California Government Code, shall be: 4.1 Safety: The safety and preservation of principal is the foremost objective of the Investment program of OCSD. Investments shall be selected in a manner that seeks to ensure the preservation of capital in OCSD's overall portfolio. This will be accomplished through a program of diversification, more fully described in Section 11.0, and maturity limitations, more fully described in Section 12.0, in order that potential losses on Individual securities do not exceed the income generated from the remainder of the portfolio. 4.2 Liquidity:The Investment program will be administered in a manner that will ensure that sufficient funds are available for OCSD to meet its reasonably anticipated operating expenditure needs. 4.3 Return on Investments: The OCSD Investment portfolio will be structured and managed with the objective of achieving a rate of return throughout budgetary and economic cycles, commensurate with legal, safety, and liquidity considerations. 5.0 Delegation of Authority: 5.1 Authority to manage OCSD's investment program is derived from the California Government Code Sections 53600 at seq. and Sections 53635 at seq. The Board of Directors hereby delegates management responsibility for the OCSD investment program to It's Director of Finance/Treasurer,who shall establish written procedures for the operation of the investment program,consistent with this Policy. The Controller/Assistant Treasurer shall be responsible for day-to-day administration, monitoring, and the development of written administrative procedures for the operation of the investment program, consistent with this Policy. The current treasury management procedures are presented in Appendix "B." No person may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the Treasurer. The Treasurer shall be responsible for all transactions undertaken by OCSD internal staff, and shall establish a system of controls to regulate the activities of internal staff and external investment advisors engaged in accordance with Section Page 2 of 14 5.3. 5.2 The administrative procedures for the operation of OCSD's investment program will provide for, but not be limited to, the following: 5.2.1 Formats for monthly and quarterly reports to the Finance, Administration and Human Resources Committee, and the Board of Directors. 5.2.2 Compliance with generally accepted accounting principles of the Government Accounting Standards Board. 5.2.3 Establishment of benchmarks for performance measurement. 5.2.4 Establishment of a system of written internal controls. 5.2.5 Establishment of written procedures for competitive bids and offerings of securities that may be purchased or sold by internal OCSD staff. 5.2.6 Establishment of a Desk Procedures Manual for treasury operations and management. 5.3 The Board of Directors of OCSD may, in its discretion, engage the services of one or more registered investment advisors to assist in the management of OCSD's investment portfolio in a manner consistent with OCSD's objectives. Such external investment advisors, which shall be selected through a competitive process, shall be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such advisors must be registered under the Investment Advisers Act of 1940, or be exempt from such registration. 6.0 Ethics and Conflicts of Interest: 6.1 Officers and employees of OCSD involved in the investment process shall refrain from personal business activities that could conflict with proper execution of OCSD's investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions that conduct business within OCSD's boundaries, and they shall further disclose any large personal financial/investment positions, the performance of which could be related to the performance of positions in OCSD's portfolio. 7.0 Authorized Financial Dealers and Institutions: 7.1 For investment transactions conducted by OCSD internal staff,the Treasurer will maintain a list of financial institutions authorized to provide investment Page 3 of 14 services to OCSD, including "primary"or regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital rule), and Federal or State of California chartered banks. No public deposit shall be made except in a qualified public depository as established by State law. All financial institutions which desire to become qualified bidders for investment transactions with OCSD must supply the following for evaluation by the Treasurer: 7.1.1. Audited financial statements for the institution's three (3) most recent fiscal years. 7.1.2. A statement, in the format prescribed bythe Government Finance Officers Association (GFOA), certifying that the institution has reviewed OCSD's Investment Policy and that all securities offered to the Districts shall comply fully and in every instance with all provisions of the California Government Code and with this Investment Policy. The current statement is presented in Appendix "C." 7.1.3. A statement describing the regulatory status of the dealer,and the background and expertise of the dealer's representatives. Selection of financial institutions, broker/dealers, and banks authorized to engage in transactions with OCSD shall be made through a competitive process. An annual review of the financial condition of qualified institutions will be conducted by the Treasurer. 7.2 Selection of broker/dealers used by external investment advisors retained by OCSD, shall be in compliance with contract provisions between OCSD and any external investment advisors,and shall be in substantially the following form: Use of Securities Brokers: Neither the Investment Advisor nor any parent, subsidiary or related firm shall act as a securities broker with respect to any purchases or sales of securities which may be made on behalf of OCSD, provided that this limitation shall not prevent the Investment Advisor from utilizing the services of a securities broker which is a parent, subsidiary or related firm, provided such broker effects transactions on a "cost only" or "nonprofit" basis to itself and provides competitive execution. The Investment Advisor shall provide the Districts with a list of suitable independent brokerage firms(including names and addresses)meeting the requirements of Government Code Section 53601.5, and, unless otherwise directed by OCSD, the Investment Advisor may utilize the service of any of such independent securities brokerage firms it deems appropriate to the extent that such firms are competitive with respect to price of services and execution. Page 4 of 14 8.0 Authorized and Suitable Investments: All investments shall be made in accordance with the California Government Code including Sections 16429.1 etseq., 53600 etseq., and 53684, and as described within this Investment Policy. Permitted investments under this Policy shall include: 8.1 Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by the US Government, a federal agency, or a US Government-sponsored enterprise pursuant to Section 53601 (a) of the California Government Code. Investment in mortgage-backed bonds and CMOs is not governed by this Section 8.1, even if such bonds are issued by agencies of the US Government. See Section 8.2 for conditions of purchase of mortgage- backed securities. See Section 8.12 for conditions of purchase of CMOs. 8.2 Mortgage-backed securities issued by an agency of the US Government, which are backed by pools of mortgages guaranteed by the full faith and credit of the U.S. Government,or an agency thereof. Purchase of mortgage derivatives, which include interest-only payments (lOs) and principal-only payments (POs); inverse floaters, and RE-REMICs (Real Estate Mortgage Investment Conduits), is hereby prohibited. 8.3 Commercial paper of "prime" quality and rated "P1" by Moodys Investor Services(Moody's), and rated"Al" by Standard&Poor's Corporation(S&P), and issued by a domestic corporation organized and operating in the United States with assets in excess of $500 million and having a rating of "A" or better on its long-term debt as provided by Moody's or S&P. Purchases of eligible commercial paper may not exceed 270 days to maturityfrom the date of purchase. Purchases of commercial paper shall not exceed 15% of the market value of the portfolio, except that a maximum of 30% of the market value of the portfolio may be invested in commercial paper, so long as the average maturity of all commercial paper in the portfolio does not exceed 31 days. No more than 5% of the market value of the portfolio, or 10% of the issuer's outstanding paper, may be invested in commercial paper issued by any one (1) eligible corporation. 8.4 Banker's acceptances issued by institutions, the short-term obligations of which are rated a minimum of TV by Moodys, or "Al" by S&P provided that: (a) the acceptance is eligible for purchase by the Federal Reserve System; (b)the maturity does not exceed 180 days; (c)no more than 40%of the total portfolio may be invested in banker's acceptances; and (d)no more than 30% of the total portfolio may be invested in the bankers acceptances of any one (1) commercial bank. 8.5 Medium term (or corporate) notes of a maximum of five(5)years maturity issued by corporations organized and operating within the United States, or issued by depository institutions licensed by the United States, or any state, and operating within the United States with assets in excess of$500 million, and which Is rated In a rating category of"A" or better on its long-term debt Page 5 of 14 as provided by Moody's or S&P. Notes eligible for investment under this section shall be rated at least "A3" or better by Moody's,or"A-"or better by S&P. If, at the time of purchase, an eligible note is rated in a rating category of "A" or better by only one rating agency, the note shall also be rated at least "BBB" by the other rating agency. If, after purchase, the rating of an eligible note In a rating category of"A"or better, is downgraded to"BBB,"the external investment advisor shall notify the District of the downgrade, and shall present an analysis and recommendations as to the disposition of the note consistent with the investment objectives of this Investment Policy. The above restrictions pertain to the "direct issuer" and do not extend to the parent corporation of the direct issuer. No more than 35% of the portfolio may be Invested In both medium term notes, as described here in 8.5, and notes, bonds, or other obligations, as described in 8.6. 8.6 Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by California Government Code Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Cal fomia Government Code Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted. No more than 35%of the portfolio may be invested in securities described in 8.5 and 8.6. 8.7 Shares of mutual funds investing in securities permitted under this policy and under Section 53601 (k)of the California Government Code. Such funds must either. (1) attain the highest ranking, or the highest letter and numerical rating, provided by not less than two of the three largest nationally recognized rating services; or(2) have an Investment Advisor registered with the Securities and Exchange Commission with not less than five (5)years of experience investing in the securities and obligations authorized under this Policy and under California Government Code Section 53601, and with assets under management in excess of$500 million. The purchase price of shares of beneficial interest purchased pursuant to this policy, and the California Government Code may not include any commission that the companies may charge, and shall not exceed 15% of the District's surplus money that may be invested pursuant to this section. However, no more than 10% of the District's surplus funds may be invested In shares of beneficial interest of any one (1) mutual fund pursuant to this section. 8.8 Certificates of deposit: 8.8.1 Secured (collateralized) time deposits issued by a nationally or state-chartered bank or state or federal savings and loan association, as Page 6 of 14 defined by Section 5102 of the Califomia Financial Code, and having a net operating profit in the two(2)most recently completed fiscal years. Collateral must comply with Chapter 4, Bank Deposit Law, Section 16500 at seq., and Chapter 4.5, Savings and Loan Association and Credit Union Deposit Law, Section 16600 at seq., of the California Govemment Code. 8.8.2 Negotiable certificates of deposit(NCDs)issued by a nationally or state-chartered bank or state of federal savings and loan association, as defined by Section 5102 of the California Financial Code; and which shall have a rating of"A"or better on its long-term debt as provided by Moody's or S&P;orwhich shall have the following minimum short-tern ratings by at least two (2) rating services: "131" for deposits by Moody's, "All" for deposits by S&P, or comparably rated by a nationally recognized rating agency which rates such securities; or as otherwise approved by the District's Board of Directors. 8.8.3 To be eligible to receive local agency money, a bank, savings association,federal association,orfederally insured individual loan company shall have received an overall rating of not less than"satisfactory'in its most recent evaluation by the appropriate federal financial supervisorial agency of its record of meeting the credit needs of California's communities, including low and moderate income neighborhoods, pursuant to Section 2906 of Title 12 of the United States Code. 8.9 Taxable or tax-exempt municipal bonds issued by the State of California or its subdivisions. Such securities must be rated "AY or higher by Moody's, or"A-"or higher by S&P; or as otherwise approved by the Districts' Board of Directors. 8.10 The State of California Local Agency Investment Fund(LAIF). The LAW is an investment alternative for California's local govemments and special districts managed by the State Treasurer's Office. LAIF is more fully described in the Glossary(See Appendix"H.") The District shall use LAIF as a short-term cash management facility. Investment of District funds in LAIF shall be subject to investigation and due diligence prior to investing,and on a continual basis to a level of review pursuant to Section 3.0, Standard of Prudence, of this Policy. See Appendix "D" for investment pool questionnaire. 8.11 The Orange County Treasurer's Money Market Commingled Investment Pool (OCCIP). The OCCIP is a money market investment pool managed by the Orange County Treasurer's Office. OCCIP is more fully described in the Glossary. (See Appendix"H.") The District has no funds invested in OCCIP at this time. Investment of District funds in OCCIP would be subject to investigation and due diligence priorto investing, and on a continual basis to a level of review pursuant to Section 3.0, Standard of Prudence, of this Policy. Page 7 of 14 8.12 Collateralized mortgage obligations(CMOs)issued by agencies of the US Government which are backed by pools of mortgages guaranteed by the full faith and credit of the U.S. Government, or an agency thereof, and asset- backed securities rated "Aaa" by Moody's and "AAA" by S&P. Selection of mortgage derivatives, which include interest-only payments (IOs) and principal-only payments (POs); inverse floaters, and RE-REMICS (Real Estate Mortgage Investment Conduits), is hereby prohibited. Securities eligible for purchase under this Section 8.11 shall be issued by an issuer having a rating on its unsecured long-term debt of"A"or higher. Combined purchases of mortgage-backed securities, CMOs and asset-backed securities as authorized under within Section 8.0, may not exceed 20%of the total Long-Term Operating Monies portfolio. 8.13 Repurchase agreements provided that: 8.13.1 All repurchase agreements shall be collateralized with securities eligible for purchase under this Policy. In order to anticipate market changes and to provide a level of security for all repurchase agreement transactions, collateralization shall be maintained at a level of at least 102%of the market value of the repurchase agreements, and shall be adjusted no less than weekly. 8.13.2 All repurchase agreements must be the subject of a Master Repurchase Agreement between OCSD and the provider of the repurchase agreement. The Master Repurchase Agreement shall be substantially in the form developed by The Bond Market Association. 8.14 Reverse repurchase agreements provided that: 8.14.1 No more than five percent (5%) of OCSD's portfolio shall be invested in reverse repurchase agreements, and there shall be no long-term reverse repurchase agreements unless otherwise authorized bythe Districts' Board of Directors. 8.14.2 The maximum maturity of reverse repurchase agreements shall be ninety(90) days. 8.14.3 Reverse repurchase agreements shall mature on the exact date of a known cash flow which will be unconditionally available to repay the maturing reverse repurchase agreement. 8.14.4 Proceeds of reverse repurchase agreements shall be used solely to supplement portfolio income or to provide portfolio liquidity, and shall not be used to speculate on market movements. 8.14.5 All reverse repurchase agreements must be the subject of a Master Repurchase Agreement between OCSD and the provider of the Page 8 of 14 reverse repurchase agreement. The Master Repurchase Agreement shall be substantially in the form developed by The Bond Market Association. 8.15 Sales of OCSD-owned securities in the secondary market may incur losses in order to improve the risk or return characteristics of the portfolio, to prevent anticipated further erosion of principal, or when trading for securities that result in an expected net economic gain to OCSD. 8.16 If securities owned by the OCSD are downgraded by either Moody's or S&P to a level below the quality required by this Investment Policy, it shall be OCSD's policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the portfolio will be monitored and reported monthly to the OCSD General Manager, the Finance, Administration and Human Resources Committee and Board of Directors. 9.0 Collateralization: Generally, the value to secure deposits under this Policy shall comply with Section 53652 of the California Government Code. Collateralization will be required for secured time deposits, as more fully described in Section 8.7.1; and repurchase agreements, as more fully described in Section 6.12.1. Collateral will always be held by an independent third- party, as more fully described in Section 10.1. The right of collateral substitution is granted. 10.0 Safekeeoino and Custody: 10.1 All securities transactions, including collateral for repurchase agreements, entered into by, or on behalf of OCSD, shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by OCSD's third-party custodian bank, which shall be selected through a competitive process, or that agent's representative, or in the agent's account at the Federal Reserve Bank, or within clearing corporations in the U.S., and evidenced by book entry statements. 11.0 Diversification: OCSD will diversify its investments by security type, issuer, and financial institution in accordance with the following: 11.1 There is no limit on investment insecurities issued by or guaranteed by the full faith and credit of the U.S. government. 11.2 No more than 20% of the portfolio maybe invested insecurities of a single agency of the U.S. government, which does not provide the full faith and Page 9 of 14 credit of the U.S. government. 11.3 No more than 5% of the portfolio may be invested in securities of any one issuer,otherthan the U.S. government or its agencies. Investment in mutual funds is not governed by this Section 11.3. See Section 11.8 for conditions of purchase of mutual funds. 11.4 No individual holding shall constitute more than 5% of the total debt outstanding of any issuer. 11.5 No more than 40%of the portfolio may be Invested in bankers acceptances. 11.6 No more than 15% of the portfolio may be invested in commercial paper, except that 30% of the portfolio may be so invested so long as the average maturity of all commercial paper in the portfolio does not exceed 31 days. 11.7 No more than 30% of the portfolio may be invested in medium-term (corporate) notes. 11.8 No more than 15% of the portfolio may be invested in mutual funds. However, no more than 10% of the District's portfolio may be invested in shares of beneficial interest of any one (1) mutual fund. 11.9 No more than 30%of the portfolio may be invested In negotiable certificates of deposit. 11.10 No more than 10% of the portfolio may be invested in eligible municipal bonds. 11.11 No more than 20% of the Long Term Operating Monies portfolio may be invested in a combination of mortgage-backed securities, CMOs and asset- backed securities. Mortgage-backed securities, CMOs and asset-backed securities may only be purchased by the Districts'extemal money managers, Pacific Investment Management Company (PIMCO), with prior Board approval(authorized by Board Minute Order,January 22, 1997), and may not be purchased by the District's staff. 11.12 No more than the lesser of 15% of the portfolio or the statutory maximum may be invested in LAIR 11.13 No more than 15% of the portfolio may be invested in the Orange County Investment Pool. 11.14 No more than 20% of the portfolio may be invested in repurchase agreements. 11.15 No more than 5% of the portfolio may be invested in reverse repurchase agreements. Page 10 of 14 12.0 Maximum Maturities: To the extent possible, OCSD will attempt to match its investments with reasonably anticipated cash flow requirements. The Treasurer shall develop a five-year cash flow forecast, which shall be updated quarterly. Based on this forecast, the Treasurer shall designate, from time-to-time, the amounts to be allocated to the investment portfolio. OCSD monies invested in accordance with this Policy are divided into two (2)categories: 12.1 Liquid Operating Monies. Funds needed for current operating and capital expenditures are known as Liquid Operating Monies. 12.1.1 The maximum final stated maturity of individual securities in the Liquid Operating Monies account portfolio shall be one(1)year from the date of purchase. 12.1.2 The average duration of the Liquid Operating Monies account portfolio shall be recommended by the Treasurer based on the Districts'cash flow requirements, but may never exceed 180 days. 12.2 Long Term Operating Monies. Funds needed for longerterm purposes are known as the Long Term Operating Monies. 12.2.1 Except for the purchase of securities by the District's external money manger, PIMCO, the maximum final stated maturity of individual securities in the Long Term Operating Monies account portfolio shall be five (5)years from the date of purchase. PIMCO may purchase any securitythat is permitted under Section 8.0 of this policy, including those which may have a stated maturity of more than five(5)years from the date of purchase when. In the opinion of PIMCO, such an investment meets the investment objectives of this portfolio and the duration requirements are met below. 12.2.2 The duration of the Long Term Operating Monies account portfolio shall be recommended by the Treasurer based on the Districts'five- year cash flow forecast, but may never exceed 60 months. 12.2.3 The duration of the Long Term Operating Monies account portfolio shall never exceed 120% of the duration as established in accordance with Section 12.2.2. 12.2.4 The duration of the Long Term Operating Monies account portfolio shall never be less than 80% of the duration as established in accordance with Section 12.2.2 13.0 Internal Control: 13.1 The Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. The current treasury management procedures are presented in Appendix "B." Page 11 of 14 14.0 Performance Obiectives and Benchmarks: 14.1 Overall objective. The investment portfolio of OCSD shall be designed with the overall objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and reasonably anticipated cash flow needs. 14.2 The Liquid Operating Monies. The investment performance objective for the Liquid Operating Monies shall be to earn a total rate of return over a market cycle which exceeds the return on a market Index approved by the Finance, Administration and Human Resources Committee, and by the District's Board of Directors,when the duration of the portfolio is established. This market Index is more fully described in Board Resolution No. OCSD-00-16 (see Appendix "E"). 14.3 The Long Term Operating Monies. The investment performance objective for the Long Term Operating Monies shall be to earn a total rate of return over a market cycle which exceeds the return on a market index selected by the Finance,Administration and Human Resources Committee and approved by the Districts' Board of Directors, when the duration of the portfolio is established. This market index is more fully described in Board Resolution No. OCSD-00-16 (See Appendix "E"). 15.0 Reporting: 15.1 Quarterly investment reports shall be submitted by the Treasurer to the Finance, Administration and Human Resources Committee which shall forward the reports to the District's Board of Directors.These reports shall be submitted to the Finance,Administration and Human Resources Committee within 60 days of the end of each quarter. The quarterly reports shall provide clear and concise status information on the District's portfolios at the end of each reporting period, including performance measures using the benchmarks described in Section 14.0 of this Investment Policy. Sample monthly and quarterly reports are presented in Appendix"F."These reports shall contain listings of Individual securities held at the end of each reporting period,and shall disclose, at a minimum,the following information about the risk characteristics of OCSD's portfolio: 15.1.1 Cost and accurate and complete market value of the portfolio. 15.1.2 Modified duration of the portfolio compared to Benchmark. 15.1.3 Dollar change in value of the portfolio for a one-percent (1%) change in interest rates. 15.1.4 Percent of portfolio Invested in reverse repurchase agreements, Page 12 of 14 and a schedule which matches the maturity of such reverse repurchase agreements with the cash flows which are available to repay them at maturity. 15.1.5 For the Liquid Operating Monies account only, the percent of portfolio maturing within 90 days. 15.1.6 Average portfolio credit quality. 15.1.7 Percent of portfolio with credit ratings below "A" by any rating agency, and a description of such securities. 15.1.8 State that all investments are in compliance with this policy and the California Government Code, or provide a listing of any transactions or holdings which do not comply with this policy or with the California Government Code. 15.1.9 Time-weighted total rate of return for the portfolio for the prior three months, twelve months, year to date, and since inception compared to the Benchmark returns for the same periods. 15.1.10 State that sufficient funds are available for OCSD to meet its operating expenditure requirements for the next six months, or if not, state the reasons for the shortfall. 15.2 OCSD's Treasurer shall meet quarterlywith the Finance,Administration and Human Resources Committee to review investment performance, proposed strategies and compliance with this Investment Policy. External investment advisors may be required to attend said meetings at the discretion of the Chairman of the Finance, Administration and Human Resources Committee. 16.0 Investment Policy Adoption and Revision: 16.1 The Investment Policy of OCSD shall be reviewed by the Finance, Administration and Human Resources Committee and shall be adopted by resolution of the Board of Directors of OCSD. The Policy shall be reviewed on an annual basis in accordance with California Government Code Section 53646, and this Investment Policy, by the Finance, Administration and Human Resources Committee, which shall recommend revisions, as appropriate,to the Board of Directors. Any modifications made thereto shall be approved by the Board of Directors. 16.2 The Finance,Administration and Human Resources Committee shall serve as the oversight committee for the District's Investment program and shall adopt guidelines for the ongoing review of duration, quality and liquidity of the District's portfolio. Page 13 of 14 APPENDIX "A" SUMMARY OF INVESTMENT AUTHORIZATION INTERNAL AND EXTERNAL MANAGERS SHORT TERM OPERATING FUND INVESTMENT INTERNAL EXTERNAL U.S. Treasuries OK OK Federal Agencies Fixed coupon, fixed mat. OK Mortgage-backed NO NO Commercial paper OK OK Banker's Accept. OK OK Medium Term Notes Fixed coupon, fixed mat.* OK Mutual Funds Money Market Only*" Money Market Only Negotiable CDs Fixed coupon, fixed mat.* OK Municipal Bonds OK" NO LAIF OK NO OCIP OK NO CMOs NO NO Asset-backed NO NO Repurchase Agree. OK OK Reverse Repos OK* OK LONG TERM OPERATING PORTFOLIO INVESTMENT INTERNAL EXTERNAL U.S. Treasuries OK OK Federal Agencies Fixed coupon, fixed mat. OK Mortgage-backed NO OK Mutual Funds Money Market Only** OK Negotiable CDs Fixed coupon, fixed mat.* OK Municipal Bonds OK* OK LAIF OK NO OCIP OK NO CMOs NO With Board Approval Asset-backed NO With Board Approval Repurchase Agree. OK OK Reverse Repos OK* OK "With prior approval of the Finance,Administration and Human Resources Committee. "Using financial institutions approved by the Finance,Administration and Human Resources Committee. GWP.GTATIWA\WHRE1TflEASUXY MGhMI V STMEW FCLICY 00C VWESMLY FMRL.GGC 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 June 12, 2008, was duly posted for public inspection in the main lobby of the Districts' offices on June 5, 2008. IN WITNESS WHEREOF, I have hereunto set my hand this 5� day of June 2008, Lilia Kovac, Committee Secretary Orange County Sanitation District H:\DEnT AGENDAIADMIN COMMITTEERAGENDA CERTIFICATION.DOC b ORANGE COUNTY SANITATION DISTRICT ph.: NOTICE OF MEETING (7141962 E411 fee (114)9R.?t13i9 ADMINISTRATION COMMITTEE ...ad... m.mlw. HI;:; Finance, Human Resources and Information Technology P.0 S. 91?I lnunl. Valley to 52129 B1£i .tfon,add..: "44 Ellin A»,nxx ORANGE COUNTY SANITATION DISTRICT PounLem V++tlllry fT s?7nD In19 �; THURSDAY, JUNE 12. 2008 - 6:00 P.M. ncloo Dkf.. DISTRICT'S ADMINISTRATIVE OFFICES anxexl,,, 10844 ELLIS AVENUE alp+» FOUNTAIN VALLEY, CALIFORNIA 92708 9uxnx nxlY WVVW,OCSD.COM Vat.,y hwnlem Wllxr Pop0'" lM,Mm Wnl» NuntJngbm to Hal.V° u»n A regular meeting of the Administration Committee of the Orange I. Pilau County Sanitation District will be held at the above location, date liw Alnmialx ml+wlaln 9.e.n, and time. Orvnyln Poacnmlx 8xnrx Ana Sxxl 9»zh hYxntvn iunrJn Wlx Pe+M1 YiuYui ILt1x :euntY of Droop .nit.ry Dl.trut. 0"", meu Water DIBtriat. II Nlle NNi V:II To maintain ,.,1d1W.leadership m w.atewatar and water resource management. y NNI q, N iNE EPy\P ADMINISTRATION COMMITTEE MEETING DATES Meeting Date Board Meeting Dates June 12, 2008 June 25, 2008 July 9, 2008 July 23, 2008 August - 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 February25, 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: June 12, 2008 Time: 6:00 p.m. Adjourn: COMMITTEE MEMBERS (14) Mark Waldman Chair Phil Luebben ice Chair Bill Dalton Jon Dumitru Rich Freschi Don Hansen Darryl Miller Joy Neu ebauer Chris Norb Christina Shea Sal Tina'ero Jim Winder James M. Ferryman Board Chair Doug Davert Board Vice Chair OTHERS Brad Ho in, General Counsel STAFF Jim Ruth, General Manager Bob Ghirelli, Assistant General Manager Nick Arhontes, Dir. of Operations & Maintenance Jim Herber , Director of Engineering Ed Torres, Director of Technical Services Lorenzo Tyner, Director of Finance and Administrative Services Lille Kovac, Committee Secretary Jeff Reed, Human Resources and Employee Relations White,Mana er Mike Controller H:WelXWger,daVWmin CommlMea1200810608W2.Roll Gallo= AGENDA REGULAR MEETING OF THE ADMINISTRATION COMMITTEE ORANGE COUNTY SANITATION DISTRICT THURSDAY, JUNE 12, 2008, AT 6:00 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 May 14, 2008, meeting of the Administration Committee. Book Page I June 12, 2008 Page 2 b. ADMOB-16 Recommend to the Board of Directors to approve Amendment No. 2 to the Agreement with OCB Reprographics, Inc., for reproduction of plans, photocopying and related services, extending the contract period from July 1, 2008 to December 31, 2008, for an additional amount of$100.000, increasing the total amount not to exceed $425,000. (Book Page 9) C. ADM08-17 Approve a purchase order contract with Hewlett Packard,for the Purchase of Fifty(50) Cisco POE Switches, Specification No. E-2008-378BD, for an amount not to exceed $170,019. (Book Page 11) d. ADMO8-18 Recommend to the Board of Directors to: 1) Renew the Sanitation District's Excess General Liability Insurance Program for the period July 1, 2008 through June 30, 2009, in an amount not to exceed $370,525. 2) Renew the Sanitation District's Excess Workers' Compensation Insurance for the period July 1, 2008 through June 30, 2009, with the California State Association of Counties Excess Insurance Authority, at a rate not to exceed .0030 (estimated premium of$175,998 based on current payroll). 3) Renew the Sanitation District's All-Risk Property and Flood for the period July 1, 2008 through June 30, 2009, in an amount not to exceed $469,100. 4) Renew the Sanitation District's Boiler& Machinery Insurance Program for the period July 1, 2008 through June 30, 2009, in an amount not to exceed $17,000. (Book Page 12) e. ADM08-19 Recommend to the Board of Directors to adopt Resolution No. OCSD 08-XX, Establishing Use Charges for the Fiscal Year 2008-09 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. (Book Page 16) hMp OF CONSENT CALENDAR f. Consideration of items deleted from Consent Calendar, if any. (10) ACTION ITEMS a. ADM08-20 Recommend to the Board of Directors to approve proposed Operating, Capital, DebttCOP Service and Self-Insurance Budgets for FY 2008-09 and 2009-10 as follows: (Book Page 18) Book Page 2 June 12, 2008 Page 3 2008-09 2009-10 Net Operations, Maintenance &Working Capital $146,771,180 $154,038,030 Workers Compensation Self Insurance 490,000 535,000 General Liability and Property Self-Insurance 1,506,200 1,606,200 Net Capital Improvement Program 373,667,000 228,907,000 Debt/COP Service 74,623,000 84,297,030 Intra-District Joint Equity Purchase/Sale 3,961.700 (2,099,300) TOTAL $601.009.080 $467 283.960 (11) INFORMATIONAL ITEMS (12) CLOSED SESSION j Dudng the course of conducting the business set forth on this agenda as a regular meeting of the Commtttee, i the Chair may convene the Committee in closed session to consider matters of pending real estate negollabons, pending or potential litigation,or personnel matters, pursuant to Government Code sections 54956.8,54956.9, i 54957 or 54957.6,as noted. i j Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) i i 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 j and are not available for public inspection. At such time as final actions are taken by the Committee on any of these subjects,the minutes will m!TARll requi-red disGowres of infortnatlon. 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 July 9, 2008, at 5 p.m. Book Page 3 June 12, 2008 Page 4 Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public Inspection in the office of the Clerk of the Board. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or because there is a need to take immediate action, which need came to the attention of the Committee subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Public Comments: Any member of the public may address the Administration Committee on speck 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 Adioumment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955(posted within 24 hours). Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Notice to Committee Members: For any questions on the agenda or to place any items on the agenda, Committee members should contact the Committee Chair or Clerk of the Board ten days in advance of the Committee meeting. Committee Chair: Mark Waldman (714)827-1969 Committee Secretary: Lilia Kovac (714)593-7124 IkovacRocsd.com General Manager. Jim Ruth (714)593.7110 iMhitiocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rohirelfRocsd.cam Director of Finance and Lorenzo Tyner (714)593-7550 ttVnenaiggsd.com Administra0ve Services Human Resources and Employee Jeff Reed (714)593-7144 keed0ocsd.com Relations Manager H:klepllagenda\Admin Committee12008\W08t03.061208 Admin Agenda.docx Book Page 4 n� June 12, 2008 ADMINISTRATION COMMITTEE AGENDA CALENDAR Item Action July Review of potential alternate billing methodologies Information July Investment Policy Action July IBM-Maximo Software Implementation Action Book Page 5 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 District's Administrative Office. (2) Following the Pledge of Allegiance, a quorum was declared present, as follows: ADMINISTRATION COMMITTEE STAFF PRESENT: MEMBERS: Jim Ruth, General Manager DIRECTORS PRESENT: Bob Ghirelli, Assistant General Manager Mark Waldman, Chair 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 Lilia 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 No appointment was necessary. (4) PUBLIC COMMENTS There were no public comments. (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. Book Page 6 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. i (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. I 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. ADM08-15 2008-09 and 2009-10 District Budget Director of Finance, Lorenzo Tyner, provided an overview of the proposed operating budget in a summary formal, highlighting the major categories and effects on the two-year budget. Book Page 7 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: L", Lilia Yovac Committee Secretary Book Page 8 ADMINISTRATION COMMITTEE MeetlngDate Tosa.nfoo-. 0 6J12/W osruiae AGENDA REPORT It ber Re en Numm Numb ADMos-w Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: OCB REPROGRAPHICS GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 2 to the Agreement with OCB Reprographics, Inc., for reproduction of plans, photocopying and related services, extending the contract period from July 1, 2008 to December 31, 2008, for an additional amount of $100,000, increasing the total amount not to exceed $425,000. SUMMARY • Orange County Sanitation District(Sanitation District) uses a reprographics firm for the reproduction of plans, scanning and indexing documents to be loaded into the engineering Electronic Document Management System, and a filing and distribution system for the ordering and tracking of plans and specifications for bidding of projects. • Information Technology(IT) is taking over this function from the Engineering Department. The information managed in this function has the potential to impact the security of our water sector infrastructure. • Initially, this first contract extension was to expire June 2008. However, IT must now work together with the Department of Homeland Security, the Environmental Protection Agency, and neighboring water sector agencies to develop an information security plan that will control access to water sector facilities, design, plans, and specifications. This 6-month sole source extension will allow IT time to develop a scope of work and then issue a Request for Proposal (RFP) to select a vendor to supplement our in-house reprographics function. • OCB Reprographics, Inc. (OCB) has maintained this service contract for the last eight years and currently uses Planweli and Bidcaster to assist in the Sanitation District's bid process. While these tools have enabled the Sanitation District to maintain an optimal bid process, a significant amount of training was required prior to and during their use to streamline the bid process for both OCB and Sanitation District staff. Over the training period and the succeeding contract years, OCB and the Sanitation District have developed a set of agreed upon procedures and minimum requirements to ensure a smooth bid process. Page 1 Book Page 9 • The existing 6-month extension with OCB is scheduled to expire on June 30, 2008. • To effectively maintain a smooth bid process for upcoming projects, as well as maintaining reprographic services for documentation of construction phase records, staff recommends the following: (1)An amendment in the amount of $100,000; and, (2) An extension of the contract to December 31, 2008, to ensure future estimation of reprographic needs is aligned with the capital projects and that an ample amount of time is allowed to send out RFPs for a new reprographics contract. PRIOR COMMITTEE/BOARD ACTIONS • A 4-year, 1-year renewable competitively bid blanket purchase order agreement was awarded on January 26, 2000. • A sole source 3-year, 1-year renewable blanket purchase order agreement was awarded on December 15, 2004. • A sole source 6-month amendment was awarded December 19, 2007. ADDITIONAL INFORMATION This sole source complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. Award Date: 12/15/04 Contract Amount: $225,000 Contingency: None 12/19/07 $100,000 $65.000(20•A) 06/25/08 $100,000 None Total $65.000(— ATTACHMENTS None. JDR:LT:RC:PB:lc Page 2 Book Page 10 ADMINISTRATION COMMITTEE Meeting Date TCBd.cf DI1. 06/12/0a AGENDA REPORT Item Number Rem Number ADMOS-17 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: CISCO NETWORK SWITCHES GENERAL MANAGER'S RECOMMENDATION Approve a Purchase Order contract with Hewlett Packard, for the Purchase of Fifty(50) Cisco POE Switches, Specification No. E-2008-378BD, for an amount not to exceed $170,019. SUMMARY • The purpose of this procurement is to replace 50 obsolete network switches. • A network switch is a small hardware device that joins multiple computers together within one local area network (LAN). • A standard Request for Bid process was used to solicit bids from interested providers of this equipment. Hewlett Packard was the most responsive and responsible bidder. PRIOR COMMITTEE/BOARD ACTIONS Board Policy from 04/24/2002 selected Cisco as the District's networking standard. ADDITIONAL INFORMATION • This equipment includes a limited lifetime warranty and will not require the purchase of an annual maintenance contract. This results in an annual savings of$12,500. ATTACHMENTS None. JDR:LT:RC:PB Page 1 Book Page I 1 ADMINISTRATION COMMITTEE MeetlngDate Tom.eron. 061" 08 06/25/O8 AGENDA REPORT Item Number ]tan Number ADMOB-19 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: ANNUAL RENEWAL OF THE ORANGE COUNTY SANITATION DISTRICT'S MAJOR OPERATIONAL INSURANCE PROGRAMS FOR FY 2008-09 GENERAL MANAGER'S RECOMMENDATION 1. Renew the Sanitation District's Excess General Liability Insurance Program for the period July 1, 2007 through June 30, 2008, in an amount not to exceed $370,525. 2. Renew the Sanitation District's Excess Workers' Compensation Insurance for the period July 1, 2007 through June 30, 2008, with the California State Association of Counties Excess Insurance Authority("CSAC EIA"), at a rate not to exceed .0030 (estimated premium of$175,998 based on current payroll). 3. Renew the Sanitation District's All-Risk Property and Flood for the period July 1, 2007 through June 30, 2008, in an amount not to exceed $469,100. 4. Renew the Sanitation District's Boiler& Machinery Insurance Program for the period July 1, 2007 through June 30, 2008, in an amount not to exceed $17,000. SUMMARY The Sanitation District budget provides funds for the renewal of the following four major insurances for the District's operations: 1) Excess General Liability Insurance 2) Excess Workers' Compensation 3) All-Risk Property and Flood insurance 4) Boiler& Machinery insurance The insurance industry calls the current environment a "soft market,' and that is causing rates to go down as compared to last year. The total dollar savings for all four insurances compared to 2007-08 is $38,917. H'.Hopbommwaw,CmnmmMlPoDN0B0/0t-1&OBA[T W.Inuverce.O�v ate, Page 1 Book Page 12 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 11 Excess General Liability Insurance Program The Sanitation 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 Sanitation District has participated in the CAMEL program since FY 1996-97. This program currently provides the Sanitation District with a $25 million policy of comprehensive coverage for municipal liability, bodily injury and property damage, and personal injury. The program was structured to also include Employment Practices and Public Officials Errors & Omissions coverage. The $25 million coverage is per occurrence, with a self-insured deductible of$250,000 per occurrence. Since 1997, the Employment Practices portion of coverage was enhanced from a $2 million sub-limit, to the full $25 million policy limit. 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. Since the rate for 2008-09 has gone down (the rate has decreased 4.5% as compared to last year), staff recommends that OCSD purchase $30 million in limits. These higher limits can be purchased for approximately what the Sanitation District is paying in 2007-08 for$25 million in limits ($370,525 as compared to $367,366). The reason for purchasing higher limits is that court judgments and settlements in the last year have shown that public entities are facing higher risks than in the past. 21 Excess Workers' Compensation Insurance The Sanitation 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 Sanitation District has participated in this program or its predecessor. The coverage expires on June 30, 2008. The Sanitation District's Excess Workers' Compensation Program currently provides coverage to $300 million with a self-insured retention (SIR), or deductible of$500,000. The premium proposed is based on a rate of.003000, a decrease from the prior year rate of .003018 (the rate has decreased 0.5% as compared to last year). Since the premium itself is based on final payroll, the Sanitation District will not know the exact final premium until the year is over. R:meq�awamm c"mmmwuroeneaano-ie.osae c"nwi.inuwnu.mo Rm : o 103 Page 2 Book Page 13 The Sanitation 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. There is an improvement in the limits this year for all entities participating in the CSAC EIA Excess Workers Compensation program—whereas the limits were $300 million for 2007-08, they will be unlimited (so called "statutory limits") for the workers compensation liability portion of the coverage in 2008-09. Some additional risk may be associated with the CSAC EIA joint powers authority in that a premium surcharge can be assessed to individual members if an unusually large number of losses were to occur outside of the actuarial evaluation estimates. However, historically the CSAC EIA premiums for excess workers' compensation have been so much less than competing quotes available to the Sanitation District, that if there were a surcharge, the cost might SO be less expensive, 3) All-Risk Property and Flood Insurance The Sanitation 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 most of the Sanitation District's real and personal property regarding virtually all perils including fire, flood, and business interruption. The Sanitation 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, OCSD has earthquake insurance only in connection with some of its buildings under construction. The Sanitation 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, OCSD'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. While higher deductibles are available, they would not save the Sanitation District much money and are not recommended. For ten consecutive years, the Sanitation District's Property Insurance has been with a nationwide joint purchase property insurance program called Public Entity Property Insurance Program (PEPIP), one of the wodd'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. N:MkPI`e6M0eMLmin CwnMtlbV'WBN6WN61H0409 Canmllnau+enm.E»' , Page 3 Book Page 14 The premium quote is $469,100. The rate has decreased 9.5% as compared to last year. � 4) Boiler& Machinery insurance Staff recommends the annual renewal of Boiler& Machinery insurance coverage for the Sanitation 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 Sanitation 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 Sanitation District's all-risk property insurance that covers perils such as fire and flood. The premium quote is $17,000. The rate has decreased 9.5% as compared to last year. JDR:LT:MW:RK:lc n.eemeo®,mwamin c«nmme.�ooewewoe.ie mm ca,ea.im,..,,..aa. PwiseE'. OpIUiN] Page 4 Book Page 15 ADMINISTRATION COMMITTEE Meeting Date To9d.of Dir. orvlztae owxsjae AGENDA REPORT Ire Numter 1t Numt r ADMO8-19 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: WASTEWATER RATES FOR SAWPA DISCHARGE GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 08-XX, Establishing Use Charges for the Fiscal Year 2008-09, Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority (SAWPA). SUMMARY Currently, OCSD invoices SAWPA on a quarterly basis for the wastewater discharge received from the SARI line. Annually, the rates for flow, biochemical oxygen demand (BOD), and total suspended solids (TSS) are calculated based upon the fiscal year budget for treatment and disposal costs and the 1996 Wastewater Treatment and Disposal agreement. The rates calculated for each constituent for Fiscal Year 2008-09 for wastewater discharge are: FLOW $162.67 BOD $249.51 TSS $370.36 The 2008-09 rates are an 11.81% increase over the FY 2007-08 rates due to an 11.81% increase in the treatment and disposal costs in the proposed FY 2008-09 budget. These rates are separate from the rates charged for additional capacity purchases by SAWPA. PRIOR COMMITTEEIBOARD ACTIONS Wastewater Treatment and Disposal Agreement executed on July 24, 1996 between the Orange County Sanitation District and the Santa Ana Watershed Project Authority. ATTACHMENTS 1. Resolution No. OCSD 08-XX JDR:LT:MDW:AB:lc Fmm No.Dw IDz 0 FaNeaE:OT007 Page 1 Book Page 16 RESOLUTION NO. OCSD 08-XX ESTABLISHING USE CHARGES FOR THE 2008-09 FISCAL YEAR PURSUANT TO THE WASTEWATER TREATMENT AND DISPOSAL AGREEMENT WITH THE SANTA ANA WATERSHED PROJECT AUTHORITY("SAWPA") A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING USE CHARGES FOR THE 2008-09 FISCAL YEAR PURSUANT TO THE WASTEWATER TREATMENT AND DISPOSAL AGREEMENT WITH THE SANTA ANA WATERSHED PROJECT AUTHORITY("SAWPA") WHEREAS, the Board of Directors has approved the Wastewater Treatment and Disposal Agreement with the SANTA ANA WATERSHED PROJECT AUTHORITY("SAWPA°); and, WHEREAS, said agreement provides for payment of Disposal Costs for the measured and sampled flow of Wastewater discharged from SAWPA's SARI Service Area to Districts' facilities; and, WHEREAS, said agreement provides for adjustment of said Disposal Costs on an annual basis. NOW, THEREFORE, The Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE,AND ORDER: Section 1. That pursuant to Section C4 of the Wastewater Treatment and Disposal Agreement, the 2008-09 fiscal year charges for Disposal Costs are hereby established as follows: For Flow: $ 162.67 per million gallons of flow For Biochemical Oxygen Demand: $249.51 per thousand pounds For Total Suspended Solids: $ 370.36 per thousand pounds PASSED AND ADOPTED at a regular meeting held June 28, 2008. Chair ATTEST: Clerk of the Board 1 Book Page 17 ADMINISTRATION COMMITTEE mmting Date Tosd.ofob. 06,12108 oeV 8 AGENDA REPORT Rem Number 1b Number ADMOS-20 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PROPOSED FY 2008-09 and 20D9-10 OPERATING, CAPITAL, DEBT/COP SERVICE, SELF-INSURANCE BUDGETS AND OTHER REQUIREMENTS BUDGET GENERAL MANAGER'S RECOMMENDATION Approve proposed Operating, Capital, Debt(COP Service and Self-Insurance Budgets for FY 2008-09 and 2009-10 as follows 2008-09 2009-10 Net Operations, Maintenance &Working Capital $146,771,180 $154,038,030 Worker's Compensation Self Insurance 490,000 535,000 General Liability and Property Self-Insurance 1,506,200 1,606,200 Net Capital Improvement Program 373,657.000 228,907,000 Debt/COP Service 74,623,000 84,297,030 Intra-District Joint Equity Purchase/Sale 3,961,700 (2,099,300) TOTAL $801.009.080 $467.283.960 SUMMARY The FY 2008-09 and 2009-10 Proposed Budget is enclosed for the Committee's consideration. The Budget has been presented to the Operations Committee at the regular June meeting in order to allow each Standing Committee an opportunity to review the proposal prior to the June Board meeting. Although each Committee has had an opportunity to review the proposal, it remains the responsibility of the Administration Committee to recommend approval. The Administration Committee is requested to recommend that the Board of Directors approve this budget. PRIOR COMMITTEEIBOARD ACTIONS None. ADDITIONAL INFORMATION None. ATTACHMENTS 1. Proposed FY 2008-09 and 2009-10 Budget Fom No DMOo 2 FMxE0LJ1N1 Page 1 Book Page 18 J ORANGE COUNTY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 FISCAL YEARS 2008-09 AND 2009-10 Budget Executive Summary i - - ---W- P , -% 1 ~ 1 ; Orange County Sanitation District "We protect public health and the environment by providing effective ti► n► wastewater collection,treatment.and recycling" r.► Orange County Sanitation District, California Budget Executive Summary FISCALYEARS 2008-09 AND 2009-10 �o�N1 S A N I rq j,02 z � A E 0' v\�p0 Mission Statement "We protect public health and the environment by providing effective wastewater collection, treatment, and recycling." GFOA Budget Presentation Award GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO _ Orange County Sanitation District California — For lire Fiscal Year Beginning July I, 2006 � I'msidem Lxc.mne wn.wr The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Orange County Sanitation District, California, for its two-year budget for the fiscal years beginning July 1, 2006. To receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. The award is valid for a period of one year only. We believe our current budget continues to conform to the program requirements, and we are submitting it to GFOA to determine its eligibility for another award. Table of Contents OCSDService Area. .................................................................................................................. Boardof Directors............................................................................................................................ ii BoardCommittees...........................................................................................................................ill Orange County Sanitation District Organiution Chart................................................................... iv AdministrativeOfficials....................................................................................................................v 1 1 Message from the General Manager.............................................................................................vi Y FinanceSummary..... .............................................................. .......................................1 Financial Overview 6 Budgetary Issues...........................................................................................2 r Where the Money Comes From......................................................................................................6 Revenuesby Category.....................................................................................................................7 Wherethe Money Goes...................................................................................................................8 Expensesby Category.....................................................................................................................9 Capital Improvement Program .........................................................................10 r DebtFinancing Program.................................................................... ....................13 OperatingExpenses................................................................ ............ ......................14 Departments .. ......... ................................................................. .......................................is Summary........................................................................................................................................18 Office of the General Manager.... ._........................................................... .. .............. _.._.......20 r Administrative Services .................................................................................................................22 TechnicalServices.........................................................................................................................24 Engineering....................................................................................................................................26 Operations and Maintenance........................................................................................................28 — Wastewater Treatment Process...................................................... ... ..............31 L L I 4 L is L OCSD Service Area LOS ANGELES COUNTY BF ♦ °e G� o, �04 PLAOENTN 42 OSP F9 ' O F OO VILLA PARK ORANGE � L06 aAIAN ♦w' trsrs t � 9EACN AANA - r C OCSD Reclamation - — Plant No.1 >- ocso �,`„ _ NIGN bEA Treatment Plant No.2 F IN OCSD Serc.Q Area&unmy ocso PumaSwmDs wan OrangN County San.County, District(OCSO) OrCrap, ouCA 2008 DrucwYa�eaMa:nma; Rev.200R OCSD Board of Directors Agency/City Active Director Alternate Director Anaheim....................................................................Harry Sidhu Lucille Kring _ Brea...........................................................................Roy Moore Ron Garcia Buena Park................................................................Patsy Marshall Jim Dow Cypress.....................................................................Phil Luebben Prakash Narain r Fountain Valley..........................................................Larry Crandall Gus Ayer Fullerton....................................................................Don Bankhead Sharon Quirk r Garden Grove............................................................Bill Dalton Steve Jones Huntington Beach.....................................................Don Hansen Jill Hardy r Irvine..........................................................................Christina Shea Steven Choi La Habra....................................................................Rose Espinoza James Gomez r La Palma....................................................................Mark Waldman Henry Charoen Los Alamitos.............................................................Ken Parker Catherine Driscoll Newport Beach.........................................................Don Webb Leslie Daigle r Orange......................................................................Jon Dumitru Carolyn Cavecche Placentia................................................ Constance Underhill Joseph Aguirre Santa Ana..................................................................Sal Tinajero David Benavides Seal Beach................................................................Charles Antos Gordon Shanks Stanton......................................................................David Shawver David Cadena Tustin.........................................................................Doug Davert Jim Palmer r Villa Park....................................................................Rich Freschi Brad Reese Yorba Linda...............................................................Jim Winder John Anderson Sanitary/Water Districts r Costa Mesa Sanitary District....................................James M. Ferryman Robert Ooten Midway City Sanitary District ...................................Joy L. Neugebauer Allan P. Krippner r Irvine Ranch Water District.......................................Darryl Miller Douglas Reinhart County Areas Member of the Board of Supervisors.......................Chris Norby Janet Nguyen r r r ® r OCSD Board Committees James M. Ferryman, Board Chair Doug Davert, Board Vice Chair Larry Crandall, Chair, Operations Committee Mark Waldman, Chair, Administration Committee Don Bankhead Phil Lusatian Ken Parker Administration Committee Mark Waldman, Chair Phil Luebben, Vice Chair Bill Dalton Jon Dumitru Rich Freschi Don Hansen Darryl Miller ., Joy L. Neugebauer Chris Norby Christina Shea Sal Tinajero Jim Winder James M. Ferryman, Board Chair Doug Davert, Board Vice Chair Operations Committee Larry Crandall, Chair Ken Parker,Vice Chair Charles Antos Don Bankhead Rose Espinoza Patsy Marshall Roy Moore David Shamer Harry Sidhu Constance Underhill Don Webb James M. Ferryman, Board Chair Doug Davert, Board Vice Chair GWR System Joint Cooperative Steering Committee Jim Ferryman, Board Chair Don Bankhead Larry Crandall Darryl Miller(All Mark Waldman (A2) Don Webb(A3) Organization Chart General Management Administration Ir Assistant General Manager Administration r WOW. Administrative Technical Services Engineering Aasrsl Services Administration Administration Operations 6 Process Board Services b Research Maintenance Engineering H Financial Planning Administration Public Information Management Environmental Odor Control be Office Compliance Protect Collection Plant No I Contracts, Regulatory Affairs Management Facilities g ry Operations Solely and Health Purchasing B Office Operations Fr L Materials Environmental Maintenance Plant No.P Management Laboratory B Engineering H Operations Ocean Monitoring Construction Facilities Human Maintenance Mechanical Resources Source Connol Facilities Fleet Services 5 Reliability L Engineering Maintenance Information Project Process Technology Management Engineering It Instrumentation Odor Control BElectrical sal Maintenance IrJ V I a! r f r L L ® r Administrative Officials r Management learn General Manager................................... .............................James D. Ruth Assistant General Manager............................................. Robert P. Ghirelli General Counsel........................................................................Brad Hogin Director of Finance and Administrative Services ................Lorenzo Tyner Director of Technical Services.......................................Edward M. Torres Director of Engineering.................................................James D. Herberg Director of Operations 6 Maintenance.....................Nicholas J. Arhontes Message from the General Manager June 4, 2008 Honorable Chair and Board of Directors: I am pleased to submit the Orange County Sanitation District(OCSD) 2008-09 and 2009-10 operating budget and capital improvement program. This document provides a framework for District activities during the next two years and serves as a source of information for the District's Board of Directors, and our employees and ratepayers. In November 2007, after a series of Board workshops, the District approved a Five-Year Strategic Plan that r updated the District's Mission and Vision statements. Levels of Service, and Business Plan. The Strategic Plan _ serves as the underlying basis for the development of this two-year budget and supports our mission to protect public health and the environment by providing effective wastewater collection, treatment, and recycling. It also r set forth the groundwork for establishing a stable five-year revenue base, a prudent step required to support our more than two billion dollar capital improvement program. r In addition to providing resources to support the processing of nearly 230 million gallons of wastewater each day from 2.5 million residents and businesses, the Strategic Plan focused on four distinct program areas: Biosolids ss The District produces approximately 650 tons of digested and dewatered biosolids per day. By 2020, the - District's biosolids production is projected to increase by 30 percent, to 310,000 tons annually. We have viable long-term strategies in place for 2/3 of our biosolids production and we will continue to pursue beneficial reuses ks for the remaining 1/3 of our biosolids production. Cost-effective land application reuse options will continue in Kern County and Arizona as long as possible while pursuing a biosolids-to-energy alternative. Air Quality L The District expects amendments to existing regulations requiring significant reductions in common pollutants. As a result, OCSD will apply feasible and cost-effective controls to reduce the air toxic emissions below health risk notification levels to the surrounding community and OCSD employees. Odor Control This budget includes resources that will allow us to invest more than$100 million to establish an odor-based standard on total odor. These resources will provide for the design and construction of new processes and structures at our wastewater treatment plants to significantly reduce odor impacts on our neighbors. - Groundwater Replenishment (GWR) System r Although now completed, the District will maintain its partnership with the Orange County Water District in the initial phase of the GWR System. The GWR System captures secondary treated effluent and purifies it to a level that surpasses bottled water quality. It has the capacity to reclaim nearly 70 million gallons of water daily. r While the costs are about the same as importing water from Northern California, we are able to cut the energy necessary to do so in half while reducing our reliance on external water sources. be This budget also addresses rising treatment and chemical costs, aging infrastructure and increased regulatory requirements. As a result, the operating budget is increased by 14 percent. However, despite these increases, OCSO provides wastewater treatment, sewer and facilities maintenance, ocean monitoring and many other services with residential user fees averaging less than $17 per month, one of the lowest rates in the state. As a result of operational efficiencies,we are able to provide increasing activities with only a one percent increase in authorized staffing, contributing to the goal of maintaining our low user rates. r Lr 2008-09 and 2009-10 Budget This budget strongly supports the primary mission of the District, touching on all key areas. e Strategic Planning-OCSD has developed a new Five-Year Strategic Plan that sets the direction of the agency and serves a basis for many budget allocations. Staff will review and update this plan, periodically bringing it to the Board for approval. s Capital Improvement Program (CIP) -All consent decree activities will remain on or ahead of schedule. A new management review program will be fully implemented to reduce the magnitude of change orders as a percentage of total program costs. Levels of Service-We will continue to increase the quality of effluent discharged into the ocean or provided for water reclamation in a cost effective manner. se s Process Reviews-To ensure our major programs are managed as efficiently as possible,we will engage independent experts to review our existing and future projects and services. In previous s,0 years, auditors reporting directly to the Board have reviewed the contract administration of our large construction projects and various financial processes. s Financial Positioning -This budget reflects our commitment to fiscal responsibility as indicated se by our recent upgrade to an "AAA" bond rating from Standard and Poors while maintaining "Aa" ratings from the other two rating agencies. • Employee Emphasis-We continue to invest in our employees focusing on succession planning, leadership training, and the implementation of a new performance appraisal system. e Legislative Platform-Our legislative activities have supported the Santa Ana River Interceptor (SARI) Line relocation, Homeland Security requirements, and Design-Build initiatives. s Information Technology-We have completed our new Information Technology Strategic Plan that includes a comprehensive review of the District's technology needs. This budget supports that assessment as means of increasing our overall efficiency. Interagency Agreements-We are reviewing all of our agreements with other agencies to ensure alignment with our strategic goals. I believe that this budget fully supports the goals included in the District's new Strategic Plan and positions us well to address the challenges ahead. I look forward to another dynamic and productive .e year ofleading the orrrganizattiiiooninn. mes D. Ruth General Manager u e n u Y Y G Y b Y !7 C u Y Y d tl Finance Summary - a Financial Summary Overview & Budgetary Issues 16 Budget This staffing level continues to reflect a significant —' reduction from the Fiscal Year 1995-96 approved The District's Fiscal Year 2008-09 and 2009-10 staffing level of 678 positions. Personnel costs operating and capital improvement budgets will increase due to increased staff, bargaining �r are proposed at$601 million and $467 million, agreements, and health insurance and retirement respectively. The decrease in the 2009-10 budget premiums, but the District will continue to effectively is primarily due to the timing of the construction manage these expenses with less than 14 percent of schedules as the District progresses towards full the District's budget allocated to employee costs. secondary treatment standards and incurs most of the construction costs related to the new Level of Treatment secondary treatment system at Plant No. 1 during Fiscal Year 2008-09. The agency's two treatment plants, located in Fountain Valley and Huntington Beach, process The budget continues to reflect the agency's about 230 million gallons of wastewater each day ongoing efforts to streamline operations. However, generated by approximately 2.5 million people in operating costs will increase as a result of the central and northwest Orange County. The proposed expansion of the Capital Improvement Program budget to operate, maintain and manage our sewage (CIP)and the increase in the demand for services collection, treatment and disposal system for the .. in ocean monitoring, ocean discharge and treatment next two years is$149 million and$156 million. levels, water reclamation and conservation, Increases are primarily a result of utilities, chemical urban runoff diversions, and increased local and contractual costs. regulation of biosolids. The cost per million gallons of wastewater treated The District's CIP budget for Fiscal Years 2008-09 Ian industry-wide performance measurement) and 2009-10 are$374 million and $229 million, is expected to increase in Fiscal Year 2008-09 respectively. This CIP budget finances collection to$1.655. This is a $139,or 9.2 percent, increase system, joint works treatment and disposal system over the prior year projection of$1,51 B. - improvement projects. This decrease is due to the To eliminate most bacteria from being released from y timing of construction cash outlays as we meet our the ocean oudall, in Fiscal Year 2002-03 the District infrastructure needs. began using chlorine bleach to disinfect the effluent - Financing and then applying sodium bisulfite to remove remaining chlorine prior to releasing the treated The District uses long-term Certificates of wastewater to the ocean. Participation(COP)for financing capital improve- menu that cannot be funded from current revenue. To protect the animal life living in the ocean, the Before any new debt is issued, the impact of debt District continues to take great measures to limit service payments on total annual fixed costs is the chlorine residual to essentially non-detectable analyzed. Debt financing of$550 million is forecasted levels. This mode of disinfection is anticipated to over the next five years to assist in the funding continue for the short-term while the District studies, • of the$2 billion in capital improvements required designs and constructs permanent facilities, and over the next 10 years. It is anticipated that$200 considers alternate disinfection technologies. million in new debt will be issued in 2008-09 and Beginning in Fiscal Year 2002-03, the addition V $120 million in 2009-10. of disinfection treatment required an annual outlay for additional chemicals in the District's operating Staffing budget. The cost for disinfection is projected to be approximately$7.1 million annually in 2008-09 Reflecting the organization's commitment to and in 2009-10. providing service at the lowest costs, the budget includes a minimal one percent increase in staffing for Fiscal Years 2008-09 and 2009-10 to an authorized staffing level of 641 and 648 full-time equivalent — positions, respectively. Added staff for 2008-09 is allocated to Operations and Maintenance. Six positions have also been reallocated from Operations and Maintenance to Engineering as an efficiency measure. W. © 6 2008-09 and 2009-10 Budget Capital Improvement Groundwater Replenishment .. Program (CIP) (GWR) System Over the next decade, OCSD's Capital Improvement The OCSD Strategic Plan includes water reclamation. Program will: With the Orange County Water District(OCWD),we r • R began operating the Groundwater Replenishment Rehabilitate the existing headworks, primary treatment, secondary treatment, outfall pumping, (GWR)System, the nation's largest water reclamation project, in November 2007. and solids handling facilities at both treatment �• plants. Phase I of the GWR System can reclaim 70 million gallons of water a day, delaying the need to build • Replace and rehabilitate nine of the District's a second outfall which could cost more than outlying pumping stations, and rehabilitate and $200 million. r upgrade 29 trunk sewer improvement projects. OCSD and OCWD have agreed to match the funding • Optimize the production of power and biosolids for this project which will be completed in Fiscal at each of the treatment plants. Year 2008-09. Staff recommends$2.8 million should be budgeted in Fiscal Year 2008-09 for project • Reclaim 70 million gallons of the District's completion. OCSD has received approximately effluent per day, or nearly one-third of total daily $44 million in Federal and State grants to offset flow(Groundwater Replenishment System). part of the District's total costs. • Achieve secondary treatment standards by Moving Towards December 2012. Secondary Treatment r Five Projects Drive the CIP Over the next 24 months, the largest capital cash In July 2002, the Board of Directors approved a outlays are: change from the existing level of treatment, a blend r 1. Plant No. 2 Trickling Filters of 50 percent advanced primary and 50 percent 9 - secondary treated wastewater, to secondary $130.5 million treatment standards. The reasoning behind the 2. New Plant No. 1 Secondary Treatment System- decision to move to secondary standards included: $121.5 million (1)the possibility that bacteria from the ocean outfall 3. Plant No. 2 Headworks Improvements- may at times reach the shoreline, (2) upgraded treatment will aid additional water reclamation with •• $39.0 million the Orange County Water District, and (3)the public's The total project budgets for these three projects are clearly stated preference for upgrading wastewater $221.2, $265.9, and $254.5 million, respectively. treatment at that time. r Two of the larger collection system related projects The CIP for Fiscal Years 2008-09 and 2009-10 over the next 24 months include: includes three projects totaling $679 million to upgrade the District's treatment plants to meet r 4. Bitter Point Force Main Rehabilitation - secondary treatment standards. Construction $22.4 million of the facilities to meet secondary treatment 5. Replacement of the Bitter Point Pump Station- standards is currently on track to be completed r $22.3 million by December 31, 2012. The total project budgets for these two collection Sewer Service Fee Increases system projects are $24.9 and$36.5 million. The proposed 2008-09 and 2009-10 rates are$201 r These five projects represent 62 percent of the total and $221, respectively. These new proposed rates Fiscal Year 2008-09 proposed CIP cash flow budget by the District are still well below the State's annual of$374 million. average sewer rate of$406, according to a 2008 r survey of 920 agencies in California. r Financial Summary Overview Er Budgetary Issues ..�1,i, oii....; :;u:.«j,:, .r,,.rease Utilities - $1.3M The operations budget for the collection, treatment, The proposed electric power budget reflects an and disposal of wastewater is proposed at$149 increase of$846,000 over the prior year projected million,a $16 million(12 percent)increase above due to anticipated consumption and unit cost 2007-08 projected expenditures. It is projected increases. Natural gas is being proposed at a to increase by an additional$7 million (five percent) $393,000 increase over the prior year projected in 2009-10. due primarily to the planned use of more gas to Although some expenses will increase or decrease keep the three co-generstion engines at Plant No. 2 slightly, the overall increase to the operating budget running at minimum output levels. r is primarily attributable to four specific areas: Salaries and Benefits - S4.4M Authorized staffing levels are being proposed with a one percent increase per year, or 7.0 full time Operating Expenses equivalents(FTE)each,for Fiscal Year 2008-09 and Fiscal Year 2009-10 above the staffing level of 634 +5% FTE positions authorized for Fiscal Year 2007-08, +12% $156M Costs will increase$3.1 million as a result of existing $199M collective bargaining agreement impacts, including �- health and welfare cost increases. $133M The other significant increase in personnel cost is the$1.3 million (9 percent)increase in retirement premiums. This increase reflects revised actuarial assumptions and low interest earnings in prior years. The increases in retirement premiums reflect the FY 2007-08 FY 2008-09 FY 2009-10 rising costs occurring throughout California. Projected Proposed Proposed Operating Materials p 9 Total operating and maintenance expenses r and Supplies - S4.6M will increase$16 million from FY 2007-08. As the requirement for better quality effluent increases, so does the need for chemicals(primarily r bleach)to treat the region's wastewater. Operating materials and supplies are proposed to , increase primarily due to combined increases in r chemical coagulants, odor control,and disinfection. Contractual Services - $8.6M J Biosolids removal and transportation costs continue to increase as acceptable locations for disposal --- become less accessible. V r ( V ,.r I ' 5 Financial Summary - Where the Money Comes From d Iiere the Money Comes From - Fees 6 Charges $231.8M r � 21% � i Debt Proceeds Beginning Reserves '_\\ $200.OM ` $512.3M 19% 48% \ \� Property Taxes $64.9M 6% Other $40,1 M 4% Interest $19.2M 2% Revenues by Category (in millions) FCategory 2006-07 2007-08 2008-09 2009-10 Actual Projected Proposed Proposed r s $489.8 $371.9 $512.3 $467.2 Service Fees 154.2 174.6 200.6 221.0 User Fees 14.2 8.6 9.5 10.4 Capital Facilities Capacity Charges 18.4 16.7 21.7 22.9 Property Taxes 60.6 61.8 64.9 68.2 V Intradistrict Transfers 4.5 5.4 4.0 12.1) Interest 22.2 17.3 19.2 18.6 L Other Revenue 36.0 35.6 36.1 24.8 Debt Proceeds 89.8 378.7 200.0 120.0 Ir Total Revenue $889.8 $1,070.6 $1,066.2 $951.1 IN L Financial Summary Revenues by Category The District has a variety of revenue sources available Fro Eger ty I t1XeS — ;0.)Jvi for operating and capital expenses. The major revenue sources are: The County is permitted by State law(Proposition 13) to levy taxes at one percent of full market value • Beginning Balances (at time of purchase)and can increase the assessed • Service Fees value no more than two percent per year.The District •'r • Industrial Waste Permit User Fees receives a share of the basic levy proportionate to • Connection Fees what was received in the 1976 to 1978 period, less • Property Taxes $3.5 million ($8.3 million in today's dollars), the amount that represents the State's permanent • Interest Earnings annual diversion from special districts to school • Other Miscellaneous Revenue districts that began in 1992-93.The District's share • Debt Proceeds of this revenue is dedicated for the payment of debt service. Beginning Balances - $512M Interest Earnings - $19M _ As result of its Reserve and Investment Policies, the District will begin the year with a balance carried Interest earnings are generated from the investment forward from the previous year. of accumulated reserves consisting of a cash flow/contingency, a capital improvement, a renewal/ General Service Fees - $201 M replacement, and a self-insurance reserve. User fees are ongoing fees for service paid Other Revenue - $39M by customers connected to the sewer system. A property owner, or user, does not pay user fees Other revenue includes $25 million from the Irvine until connected to the sewer system and receiving Ranch Water District for capital and equity charges. services. Once connected, a user is responsible Debt Proceeds - $200M .. for his share of the system's costs, both fixed and variable, in proportion to his demand on the system. Certificates of Participation (COPS)are the District's These fees are for both Single Family Residences primary mechanism for financing capital projects. (SFR)and Multiple Family Residences(MFR). COPS are repayment obligations based on a lease or Permit User Fees - $1 OM installment sale agreement. COPS are not viewed as "debt" by the State of California, but rather a share in Permit user fees are paid by large industrial and an installment arrangement where the District serves commercial properties owners connected to the as the purchaser. sewer system. These fees are for the owner's share In Fiscal Year 2008-09, revenues will decline to$556 of the system's costs, both fixed and variable, in million, a decrease of$51 million(8.5 percent)from proportion to his demand on the system. the prior year. The 2009-10 level will decrease again Since the inception of the Permit User Fee Program primarily due to the anticipated lower new debt in 1970, users of the District's system that discharge issuance of$120 million as opposed to new debt r•• high volumes or high strength wastewater have been of$200 million in Fiscal Year 2008-09. This decrease required to obtain a discharge permit and pay extra occurs despite the$20 million that is expected to be fees for the costs of service. generated from the increase of$20 in the annual single family residence user fee, the basis for all Capital Facilities Capacity sewer user fee rates. Charges (CFCC) - $22M The Capital Facilities Capacity Charge is a one-time, non-discriminatory charge imposed at the time a building or structure is newly connected to the r District's system, directly or indirectly, or an existing structure or category of use is expanded or increased. This charge pays for District facilities that exist at the time the charge is imposed, or to pay for new facilities to be constructed in the future that will benefit the property being charged. Financial Summary - Where the Money Goes Where the Mwiey Goes s CIP $373.7M 35% Ending Reserves $467.2M 44% Operating Debt $148.81VI $74.6M r 14% 7% r Intradistrict $4.OM 0.4% r Expenses by Category r (in millions) 2006-07 2007-OB 2008-09 2009-10 r Category Actual Projected Proposed Proposed Capital Improvement Program $273.6 $279.3 $373.7 $226.9 Debt service 123.4 141.0 74.6 94.3 _ Operating Expenses 116.3 132.6 148.8 156.2 r Intradistrict Transfers 4.5 5.4 4.0 (2.1) Subtotal $5178 $558.3 $601.0 $467.3 it Ending Reserves 371.9 512.3 467.2 483.6 Total Expenses $889.8 $1,070.6 $1,068.2 $951.1 to r 116 Financial Summary Expenses by Category The District budgets its funds in five distinct areas: Capital Improvement {i Program (CIP) To provide an appropriate level of service to the District's rate payers, large capital improvements are required. The CIP provides for the management and implementation of these improvements. " Debt Service This is the cost of issuing debt. Long-term debt r financing allows the District to complete large multi-year capital projects by providing funds not always immediately available. r Operating Expenses The proposed budget allocates resources to operate, maintain and manage our sewage - r collection, treatment and disposal system,and for any associated administrative or technical requirements. - - -' A new odor control facility with improved air scrubber Intradistrict Transfers technology is under construction at our Huntington Beach treatment plant.Over the next five years,OCSD will invest Expenditures related to other affiliated agencies. over$120 minion in odor control systems. Reserves The District budgets reserves for various potential r needs including cash flow, operating contingencies, capital improvements, capital replacement and refurbishments, and catastrophic loss. The reserve levels are governed by District policy. r r r r r Capital Improvement Program CIP Budget Request Summary These Levels of Service and resulting capital projects are included in the District's Five-Year Strategic Plan. Each year, the Board of Directors, through their This includes approximately$50 million of new CIP committee process, reviews and approves the projects over the next 10 years. — Capital Improvement Program (CIP) prepared by In addition, District staff has reviewed each CIP staff for both sewage collection system projects (collections)and the joint works treatment and project to ensure the scope of the project was L disposal system projects. appropriate, and that the cost estimates were accurate. The validated CIP includes 86 large capital Many of the District's projects take several years projects and 28 special projects with a 15-year to plan, design and construct.The budget for a expenditure of$1.47 billion. This total represents construction project covers the life of the project. a $149 million increase from the 2007-08 CIP This budget is re-evaluated each year to manage estimate. This increase includes$50 million from annual cash flows. Many of the projects in the CIP the District's Five-Year Strategic Plan,$28 million NO budget for 2008-09 are continuing projects that were in newly identified rehabilitation and renewal approved in prior years. needs, and $71 million in project budget revisions In October 1999, the District adopted a new for on-going projects. y Strategic Plan to define the District's goals, Planning for water reclamation facilities is an element responsibilities, and requirements over the next that has had a significant impact on the District's 20 years. This included projections through the capital improvement program. The District and the assumed "build-out"of the District's service area Orange County Water District(OCWD) are currently r to the year 2050. This effort to update the 1989 in the last year of completing a joint project that will 30-year"2020 Vision" Master Plan was necessary be the largest water reclamation project in the nation, because many of the assumptions used then have When completed, the Groundwater Replenishment r now changed. Critical factors such as population (GWR)System will reclaim approximately 70 million growth, new construction, volume of wastewater gallons of water each day. The District is matching delivered to the plants, and viable water conservation OCWD funding for this project and has budgeted r and reclamation programs have been re-evaluated. $248.4 million, with up to$46 million of this budget In June 2002, the District completed the Interim being off-set by grants. - - Strategic Plan Update(ISPU)which further updated The proposed 2008-09 CIP budget is organized �y these critical factors and developed revised cost by treatment process. The funds requested for the estimates and user fee projections for upgrading the current cash flow budget total$373.7 million, an District's level of treatment to secondary standards. increase of 35 percent from last year's cash flow On July 17, 2002,after reviewing: (1)the ISPU request of$277.1 million. The current year cash flow • treatment alternatives, (2)ocean monitoring data, is part of an overall total cost of$2.484 billion for -. (3) public input, (4) regulatory issues, and(5)financial active projects. considerations, the Board of Directors made the The following chart shows 2008-09 Proposed b decision to upgrade our treatment to meet secondary treatment standards. CIP Cash Flows and the total Project Costs for all proposed projects, by project phase, in millions: The CIP includes three projects totaling$679 million Total r to upgrade the District's treatment plants to meet FY 2008-09 Project secondary treatment standards. Implementation of Current Status Cash Flow Costs secondary treatment standards is scheduled to be completed by December 31,2012. It was reviewed Future $ 0.0 M $ 60.8 M and determined to be reasonable and achievable Planning 9.2 M 464.2 M by two independent Peer Review Teams. Design 25.4 M 1,630.7 M r In conjunction with preparation of the 2008-09 Construction 337.1 M 312.5 M Budget, District staff conducted strategic planning Capital Equipment 2.0 M 16.0 M workshops with the Board of Directors to layout a Total $ 373.7 M $ 2.484.2 M r capital program that would deliver the Levels of Service desired by the Board of Directors. r r 2008-09 and 2009-10 Budget There are currently 26 projects in the Planning Phase with proposed capital outlay spending in 2008-09. FY 2008-09 Two of the larger 2008-09 cash flow projects in the Planning Phase are the Solids Area Cable Tray CIP Expenditures by Process Improvements at Plant No. 2 and the Oxygen Plant Total = $373,657,000 Rehabilitation with current year projected expenditures of $2.72 million and$1.25 million, respectively. A total of$464.2 million in capital A69.976.50O66.779,800 ent/ outlay, currently listed within the Planning Phase, ation r is being projected for future budgets based on the capital improvement needs that are identified .200 through the 2002 Interim Strategic Plan Update and the annual CIP validation effort. Additional .. There are currently 19 projects in the Design Phase Capacity with proposed capital outlay spending in 2008-09. 66,779,800The two largest projects in the Design Phase are the 18% r Sludge Dewatering and Odor Control at Plant No. 1 Project and the Interplant Gas Line Rehabilitation Project with projected current year expenditures of$7.60 million and$2.96 million, respectively. Support S15.261.600 There are currently 44 projects in the Construction 4% Phase with proposed capital outlay spending ,. in 2008-09. The two most significant projects in the construction phase are the New Secondary Treatment System at Plant No. 1 and the Trickling FY 2009-1 0 Filters at Plant No. 2 with a projected current .. year expenditure of$100.1 million and$73.7 CIP Expenditures by Process million, respectively. Total = $228,906,000 Standard contingency factors have been applied to improve cost estimates. For the project development and design phases, 20 percent was Improved applied to estimates, and 10 percent was applied \ Treatment to the construction project phase. This reflects �� $91.804.330 standard practice for estimating construction �� 40% project costs. Each project went through an extensive validation Replacement/Rehabilitation eplacement/ ---- -_ and prioritization process. Projects have been $100,220,500 \ prioritized based on risk exposure if the project was $100220.500 p P P I 44% \ Additional �r deferred. Projects that would present a higher risk Capacity if they were delayed are given a higher priority. $26.688,170 12% Support $10.193.000 4% r Capital Improvement Program - The Treatment Process OCSD collects wastewater from 471 square miles in central and north Orange County, It is fed through — 16 pump stations and gravity sewers. Influent wastewater undergoes Preliminary Treatment at our two treatment plants where it is filtered through _ bar screens and grit chambers. Primary Treatment consists of large clarifying basins where solids _. are settled out and sent to Solids Processing. Treated wastewater is pumped either to Secondary Treatment where it is aerated and additional solids are settled out, or to Advanced Primary, a physical- I� j chemical process. The resulting water from these processes is blended to become final effluent. Methane gas generated during the natural decomposition of the solids in the Digesters is used to fuel the Central Power Generation System and produce electricity used to operate both treatment plants. Solids are treated and then dewatered to approximately 20 percent solids consistency, called biosolids. Our biosolids are 100 percent recycled into compost, charred pellets used for fuel, a soil amendment used for land application, or sent to a landfill as a fail-safe backup management plan. Approximately 50 to 100 million gallons per day of secondary treated wastewater are sent to Reclamation uses such as the GWR System, groundwater injection, or landscape irrigation. The remaining treated wastewater is discharged through the ocean outfall about five miles offshore. Once treated,most of the wastewater processed by OCSD leaves the plant through a 1040011 diameter ocean outfall. r r 1 r ® L Debt Financing Program Debt Financing The maximum level of variable rate obligations incurred by any District should not exceed the level Due to the magnitude of identified future of invested reserves available to that District. annual capital and operations and maintenance expenditures, it is necessary that the District utilize The District currently has outstanding synthetic debt financing to meet its total obligations. Debt fixed-rate and fixed-rate COPS of$689.2 million financing allows the District to meet projected and variable-rate COPS of$393.0 million, for a ratio construction schedules while achieving the lowest of 64:36. possible user fees, as well as long-term stability The District Maintains for the user fees. Its AA Rating Certificate of Participation (COP) An "AA" Rating is one of the highest for a The primary debt mechanism used is the Certificate government agency.To maintain this rating, of Participation (COP). COPS are repayment the District adheres to its 2001 Debt Policy and obligations based on a lease or installment sale coverage ratios requirements. This Board-adopted agreement. The COP structure was selected over policy serves as the agency's guide to manage other structures because COPS are not viewed as existing debt and in the issuance of future debt. debt by the State of California, as the purchaser In May 2008, the District issued$77.2 million does not actually receive a "bond," but rather a share of COP fixed rate debt to retire the outstanding in an installment sale arrangement where the District amount owed to Series retie By having a well- fixedsery o variable purchaser. COPS can be issued with funded reserve policy, through Board leadership, fixed or variable interest rates. experienced management, and prudent planning, Fixed-rate debt can be either traditional or the District was able to secure"AAA" credit rating synthetic in form: from Standard and Poors while maintaining "Aa" • Fixed-Rate Debt traditionally has a final maturity ratings from the other two rating agencies. between 20 and 30 years from the date of Debt Ratios issuance. Generally, principal is amortized annually. Principal maturing in early years The District does have contractual covenants typically has a lower interest rate ("coupon") in the existing COP agreements that require than later maturities. This structure typically minimum coverage ratios of 1.25. The minimum produces a level debt service, coverage ratio is the ratio of net annual revenues available for debt service requirements to total '• • Synthetic Fixed-Rate Debt: Long-term, variable- annual debt service requirements for all senior lien rate debt can be issued and then the interest COP debt.The coverage ratio for senior lien COP component can be swapped to a fixed rate. debt is being proposed to remain above the targeted This form of fixed-rate debt achieves a balance level of 2.00 for Fiscal Years 2008-09 and 2009-10. between short and long-term interest costs and is frequently a less expensive form of debt. In Debt Financings some markets, this form of fixed-rate debt is less In Fiscal Years 2008-09 and 2009-10, new COP expensive to issue than the more traditional form debt issuances of$200 million and$120 million of fixed-rate debt described above. are being proposed. These debt issuances will Variable-rate debt can be traditional or help fund proposed CIP budgeted cash outlays synthetic: of$373.7 million and $228.9 million in these two fiscal years. • Variable-Rate Debt traditionally has either a long or short nominal maturity, but the interest rate resets periodically. Typically,the intervals for interest rate resets are daily, weekly or monthly, but any period is possible. • Synthetic Variable-Rate Debt as described above for fixed-rate debt, variable-rate debt can be created from a fixed-rate issue by means of a floating-rate swap. Operating Expenses - Summary of Operating & Maintenance Expenses 2006-07 2007-08 2008-09 2009-10 Category Actual Projected Proposed Proposed _ Salar�andefits $71.6 $79.4 $83.8 $90.0 Operals 6 Supplies 16.7 17.8 22.4 23.7 Contractual Expenses 15.6 19.9 28.5 28.9 r Repairs and Maintenance 7.6 10.7 11.3 10.1 i Utilities 8.1 8.4 9.7 10.2 110 Professional Services 2.4 2.8 3.8 3.0 Other Materials. Supplies. Services 2.1 2.9 2.6 2.8 Capital Grants to Member Agencies 2.1 2.4 0.3 2.1 Self-Insurance Requirements 2.1 1.7 2.0 2.1 IN Training and Meetings 1.1 1.3 1.4 1.4 Research and Monitoring 1.4 1.1 1.4 1.4 1 r Administrative Expenses 1.1 1.4 1.3 1.3 Printing and Publications 0.5 0.6 0.7 0.7 Cost Allocation (i6.11 (17.7) 120.51 121.51 Total Operating Expenses 8116.3 $132.7 $148.7 $158.2 Salaries, Wages & and disability insurance premiums. The proposed Benefits - $83.8M budget includes a 10.0 percent increase for all plans IN except the dental plan which reflects no increase. Salaries & Wages -The proposed budget is set at Operating Materials & 641.0 and 648.0 Full Time Equivalent(FTE)positions for Fiscal Year 2008-09 and 2009-10, respectively. Supplies - $22AM Provision has been made in these salary projections Disinfection Chemicals-The largest cost related to comply with the terms of the most recently to Disinfection is for chemicals, specifically bleach. adopted MOU's. Retirement-The District's employees are members Sodium Hypochlorite (Bleach) -Over 95 percent of the Orange County Employees' Retirement of the bleach is used for effluent disinfection. System IOCERSI. Preliminary information from The remaining bleach usage is for odor control. OCERS indicates that an increase in rates is disinfection of plant water, and the control iof n expected. The employer's required contribution filamentous organisms in activated sludge in the rate has been increased from 20.06 percent to secondary treatment process. It is anticipated that .. 21.34 percent. In addition, the District will pay 3 the District will use 11.5 million gallons and 10.7 .5 percent on behalf of each employee. million gallons of bleach in Fiscal Years 2008-09 and 2009-10, respectively. Group insurance - Includes the District's share Chemical Coagulants-Cationic polymer is added (approximately per employee)of employee to the influent wastewater along with ferric chloride HMO plans, the dental insurance plan, and th medical plan benrefitsefits for the indemnity plan, e life prepaid via the physical/chemical treatment systems at both plants to improve solids removal efficiencies in the 2008-09 and 2009-10 Budget primary clarifier basins. It is also added to digested services, trash pickup, plant site sweeping, sludge prior to dewatering to cause the sludge to temporary help to level out periodic increases in coagulate to improve the sludge and water staff workload, a maintenance contract for the separation process. Plant No. 2 oxygen generation plant, CCTV services, Both the estimated usage and costs for this group and line cleaning services. of chemicals are expected to increase over the prior Repairs and year, resulting in a higher budgeted amount for Fiscal Year 2008-09. Maintenance - $11 .3M Odor Control Chemicals-The District uses This item, which is for parts and services for repair hydrogen peroxide and sodium hydroxide(caustic of plant and collection facilities and annual service soda)as the primary odor control chemicals in the contracts, reflects an authorization to allow for treatment plants; hydrogen peroxide, touristic acid, routine equipment maintenance and is expected to magnesium hydroxide, and bleach are the primary increase by 9.6 percent. Two large repairs include: odor control chemicals used in the collection system. Two Central Power Generation System engine The Fiscal Year 2008-09 budgeted amount for these overhauls to preserve electrical reliability for the chemicals is slightly higher at$6.7 million than in the treatment plants are budgeted at$800,000. prior year as a result of higher usage and unit cost Ocean Outfall Booster Station discharge line repair for magnesium hydroxide in the collection system is budgeted at$400,000. trunklines as two additional treatment locations are planned. The 2009-10 budgeted amount increases Utilities - $9.7M to$7.2 million mainly as a result of an anticipated increase in the unit cost of odor control chemicals. The overall cost for utilities is a significant component of the operating budget. The overall cost Contractual Services - $28.5M for utilities is anticipated to decrease by$200,000 over the Fiscal Year 2007-08 budget and then The major component of this category is e been increase by$500,000 in Fiscal Year 2009-10. removal and transport costs. Contracts have been executed with firms for agricultural reuse of residual • Natural Gas- Natural gas is purchased to solids. Since the closure of the Coyote Canyon supplement the digester gas that is used to run �• Landfill in 1990, no replacement site for sludge the central generation facilities. The Fiscal Year disposal has yet been approved within Orange 2008-09 and 2009-10 budgets reflect essentially County.A total of$24.2 million has been budgeted consistent levels of natural gas used, except for solids and waste removal and transportation for a small increase at Plant No. 2, since central in Fiscal Year 2008-09 and $24.7 million in generation production has been reduced in order Fiscal Year 2009-10. to meet new air emission limits. This category also includes appropriations for • Electricity-Electricity is the largest utility cost grounds keeping services,janitorial services, security incurred by the District and is used to run the services, toxic removal services, outside laboratory plant processes. The Fiscal Year 2008-09 .. proposed budget is five percent lower than the Fiscal Year 2007-08 budget. The reduction is due to lower rate estimations for the plants as previously anticipated rate increases did not occur. This reduction is tempered by a forecasted increase in energy imports due to further reductions in Central Power Generation System production and an increase in secondary treatment levels at Plant No. 2. The six percent increase in the Fiscal Year 2009-10 proposed budget is due to anticipated rate increases. d'- The Groundwater Replenishment System, a joint water reclamation project by brought uand gh the Orange County Water District.wasas brought � online in late November 2007. Operating Expenses - Professional Services - :,s,zlNt An appropriation of 50 9 million for in lieu premium contribution charged to operations is recommended Professional Services includes General Counsel, for the Property and General Liability Program, special labor counsel, audit and miscellaneous This will serve to maintain the reserves balance. accounting services, legislative advocacy, engineering, and other technical consulting services. Training and Meetings - $1 AM Material, Supplies, Expanding activities of regulatory agencies have r required increased Board member and staff travel Services - $2.6M in recent years. It is expected that considerable This category of costs includes the in-lieu insurance travel will continue to be required in connection r premium used to maintain the level of accumulated with efforts related to the renewal of our National reserves for the property and general liability self- Pollutant Discharge Elimination System insurance programs.This in-lieu cost for 2008-09 (NPDES)permit. is proposed at$0.9 million. An amount equal to approximately two percent of Expenses not chargeable to other categories, such the Regular Salaries budget is allocated to Training. as freight and miscellaneous items, and annual Training activities are coordinated though the Human r regulatory fees assessed by the South Coast Air Resources and Safety and Health Divisions. Quality Management District, are recorded with This category also includes ongoing technical this category. training and materials for staff; expansion of our r Grants to Member Cities - $0.3M supervisory training program to provide supervisors with training to more effectively manage their - The payments to agencies in connection with the Divisional groups; required training for computerized Cooperative Projects Grant Program will be reduced plant monitoring and control systems, Laboratory from$2.5 million in Fiscal Year 2007-08 to$0.3 Information Management System (LIMS), million in 2008-09. Computerized Maintenance Management System The Cooperative Projects Grants Program co-funds (Cl Financial Information System (FIS), and r P I 9 other"high tech" equipment, processes and projects sponsored by a member agency to eliminate systems; and training to allow for an adaptive or reduce inflow and/or infiltration of storm water and and flexible work force. The General Manager and _ groundwater from local wastewater collection lines the Board have continued to place a high emphasis and to repair or replace poor performing, aging local on safety, technical, and management training. wastewater collection system infrastructure.The District will fund projects by contributing up to 50 Research and Monitoring - $1 .4M r percent matching funds against a member agency's contribution to an eligible project. Most member Overall, this category is expected to remain agencies of the District are eligible to participate in stable over the next two fiscal years. Research this program. For Fiscal Year 2008-09, up to a total and monitoring expenditures consists of contract r of$0.3 million in District funds are available to match services to carry out the extensive ocean monitoring member agency funds. Under this program, the total program required by the EPA under provisions of the amount for outstanding obligations has been capped District's NPDES permit; air quality monitoring costs; r at$7.5 million. the District's contribution to the Southern California Coastal Water Research Project(SCCWRP) being Insurance - $2.OM conducted under a joint power agreement with other Southern California municipal dischargers; and also The District's outside excess general liability provide for increased operational and ocean research insurance coverage is$25 million with a self- and evaluation to develop optimum operating insurance retention of$250,000. parameters in treatment plants. r The District's current property insurance coverage is one billion dollars for perils of fire and$300 million for perils of flood, subject to a self-insured retention y of$25,000 for fire and $100,000 for flood. The District is completely self-insured for earthquake. r r 2008-09 and 2009-10 Budget Administrative Expenses - $1 .3a These accounts include supplies, postage, iii r technical journals and publications, forms, smalloffice equipment, and small computer items thatcost less than$5,000 per item and exclude items r that are capitalized. Printing and Publication - $0.7M The budget provides for in-house and outside reproduction costs and reflects an expanded management information system and administrative requirements as well as a continuing demand by the public and regulatory agencies for information. The continuing effort of the Public Information Office to improve public education programs about the r District's activities is also reflected in the budget 0CSD collects and analyzes seawater samples to assess for this line item. This group of accounts also water quality as part of its monitoring and research activities. includes costs for photo processing, advertisements, e, and notices. Cost Allocation - $20.5M e+ This represents direct labor and benefit charge outs and materials, supplies and services cost allocation to the capital project where the related work was performed. ass r r d r Departments - Summary Expenses by Department (in millions) Department Budget Proposed Percent Proposed Percent 2007-08 2008-09 Change 2009-10 Change Administration Units " Office of the General Manager $6.2 $6.6 6.5% $6.9 4.5% Administrative Services 18.3 1Z8 (2.7%) 19.9 11.8% Sub-Total $24.5 $24.4 (0.4%) $26.8 9.8% Operating Units Technical Services 18.9 19.2 1.6% 19.7 2.6% Engineering 3.3 2.6 (21.2%) 4.4 69.2% _ Operations & Maintenance 93.2 100.5 7.8% 103.2 2.7% Sub-Total $116.4 $122.3 6.0% $127.3 4. 1% Total $139.9 $146.7 4.9% $154.1 5.0% .. Less: Operating Revenue (5.1) (7.6) 52.9% (8.1) 3.8% Grand Total $134.8 $138.9 3.0% $146.0 5.1% r Staffing by Department (FTEs) r Department Budget Proposed Percent Proposed Percent 2007-08 2006-09 Change 2009-10 Change r Administration Units Office of the General Manager 30.25 29.75 (1.7%) 29.75 0.0% Administrative Services 97.50 96.50 0.0%) 103.50 7.3% r Sub-Total 127.75 126.25 (1.2%) 133.25 55% Operating Units r Technical Services 109.00 107.00 (1.8%) 107.00 0.0% Engineering 104.50 108.50 3.8% 108.50 0.0% r Operations & Maintenance 292.75 299.25 2.2% 299.25 0.0% Sub-Total 506.25 514.75 1.746 514.75 0.0% IN Total FTEs 634.00 641.00 1.1% 648.00 1.1% r r 2008-09 and 2009-10 Budget r .r _ Administration Units Operating Units Office of the General Manager Technical Services Budget $6.6M-Staffing 29.75 FTEs Budget$19.2M - Staffing 107 FTEs The Office of the General Manager provides general The Technical Services Department oversees r oversight of all District operations and incorporates environmental issues, regulatory compliance and functions in the areas of Safety B Health, Public research at the District and is responsible for the Information Office, Legislative Affairs, and Board environmental laboratory, ocean monitoring and r Services.This office reports directly to the Board of source control. The budget reflects the reduction Directors. The budget reflects the reduction of one of two Interns and one Environmental Supervisor. Intern position. r Engineering Administrative Services Budget$2.61M - Staffing 108.5 FTEs Budget $17.8M- Staffing 96.5 FTEs The Engineering Department is responsible for the The Administrative Services Department maintains planning, design and construction of the District's financial oversight and administration of all district $2.5 billion capital improvement program and District ,. funds and accounts and is responsible for contract annexations, easements and connection permitting, administration and procurement, oversees all human and oversight of fast-track projects. The budget resources management activities including employee reflects the continuing use of Integrated Program development, and employee and labor relations, and Management Consultants(IPMC)to supplement r oversees all District computer, networking and District resources as well as the transfer of six customer support issues. The budget reflects the positions from the Operations and Maintenance reduction of one Senior Contracts Administrator and Department in managing the CIP.There is also a .. one Contracts Administrator and the addition of one reduction of two Interns and one Office Assistant. Information Technology Analyst II. Operations and Maintenance Budget$100.51% - Staffing 299.25 FTEs r The Operations and Maintenance Department is responsible for the operation of the District's two wastewater treatment plants and for reliable collection and transportation of wastewater, asset �+ management and efficient, safe operation and maintenance of the system in the 471 square mile area. The budget reflects a net addition of six and r "FTE= Full-Time Equivalent Position one half FTEs after the transfer of six positions to the Engineering Department. r r r Office of the General Manager service Description The mission of the Office of the General Manager is to work with the Board to establish INS standards, policies and procedures, and the General overall goals and Strategic Plan of the District. Manager, at The Office of the General Manager reports the Assistant District's progress in meeting the established General Vlanager goals to support the District's mission, and Aftinustration provides general oversight of the District's BoardSorricas operations.The office reports directly to the Public Information Board of Directors. Office In addition to the line departments,this Board of Administrative department oversees District-wide functions Directors in the areas of: Safety 6 Health, Public Services Information, Legislative Affairs, and Board Services jClerk of the Board). V General General Technical Safety and Health provides expertise, support Counsel Manager Services and guidance to protect employees,the public, Oicice the environment,and assets through develop- r ment and implementation of comprehensive and cost effective safety, health and security Etgineerin9 systems, policies and procedures. Public Information Office provides services and implements programs to meet Operalions6 the communications needs of both internal Maintenance and external audiences for the District.The division plans and implements media relations, website content, community relations, construction outreach, community education r and outreach, employee newsletter, intranet development, corporate identity program, collateral material and graphics development, presentation development, and crisis communications. I Operating Expense r 2006-07 2007-OB 2007-08 200&09 2009-10 Category Actual Budget Projected Proposed Proposed 'yr Personnel $ 2,962,859 $ 3,508.600 $ 3.579.700 $ 4.009.080 $ 4.293.260 Supplies 450.004 840,940 651,060 665.800 673,640 Professional/Contractual Services 610.869 1,259.400 1.136,640 1.050.100 1,031.550 60 Research 6 Monitoring 0 0 0 0 0 Repairs 6 Maintenance 2,574 5,500 3.050 3,580 3,600 jy Utilities 112.953 120,000 121.000 125,000 132,000 Other 38.064 805.930 51.040 899,640 905,710 Cost Allocation (325,547) (323,650) (321.550) (143,500) (145.200) Total $ 3.851,776 $ 6,216,720 $ 5,220,940 $ 6.609,700 $ 6.894,560 r L Office of the General Manager Fiscal Years 2008-09 and 2009-10 Service Description (continued) Legislative Affairs manages the intergovernmental relations for the District, including legislative analysis and tracking, building coalitions around key issues, and providing timely information to the Board of Authorized FTE Positions Directors. The Legislative Affairs Office also manages state and federal Managers 4.00 legislative advocates; follows political matters at the regional, state and sors17.00 federal levels; and acts as a liaison to various associations, government Administrative/Clerical 4.25 agencies, and others. Finally, the office coordinates efforts seeking Interns 0.50 grants and federal appropriations. Other 4.00 Board Services includes the Clerk of the Board office, reception, meeting Total 29.75 .. planning, audio visual and conference room setup, records management, and mailroom support. Services include supporting the Board of Directors,acting as filing officer for Statement of Economic Interests, receiving and processing summons and complaints filed against the District; and, preservation and Staffing Trends protection of the District's records for public, private, and governmental use, including coordination of all Public Records Act requests. Budget Overview The budget for the General Manager's Office is 6.3 percent higher in Fiscal Year 2008-09 due to increases in Salaries,Wages,8 Benefits. There were large decreases in departmental expenses for Administrative Services, i i, r, i t r: 08 r, 0 i Training and Meetings,and Professional Services.The General Manager's Office decreased staffing to 29.75 FTEs because of the loss of an _ Intern position. Performance Objectives / Measures • Maintain the collection, treatment and disposal cost per million gallons at or below$1,654.98 per million gallons by end of Fiscal Year 200E-09. 0 • Maintain District staffing at or below 641.0 FTEs by the end of Fiscal Year 2008-09. • Maintain 100 percent compliance with terms and conditions of our permits and local, State and Federal regulations. • Deliver 80+ percent of each fiscal year's CIP budget principles. • Provide public outreach for OCSD's capital improvement projects. • Maintain a safe and healthy work environment and implement security Through the Board's leadership, measures to comply with Homeland Security requirements. a Five-year Strategic Plan was approved in November 2007 containing OCSD's • Establish key legislative priorities and keep the Board and senior new Mission and Vision statements. management apprised of matters in Sacramento and Washington, D.C. • Provide accurate and timely board/committee agenda packages assto the Board of Directors. • Support the Board of Directors information needs via enhanced Directors'webpage. • Update performance dashboard quarterly. Present for Board approval proposed updated District agreements _ with SAWPA and IRWD. a Assure full participation of all Managers and Supervisors in the Leadership Academy. Administrative Services r Department INN Description The Administrative Services Department oversees all of the District's finance, contracts/ r Office of the purchasing, human resources, and information General M technology activities, including both day-to- Manager 1 day operations and strategic planning. The be serves as a liaison with Executive Board of Management,the Board of Directors,and other Directors departments of the District. The department includes four divisions: Financial Management; Contracts, Purchasing,5 Materials Management; Human Resources; and Information Technology, General General Technical Financial Management oversees and r Counsel Manager Services administers all District funds and accounts. Office Programs include treasury management and debt financing, accounts receivable and payable, r, user fees, payroll, accounting for fixed assets, Engineeriny coordinating the capital and operating budget process, and risk management. r Contracts, Purchasing, R Materials Operations 6 Management is responsible for contract Maintenance administration and procurement for all District departments.Additionally, this division manages the District's warehouses, receiving and maintaining inventory,and distributing supplies, materials,and equipment. r Human Resources manages employee development and training, compensation and classification, employee benefits, and y employee and labor relation activities. Information Technology is responsible for customer support related information technology r, assets and services, networking and infra- structure, telecommunications operation and maintenance and network and programming, and database systems development. r Operating Expense 2006-07 2007-08 2007-08 2008-09 2009-10 Category Actual Budget Projected Proposed Proposed y Personnel $11.042,848 $12,827,760 $12.001.830 IS 12.922.700 $ 14.731,500 Supplies 1,887,959 2,307,440 2,209,780 2.127,280 2,113,340 Professional/Contractual Services 1.050.583 1.586.760 1,497,030 1,394,870 1,427,170 Research B Monitoring 0 0 0 0 0 Repairs 8 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 1,645,571 2,080.650 2,073,650 991,900 1,161.950 Cost Allocation (1,696,735) (1,814.130) (1,624,930) (1,146.390) (1,155,3901 r 0 Total $15.116,168 $18,344,280 $17,547.460 $ 17,812,260 $ 19,870,520 r Administrative Services Department LFiscal Years 2008-09 and 2009-10 Budget Overview The Fiscal Year 2008-09 proposed Administrative Service Department budget reflects a three percent decrease over the prior year as a result of a reduction in property and general liability insurance costs and PositionsAuthorized FTE the reallocation of one vacant position to the Operations and Managers 9.00 Maintenance Department. 60.50 For Fiscal Year 2009-10,a 12 percent increase in budget is reflected due 25.00 to showing the planned District-wide increase of seven full-time equivalent Technical 2.00 positions along with the related salary and benefits costs within the Human Operations&Maintenance 0.00 Resources Division of this department. The specific positions to be added Total 96.50 .. and their divisional assignment have yet to be determined. The allocation of these positions will be addressed in next years budget update. Staffing Trends Performance Objectives / Measures 109.50 • Submit the annual sewer service fee r property parcel database to the 50 r� t County by August 10, 2008. • Process all approved sewer service fee refund requests will be processed within 45 days.90 percent of the time. • All treasury investments will be in compliance with the State Government D. t.-07 t: I: t• 09 -10 Code 100 percent of the time. FY r r, r reflects District-wide • Sustain succession management and Leadership Academy programs through June 2010. • Develop labor relations plan for Memorandum of Understanding (MOU) expiration by June 2009. e . • Recommend reinvention of staffing program by March 2009. • Continue the cycle count program and maintain a minimum 97 percent accuracy rate. is Ensure bid requests are accurate and comprehensive so that resulting it _ bids are responsive. • Coordinate and uphold solicitation schedules in support of planned projects and emergency procurements. is Implement various components of the Information Technology Strategic OCSO has started a major upgrade to Plan (ITSP). its voice and data telecommunication systems • Maintain 99 percent network uptime. • Implement Enterprise Content Management(ECM)System. Technical Services Department ervice Description )F!thin hnical Services Department provides leadership on environmental, regulatory General nce and research related matters,and Management services to other departments, and Administration s of four divisions: cal Services Administration and Board of ch provides oversight to the operating Directors Administrative s within the department and manages Services trict's research activities. Environmental Compliance S Regulatory General General fillesurch Affairs oversees regulatory compliance Counsel Manager Enwifonmeond for air, land, and water permits and regulations Office Nwat.qAffidhand is responsible for the offsite management of biosolids. Laboratonis ON Engineering Environmental Laboratory and Ocean Monitoring provides laboratory services supporting operational compliance, and environmental monitoring activities and is Operalionsh responsible for the District's ocean Maintenance monitoring program. Source Control is responsible for administering and enforcing the District's wastewater discharge ordinance and federal pretreatment regulations to control industrial discharges Ye into the sewer system. The division manages the District's urban runoff diversion program, FOG(fats, oils and greases)program,and Vs non-industrial source control program to control pollutants of concern for the GWR System. r Operating Expense 2006-07 2007-08 2007.08 2008-09 2009-10 Category Actual Budget Projected Proposed Proposed _ Personnel $13,668.202 $14.372.260 $14,068,400 $ 14.335,800 $ 15,174,000 Supplies 4.160.121 1.005,330 952,850 1,111,300 1,123,940 Professional/Contractual Services 1,188,471 764,000 448,000 1.162,000 720.400 Research 6 Monitoring 1,426.408 1.572,740 1,096.440 1.426.410 1.409.860 Repairs 6 Maintenance 242,439 227,920 284.900 292.000 310.750 Utilities 370,775 390,000 390,000 396.000 410,000 Other 279,069 299,350 291.630 521.150 548,850 Cost Allocation 422,207 249,550 537,150 8.280 5.580 ® Total $21.757.692 $18.881,140 $18.059.270 $ 19,252.940 $ 19,703.380 Technical Services Department . Fiscal Years 2008-09 and 2009-10 Budget Overview For Fiscal Year 2008-09, the significant changes to Technical Services Department's budget are associated with our enhanced Source Control Authorized HE Positions Program that will provide educational outreach to our 25 member agencies on emerging compounds of concern; the requirement to conduct additional Managers 4.00 CEOA analysis associated with biosolids reuse in Kern County; programs sors74.00 associated with climate change and greenhouse gas emissions including10.00 auditing and certification of our inventory reports; remediation of soil Technical 17.00 and groundwater contamination associated with our abandoned Interns 2.00 underground storage tanks at Plant No. 1; increased environmental Total i testing for air quality and ocean monitoring and transfer of the District's Ocean Discharge Permit and other regulatory fees from the 08M Department to Technical Services Department. Performance Objectives / Measures Staffing Trends • rl • Achieve 90+ percent of strategic goals and objectives: I r r• I r 107.00 t 7.00 • Complete implementation of ECAP in all core environmental areas with active dashboard as required by the District's Strategic Initiative. • Complete the development of a Greenhouse Gas emission inventory protocol and represent the District's interest in the development of climate change regulations as required by the District's Strategic 0506 r, r r r: r; r• r• r Initiative on Climate Change. • Monitor the development of technologies for the remaining one-third of the District's biosolids production and select a management option as part of the Sustainable Biosolids Program's Strategic Initiative. • Analyze influent for Compounds of Potential Concerns(CPC) prioritize _ CPCs based upon risk to GWR System, and establish Source Control Strategy for priority CPCs as needed. • Ensure Technical Services Department's expenditures are managed within 90 to 100 percent of the proposed budget. • Complete NPDES permit renewal application on time by April 2009. • Meet 100 percent of regulatory deadlines for required compliance reports and permit applications. • Support GWR System routine monitoring requirements as defined by project goals. Enhanced Source Control Program will provide educational outreach on emerging • Collect and test all sediment and water quality ocean samples according compounds of concern. to schedule. File the annual Ocean Monitoring Report with regulators by March 1, 2009. • Meet Environmental Laboratory's test/FTE standards within 10 percent of Fiscal Year 2007-08. Meet benchmark standard within 10 percent variance. Meet turn-around time standard within 10 percent variance. • Meet Environmental Laboratory compliance test standards 95 percent correct on first and 100 percent on second attempt. • Conduct monitoring of industrial facilities within 95 percent of the benchmark. • Conduct 100 percent enforcement action and follow-up monitoring within 30 days of each non-compliance event. Engineering Department M �W Service Description The Engineering Department is responsible for the planning, design and construction of r Office of the the District's capital improvement program and General District annexation11Ms, easements and connection Manager permitting.The Engineering Department is comprised of five divisions: Board of Engineering Administration provides Directors Administrative management to all Engineering Divisions. Services Planning provides evaluation and review to the engineering data management, General master planning for the District regarding General Technical the Capital Improvements Program(CIP), Offi Counsel Manager Services water resources management, and the ce District's California Environmental Quality Act review. In addition, this division provides �. oversight to annexations, connection permitting, easements, and agency agreements. r Project Management Office manages the y design and construction of new collection Operations b and treatment and disposal facilities, plus the Maintenance rehabilitation of older facilities, for the District. This division is also responsible for the delivery r of capital projects from the preliminary design stage through the closeout of construction. Engineering and Construction provides administration for design and construction projects, inspection, and other necessary services to the Project Management Office r and the Planning Division for the effective execution of projects to meet the operational needs of the District. r Facilities Engineering provides engineering and design services so that the Sanitation District has an effective and efficient program for completing fast-track type projects, special projects, repair work projects, and/or emergency projects. Operating Expense 2006-07 2007-08 2007-08 2008-09 2009-10 Category Actual Budget Projected Proposed Proposed Personnel $11.932,363 $14.449,100 $14.050.700 $ 15,864,300 $ 16.834,900 Supplies 1e9,696 255,650 234,330 265,230 271.400 Professional /Contractual Services 206,847 87,770 94,410 570,700 468.700 Research 8 Monitoring 0 0 0 0 0 Repairs B Maintenance 6,677 13.440 4,040 4,100 4,160 Utilities 13.222 17,000 17.500 17.000 17,340 Other 2.136.981 2,514,880 2.415.450 312.270 2,077,000 j Cost Allocation (11,401,411) (13.999,090) (12.721,790) (14.731,350) (15,552,950) r ® Total $ 3,064,375 $ 3.338,650 $ 4,094,640 $ 2,302,250 $ 4,120.550 r Engineering Department - Fiscal Years 2008-09 and 2009-10 Budget Overview r In Fiscal Year 2007-08, the Engineering Department formed a new division, Facilities Engineering, which increased the overall staffing level. In the Ir proposed Fiscal Year 2008-09 budget, six 08M employees have been Authorized IFTE Positions r reassigned to Engineering, and two FTEs are being cut from the Department. Managers 5.00 Although there have been net increases to staffing levels in Engineering over 74.00 the last two years(due mostly to reassignments), the overall Proposed29.00 Budget will decrease in Fiscal Year 2008-09, This decrease is due to a large Intems 0.50 reduction in Cooperative Projects funding in the Planning Division. However, Operations enance0.00 an increase in outlays is anticipated to occur in the Cooperative Projects Total 108.50 program in Fiscal Year 2009-10. Performance Objectives / Measures • Expend minimum 90 percent of project annual Capital Improvement Staffing Trends Program cash flows for Fiscal Year 2008-09. tt 108.50 108.50 • Ensure that reporting division's expenditures are managed to less than r 100 percent of proposed budgets. • Ensure that reporting divisions achieve 90 percent of individual performance objectives. r r r, t, r r I: r: r' 0 r r CI Fxp, ndiI., Improved r Treatment $170M Additional _ Capacity ReplacemenU $67M Rehabilitation $122M Support $15M r In 2008-09,the Engineering Department will be responsible for$374 million in capital expenditures. r Operations and Maintenance Department Service Description The Operations and Maintenance Department is responsible for collecting, conveying and r m treating wastewater, reusing or disposing of the treated wastewater and all residuals, and providing care to all facilities. The 06M r Department consists of eight divisions: Board of Operations and Maintenance Administrative Administration provides leadership Directors p p Services and oversight to all Operations and Maintenance divisions. General Collection Facilities Operations and r Counsel General Technical Maintenance operates, maintains and ffic e Manager Services manages regional gravity and pumping facilities that transport wastewater to the two regional plants for treatment and C�] reclamation. The division provides support to cities and agencies for the Regional — Plant No I Services and Dig Alert programs. r Oprotions Facilities Services manages the non- - process infrastructure systems of the two Operations100-acre treatment facilities, and maintains r Mechanical fleet equipment,the molar pool, managing the Computerized Maintenance Management System and helping to initiate,coordinate and manage various supply and contracted services for all 06M divisions. Process Engineering provides engineering r and technical support to all staff relating to air,water and solids issues. r Operating Expense 2006-07 2007.08 2007-08 2008-09 2009.10 Category Actual Budget Projected Proposed Proposed Personnel $31.968.451 $34.766.850 $35.754.800 $ 36,712.200 $ 38.974.500 Supplies 12,696.299 22.323,690 17.004.460 21.609,000 22.938.020 Professional/Contractual Services 14,941.106 21,451.350 19.478,150 28.099.800 28.197.300 Research 6 Monitoring 0 0 0 0 0 Repairs 6 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 8.931.370 9.402.920 Other 247.062 455.250 462,260 182.500 186,960 Cost Allocation (3,099,916) (3,891,880) (3,610.980) (4,490.460) (4,682,750) ® Total $70,357,864 $93.192.610 $86,025.530 $100,794,030 $103,449,020 Operations & Maintenance Department Fiscal Years 2008-09 and 2009-10 Service Description (continued) Plant 1 and Plant 2 Operations are responsible for the daily management of the wastewater treatment processes and biosolids loading activities to ensure compliance with all regulatory permits, management of odor reduction Authorized HE Positions operations, support of the CIP, and coordination of construction work. Manager 6.00 Mechanical and Reliability Maintenance is responsible for maintaining t and repairing all mechanical equipment in the treatment plants, rebuild, Administrative/Clerical 6.75 welding and fabricating services, equipment reliability and the asset Intems 0.50 management program leadership. t e • 223.00 Total 299.25 Instrumentation and Electrical Maintenance is responsible for maintaining all instrumentation, electrical, HVAC equipment and systems in the treatment plants, pump stations, support and office buildings; providing reliable power by operating the two generating facilities and back-up Staffing Trends generator power sources, and repairing all systems. Budget Overview The Fiscal Year 2008-09 budget for the Department reflects an eight percent increase over the prior year. Significant factors affecting this change include: • Fiscal Year 2008-09 and 2009-10 budgets are linked to meeting all regulatory, Consent Decree, and Level of Service needs for the facilities i i. i. i r is t: i• i• i and systems managed by the O&M staff. They include providing treated water to OCWD for GWR System needs, continued ramp-up to full secondary treatment by December 31, 2012,and minimizing offsite odor impacts from Plants No. 1 and 2 in conformance with new Dilution to Threshold IDlf)criteria. No budget is provided to meet the state's mandated greenhouse gas reduction program as specific criteria are unknown. • Staffing will increase slightly to meet the needs of the expanding facilities while staying within the current one percent agency-wide growth ceiling. A staffing plan developed in Fiscal Year 2007-08 will guide future increases needed to help close staffing gaps. We will continue to utilize and expand outsourced services and managed overtime to minimize the needs for increased FTEs. at Costs of numerous chemicals needed for the collections, treatment, and outfall disinfection processes are expected to continue to increase based on market trends indexed to fuel and energy. This also affects our transported biosolids as produced tonnage increases with increasing levels of secondary treatment. No contingencies are Chemical costs continue to rise as OCSD included for cost increases in electricity for the collection system pump meets the challenges of treatment, stations or treatment plants. Natural gas usage for the central generation disinfection,and odor control, facilities will increase to cover growing electrical loads at both plants. • Materials and services for repairs and maintenance agency-wide will trend upwards to cover facilities growth, planned maintenance, as well as increased maintenance needs in our older facilities where systems are at or beyond their life cycle. No contingencies are included for major emergency repairs or unbudgeted expenses. Operations and Maintenance Department (continued) _ Performance Objectives / Measures r • Achieve 100 percent compliance with water, solids, air, and energy permits. r • Achieve a compliance level of 80 percent to 100 percent of the Levels of Service(LOS)targets consistent with resource availability. r • Manage 06M expenditures to within 96 to 100 percent of approved budget. • Ensure that the annual OCSD City and Agency Collection Facilities r 08M survey is completed on schedule. r r r r r r r r �r r r r ® r , '°"_i"� ORANGE COUNTY SANTTA It ►�" ; � ; • t�4rat rltemment Pro, — - is --`er, i �. �► JP d.PRIMARY TREATMENT 2' ' �� �� Following preliminary treatment,the waslewalei c basins(for about two hours)where liquids and R solids same and are scraped out the bottom.an- off the lop of the basins.The materials that are prpceuing facilities.Adding coagulants to the r 3.AIR EMISSIONS CONTROL - a�e solids resulting in-advanced primary ire Chemical and biological scrubbers 1 - yr M¢[is either pumped to secondary treat L / clean the air extracted from the various me Ili I healed effluent. enclosed treatment facilities. 2.CHEMICAL A00ITION Hydrogen peroxide is added to the incoming wastewater i ts!_ to help reduce hydrogen sullide and control odors. !F Chemical coagulants are added to the wastewater _ to enhance the primary settling process. r00, 14 Wastewater ma55as through bar Steens that into and remove large and nonorpanic materials.It then flows into Aril chambers I ` where the heaviest materials,such as egg shells,coffee grounds and sand,settle out.The materials removed during these processes are sent to a unitary landfill. 5.SECONDARY TREATMENT Advanced primary treated wastewater Is pumped to aeration basins where microorganisms,called activated sludge,consume the remaining organic ulids.The wastewater is then pumped � t Into settling basins where the activated sludge winter;out.Most of It is scraped off the bottom and returned to the aeration basins to regenerate .� this process,and the excess is sent to solids processing. \ Trickling filters provide similar treatment with microbes R $E + living on media. i 10.WA ..: / We pro, Orange LANDSCAPE IRRIGATI • _ /" - recychn that pro into the 1 intmsio The war a. INTI TEF TIOIN DISTRICT"" ,ess Diagram LANDFILL s pumped to large settling ,lids SePaele.The heavier COMPOST — _ the lighter material l5 skimmed moved are sentent to pr solids x wastewater Improves settling ad wastewater.The beaded LAND APPLICATION ant facilities or blended into All, _ 6.SOLIDS PROCESSING Solids removed during the treatment processes are pumped into ,. ..... j italf tdigesters where they convertunde 10 a ga natural made p,ion for ne.w ich i sent the solidsn eergla a ve molly made up of metharro.which is I sent to our own energy recovery facilities. The remaining solids are pumped to dewatering facilities I to achieve a 23 percent solid materiel(whh a cake-like V , consistency)called bit land The Lion as a are recycled for direct land application as a soil amentlmen or used to make hi Biusolids on also be composted or sent to f a landfill II necessary*44 v 1 "^`' AO✓ V 7. ENERGY RECOVERY In our Centel Power Generation Facility, the methane gas derived from Imm the digesters is used to power engine-generator units that 14 produce the electricity used as the energy source to operate both treatment plants. F ^^ 8.OCEAN OUTFACE PUMPING STATION The treated wastewater from both plants Is blended and pumped after disinfection and dechlodnallon ^ into a large ocean student pipe.This facility has the capacity to pump �^ 480 million gallons of treated wastewater a day.which helps us handle stormwater Inflows,and voll meet our capacity needs for many years. S.OCI AN OUTFALL The ocean ou fall pipe Is 10 feet in tlumeter live miles long and safety discharges treated wastewater at a depth ER RECLAMATION of 200 feet.The last mile of the pipeline is a diffuser - de secondary-troled wastewater to the section with hundreds at dies.which provide a - 'ouny Water District for advanced treatment and high rate of diluglNl with sul-}p nit seawater. .The water district has two treatment plants - Ide reclaimed water that is either injected 1 Iroundwater table to block seawater ,or used[of the Groundwater Req'uili. �yg' Is also used for landscape irrlgartob add'lid 5. ZZ ..� - • LISION BARRIER &Zfd ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, California 92708-7018 (714) 962-2411 www.ocsd.com Id FISCAL YEARS 200$-09 AND 2009-10 Proposed Budget . 1 rt•• 4�JNtV sANl iq lrOh -. O U s Orange County Sanitation District 'We protect public health and the environment by provie ing effective 9 ! wastewater collection,treatment,and recycling." b 1 E r Orange County Sanitation District, California FY 2008-09 & FY 2009-10 Proposed Budget r r O�JNtV SPNITgr�O2 r i v s Q o r • � A � h r 90r Fcr/N� E ENv\P�� r r r MISSION STATEMENT "We protect public health and the environment by providing effective wastewater collection, treatment, and recycling." r r r r r For Fiscal Years July 1, 2008 through June 30, 2009 and July 1, 2009 through June 30, 2010 r 2008-09 & 2009-10 Budget LOS ANSEI'S COUNTY "HABRA Aye h �c NLLERiOF YORBALINOA m.-1.LA 9 I zFF O f PALMA BUENAO PARK AHANEI CYPRESS ANAHEIM VILLA r 5 FARy., .STANTON ORANGE LOS ` "ALAMITOS �•' GARDEN GROVE ' S L BEACH _ INSTER •-••... ___ I _ _ SANTA ANA JOVNTA VALLE\ P � /'n• p. awn.. ❑ IA.,nr GTON OCSD COSTA NESA �>:♦ Reclamation a 1 Plant No.t ❑ IRVINE OCSD NEWP0 TBEA Treatment Plan No.2 "a N =no Pia 0c50 senlm Awa a., ocso P„mo su�o.gslaaD Orange County Sanitation District(OCSD) Re Orange Caunly,CA ❑UU-1 arm—I-nrul REV 20D8 GFOA Budget Presentation Award r r GOVERNMENT FINANCE OFFICERS ASSOCIATION �- Distinguished Budget Presentation Award PRESENTED TO Orange County Sanitation District California �+ Forthe Fiscal Year Beginning July 1, 2006 "'� Prerkem [recutive Dirswr r r The Government Finance Officers Association of the United States and Canada(GFOA)presented a Distinguished Budget Presentation Award to the Orange County Sanitation District, California,for its two-yearl budget for the fiscal years beginning July 1, 2006. In order to receive this award,a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide,as a financial plan, and as a communication device. The award Is valid for a period of one year only. We believe our current budget continues to conform to the program requirements, and we are submitting 4 to GFOA to determine its eligibility for another award. r 2008-09 & 2009-10 Budget Table of Contents Boardof Directors........................................................................................................................................................i BoardCommittees.......................................................................................................................................................II Orange County Sanitation District Organization Chart...............................................................................................III AdministrativeOfficials...............................................................................................................................................Iv Reader's Guide to the Budget....................................................................................................................................v General Manager's Budget Message........................................................................................................................vii CoreValues................................................................................................................................................................x r Section 1 —Executive Summary ExecutiveSummary......................................................................................................................................1 r Section 2-Introduction r Financial Overview&Budgetary Issues.......................................................................................................1 BusinessPlan .............................................................................................................................................17 Strategic Initiatives for Fiscal Years 2008-09&2009.10............................................................................32 OCSDLong-Term Planning........................................................................................................................33 r Background Information and Description of Services.................................................................................34 OrangeCounty at a Glance........................................................................................................................35 Section 3-Policies, Systems and Processes FiscalPolicy..................................................................................................................................................1 GFOARecommended Practices...................................................................................................................9 r Overview of the Budget Process.................................................................................................................1& BudgetAssumptions...................................................................................................................................18 Accounting System and Budgetary Control................................................................................................22 r OCSD Enterprise Fund Chart.....................................................................................................................23 RevenueSources........................................................................................................................................24 r Section 4—District Summary FY 2008-09: Where the Money Comes From.............................................................................................................1 Wherethe Money Goes..........................................................................................................................1 Revenuesby Category...........................................................................................................................2 Expensesby Category ...........................................................................................................................3 r FY 2009-10: Where the Money Comes From.............................................................................................................5 Wherethe Money Goes..........................................................................................................................5 Revenuesby Category...........................................................................................................................6 Expenses by Category 7 BudgetResources.........................................................................................................................................a Budget Resources by Revenue Area—IFY 2008.09...................................................................................10 r Budget Resources by Revenue Area—FY 2009.10...................................................................................12 ProjectedReserves.....................................................................................................................................14 Consolidated Cash Flow Projections..........................................................................................................15 r W Table of Contents 6w Section 5—Operations Overview Operations Budget Overview.................. . . . . 1 ' Operations Summary/Comparisons by Department.....................................................................................3 Expenseby Category....................................................................................................................................4 Allocation to Individual Revenue Areas........................................................................................................6 NetOperating Expense by Line Item............................................................................................................6 L.I Operating Revenue by Category..................................................................................................................8 Notes to Operations Summary......................................................................................................................9 Listing of Proposed Purchases Over$100,000..........................................................................................12 Section 6-Operating Divisions V GENERAL MANAGEMENT General Management Administration ...........................................................................................................I Assistant General Manager Administration...................................................................................................5 BoardServices.................................................................................................................................9 Public Information Of0ce........................................................................................................13 Safelyand Health.................................................................................................................17 i FINANCE AND ADMINISTRATIVE SERVICES Ir Administrative Services Administration.......................................................................................................21 Financial Management................... . . Contracts, Purchasing, and Materials Management...................................................................................20 HumanSources................................................................................................................ ...33 Information Technology.....................................................................................................................37 TECHNICAL SERVICES Ir Technical Services Administration and Research ......................................................................................41 Environmental Compliance and Regulatory Affairs....................................................................................46 L+ Environmental Laboratory and Ocean Monitoring......................................................................................49 SourceControl............................................................................................................................................53 ENGINEERING it EngineeringAdministration.........................................................................................................................57 Planning......................................................................................................................................................81 - ProjectManagement Office.........................................................................................................................65 Engineering and Construction.....................................................................................................................� FacilitiesEngineering..................................................................................................................................73 OPERATIONS&MAINTENANCE Operations&Maintenance Administration..................................................................................................77 Collection Facilities Operations and Maintenance......................................................................................81 Facilities Maintenance and Fleet Services..................................................................................................85 Operations&Maintenance Process Engineering.......................................................................................89 PlantNo. 1 Operations................................................................................................................................93 PlantNo. 2 Operations................................................................................................................................97 i Mechanical and Reliability Maintenance...................................................................................................101 LW Instrumentation & Electrical Maintenance.................................................................................................105 Section 7-Self-Insurance Program L Self-Insurance Program Overview................................................................................................................1 TotalSelf-Insurance Program.......................................................................................................................2 L General Liability and Property Self-Insurance Program ...............................................................................3 V 2008-09 & 2009-10 Budget Workers'Compensation Self-Insurance Program.........................................................................................4 r Section 8-Capital Improvement Program Overview.......................................................................................................................................................1 Diagram of Treatment Process.....................................................................................................................3 ProjectSummary—FY 2008-09....................................................................................................................4 Capital Improvement Expenditure Graphs by Process and Type—FY 2008-09..........................................5 ProjectSummary—FY 2009-10....................................................................................................................6 Capital Improvement Expenditure Graphs by Process and Type—FY 2009-10..........................................7 Summaryof Capital Requirements...............................................................................................................8 CIPProject Detail Sheets............................................................................................................................14 Project Summary by Revenue Program Category-Collection System Projects......................................107 Project Summary by Revenue Program Category-Treatment&Disposal Projects.................................109 Summary by Project Status—Collection System Projects.......................................................................112 Summary by Project Status—Treatment&Disposal Projects..................................................................114 Proposed Equipment Budget Summary—FY 2008-09.............................................................................118 Proposed Equipment Budget Detail—FY 2008-09...................................................................................120 Proposed Equipment Budget Summary—FY 2009.10.............................................................................122 Proposed Equipment Budget Detail—FY 2009-10...................................................................................124 Section 9-Debt Service r DebtFinancing Program...............................................................................................................................1 Debt Service Requirements-Principal&Interest.........................................................................................5 r Debt Service Requirements-Interest Payments...........................................................................................6 Debt Service Requirements-Principal Payments.........................................................................................7 r' Section 10 -Appendix Staffingby Department-Graph....................................................................................................................1 Staffingby Category-Graph........................................................................................................................1 Historical Staffing by Department-Graph....................................................................................................2 Total Historical Staffing—Graph...................................................................................................................2 HistoricalStaffing Summary..........................................................................................................................3 r' Historical Staffing Detail................................................................................................................................4 AppropriationsLimit....................................................................................................................................13 BudgetGlossary..........................................................................................................................................14 r Miscellaneous Statistics..............................................................................................................................19 Service Area Population Information..........................................................................................................20 Index............................................................................................................................................................21 r r r r r r OCSD Board of Directors r Orange County Sanitation District Board of Directors r AGENCY/CITIES ACTIVE DIRECTOR Anaheim Harry Sidhu r Brea Roy Moore Buena Park Palsy Marshall Cypress Phil Luebben r Fountain Valley Lang Crandall Fullerton Don Bankhead r Garden Grove Bill Dalton Huntington Beach Don Hansen Irvine Christina Shea r La Habra Rose Espinoza La Palma Mark Waldman r Los Alamitos Ken Parker Newport Beach Don Webb Orange Jon Dumitru Placentia Constance Underhill Santa Ana Sal Tinajero Seal Beach Charles Antos Stanton David Shawver Tustin Doug Daven r Villa Park Richard A. Freschi Yorba Linda Jim Winder r Sanitary Water Districts r Costa Mesa Sanitary District James M. Ferryman Midway City Sanitary District Joy L. Neugebauer r' Irvine Ranch Water District Darryl Miller County Areas Member of the Board of Supervisors Chris Norby r r r I y 2008-09 & 2009-10 Budget Board Committees L STEERING COMMITTEE James M. Ferryman, Board Chair OPERATIONS COMMITTEE - Doug Davert, Board Vice Chair Larry Crandall,Chair I Larry Crandall, Chair,Operations Committee Ken Parker,Vice Chair L Mark Waldman,Chair,Administration Committee Charles Antos Don Bankhead Don Bankhead Phil Luebben Rose Espinoza Ken Parker Patsy Marshall Roy Moore David Shamer j ADMINISTRATION COMMITTEE Harry Sidhu L Mark Waldman,Chair Constance Underhill Phil Luebben,Vice Chair Don Webb Bill Dalton James M. Ferryman, Board Chair L Jon Dumitru Doug Davert, Board Vice Chair Rich Freschi Don Hansen I ' Darryl Miller GWRS JOINT COOPERATIVE STEERING W Joy L. Neugebauer COMMITTEE Chris Norby Jim Ferryman,Board Chair L Christina Shea Don Bankhead Sal Tinajero Larry Crandall Jim Winder Darryl Miller(A1) James M. Ferryman, Board Chair Mark Waldman (A2) Doug Davert, Board Vice Chair Don Webb(A3) L is V L L L L L L I u V r District's Organizational Chart r E D OF DIRECTORS r GENERAL GENERAL MANAGER COUNSEL GENERAL OFFICE r MANAGEMENT ADMINISTRATION ADMINISTRATIVE TECHNICAL OPERATIONS r General SERVICES SERVICES ENGINEERING AND Management MAINTENANCE AEmiMalre lian r Operations 8 AaNMan gerrerel Atlmlmslretlm Tot Ica Services ErMlneeanp 0 Plain No.t Manager SeMcea Atlminblretlon8 Atlminlebatlon MminWmo Operations AtlminWrellon Atlminlsaatlon Rewarch AtlmlMMretlon r FlnenclM Environmental Colledlon FedlSks Plenl No.Y Bmrtl Services Compliance 6 Plennhp Operetlme& ManegemeM Regulatory ANalre MalMenena OperMlone r Publle IMomatlan CoMrects, Emlmnmentel PMIW FedlWm Merdanical& OfficePurchmMg 6 Labore"Y& Management Maintenance& Rellabilmy Servlcm Materials MgmL Oaan Monitoring OBxe Fleet Services r Engineering anti Process Iriannn tetlon8 Satey anti HealN Human Rewurm Bwra Canaol CorMmetlon Englnem, ElecbMal r Maintenance Inlormetlan Facilities r TwhnologY Engineerng r r r r r II r L 2008-09 & 2009-10 Budget Administrative Officials V Departments IL„ General Manager James D. Ruth I u Assistant General Manager Robert P. Ghirelli L Director of Finance and Administrative Services Lorenzo Tyner Ld Director of Technical Services Edward M.Torres Id Director of Engineering James D. Herberg Director of Operations&Maintenance Nicholas J.Arhontes L General Counsel Brad Hogin L v y L 4 L W L y iv L+ Reader's Guide to the Budget r Reader's Guide to the Budget . The Budget Process provides an overview of the budget development process and budget This guide Is Intended to help the reader calendar. understand what Information is available in the budget and how it is organized. This budget • Budget Assumptions are decided on as a document is broken down Into ten sections foundation for developing the budget, and they ,+ including a Budget Glossary and Index. The guide the District in determining the level of Administrative Services Department Invites your wastewater treatment services that will be suggestions on ways to make the budget provided to the community. document more understandable. `� • Accounting Systems and Budgetary Control The General Managers Budget Message and a provides an overview of the District's summary of the District's Core Values follow this accounting systems and the level at which guide. The General Manager's budget message budgetary control is maintained. introduces the budget to the reader. Section 4-District Summary Following is an explanation of the major sections This summary section is a comprehensive of this budget: overview of the FY 2008-09& FY 2009-10 Budget with a focus on all consolidated District Section f—Executive Summary funds. Included are tables and graphs for both The Executive Summary highlights critical issues revenues and expenses. and financial Information regarding the District's FY 2008-09& FY 2009-10 Budget. Section 5—Operations Overview This section Is a comprehensive overview of the Section 2—Introduction District's operating costs and related revenues for FY 2008-09 and FY 2009-10. The District's • Financial Overview and Budget Issues-This operations Include collection, treatment, and r section highlights the Issues Impacting the FY disposal activities. Tables are Included for 2008-09&FY 2009-10 Budget. revenues and expenses to assist the reader in interpreting the data. Section 3—Policies and Practices ` Section 6—Operating Divisions • Fiscal Policies describe the District's financial This section Includes operating programs for the goals along with policies addressing the District's basic organizational units which provide r operating budget; revenues and expenses; collection and essential wastewater treatment service fees;capital improvement program; services to the community. Divisional budgets long-and short-term debt; reserves; are presented in the following format: r Investments; and accounting, auditing and financial reporting. • Organization Chart-An organization chart by position is provided for each division. • GFOA Recommended Practices lists all of r the Accounting,Auditing, and Financial • Authorized FTE Positions-The total number Reporting; Cash Management;Governmental of full-time equivalent positions assigned to Budgeting and Fiscal Policy; Debt each division is Included in this table. r Management;and Retirement and Benefits Administration practices that are recommended • Staffing Trends-A multi-year staffing trend by the Government Finance Officers chart is provided to show the changes that Association of the United States and Canada. have occurred in each division over time. r' Included within this list of best financial practices for states and local governments is • Service Description -A description of the the District's status as to whether we are in services or functions provided by each division. r, compliance, in progress towards compliance, or whether the practice is applicable to this • 2007-08 Performance Objectives -This agency. section represents the objectives defined by the division for the previous fiscal year. r v •d V 2008-09 & 2009-10 Budget • 2007-08 Performance Results-A summary of _ major accomplishments and objectives that • Staffing-Includes charts of staffing by were actually met during the previous fiscal department and category,charts of the rr year. historical staffing by department,a historical summary and detail schedules of authorized - . 2008-09&2009-10 Performance Objectives- positions and full-time equivalent employees by I A list of projected goals to be accomplished department and by division. 61 during the 2008-09 and 2009-10 fiscal years. • Appropriations Limit-The calculation of the I • Performance Measures-A listing of the District's California Constitutional appropriation L measures that will be used to evaluate the limit. success of the budgeted fiscal years. • Budget Glossary • Budget Overview-This section provides an overview of changes from the FY 2007-08 • Miscellaneous Statistics Budget to the FY 2008-09&FY 2009-10 Budget. Additionally, the significant impacts of . Service Area Population Information budgetary changes are outlined along with dollar amounts. • Index • Expenses by Category-A chart comparing V the FY 2006-07 actual expenses and the FY 2007-08 budgeted and projected expenses against the proposed budget for FY 2008-09& LI FY 2009.10. The percent change from the FY 2007-08 Budget compared to the FY 2008-09 - Budget is also included. u • Expenditure Trends -This graph provides a multi-year historical trend of divisional V expenses. Section 7-Self-Insurance Program This section presents an overview of the self- L insurance program, including program descriptions and revenue and expense detail. Section 8-Capital Improvements V This section of the budget gives an overview of the District's Capital Improvement Program(CIP), CIP project summaries, and detailed CIP project sheets. The project sheets outline project descriptions,project location,project type, projected costs,and funding sources. 4 Section 9-Debt Financing Program This section describes the District's Debt Financing Program including a listing of the V outstanding debt issues, a description of the purpose of each Issue,a debt service retirement schedule, and Debt Service Requirements, including principal and interest,over the life of the outstanding debt issues. Section 10-Appendix U vi L ORANGE COUNTY SANITATION DISTRICT June 4, 2008 Honorable Chair and Board of Directors: ^ 1714)962a2411 1 am pleased to submit the Orange County Sanitation District (OCSD)2008-09 and fax: 2009-10 operating budget and capital improvement program. This document provides a 1714)9624356 framework for District activities during the next two years and serves as a source of `°°...d.a°m information for the District's Board of Directors, and our employees and ratepayers. main.,addra.a: Po. Box 8127 In November 2007, after a series of Board workshops, the District approved a Five-Year ountam Valley..CA 92729 8127 Strategic Plan that updated the District's Mission and Vision statements, Levels of street addreaa: Service, and Business Plan. The Strategic Plan serves as the underlying basis for the ]944 ems Av.— development of this two-year budget and supports our mission to protect public health and ez>os oCA the environment by providing effective wastewater collection, treatment, and recycling. It also set forth the groundwork for establishing a stable five-year revenue base, a prudent Member step required to support our more than two billion dollar capital improvement program. Ageneln '— • In addition to providing resources to support the processing of nearly 230 million gallons Cities of wastewater each day from 2.5 million residents and businesses, the Strategic Plan focused on four distinct program areas: Anaheim Brea esena Park Biosollds 4ionaaa The District produces approximately 650 tons of digested and dewatered biosolids per Fountain Valley Funartan day. By 2020, the District's biosolids production is projected to increase by 30 percent, to Gentian Gna.a 310,000 tons annually. We have viable long-term strategies in place for 2/3 of our ""°`°"en�e biosolids production and we will continue to pursue beneficial reuses for the remaining 113 _ La Habra of our biosolids production. Cost-effective land application reuse options will continue in Le Palma Loa Alamitos Kern County and Arizona as long as possible while pursuing a biosolids-to-energy Newport Beach alternative. Orange Place Ant Sense ant Air Quality Beef Beath The District expects amendments to existing regulations requiring significant reductions in Stanton TaeNn common pollutants. As a result, OCSD will apply feasible and cost-effective controls to ' Villa Park reduce the air toxic emissions below health risk notification levels to the surrounding yarbe Linda community and OCSD employees. anty of Orange its Odor Control sanitary Diarists This budget includes resources that will allow us to invest more than $100 million to costa Mesa establish an odor-based standard on total odor. These resources will provide for the ase Midway city design and construction of new processes and structures at our wastewater treatment 'Ysnr District, plants to significantly reduce odor impacts on our neighbors. sax fr..Renoh Groundwater Replenishment (GWR) System Although now completed, the District will maintain its partnership with the Orange County Water District in the initial phase of the GWR System. The GWR System captures ass secondary treated effluent and purifies it to a level that surpasses bottled water quality. It has the capacity to reclaim nearly 70 million gallons of water daily. While the costs are as as To maintain world-class lesdarship in wastewater and water resource management. u General Manager Letter ' J June 4, 2008 u Page 2 I , about the same as importing water from Northam California,we are able to cut the energy SJ necessary to do so in half while reducing our reliance on external water sources. This budget also addresses rising treatment and chemical costs,aging Infrastructure and u increased regulatory requirements. As a result,the operating budget is increased by 14 percent. However, despite these Increases, OCSD provides wastewater treatment, sewer and facilities maintenance, ocean monitoring and many other services with residential u; user fees averaging less than $17 per month, one of the lowest rates in the state. As a result of operational efficiencies,we are able to provide increasing activities with only a one percent Increase in authorized staffing, contributing to the goal of maintaining our �I low user rates. u This budget strongly supports the primary mission of the District,touching on all key areas: •Strategic Planning—OCSD has developed a new Five-Year Strategic Plan that sets the direction of the agency and serves a basis for many budget allocations. I Staff will review and update this plan, periodically bringing it to the Board for L approval. •Capital Improvement Program (CIP)—All consent decree activities will remain on or ahead of schedule. A new management review program will be fully implemented to reduce the magnitude of change orders as a percentage of total r program costs. u •Levels of Service—We will continue to increase the quality of effluent ( I discharged into the ocean or provided for water reclamation in a cost effective manner. •Process Reviews—To ensure our major programs are managed as efficiently as possible, we will engage independent experts to review our existing and future projects and services. In previous years, auditors reporting directly to the Board have reviewed the contract administration of our large construction projects and various financial processes. •Financial Positioning—This budget reflects our commitment to fiscal responsibility as indicated by our recent upgrade to an "AAA" bond rating from Standard and Poors while maintaining "As" ratings from the other two rating agencies. ILJI •Employee Emphasis—We continue to invest in our employees focusing on succession planning, leadership training, and the implementation of a new performance appraisal system. L viii r General Manager Letter June 4, 2008 Page 3 r •Legislative Platform—Our legislative activities have supported the Santa Ana River Interceptor(SARI) Line relocation, Homeland Security requirements, and Design-Build initiatives. r •Information Technology—We have completed our new Information Technology Strategic Plan that Includes a comprehensive review of the District's technology needs. This budget supports that assessment as means of Increasing our overall efficiency. r •Interagency Agreements—We are reviewing all of our agreements with other agencies to ensure alignment with our strategic goals. I believe that this budget fully supports the goals Included in the District's new Strategic Plan and positions us well to address the challenges ahead. I look forward to another dynamic and productive year of leading the organization. amen D. Ruth aw General Manager r r r r r r Ix r 2008-09 & 2009-10 Budget ORANGE COUNTY SANITATION DISTRICT CORE VALUES MISSION STATEMENT L The Mission Statement Is the basic foundation that defines why the Orange County Sanitation District exists. "We protect public health and the environment by providing effective wastewater collection,treatment,and recycling.' VISION STATEMENT 6.1 The Vision Statement supports the Mission Statement by expressing a broad philosophy of what the Orange County Sanitation District strives to achieve now and in the future In the delivery of services to our customers, V' vendors,other agencies,the general public and each other. "The Orange County Sanitation District is committed to: • Making decisions in an open and honest way to produce optimum financial, environmental and societal results. V • Cooperating with other stakeholders to protect the ocean and regional water resources for the people we serve. i • Beneficially recycling wastewater, biosolids and other resources using safe and effective processes Iv and systems. • Developing the best possible workforce by providing employees with opportunities to advance their V careers through enhanced growth, responsibility,and professional development." Core Values , The Core Values support the Mission and Vision Statements by expressing the values, beliefs,and philosophy that guides our daily actions.They help form the framework of our organization and reinforce our professional work ethic. L • HONESTY,TRUST and RESPECT We aspire to the highest degree of integrity,honesty,trust,and respect in our interactions with each other, .i our suppliers,our customers, and our community. L • TEAMWORK and PROBLEM SOLVING We strive to reach OCSD goals through cooperative efforts and collaboration with each other and our II � constituencies. We work to solve problems in a creative,cost-effective and safe manner, and we L acknowledge team and Individual efforts. • LEADERSHIP and COMMITMENT j We lead by example, acknowledging the value of our resources and using them wisely and safely to achieve �+ our objectives and goals. We are committed to act in the best Interests of our employees,our organization, and our community. • LEARNINGITEACHING-Talents, Skills and Abilities L+ We continuously develop ourselves,enhancing our talents,skills, and abilities, knowing that only through personal growth and development will we continue to progress as an agency and as individuals. • RECOGNITIONIREWARDS We seek to recognize, acknowledge and reward contributions to OCSD by our many talented employees. L x L Executive Summary This FY 2008-09 and FY 2009-10 budget represents a consolidation of two one-year proposed operating S2wu and capital budgets. The District's fiscal year 2008- 09 operating and capital improvement budget is t11. proposed at $601.0 million, a 17.1 percent increase SUM over the prior year budget of $513.2 million. This overall increase is primarily attributable to a $72.3 $1X0 million, or 23.7 percent increase in cash outlays for construction projects, a $9.3 million or 14.3 percent 31$17 s" increase in debt service requirements, and a $6.2 million, or 4.3 percent increase in the operating budget. s+Ass was 6 W U M 07-0B 06W 0410 The District's fiscal year 2009-10 operating and ft d Pr0JWMd ewga id" capital improvement budget is proposed at $467.3 rc511e WIW.Tim%a,d M"eQ MObn Wa m million, a 22.3 percent decrease from the FY 2008- 09 proposed budget. This overall decrease is comprised of a $150.8 million, or 39.9 percent The fiscal year 2008-09 proposed budget to operate, decrease in cash outlays for construction projects maintain and manage our sewage collection, .. that is partially offset by an a $9.7 million, or 13.0 treatment and disposal system is $148.8 million, an percent increase in debt service requirements, and a increase of$6.2 million over the prior year. Of this $7.4 million or 5.0 percent increase in the operating total, personnel costs are being proposed at a 4.9 budget. percent increase, or$3.9 million, due primarily to the 4.0 percent cost of living increases negotiated within This fiscal year 2008-09 and 2009-10 budget the memorandum of understandings (MOU) of the continues to reflect the agency's ongoing efforts to employee bargaining units and the increase of 7.0 streamline operations. Reductions since fiscal year full time equivalent (FTE) employees included within 1995-96 are a result of this agency's effort in striving this proposed budget. Contractual Services are to provide wastewater treatment as efficiently and being proposed to increase $7.1 million, or 33.1 effectively as possible while lowering operational and percent, primarily due to a $5.6 million, or 39.1 maintenance costs to more closely match those percent increase in solids removal. This increase is agencies that are "best in class" for wastewater attributable to a projected increase in solids treatment facilities. However, the increase in the production at Plant No. 1 of 20 percent due to the demand for services in the areas of ocean increase in treatment as a result of the completion of monitoring, ocean discharge and level of treatment, the Ellis Pump Station construction project, and water reclamation and conservation, urban runoff being placed into service. Plant No. 2 solids _ diversions, increased local regulations of biosolids, production is projected to increase 8 percent as new and the expansion of the Capital Improvement secondary treatment projects are placed into service. Program (CIP), is causing the cash flow needs of the In addition, the unit cost for the removal of solids will agency to grow. Considering the CIP alone, $50 increase 18.0 percent to$65 per ton. million of new CIP projects to be constructed over the next 10 years were identified within the The fiscal year 2009-10 proposed operations budget November 2007 Five-Year Strategic. is $156.2 million, an increase of $7.4 million, or 5.0 percent over the fiscal year 2008-09 proposed In addition, the 2008 CIP Validatation Study of the budget. Again, personnel costs are a significant CIP includes 86 large capital projects and 28 special contributor to this increase at a 7.4 percent increase, projects to be constructed over the next 15-years at or$6.1 million, due primarily again to the 4.0 percent r a total cost of$1.47 billion. MOU increases and another increase in staff of 7.0 FTE. These additional staff members are necessary Budget Overview due to secondary treatment facilities coming on line that have a significant impact on operational The agency's two treatment plants, located in manpower as the District continues to move towards Fountain Valley and Huntington Beach, process full secondary treatment standards. In addition to about 230 million gallons of wastewater each day salary cost increases, retirement premiums and generated by approximately 2.5 million people in group insurance costs are expected to increase$1.0 central and northwest Orange County. million and $784,000, respectively. Operating _ Section 1 -Page 1 2008-09 & 2009-10 Budget materials and supplies are being proposed to Facilities Planning increase $1.4 million, or 6.1 percent, due primarily to In October 1999, the District adopted a new Facilities the combined increases in chemical coagulants, Strategic Plan, a planning effort to define the odor control, and disinfection totaling $1.3 million. District's goals, responsibilities, and requirements These chemical increases are due mostly to over the next twenty years, and including projections projected quantity increases. Repairs and through the assumed "build-out" of the District's maintenance is being proposed at a decrease of service area to the year 2050. This effort to update $1.2 million due to the timing and scheduling of the 1989 30-year "2020 Vision" Master Plan was major maintenance projects. necessary because many of the assumptions used then have now changed. Critical factors such as The cost per million gallons of wastewater treated, population growth, new construction, the volume of an industry-wide performance measurement is wastewater delivered to the plants and viable water expected to increase in fiscal year 2008-09 to conservation and reclamation programs have been $1.655, a $139, or 9.2 percent increase over the reevaluated. prior year projection of$1,516, and increase in fiscal year 2009-10 to $1,738, an $83, or 5.0 percent In June 2002 the District completed the Interim increase over the FY 2008-09 proposed. Strategic Plan Update which further updated these Wastewater flows through the treatment system are critical factors and developed revised cost estimates expected to increase from the projected 222.83 and user fee projections for upgrading the District's million gallons per day (mgd) in fiscal year 2007-08 level of treatment to meet secondary standards. On to 230.00 mgd in fiscal year 2008-09 and fiscal year July 17, 2002, after reviewing: (1) the Interim 2009-10, a 3.2 percent increase. Strategic Plan Update treatment alternatives, (2) ocean monitoring data, (3)public input, (4)regulatory The District's Capital Improvement Program (CIP) issues, and (5)financial considerations, the Board of cash flow budget for fiscal year 2008-09 is $373.7 Directors made the decision to upgrade our million, an increase of $94.4 million from the prior treatment to meet secondary treatment standards. year estimated total. The CIP cash flow budget for fiscal year 2009-10 is $228.9 million, a decrease of The reasoning behind the decision to move to .. $144.8 million from the fiscal year 2008-09 proposed secondary treatment standards included (1) the CIP cash flow. This CIP two-year cash flow budget possibility(no matter how remote) that bacteria from finances collection system,joint works treatment and the ocean outfall may at times reach the shoreline, disposal system improvement projects. These CIP (2) upgraded treatment will aid additional water cash flows are attributable to the additional reclamation with the Orange County Water District, Infrastructure needs identified in the 2002 Interim (3) and the public clearly favored upgrading Strategic Plan Update and in the 2008 Validation wastewater treatment at this time. Study of the CIP. FY 2008-10 U.0 F.M. 9owuaFuiMs FWIIW % &MI. • T40 . •Mlu: aN F. How Resources Are Used District resources are used to fund the cost of providing wastewater collection, treatment and disposal service, including employees'salaries and benefits, debt service, capital improvements and the cost of self-insurance. Section 1 -Page 2 Executive Summary Summary of Operating & Maintenance Expenses Collections,Treatment& Disposal Operations 2006-07 2007-M 2006-09 2009.10 Actual Budget Proposed Proposed _ Net Salaries, Wages&Benefits $71,574,723 $79,924,560 $83,844,080 $90,008,160 Administrative Expenses 1.095,519 1,520.740 1,325,360 1,293,520 Printing&Publication 459,051 650,730 651,020 654,610 ,..� Training&Meetings 1,124.850 1,503,140 1,433,710 1,440,370 Operating Expenses 16,684,653 23,058,340 22,368,620 23,731,840 Contractual Services 15,630,140 21,417,440 28,503,150 28,889,700 Professional Services 2,367,736 3,731.840 3,774,320 2,955,420 Research & Monitoring 1,426,408 1,572,740 1,426,410 1,409,860 _ Repairs and Maintenance 7,567.182 10,333,750 11.321,190 10,092,530 Utilities 8,072,262 9,883,260 9,719,370 10,212,260 Other Materials, Supplies&Services 2.119,593 3,656,060 2,607.460 2,815,940 .+ Capital Grants to Member Agencies 2,127,154 2,500,000 300,000 2,064,530 Cost Alocation-CIP (16,101,402) (19,779,200) (20,503,410) (21,530,710) Total Operating&Maintenance Expenses 114.147,875 139,973,400 146,771,180 154.038,030 Revenues&Offsets (8,033,660) (5,099,000) (7,836.000) (8,122,000) Net Operating&Maintenance Expenses $106,114,215 $134,874,400 $138,935,180 $145,916,030 r The CIP includes $679 million to upgrade the animal fife living in the ocean. This mode of District's treatment plants to meet secondary disinfection is anticipated to contlnus for the short- treatment standards. Implementation of secondary term, possibly three years, while the District studies, treatment standards is scheduled to be completed by designs and constructs permanent facilities, and December 31, 2012. This schedule was reviewed considers alternate disinfection technologies. _ and determined to be reasonable and achievable by Beginning in fiscal year 2002-03, the addition of an independent Peer Review Team and the CIP disinfection treatment required an annual outlay of Oversight Committee made up of members from the $7 million in additional chemicals within the operating District's Board of Directors. Total projected cost for budget of the District. the 114 identifiable proposed projects over the next fifteen years is$1.47 billion.The CIP cash flows over Staffing the next ten years is projected to be$2.0 billion. Authorized staffing levels are being proposed with Preferred Level of Treatment increases of 7.0 full time equivalents (FTE) each for In order to eliminate most bacteria from being FY 2008-09 and IY 2009-10 above the staffing level released from the ocean ouffall, the District began in of 634 FTE positions authorized for FY 2007-08 to fiscal year 2002-03 to first use chlorine bleach to support the new secondary facilities being place into disinfect the effluent and then apply sodium bisulfite service as the District moves toward full secondary to remove any remaining chlorine prior to releasing treatment standards. The total FTE count at 648 the treated wastewater to the ocean. FTE's in FY 2009-10 would still be 30 FTE below the agency's all time high of 678 positions approved in The District continues to take great measures to limit FY 1995-96. the chlorine residual to a very low level, essentially non-detectable, for the purpose of protecting the Section 1 - Page 3 L 2008-09 & 2009-10 Budget L The District budgets staffing levels by FTE in order to Strategic Planning L provide a realistic estimate of actual staffing levels Beginning in the summer of 2007, the General since not all employees are full-time employees. Manager's Office initiated the process of creating the The part-time positions are funded at 1,040 hours. Strategic Plan, soliciting assistance from all levels of Part-time employees receive a prorated share of the organization. Input included meetings with staff personnel benefits. The reductions from fiscal year members who helped to retool the Mission L 1995-96 are a result of this agences effort in striving Statement,Vision Statement and Core Values during to provide wastewater treatment as efficiently and a series of management workshops and Executive effectively as possible while lowering operational and Management Team retreats. This was followed by maintenance costs to more closely match those a series of four workshops with the Board of L agencies that are "best in class" for wastewater Directors to provide additional input and direction. treatment facilities. As a result, the Strategic Plan addresses major L objectives and critical challenges facing the District Sewer Service Fee Increases now, in the next five-years, and further into the In July of 2002, the Board of Directors approved a future. This Strategic Plan also laid down the change from the existing level of treatment,a blend foundation for the development of the Business Plan of 50 percent advanced primary and 50 percent as it addressed critical operations and construction secondary treated wastewater,to secondary issues,financial and budgeting challenges, and gave treatment standards. The reasoning behind the a clear and concise direction from the Board of decision to move to secondary standards Included Directors to staff, ratepayers, regulatory agencies, L (1)the possibility that bacteria from the ocean outfall and the general public. may at times reach the shoreline, (2)upgraded treatment will aid additional water reclamation with As part of the strategic planning process, Staff has j the Orange County Water District, and(3)the public reviewed all of the initiatives and has identified ten L.1 clearly favored upgrading wastewater treatment at that it would consider highly strategic and worthy of this time. particular focus: In November 2007,the Board approved the District's 1. Succession Planning Five-Year Strategic Plan that reaffirmed the 2002 2. SARI Sewer Line Relocation capital construction estimate of$649 million to meet 3. Environmental Compliance Management on secondary treatment standards by 2013,and to 4. Odor Nuisance Management proceed with the$2.6 billion,20-year capital 5. Facilities Master Plan Update improvement program. 8. Energy Master Plan 7. Reclaiming SARI Line Sewer Flows 8. Managing a Sustainable Biosolids Program In February 2008,following a Proposition 218 notice 9. Making North County Yard Operational process,the Board approved sewer rate increases 10. Enhancing the District's Security Plan for each year over the next five years averaging L approximately 10 percent a year. These Increases Resources have been reallocated from lower priority are necessary to provide needed capital activities within the organization to support these L improvements, to meet additional treatment and strategic initiatives. Staff will report quarterly to the disinfection requirements, and to minimize future General Manager on the progress of each initiative. rate Increases. The impact of this five-year sewer fee schedule L increased the annual single family residence user fee from $182 to$201 in FY 2008-09, to $221 in FY L 2009-10, to$244 in FY 2010-11.to$267 In FY 2011- 12,and to$294 in FY 2012-13. These rate increases by the District are still well L below the average annual sewer rate of $408 currently being charged throughout the State according to the 2008 California Wastewater Charge L Survey of 920 agencies conducted by the State Water Resources Control Board. Section 1 -Page 4 Financial Overview & Budgetary Issues Financial Overview and Budgetary Issues collection systems. All the personnel casts for the _ District are initially recorded as an Operating cost. This section of the budget is a financial overview and Costs chargeable to the capital improvement an outline of issues affecting the development of the program are allocated for the work done through a budget, as listed below: job cast system. These charges are shown as reductions in the line item Operating program • Proposed Consolidated Cash Flow Budget budget. Costs remaining in the Operating program • Proposed Operating Budget are ultimately allocated to the two individual revenue _ Proposed Capital Improvement Cash Outlay areas that make up the District, the Consolidated • Debt Service Requirements Revenue Area and Revenue Area 14, based on • Sewer Service Fees 8 Property Tax Revenues flaws. • Budget Highlights Operational cost, comprised of collections, treatment Reserves plant, and disposal operations and maintenance, and • Staffing administration, are projected to came in under the • Business Plan FY 2007-08 Budget by $9.1 million, or 6.5 percent. • OCSD Long-Term Planning Process The FY 2008-09 Budget Is being proposed with an • OCSD Fiscal Policies increase of$6.8 million or 4.9 percent over the prior • GFOA Recommended Practices year budget, and the FY 2009-10 Budget is being proposed with an increase of $6.5 million, or 4.9 Proposed Consolidated Cash Flow Budget percent over the FY 2008-09 Proposed Budget. The total proposed cash flow budget for FY 2008-09 is $601.0 million, a 17.1 percent increase over the Operations Budget Comparison as prior year total cash flow budget of $513.2 million. (in millions) The total proposed cash flow budget for FY 2009-10 is $467.3 million, a 22.2 percent decrease from the u°0° _ total proposed cash flow budget for FY 2008.09. s,.ou r,e,• s,e°e asap The proposed decrease from FY 2008-09 to FY 2009-10 is primarily due to the $144.8 million or 38.7 percent decrease in the Capital Improvement Program (CIP), and is attributable to the timing of the $m,e construction schedule on the implementation of the overall 10-year $1 A billion CIP program. The table w.o below shows the comparisons of the FY 2007-08 .,,e••wr• .mu••,q.wa •••a..,,,,.• .°.,°•„e.d Budget, FY 2008-09 Proposed, and the FY 2009-10 Proposed by major budget category. Analysis on the year-to-year change is provided from eudgetCompadson three perspectives. First, the FY 2007-08 Budget is (In millions) compared to the FY 2007-08 p year-end projections. MY Secondly, the FY 2007-08 year-end projections are $aao.o compared to the FY 2008-09 Proposed Budget, and um° s>oz., lastly, the FY 2008-09 Proposed Budget is compared sans to the FY 2009-10 Proposed Budget. me $140$1.. 1e10 s,wo see.° a°° $°`$ FY 2007-08 Operations— Budget vs Projected As depicted by the chart above, Operating expenses eI are projected to come in under the FY 2007-08 op.. Lwia Mm.•n•,e oass•au Budget by $9.1 million, or 6.5 percent. The major .maeeoa. .oeavww •°a,n•,oww categories that comprised the total short fall include chemicals, consisting of coagulants, odor control, Proposed Operating Budget and disinfection chemicals; utilities, consisting of The Operating program accounts for the costs to electrical power, natural gas, and water; removal of operate, maintain, and manage the District's two residual solids from the rehabilitation of digesters; treatment plants, with a combined design capacity of unused budgeted contingency; and in personnel cost as 372 million gallons a day, and the 568 miles of savings. Section 2—Page 1 to 2008-09 & 2009-10 Budget Chemicals savings of $5.2 million, or 25.1 percent, placement of Ellis Pump Station into service. Plant are anticipated due to the optimization on the usage No. 2 Biosolids production is estimated to increase of anionic and cationic polymers, ferric chloride, by 8 percent due to increases in secondary hydrogen peroxide, caustic soda, and bleach treatment following the completion of secondary throughout the treatment facilities that has resulted in treatment upgrade projects. In addition, the average decreased usage. An example of this optimization unit removal cost is expected to increase 18 percent was achieved by reducing the bleach feed rate to $65 per ton as the EnerTech facility comes on line during the PM shift and maintaining constant feed in early 2009 requiring a contracted 225 tons per day during the AM shift, and in limiting the operation of at a cost of $72.40 per ton plus fuel cost three scrubbers to only two at Plant No. 1. adjustments. The other waste disposal category includes disposal costs for grit and screening waste, Utility costs are expected to come in under budget by digester cleaning waste, and hazardous materials. $1.5 million, or 15.0 percent, due primarily to the The FY 2008-09 proposed budget Includes the cost _ decrease in electrical power of $1.9 million that is of cleaning a total of 7 digesters for $3.6 million. expected to be offset somewhat by an overage in This budget is reduced to $2.1 million in FY 2009-10 natural gas of$400,000. Savings in electricity is the when only 4 digesters are scheduled to be cleaned. result of summer peak shavings that reduced usage The proposed budget for disposal of grit, screenings and the lower than expected electrical rates as and other waste is $730,000 in FY 2008-09 and expected increases were not approved by the Public $755,000 in FY 2009-10. Utilities Commission. The summer peak shavings in electricity were obtained by the additional usage of Personnel costs are being proposed at a 5.5 percent, natural gas generating the net overall savings in or $4.4 million increase over the prior year utilities. projection. This increase is partially attributable to the increase of 7 full-time equivalent (FTE) Other waste disposal savings of$1.1 million, or 39.6 employees proposed for FY 2008-09 over the prior percent, are anticipated due to timing issues in year. The total FTE count is proposed to increase rehabilitation of digesters along with complications from 634 FTE's in FY 2008-09, to 641 FTE's in FY arising in the cleaning of Digester "S"at Plant No. 1. 2008-09, and by an additional 7 FTE's in FY 2009-10 These costs are now expected to occur in the to 648 FTE's. following year. Budgeted but unused operating contingencies are Full Time Equivalent IFTE) _ expected to save the District $700,000. Budgeted staff Personnel costs of $79.9 million are expected to come in under budget by $479,000, or by 0.8 GML percent. FY 2008.09 Proposed Operations Budget vs. FY Admm. Svcs.2007-08 Protected Operations Expense Although the District continues to strive to be efficient and effective, staff is proposing a $15.8 million, or Engineering10.8 percent increase over the FY 2007-08 projected operating requirements. Increases in the proposedoperating requirements are primarily attributable to TOch.svcs.increases In contractual services, personnel costs, operating materials and supplies,and utilities. Mae 06Mmas Contractual services are being proposed to increase $8.6 million, or 43.4 percent, due primarily to a $5.6 0.00 100.00 200.00 000.00 00.00 million, or 39.1 percent increase in solids removal and a $2.7 million, or 165.5 percent increase in .now .rrse-,s Other Waste Disposal. Biosolids production IS ,wi u,rni rmieurrr. �. estimated to increase at Plant No. 1 by 20 percent in FY 2008-09 due to the increase in treatment with the Section 2-Page 2 Financial Overview & Budgetary Issues Retirement premiums are being proposed at an Personnel costs are being proposed at a 7.4 percent, increase of$1.3 million in FY 2008-09 over the prior or $6.1 million increase in FY 2009-10 over the FY year projected total as the District's required 2008-09 proposed budget. This increase is partially contribution rate has been increased by the Orange attributable to the increase of 7 FTE employees County Employees Retirement from 20.65 percent to proposed for FY 2009-10 over the total proposed 21.34 percent as a result of revised actuarial staffing of 641 FTEs proposed for FY 2008-09. In assumptions and lower than expected return on addition, retirement premiums are proposed to investments in prior years. increase $1.0 million, or 6.3 percent, and group insurance is being proposed to increase $784,000, Operating materials and supplies are being proposed or 10.7 percent. to increase $4.6 million, or 25.9 percent, over the prior year projected total due primarily to the Capital grants to member cities are proposed at an .. combined increases in chemical coagulants, odor increase $1.8 million in FY 2009-10. This increase control, and disinfection totaling $4.4 million. Bleach aligns with program contracts currently in place. alone is projected to increase $2.2 million over FY 2007-08 projected costs to $7.1 million due primarily Operating materials and supplies are being proposed to mandated construction shutdowns that will require to increase$1.4 million, or 6.1 percent, due primarily the use of more bleach. The use of magnesium to the combined increases in chemical coagulants, hydroxide, a chemical that reduces the formation of odor control, and disinfection totaling $1.3 million. hydrogen sulfide that causes odor and corrosion These chemical increases are due mostly to within the sewer trunk lines, is proposed to increase projected quantity increases. $1.1 million in FY 2008-09 from the prior year projection. This increase is due to the addition of Repairs and maintenance is being proposed at a two treatment locations planned in FY 2008-09 that decrease of$1.2 million. This reduction is due to the will require the total usage to increase from timing and scheduling of major repair and approximately 460,000 gallons in FY 2007-08 to maintenance projects. 945,000 gallons in FY 2008-09. Utility costs are being proposed to increase $1.3 $373.7 LIP million, or 15.7 percent, over the prior year projected by Prot°°° total. As previously noted, there is a $1.9 million °pin°°0A5� FY2008-08 electric power savings projected in FY 2007-08 as compared to budget. The electric power budget is now being proposed in FY 2008-09$1.1 million lower than the FY 2007-08 budget at $5.9 million. This is an increase of$946,000 over the prior year projected due to projected consumption and unit cost increases. Natural gas is being proposed in FY 2008-09 at a $393,000 increase over the prior year projected due primarily to the planned use of more 1°x gas to keep the three co-generation engines at Plant No.2 running at minimum output levels.. ` f IEl.6 sup FY 2009-10 Proposed Operations Budget vs. FY °X 2008-09 Proposed Operations Budget In FY 2009-10, the second year of this two-year operating budget, staff is proposing a $7.3 million, or 4.95 percent increase over the FY 2008-09 proposed proposed Capital Improvement Cash Outlays operating requirements. Increases in the proposed Proposed capital improvement outlays are more than operating requirements are primarily attributable to one-half of the overall proposed budget and provide increases in personnel costs, capital grants to for the construction of facilities at the two treatment member cities, and operating materials and supplies plants, Including the utility systems, administrative that are partially offset by decreases in repairs and facilities, and the ocean disposal system and the maintenance. rehabilitation, replacement and expansion of the 568 miles of the collections system. Projects over Section 2-Page 3 2008-09 & 2009-10 Budget $35.000 require formal bidding per the California annual reallocation of Joint Treatment Work assets Public Works Construction Act, and any project over between Revenue Areas based on the average of $100,000 requires Board approval in accordance the most recent three years of sewage flows. On a with the District's procurement ordinance. consolidated basis, equity transfers are offsetting. The budget has been prepared under assumptions included in the Strategic Plan adopted by the Board CIP Program Budget of Directors In the fall of 1999. INN or Joint Worlu Ep,ity Trenshn) (In millions) The FY 2007-08 projected cash outlay for the CIP is swoa srecs expected to reach 92.3 percent of budget, or $279.3 ""'a Iii million. The FY 2008-09 proposed cash flow budget Woosof $373.7 million is part of the overall remaining CIP budget of $1.4 billion identified within the Interim $+so.o ss Strategic Plan Update completed in June 2002 and 31000 rt+ W. rs r the recently completed Annual CIP Validation Study. sssa roe In October 1999, the District adopted a new Strategic Plan Identifying the future capital infrastructure needs over the next 20 years, including projections through the assumed "build out" of the District's Joint Works, or Treatment Plant Construction, service area to the year 2060 for the purpose of projected cent for FY 2007-08 expected to reach meeting future wastewater quantity and quality percent requirements. An Interim Strategic Plan Update was $234. of the annual cash flow estimate, or -10 completed in June 2002 for the purpose of updating proposed million. The FY budgets of 9 and FY lion and critical factors such as population growth, new $161.Proposed cash flow budgets of $282.ts million and construction, the volume of wastewater delivered to one million reflect the District's effortsnt decree secondary treatment standards meet the c the plants and viable water conservation and consent ndards reclamation programs. In preparation of the FY December include Large secondary treatment ., 2006-07 Budget, the District completed the annual Projects include Secondary Treatment System at validation study of the CIP to ensure that the scope Plant 1, Trickling Filters at Plant 2, and of the projects was appropriate, and that the cost Headwoorkrk Improvements at Plant 2 with _ proposed cash outlays in FY 2008-09o.of $100.1 estimates were accurate, million, $73.7 million, and$25.8 million and proposed The validated CIP, excluding currently unplanned cash outlays In FY 2009-10 of $21.5 million, $56.9 rehabilitation and replacement projects past 2012- million, and $13.2 million, respectively. Other treatment plant projects include the Primary 013, identified 86 large capital projects and 28 Treatment Rehabilitation and Primary Sludge Feed special projects with a 15 year expenditure of $1.5 System at Plant No. 2, and the Sludge Dewatering billion. This total represents a $149 million increase and Odor Control at Plant No. 1 with proposed from the FY 2007-08 CIP estimate, and accounts for outlays in FY 2008-09 of$16.4 million, $12.4 million Inflation of the estimated construction cost from 2008 and $7.6 million and proposed outlays In FY 2009-10 dollars to the date when the project will be at the of$5.7 million, $3.8 million, and$2.1 million, midpoint of construction. The 2008-09 validated CIP breaks down into the following project categories: The Collection System Capital Program is being proposed to increase from the prior year cash outlay . 45% improved treatment budget by $20.0 million, or 28.2 percent, to $91.1 • 33%repair, rehabilitation and replacement million in FY 2008-09 and then decrease by $23.6 • 18%additional capacity million, or 23.6 percent to $67.5 million In FY 2009- 4°/ Support facilities 10. These proposed improvements are needed in order to keep the 568 miles of collection systems The CIP program consists of Joint Works, or free from failure. Two large Collection System Treatment Plant Construction, Collection System related projects include the Bitter Point Force Main rehabilitation, replacement, and expansion, and Joint Rehabilitation and the Replacement of the Rocky Works Equity Transfers between Revenue Areas of Point Pump Station with FY 2008-09 proposed cash the District. Joint Works Equity Transfers are the I outlays of $22.4 million and $1.7 million. The Bitter Section 2-Page 4 Financial Overview & Budgetary Issues Point Force Main is expected to be completed at the In July of 2002, the Board of Directors approved a end of FY 2008-09, but Rocky Point Pump Station change from the existing level of treatment, a blend construction will continue into FY 2009-10. The of 50 percent advanced primary and 50 percent Capital Improvement Program is described in more secondary treated wastewater, to secondary detail in Section 8 of this document. treatment standards. The reasoning behind the decision to move to secondary standards included Debt Service Requirements (1)the possibility that bacteria from the ocean outfall The District's long-term debt fiscal policy restricts may at times reach the shoreline, (2) upgraded long-term borrowing to capital improvements that treatment will aid additional water reclamation with cannot be financed from current revenue. Before the Orange County Water District, and (3) the public any new debt is issued, the impact of debt service clearly favored upgrading wastewater treatment at payments on total annual fixed costs will be this time. analyzed. In May 2008, the District issued $77.2 million of COP fixed rate debt to retire the In November 2007, the Board approved the District's outstanding amount owed on Series 1993. As the Five-Year Strategic Plan that reaffirmed the 2002 result of having a well-funded reserve policy, capital construction estimate of $649 million to meet experienced management, and prudent planning,the secondary treatment standards by 2013, and to District was able to secure "AAA" credit rating from proceed with the $2.6 billion, 20-year capital Standard and Poors while maintaining "As' ratings improvement program. from the other two rating agencies. Prior to this In February 2008, following a Proposition 218 notice refunding, the District issued $300 million of new process, the Board approved sewer rate increases money COP fixed rate debt in December 2007 for each year over the next five years averaging Series 2007B to fund current and future capital approximately 10 percent a year. These increases improvement expenditures. This two-year budget are necessary to provide needed capital proposes to issue additional new money debt of improvements, to meet additional treatment and 2009-10, as a total of of $550 million of debt financing 00 million in FY 09 and $120 million in FY disinfection requirements, and to minimize future _ is forecasted over the next five years to fund the$1.4 rate increases. billion in capital improvement program requirements The impact of this five-year sewer fee schedule and $573 million in replacement, rehabilitation, and increased the annual single family residence user refurbishment projects anticipated over the next ten fee from $182 to $201 in FY 2008-09, to $221 in FY years. The FY 2008-09 debt service requirements 2009-10, to$244 in FY 2010-11, to$267 in FY 2011- are being proposed at $74.6 million, a $66.4 million 12, and to$294 in FY 2012-13. decrease, from the prior year projected amount due to the refunding issue of $77.2 million and the retirement of$77.3 million in outstanding COP's from •veme annual single Family Reswenuei the Refunding Series of 1993. Following the sewer semce Fee issuance of an additional $200 million in FY 2008-09 zu°rm sm.°u and $120 million in FY 2009-10, total debt service requirements are expected to grow to$84.3 million in ,all, sm,.ao FY 2009-10, an increase of 13.0 percent over FY 2008-09. The District's Debt Financing Program is tale described in more detail in Section 9 of this budget. r� Sewer Service Fees i01b1 °�Q00 The Consolidated Revenue Area has an adopted Sanitary Sewer Service Fee to provide funding for operating the sewer systems in accordance with the Clean Water Act and the District's Revenue Z01-" sss+n° Program. Revenue Area No. 14 is funded through user fee charges to the Irvine Ranch Water District. Sewer service fees are set annually by the District after a review of projected needs. These rate increases by the District are still well below the average annual sewer rate of $406 currently being charged throughout the State Section 2—Page 5 2008-09 & 2009-10 Budget according to the 2008 California Wastewater Charge will require new COP debt issuances totaling $550 Survey of 920 agencies conducted by the State million. This increase in debt has increased debt Water Resources Control Board. service payments beyond the capability of being funded solely from property tax revenues. In FY 1997-98, the District's Rate Advisory Committee, made up of elected city officials, This problem had been exacerbated by the State's community, business and industry leaders, and recent two-year raid on property tax revenues. District staff analyzed the District's rate structure to Because of the State's fiscal crisis, the State determine whether user fees were equitable among legislature approved a $1.3 billion property tax shift residences and industry. In May of 1998, the Board in FY 2004-05 and FY 2005-06 from non-education .. approved the proposed revisions to the Sewer local governments. Of this $1.3 billion shift for each Service User Fee rate structure that more equitably of these two years, $350 million a year was projected charged consumers based on actual usage while to be contributed from special districts, an amount remaining revenue neutral. Significant changes in equal to 40 percent of current property taxes. the rate structure included: The overall reduction on total property tax revenue • Non-residential user charge will be based upon received by the District was 23.7 percent, to $35.8 typical quantity and strength of discharge per million in FY 2004-05 and 18.6 percent, to $39.9 1,000 square feet. million in FY 2005-06, due to the steady increase attributed to the home sales market and the • Fees for users who discharge high quantities or corresponding increase in home values, and high-strength waste, including former Class III receiving the full benefit of these increases on all permittees such as restaurants and non-secured property tax distributions. Full property Laundromats,will be based on the assumed Flow lax allotments were received in FY 2006-07 totaling and strength per 1,000 square feet. $60.6 million, and are expected to reach $61.8 million for FY 2007-08. Property taxes are being • Discontinuation of the Class III permit process proposed in FY 2008-09 and FY 2009-10 at $64.9 because of the implementation of the expanded million and $68.2 million, respectively, increases of and more accurate rate structure. This resulted approximately 5.0 percent a year over the FY 2007- in simplification of the billing and collection 08 projected amount. process for these two hundred users. Any property tax revenue shortfalls in meeting debt • The revised rate structure resulted in a greater service obligations will have to come from user fees, number of decreases in charges (22,000) for as making debt service payments is a priority. non-residential users than increases(13,000). Overall, the total fees collected remained essentially the same as those generated b the old structure. cPr Funana a•avm•na v. 9 y Prop•M Tax rowing Source � Property Taxes sa.sso.sw The District's share of the one percent ad valorem s85.00a000 property tax is dedicated for the payment of COP 1175.00aopU debt service. The apportionment of the ad valorem liffi aow tax is pursuant to the Revenue Program adopted in April 1979 to comply with regulations of the sss.ma.om Environmental Protection Agency and the State sa.cos.ow _ Water Resources Control Board and in accordance Sa.aoo.n00 •/ with COP documents and Board policy. sa.masaoex sis,aoaoao Recent results indicate that property tax revenues oa roe m 'se m 0s w 90 had steadily increased to a level where they could �PraP.rryrus• - - coP s.rvw• once again support the District's debt service obligations. However, future anticipated capital improvements of 2.0 billion over the next 10 years r Section 2—Page 6 r r Financial Overview & Budgetary Issues Budget Highlights ,. This section briefly outlines the proposed major • An amount equal to 2.0 percent of regular changes in all departments and Revenue Areas over salaries Is being proposed for agency-wide the next two years. All Joint Works Operations, or training for each of the next two fiscal years. plant operating costs and collection system costs are This training budget is centralized within the .+ consolidated Into the individual department budgets Human Resources Division for better control and for better accountability and control. However, accountability, and to maximize the benefits of separate accounting is maintained between Joint training costs that are related to training efforts Works Operation activities (treatment and disposal required throughout the agency. operational costs) and collection operational activities since each Revenue Area is directly . Projected increases in Information Technology responsible for their own collection operating costs. service maintenance agreements of $122.000 .+ The Joint Works Operation activities are allocated to and $70,000 In FY 2008-09 and FY 2009.10. the Revenue Areas based on their Individual contributions to the annual sewage flow. Likewise, , A decrease of 1.0 FTE for FY 2008-09. the Joint Works Capital Improvements are allocated r to the Revenue Areas on a three-year average of . An increase of 7.0 FTE's for FY 2009-10. These sewage flows called the "joint works equity increases are all located within the Human percentage", and each Revenue Area is responsible Resources Division due to overall planned ,. for their own collection system capital improvements. District-wide increases. These positions will remain in this division until speck positions and Details for each department can be found in"Section divisional assignments are determined. 6- Operations" of this document. Complete staging schedules are located in the Appendix. Technical Services General Management • Legal service costs Increased $210,000 in FY 9 2008-09 over prior year actual due to court ,,, • An amount equaling 0.5 percent of the Operating ordered CEOA compliance for Kern County materials and services budget is Included within litigation. the General Managers Re-appropriation line Item for each of the next two fiscal years. Since , Regulatory Operating Fees increased $215,000 the current year's budget lapses each year, re- in FY 2008-09 and FY 2009-10 over the FY appropriation of funds are needed to pay for 2007-08 Budget. goods or services ordered at the end of one r budget year but not provided until the following . Research and monitoring are being proposed at year. The General Manager reviews and an increase of$330,000 in FY 2008-09 over the approves all departmental re-appropriation projected amount for FY 2007-08. requests to ensure that prior year funding was •+ available and has not been spent. • A net decrease of 2.0 FTE In FY 2008-09. • An amount equal to 0.5 percent of the Operating Engineering materials and services budget is included within , FY 2008-09 budgeted CIP outlays are proposed the General Managers contingency account for to increase $70.9 million, or 23.4 percent, to each of the next two fiscal years. $373.7 million over the prior year budgeted CIP cash outlays. However, FY 2009-10 budgeted • A decrease of 0.5 FTE beginning in FY 2008-09. CIP outlays are proposed to decrease $144.8 million,or 38.7 percent, to$228.9 million over FY Administrative Services ,,, • 2008-09 proposed budgeted CIP cash outlays. A decrease In property/general liability Insurance in-lieu premiums of $1.1 million in FY 2008-09 , A $2.2 million decrease In capital grants to due to favorable market conditions on insurance member agencies in FY 2008-09, followed by an renewals and minimal claim losses. Increase of$1.8 million In FY 2009.10. r • Decrease in postage of$228,000 in FY 2008-09 • A net increase of 4.0 FTE's beginning with FY as the last Proposition 218 Notices sent cover 2008-09. ,r the next five years. r Section 2-Page 7 L.i 2008-09 & 2009-10 Budget L+ Operations 6 Maintenance property tax is dedicated to provide for COP principal - FY 2008-09 increases over FY 2007-08 Projection: and interest payments. • An increase in disinfection of$2.2 million. • An increase in solids removal of$6.6 million. See Section 9 for additional information on the • An increase in other waste disposal of$2.7 mil. District's debt financing program. • An increase in odor control of$1.0 million. • An increase of electricity costs of$836,000. Reserves _ • An Increase in natural gas of$393,000. In 1998, the District conducted an in-depth review of • An increase in Repairs 8 Maint.of$448,000. the agences reserve policies. This review included a L+ survey of the reserve policies of 23 other public FY 2009-10 Budgeted increases of FY 2008-09: agencies as a tool to assist in the evaluation of the • A decrease in disinfection of$87,000. underlying economic reasons supporting the • An increase in solids removal of$2.0 million. District's reserve policies. Based on this review, the • A decrease in other waste disposal of$1.5 mil. Directors approved the following reserve policies: • An increase in odor control of$511,000. • An increase of electricity casts of$305,000. • Cash Flow Reserve has been established at a r • Natural Gas budget remains the same. level to fund operation, maintenance and • A decrease in Repairs 8 Maint.of$1.2 million. certificates of participation debt service expenses for the first half of the fiscal year. The first 4 FY 2008-09 and FY 2009-10 Staffing changes: installment of property tax revenues and sewer • Net increase of 6.5 FTE's beginning with FY service user fees that is collected by the County 2008-09. through the property tax bill is not available until late December each year. LI Individual Collection System _ Operating- reflects costs of operating and • Operating Contingency Reserve has been . maintaining each Revenue Area's collection system, established to provide for non-recurring V utilities, and Directors' fees. IndustriaVcommercial expenditures that were not anticipated when the monitoring costs reflecting the expense of enforcing annual budget and sewer service fees were - the Uniform Use Ordinance and EPA's pre-treatment considered and adopted. The level of this standards are also included. The largest operating reserve will be established at an amount equal to La cost is the Revenue Area's flow-based share of the ten percent of the annual operating budget. Joint Works Operating expenses. • Capital Improvement Reserve has been j„j Capital Facilities-accounts for each Revenue Area's maintained to fund annual increments of the share of the Joint Works Capital Improvement capital improvement program. The long-term - projects and for individual Revenue Area trunk sewer goal is to fund one half of the capital improvement . or pump station projects. The entire collection program from borrowing and the other half from system has a sewer construction program Master current revenues and reserves. With this Plan in progress as a result of the 1999 Strategic program in mind, the target level of this reserve Plan. Other line items in these funds are has been established at one half of the average 'y accumulated reserves for future capital annual cash outlay of the capital improvement improvements in accordance with Master Plans and program through the year 2020. Levels higher -- federal and state requirements and annual purchase and lower than the target can be expected while ! or sale of equity in the jointly-owned treatment works the long-term financing and capital improvement 64 as provided for in the Joint Ownership, Operation, programs are being finalized. Proceeds from any and Construction Agreement. debt issuance targeted for construction are also I- included in this reserve until spent. Debt Service/COP- accounts for the proceeds from and service of the Capital Improvement Program • Catastrophic Loss. or Self-Insurance Reserves Certificates of Participation (COPs). The District's has been maintained for property damage share of the one percent basic levy ad valorem including fire, flood and earthquake, for general 6J liability and for workers' compensation. These -, 1 ' Ir Section 2—Page 8 L Financial Overview & Budgetary Issues reserves are intended to work with purchased ,•,,,,,, insurance policies, FEMA and State disaster .6I30IW reimbursements. Based on the current plant infrastructure replacement value of $3.12 billion, the level of this reserve has been set to fund the District's non-reimbursed costs, estimated to be $57 million. "Wit,o.0 y v;i R..v. "Yo • Capital Replacement/Renewal Reserve will be established to provide thirty percent of the funding a lwR.o{ to replace or refurbish the current collection, u�ax° aoowe,e°no treatment and disposal facilities at the end of their useful economic lives. The current replacement r`.o .,, $lnx value of these facilities is estimated to be $5.38 wo billion. The initial reserve level had been established at $50 million, and is augmented by interest earnings and a small portion of the Tow a...,... .saer.x annual sewer user fee, in order to meet projected needs through the year 2030. The actual reserve requirement for FY 2008-09 is • Debt Service Reserve is required to be under the $460.9 million, which is $6.3 million less than the control of a Trustee by the provisions of the $467.2 million budgeted for actual year-end certificate of participation (COP) issues. These reserves. reserve funds are not available for the general needs of the District and must be maintained at specified levels. ,,,,,,w R„„„„ .vxana Iln Ytlnn.l • Rate Stabilization Reserve will be used to accumulate all available funds exceeding the targets for all other reserves. These funds will be applied to future years' needs in order to maintain R..r. rates or to moderate annual fluctuations. There is {f"� tlunmm no established target for this reserve. Because R^^• the reserves of all other funds have not been u,o exceeded, this reserve level is set for zero at `Fsll•ff C.II FIn. June 30, 2007. u„ Bon.... cB,nnpony R.— � {1B]B 4pIW Imp,ovem,l Collectively, these individual reserve requirements ow total over $450 million for each year of the current ten-year cash flow forecast. As part of the budget T.wl R..vr -MIS development of the previous two-year budget, the District's Finance Management staff and the Board of Directors concluded that there was an overlapping benefit in having individual reserves, and that it was Due to back-to-back 10.5 and 10.0 percent rate unlikely that situations would arise that called for the increases in FY 2008-09 and FY 2009-10 coupled drawdown of more than one reserve category at any with a $200 million and $120 million proposed COP given point in time. Therefore, the reserve policy debt issuance in FY 2008-09 and FY 2009-10, was adjusted to reflect individual reserve respectively, actual proposed reserve levels at June computations with a 10 percent reduction to the 30, 2010 will exceed reserve level requirements by accumulated total, or roughly$40 million. $4.8 million. Section 2— Page 9 2008-09 & 2009-10 Budget Staffing Levels Authorized staffing levels are being proposed with The Appendices within Section 10 provide a Staffing _ increases of 7.0 full time equivalents (FTE) each for History Summary (by Department and Division) and FY 2008-09 and FY 2009-10 above the staffing level Detail (by position title within each Department and of 634 FTE positions authorized for FY 2007-08. Division). The total FTE count of 648 FTE's in FY 2009-10 would still be 30 FTE below the agency's all time high of 678 positions approved in FY 1995-96. Purchasing Authorization In 1998-99, the Board amended the purchasing authority of the agencys General Manager for w.mmr,casen. purchases up to $100,000. In Section 5 of this document, staff has provided a detailed listing of specific goods or services to be acquired in FY 2008- 09, each costing in excess of $100,000. Staff is recommending that the Board approve the acquisition of these items by staff during the next fiscal year without having to bring these items back to the Board for re-approval. Business Plan ® -- -- - The District began development of a comprehensive m' �a annual Business Plan that was first included within the FY 2005-06 Budget document, and was updated in the following two-year budget beginning in FY 2006-07. This Business Plan has now been updated once again following the Board acceptance of the Five-Year Strategic Plan in November 2007. This The District budgets staffing levels by FTE in order to Business Plan now includes the funding resources provide a realistic estimate of actual staffing levels required as a result of the Board approval of the since not all employees are full-time employees. increased levels of service including the The part-time positions are funded at 1,040 hours development of a sustainable biosolids management -� per year. Part-time employees receive a prorated program, minimizing the impact of collection and share of personnel benefits. treatment odors, and the reduction of air toxic emissions. Also included in this updated business plan is the business planning process and the The reductions from 1995-96 are a result of this current and projected key performance indicators agency's effort in striving to provide wastewater (level of service). The FY 2008-09 Business Plan, treatment as efficiently and effectively as possible that begins within Section 2—Page 17, has includes while lowering operational and maintenance costs to the following topics: more closely match those agencies that are "best in class" for wastewater treatment facilities. However, . Strategic Initiatives _ as the result of new initiatives in the areas of water . Levels of Service reclamation and conservation, and the expansion of . Two-Year Staffing Plan the Capital Improvement Program (CIP), the existing . Updated Financial Model staffing plan was no longer sufficient to meet the Risk Assessment District's needs. • Updated Asset Management Plan In considering the staffing impacts on the CIP Development of the business plan in future years will program alone, the most recently completed include an expansion of the risk assessment validation study of the CIP calls for capital component to include risk avoidance. expenditures to increase to $373.7 million in FY 2008-09 and $228.9 million in FY 2009-10, a total of $1.4 billion over the next 10 years. Section 2—Page 10 r Financial Overview & Budgetary Issues r OCSD Long-Tenn Planning accurate. The validated CIP includes 86 large The District's current efforts in regard to long-term capital projects and 28 special projects with a 15- r planning include the CIP Strategic Plan Update, year expenditure of $1.47 billion. This total which focuses on the District's long-term capital represents a $149 million Increase from the 2007-08 improvement facilities and rehabilitation projects that CIP estimate. This increase includes $50 million r will be needed annually out to the year 2020, and re- from the District's 5-year Strategic Plan, $28 million organizing the operations of the District in order for in newly identified rehabilitation and renewal needs, this agency to maintain a "best In-class"wastewater and $71 million in project budget revisions for en- treatment facility. going projects. r CIP Strategic Planning Over the next ten years, the CIP cash flow needs, In October 1999 the District completed Its Strategic Including rehabilitation and replacement projects, will Plan, an update of the 1989 30-year "2020 Vision" approximate $2.0 billion, or an annual average of Master Plan. Many of the assumptions used to $200.0 million. develop the original plan, such as Inflation, the projected service population, the level of building Moving Towards Secondary Treatment .. activity, and the volume of wastewater treated, were The Board of Directors approved a change from the quite different from what was assumed nearly ten existing 50150 level of treatment to meeting years earlier. If the assumptions of the Master Plan secondary treatment standards in July of 2002. The were not updated, the District could be constructing reasoning behind the decision to move to secondary facilities that were not needed and charging higher standards included (1) the possibility that bacteria fees than would be necessary. from the ocean ouffall may at times reach the shoreline, (2) upgraded treatment will aid additional ,r In addition to updating the population and flow water reclamation with the Orange County Water assumptions, the Strategic Plan provides for an District, (3) and the public clearly favored upgrading operations and financial plan and includes a review wastewater treatment at this time. of the collection, treatment and disposal facilities, and ocean outfalls. As a result of the completion of the Capital Improvement Program Validation Study and the In June 2002, a new, or interim, Strategic Plan Secondary Treatment Review in the spring to 2003, Update was completed that revised many of the a capital Improvement program was developed assumptions used to develop our previous planning ped to documents, including population and land-use meet secondary treatment standards as quickly as possible while providing for increased flows and projections, the level of building activity in our service �-' area and the volume of wastewater to be treated. rehabilitation and refurbishment of existing facilities. This information was needed for the Board's The FY 2008-09 CIP includes three projects totaling consideration of secondary treatment the following $679 million to upgrade the District's treatment r month. The Interim Strategic Plan Update also plants to meet secondary treatment standards. provides an operations and financial plan including a Implementation of secondary treatment standards is review M our collection, treatment and disposal scheduled to be completed by December 31, 2012. facilities, and a study of our ocean ouffall system. This schedule was reviewed and determined to be reasonable and achievable by two independent Peer In conjunction with preparation for the FY 2008-09 Review Teams. and FY 2009-10 Budget, District staff conducted strategic planning workshops with the Board of Planning Advisory Committee ll(PAC2) r Directors to layout a capital program to deliver the As part of the process of developing the Interim levels of service desired by the Board of Directors. Strategic Plan Update, the District sought the input, These levels of service and resulting capital projects comments and suggestions from the residents and r are included in the District's 5-year Strategic Plan. businesses that are served by the District. The This includes approximately $50 million of new CIP commitment to actively solicit public comments on projects over the next 10 years. the appropriate level of treatment represented a 'r In addition, District staff has reviewed each CIP continuation of a relationship with the public that was established in the original Strategic Plan. This project to ensure that the scope of the project was relationship proved be very effective In developing appropriate, and that the cost estimates were solid information on which the Board of Directors r Section 2—Page 11 L.1 2008-09 & 2009-10 Budget made their determinations and set the course for the • Provide input, comments, and observations District's future in 1999. For this reason, the District regarding the benefits and problems that might be I developed a public participation process that associated with each of the alternatives;and maintains its commitment to openness and the need • Provide a summary report that captures the issues _ for public involvement in decision-making. along with their recommendations. u In moving forward with the development of public The PAC2 report was completed in June 2002 and participation,the District established the concept of a provided guidance to the Board of Directors in its Public Advisory Committee. Because of the decision to change from the existing 50150 level of r relatively short time frame that was available for the treatment to secondary treatment standards in July Interim Strategic Plan Update work, the District of 2002. initially fumed to the members of the original Planning Advisory Committee (PAC) and Rate Five-Yearw Advisory Committee (RAC). In parallel wilh the Beginning in summer Plan Interim Strategic Plan Update, the District also Beginning it summer ce07, the General Manager's established a Technical Advisory Committee (TAC) Office initiated the process of creating this Strategic to help advise them with the complex issues required Plan, soliciting assistance from all levels of the LW with the planning and execution of the Huntington organization. Input included meetings with staff Beach Studies (Phase III), and a number of these members who helped to retool the Mission TAC members were also on the PAC2. The District Statement,Vision Statement and Core Values during a series of management workshops and Executive recognized that the PAC2 members would bring Management Team retreats. This was followed by a several key benefits to the project: series of four workshops with the Board of Directors to provide additional input and direction. As a result, L • Familiarity with the technical issues; a Strategic Plan was developed that addresses • Understanding of the public participation process; several major objectives and critical challenges - • Balanced distribution of technical, environmental, facing the Orange County Sanitation District now, in political, and geographic viewpoints;and the next five years, and further into the future. They • Demonstrated commitment to active and reliable include: participation. • Achieve a comprehensive five-year plan that v In addition to this initial group, the District also focuses our present and future efforts to meet the reached out to organizations and individuals that had sanitation, health and safety needs of the 2.5 - consistently expressed interest in participating in the million people we serve. Interim Strategic Plan Update and the ocean • Plan, design and build $2.6 billion worth of discharge permit renewal process. As a result of this essential capital improvement projects over a effort, 28 members of the new PAC2 were minty-year period that continue to meet the confirmed. regulatory, environmental, health and safety needs y of a growing population. One of the primary objectives of the Interim Strategic • Continue to direct sufficient resources and keepinvestigating new technologies to effectively deal Plan Update was to consider different levels of with odor issues. V wastewater treatment and their respective . Apply sufficient funds to meet regulatory advantages and disadvantages. PAC2 members requirements related to air emissions. were to provide key support to the project, specifically:: • Continue support the Groundwater y Replenishment System in partnership with the Orange County Water District. • Review the technical output of the four treatment • Continue to aggressively pursue alternatives that alternatives under consideration; make fiscal and environmental sense in the final • Establish the performance objectives that are to be disposition of biosolids. used to evaluate the alternatives; • Apply sufficient resources to ensure the maintenance of our assets remains a priority. V Section 2—Page 12 u r Financial Overview & Budgetary Issues r • Address risk assessment issues to protect the The dynamic regulatory issues, land application environment, our employees and the public's ordinances and bans, and public perception r health. challenges prompted the District to develop a Long- • Sustain and enhance a skilled work force capable Range Biosolids Management Plan. This plan was of managing a highly technical operation in a approved by the Board in December 2003. The goal dynamic and technologically challenging is to develop a sustainable, reliable, and economical environment. program for long-range biosolids management • Protect our reserves and credit rating while providing environmentally sound practices that meet maintaining a responsible rate structure that is at the stringent federal, state, and local regulatory r or below other sanitation agencies. requirements. The Strategic Plan charts a focused roadmap of The Long-Range Biosolids Management Plan (Plan) success for the future of the Orange County includes four major elements: Sanitation District. It addresses critical operations and construction issues, financial and budgeting 1. Identify long-term potential Southern challenges, and gives a Gear and concise direction California Class A biosolids products ., to staff, ratepayers, regulatory agencies, and the and product markets. general public. 2. Identify the onsite and offsite facility options Biosolids,Management for manufacturing marketable products while The District produces approximately 650 tons of optimizing the use of the District's facilities digested and dewatered (Class B) biosolids per day. necessary in treating wastewater. By 2020, the District's biosolids production is ,• projected to increase by 30 percent, to 310,000 tons 3. Develop a flexible implementation plan for annually. The District currently manages its positioning the District to be able to biosolids as follows via two contracts using five participate in multiple markets. options: r 4. Continue to beneficially use biosolids and • 24% is land applied as Class A biosolids in maintain conformance with the National Kern County,California($43.07/ton); Biosolids Partnership (NBP) Code of Good • 38% is composted to Class A biosolids in Practice. Kern County, California($83.09/ton);• 12% is composted to Class A in La Paz The Plan includes an analysis of potential County,Arizona($49.74/ton); technologies and markets for biosolids derived • 23% is land applied as Class B biosolids in products, an analysis of treatment plant processes to Yuma County,Arizona($45.44Ron); and reduce overall biosolids handling and treatment • 3% Is land filled in Yuma, Arizona($45.44). costs, and a long range implementation strategy. r Counties throughout California and Arizona have The following is currently being Implemented based on the Plan's recommendations: developed, or are in the process of developing, ordinances that severely restrict or ban the land 1. Employing new in-plant technologies to reduce application of Class B biosolids. Kern and Kings Counties banned land application of Class B the volume of Biosolids s handled by the District's p biosolids. At the time of this writing, the "Floret bill two treatment plants, as follows: ,r which gives the Kern County Board of Supervisors . Replacement of existing belt filter press the discretion to ban importation of all biosolids dewatering equipment with centrifuges. sailed through the California Senate 26-9, and was r forwarded onto the Assembly. It has become clear Replacement of existing secondary sludge that future requirements for managing biosolids will dissolved air flotation thickening equipment be more restrictive and costs will increase as current with gravity belts. options are anticipated to be eliminated due to these developments in two to five years. Installation of primary sludge thickening equipment. r Section 2—Page 13 6. 2008-09 & 2009-10 Budget 2. Transitioning to the production of Class A In addition to the contract awarded EnerTech, the biosolids products using established and Board also approved a contract with Synagro to I reliable technologies. provide for biosolids composting in Kern County at $63.09 per ton. The EnerTech and Synagro long- 3. Establishing and maintaining failsafe backup term contracts will service approximately two-thirds options for 100% of the biosolids produced at of OCSD's future biosolids production. 'V OCSD. Staff Is currently investigating biosolids-to-energy technologies and markets for the remaining one-third 4. Working with member agencies and local of the District's biosolids production because of the stakeholders to develop in-county production concern that biosolids composting markets are being `+ facilities and markets, saturated which could result in de-valuing of the product, making it non-sustainable. The private 5. Moving Into the following markets using vendor sector significantly Invested in developing biosolids- contracts for providing processing facilities, to-energy technologies which enables wastewater product distribution,and marketing: agencies to participate in proven and sustainable markets. Staff will also be investigating biosolids • Energy and fuel production management via deep-well Injection and methane y • Heat dried granular products production which is currently being evaluated by the • Heal drying with soil reclamation City of Los Angeles. Following are future cost • Compost Implications under the various alternatives for the V • Organo-mineral fertilizers disposal of the remaining one-third of District's future biosolids: In order to quickly transition from Class B to Class A biosolids production before the Class B market - Energy Production: $851ton—Annual Cost=$7.8M collapsed, requests for proposals were submitted • Deep Well Injection:$40lton—Annual Cost=$3.7M requesting services and facilities to support the - Landfill Disposal:$60lton—Annual Cost=$5.5M District's Long Range Biosolids Management Plan. After completing an extensive request for proposal Urban Runoff process in April 2005, the Board approved a contrail In June 2002, A81892 was passed that allows the with EnerTech Environmental, Inc. to convert the V District's biosolids to a renewable fuel at their District's charter to include permissive language Regional Biosolids Processing Facility in Rialto, authorizing the diversion and management of dry California. The EnerTech's solution is a relatively weather urban runoff flows. This bill allows the new, patented heat treatment process. The patented District to acquire, construct, operate, maintain, and i process increases the ability to dewater biosolids in furnish facilities for the diversion of urban runoff from Lv order to maximize the efficiency of the production of drainage courses within the District, the treatment of fuel. By decreasing the moisture content of biosolids the urban runoff, the return of the water to the prior to drying, a smaller dryer is needed, thus drainage courses, or the beneficial use of the water. reducing capital and energy consumption. The fuel product will be totally recycled and reused, under The passage of this bill allows the District to divert up agreements with area cement kilns and other fuel to 10 million gallons a day and consider more V users. Residual ash from the fuel combustion extensive options, such as building artificial wetlands becomes part of the cement product, resulting in no that would naturally filter the runoff, or building a residual waste product liability. EnerTech proposes runoff treatment plant, similar to a$9.5 million facility to finance, design, construct, and operate this 625 built in Santa Monica that recycles 500,000 gallons r ton per day facility. Several local governmental of runoff a day. agencies have previously committed approximately 275 tons per day of biosolids to this project and this For some time now, Orange County's beaches have �y project has now become economically viable with the been affected by stone water and urban runoff commitment of 200 tons of biosolids per day from the District. pollution. As a result, the Santa Ana Regional Duality Control Board has taken direct action to control discharge of pollutants to tributaries and recreational water bodies in Orange County by v Section 2—Page 14 r Financial Overview & Budgetary Issues r issuing a Storm Water Permit to the County and Fiscal Policies cities. In order to comply with the provisions of the Included within Section 3 — Pages 1 through 8 is a r permit, the County and cities have increased listing of the District's Board Adopted Fiscal Policies. resources to fund municipal storm water/urban runoff These fiscal polices were established for the management and treatment services. However, this purpose of: effort has been difficult to sustain given the complexity of the program and the competing . sustaining a financially viable Sanitation demands on limited resources. District; . having the flexibility to adapt to local and ,r The District, the County and other local agencies, regional economic changes;and are currently considering whether to explore public . maintaining and enhancing sound fiscal support for levying a fee to property owners to fund condition of the District. regional storm watedurban runoff management and r treatment services within Orange County. Included within the District's fiscal policies are specific polices for Budgeting, Revenues, Expenses, Groundwater Replenishment System Capital Improvements, Vehicles, Short-term Debt, r The District has shared in construction costs for Long-term Debt, Reserves, Investment, and Phase I of the Groundwater Replenishment (GWR) Accounting,Auditing and Financial Reporting. System with the Orange County Water District r (OCWD), with each agency splitting the cost of GFOA Recommended Practices construction of this facility equally. Phase I will Included in the budget within Section 3 — Pages 9 reclaim up to 70 million gallons per day (mgd) of through 15 is a listing of the 124 accounting, water, becoming the largest water reclamation auditing, financial reporting, cash management, r project in the world. The GWR System will defer the budgetary and fiscal policy, debt management, need to build a second outfall estimated at a cost of retirement and benefit administration, and economic $200 million. development and compliance planning practices r recommended by the Government Finance Officers Phase I of the GWR System became operational in Association of the United Stales and Canada. January 2008. The District and OCWD have agreed Included within this list of best financial practices for to match the funding for this project. The District had stale and local governments is the District's status " previously budgeted $248.4 million for this project as to whether we are in compliance or in progress with the final wrap-up construction outlays of $2.8 towards compliance, or whether the practice is million to occur in FY 2008-09. The District has applicable to this agency. Out of these 124 shared equally with OCWD in approximately $44 practices, the District is in compliance with 84, 35 are million of Federal and State Grants in offsetting total not considered applicable to the District, and we are project costs. in the process of complying with the final five. r Pioneering work to develop the world's largest water purfication plant for groundwater recharge has earned the Orange County Water District and the r Orange County Sanitation District, California, USA, the 2008 Stockholm Industry Water Award. The Stockholm Industry Water Award honours and r encourages business sector contributions to sustainable development in the water sector and is presented each August at the World Water Week in Stockholm. It was established in 2000 by the r Stockholm Water Foundation in collaboration with the Royal Swedish Academy of Engineering Sciences and the World Business Council for Sustainable Development. r Section 2—Page 15 r L 2008-09 & 2009-10 Budget L La L.i V L L V L1 This page was intentionally left blank. u L L L i L Section 2—Page 16 r Business Plan The District's Business plan is intended to be an The framework for the current Business Plan was overarching plan based on sound decision making developed as part of the process of creating the that provides direction on the work that the District Five-Year Strategic Plan that was Issued in will lake on during the next two-year budget cycle November 2007. Beginning in the summer 2007, and what will be deferred. This Plan is the the General Manager's Office initialed the process underlying foundation for the development of the of creating the Strategic Plan, soliciting assistance District's Budget. from all levels of the organization. Input Included meetings with staff members who helped to retool During the process of developing the Plan, the the Mission Statement, Vision Statement and Core District's Executive Management Team reviewed Values during a series of management workshops the proposed work for the upcoming year, balance and Executive Management Team retreats. This It with the staffing and funding resources needed was followed by a series of four workshops with and either approve the plan or make reductions. the Board of Directors to provide additional Input Reductions In work or resource commitment for the and direction. As a result, the Strategic Plan coming year will be considered In light of the Level addresses major objectives and critical challenges ,r of Service that the agency is committed to and facing the District now, in the next five-years, and appropriate levels of risk. further Into the future. This Strategic Plan also laid down the foundation for the development of the Updates to the Business Plan are performed on an Business Plan as It addressed critical operations r on-going basis, to be developed ahead of the bi- and construction issues, financial and budgeting annual budgeting process, and will ultimately have challenges, and gave a clear and concise direction a five-year horizon. from the Board of Directors to staff, ratepayers, r regulatory agencies, and the general public. Each year, it is staffs intent to build upon the foundation of the previous Business Plan and to The Business Plan development process started make each succeeding Business Plan more with the initiatives and direction identified within the �+ detailed and comprehensive. Included in this first Strategic Plan. Staff from across the agency Business Plan was the following elements: (1) further defined these initiatives in terms of level of Business Planning Process; (2) Current and service, business risk exposure, capital and r Projected Key Performance Indicators (Level of operational costs, staffing, and long term financial Service); and (3) 2005 Asset Management Plan Impacts. The Business Plan identifies the required Summary. resources and prioritizes projects and Initiatives, with recommendations for which initiatives should r The previous version of the Business Plan go forward for Inclusion in the District budget, and included (1) the ten most critical strategic which should be defamed or dropped from initiatives; (2) performance results pertaining to the considera0on. r Current and Projected Key Performance Indicators (Level of Services); (3)Two-Year Staffing Plan; (4) Strategic Initiatives Financial Model Update; (5) Risk Assessment & Over the next two years, the District will begin and Mitigation Analysis; and (6) Asset Management complete many activities central to the goals of the r Plan H. organization. As part of the strategic planning process, Staff has reviewed all of the initiatives Additions to the FY 2008-09 and FY 2009-10 and has identified ten that it would consider highly r Business Plan Includes further development of the strategic and worthy of particular focus: District's comprehensive Strategic Plan will include: (1) the steps required to complete each 1. Succession Planning Initiative; the timeframe and milestones for the 2. SARI Sewer Line Relocation r completion of each step; and the resources 3. Environmental Compliance Management required for each step; (2) Business Accountability 4. Odor Nuisance Management Charters for each department, and each division 5. Facilities Master Plan Update r within the departments; and (3) strategies to 6. Energy Master Plan minimize risks identified within the District's current 7. Reclaiming SARI Line Sewer Flows risk assessment profile. 8. Managing a Sustainable Blosolids Program 9. Making North County Yard Operational r Business Plan Process 10. Enhancing the District's Security Plan r Section 2—Page 17 2008-09 & 2009-10 Budget Resources have been reallocated from lower These Levels of Service improvements, along with priority activities within the organization to support maintaining the existing performance levels, these strategic initiatives. require a series of annual rate increases and borrowing to ensure that the District maintains the Staff will report quarterly to the General Manager reserves and debt coverage ratios that are on the progress of each initiative. In parallel, the included in the Business Principle Key General Manager will begin the development of a Performance Indicators. The District's present and comprehensive strategic plan and District goals for projected Levels of Service are shown within this the Board review and adoption. section on page 27 through 32. Level of Service The District will continue to conduct studies and In 2005, the Orange County Sanitation District first monitor regulatory trends that may change its level developed a summary of the District's present and of service beyond 2013. There is a developing future Levels of Service requirements as part of its area of research concerning contaminants in Asset Management Program. These Levels of treated wastewater effluents such as personal care Services were further developed with the Business products and pharmaceutically active compounds Plan along with measurable outcomes, or key that are suspected of causing reproductive or other performance indicators, that the District is health changes to marine life in receiving waters. committed to meeting. This Business Plan These compounds are also subject to research documents that the Levels of Service provided by regarding reclaimed water quality. Further the District will increase significantly, requiring $1.4 changes to the District's source control program billion in identifiable capital improvements and and treatment processes could be required to millions in increased maintenance and operations address these concerns as further research costs over the next ten years. defines the problems and potential solutions. One area where the District's Level of Service will Staffing Plan increase significantly is the quality of effluent that A comprehensive review was completed on the is provided to the Orange County Water District for District's staffing levels for the next two fiscal reclamation or for discharge into the ocean. In years. This undertaking began with a review of the 2002 and 2003, three commitments were made District's vision, mission, goals and objectives as that increased this Levels of Service: part of the development of the Five-Year Strategic Plan. 1. The District's ocean discharge will meet secondary treatment standards by 2013; This analysis Included identification and development of over 110 business units in the 2. The District will provide effluent disinfection to District with discreet duties and responsibilities. reduce the coliform bacteria content at its outfall to less than the maximum concentration Authorized FTE Staffing allowed at the beach under California Assembly Bill 411; and 1000 900 3. The District will provide secondary 70 million 800 678 �aa gallons a day of effluent satisfying the quality 701 _ 641 648 and quantity requirements of Groundwater 600 - r Replenishment System that began operations Soo G34 in January 2008. 400 vo The District is also studying further reduction in the 300 offsite odors from its treatment plants and reducing 200 -�� its emissions of air toxics. The District's Levels of 1995- 2000- 2006- 2007- 2008- 2009- Service will also improve in the area of biosolids 96 01 07 08 09 10 management. The District is moving from a 60- 40% blend of Class "A" and Class "B" biosolids Based on the needs of the agency overtime, total management options to a 100%Class"A"product. FTE requirement have fluctuated greater from a .. Section 2—Page 18 Business Plan high of 678 authorized FTE's In FY 1995-M to a 1. The Necessity of a Local Sewer Service Fee ,r low of 510 in FY 2000-01 back up to a newly -The District provides regional sewage proposed high of 648 authorized In FY 2009-10 for collection, treatment,and disposal services to the operation and maintenance of newly approximately 550,000 customers located in constructed secondary treatment facilities central and northwest Orange County and scheduled to come on line as the District strives to collects fees for these services through a meet full secondary treatment standards by special assessment on the Orange County December 31,2012. properly tax bill. In addition, the District also r maintains,repairs,and replaces the local Based on the Increase of 138 FTEs since FY sewers for approximately 17,000 of the above 2000-01, staff has taken on the challenge of 550,000 at no additional fee. All customers moving towards full-secondary treatment other than these 17,000 are also paying a local standards while minimizing the increase in total sewer service fee to their local city or special FTE head count over this two-year planning district. A sewer rate study needed to be period. completed for these 17,000 customers in order to initiate a local sewer service fee to eliminate Instead, staff has focused on the reallocation of the subsidization of their local sewer service by existing resources In order to balance the needs all 550,000 regional customers. within the over 110 identified business units of this agency to ensure that core business operations 2. Including the Cost Impacts of Strategic are met, levels of service are maintained, and that Initiatives—The November 5-Year Strategic strategic Initiative elements are accomplished. Plan increased the levels of service for ,r managing air toxins, odor control,and In conclusion, the proposed two-year staffing plan biosolids. The flnanccal Impacts resulting from contains a significant level of analysis on how the outcome of these board approved existing resources can be utilized in consideration initiatives needed to be addressed in an of the Increased demands placed on this agency updated sewer rate study. by secondary treatment standards and in support of the $1.4 billion capital Improvement program 3. 5-Year Proposition 218 Notice-The District's ,r over the next ten years while minimizing the last California Proposition 218 Notice notifying Increase In staffing levels. This budget, therefore, rate payers of potential sewer rate increases proposes staffing Increases of 7 FTE's for FY over the past five-years had expired and a new 2008-09 and for FY 2009-10, raising the previously 5-year Proposition 218 Notice approved by the r approved FTE count from 634 FTE's in FY 2007- Board and the justification of the new sewer 08 to 641 FTE's In FY 2008-09, and to 648 FTE's service fee rates over the next five years In FY 2009-10. A detailed breakdown on the needed to be supported by an updated sewer proposed reallocation of FTE's can be found within rate study. the Appendix section of this budget. 4. Development of a Uniform"Net Cost of Financial Model Update Service"Rate Methodology-The sewer �+ The last time a rate study was completed for the rates of high strength dischargers under permit District was in July 2006, and previous to that was were previously developed gross of property in 2002 and in 1999. It has been the practice of tax revenues. A recent independent sewer the Sanitation District to complete a rate study rate validation study recommended that a following the completion of a strategic plan update. uniform'net cost of service" rate methodolgy A strategic plan update is the review of the OCSD be developed and applied to all rate payers collection, treatment and disposal systems to that would be fair and equitable to all �+ determine a comprehensive strategic approach to ratepayers. manage wastewater flows through the year 2020, and in a way that protects the public health and is In November 2007, the District contracted with an technically feasible, enviornmentally responsible, Engineering firm to complete a financial model and economical. However, the following four update for FY 2008-09. The purpose of this drivers necessitated that a rate study be completed engagement was to evaluate the District's as part of this Business Plan: wastewater utility revenue needs, and develop `+ sewer service rates and wastewater capital .. Section 2—Page 19 V 2008-09 & 2009-10 Budget IW facilities charges to equitably distribute costs transparency placed on the Board and District I among utility customers. management. L. In their Financial Model Update Report for the In February 2006, strategic level risk assessment District issued in April of 2008, Carollo Engineers and mitigation workshops were completed by the recommended that the District: District's Executive Management Team and District V Managers. The aim of the risk assessment and • Based on Current operational and capital project mitigation workshops was to assumptions, implement annual increases of y 10.5, 10.0, 10.0, 9.8, and 9.8 percent, • identify and assess strategic and respectively, over the next five years. organization-wide risks facing the District and to develop a high level risk register; 4 • Increase the unit costs to high strength . identify mitigation measures that the discharges as follows: District currently has in place; • Propose additional mitigation measures sly B.O.O. S.S.. that the District considers appropriate to Current Unncod 0.77 sm 0.52 manage;and Proposed Unit Cost os4 0.4 0.42 %rode.+. 9.1% 14.3% .19.2% • Develop an action plan of responsibilities and timeframes forfollow-up. • Increase the capital facilities capacity charges 64 (CFCC) and the supplemental CFCC by the Business Risk was defined by the workshop Engineering News Record Construction Cost participants as a threat that an event, action or Index of 3.4%of the prior year, or as follows: inaction will adversely affect an organization's y ability to achieve its business objectives and Residential Commerc1.0 execute its strategies successfully. CIFCC IndaaMal CFCC Cmmnt unit cost $4,517 $1,357 The next steps in the development of Risk Proposed Unit Cost $4,971 $1.403 Management include: %Increase 3.4% 3.4% • Completion of the risk register including L $11,000 vine $1ins mitigation strategies (current and callers a o.o. SA. - proposed) responsibilities, and C..ntUnit cast $1.392 $0.781900 $0.095022 timeframes; Proposed Unit Cast $1.440 $0,80850 $0.098182 . Consider independence in the process to 6a' %modes. 3.4% 3.4% 3.4% ensure a level of integrity in the process without transferring ownership and • Implement a Five-Year Local Sewer Service responsibility; Fee for 18,000 parcels located in City of Tustin . Review of risk register to ensure it and in unincorporated areas North of Tustin represents a balanced portfolio of the risks beginning in FY 2008-09, as follows:$199, and that the mitigation strategies are $204,$208, $212,and$216, respectively, appropriate; 6W through FY 2012-13. . Develop a plan to monitor the effect of All recommendations from the Financial Model mitigation strategies to ensure that pertaining to CFCC fees were approved to ensure . Develop are in place and effective; L, that the fundingrequired for the additional capacity Develop a formal reporting process to the q p y Board that includes possible revisions to projects required for new users would be available the overall risk profle; and at the time of construction. . Develop protocols to provide assurance to u Risk Assessment Analysis stakeholders that in the annual strategic Many leading organizations are formally applying business plan processes are in place to I risk management processes to identify and mange manage risks organization wide. L risks across many aspects of their business. The The District's Risk Manager has proposed a formalization of risk management processes is a detailed plan for carrying out the steps mentioned L logical step towards increased accountability and above. That plan is currently under review by Section 2—Page 20 V Business Plan District management for possible implementation o Modeling information was re-run. This in calendar year 2008. allowed for tables, figures and text to be updated and includes useful rate planning Asset Management information for the Finance department. In December 2002 the Orange County Sanitation District (OCSD) Board adopted their 'Asset o Asset Management System Summaries Management Strategic Plan and Framework data was updated for both plants. This is Analysis" (Strategic Plan). The Strategic Plan at the process level and looks at condition, defined Asset Management for OCSD as; 'to demand vs. capacity, function, reliability, create and acquire, maintain, rehabilitate, replace and business efficiency, which and augment these valuable wastewater assets in complement the Engineering Department the most cost effective (lowest life cycle cost) Master Plan updating effort; sustainable manner at the level of service required by present and future generations of regulators ► New collaboration efforts with WERF to and customers at an acceptable level of risk." advance asset management will improve the OCSD has taken several steps to sustain this following tools: vision since the Strategic Plan was adopted. This o Public communication tools that utilities has included the development and implementation can use to engage decision-makers and of many different asset management tools to ratepayers understand the need for obtain better information to make better decisions. strategic asset management and The most recent effort includes working with the infrastructure investment. Water Environmental Research Foundation r (WERF) and American Water Works Association o Best appropriate practices for asset Research Foundation (AWWARF) on research management among utilities, as well as programs to advance asset management tools and development of case studies that utilities establish standards for bench marking. This will can use to learn how to Implement `+ help other utilities and provide improved asset WERF's Strategic Asset Management tool. management tools for OCSD's use. o Development of tools for decision analysis One of the most Important asset management and implementation of asset management tools OCSD created was an Asset Management practices. This includes a cost tool and a Plan. This completed in 2005 and was the first refined gap tool that helps utilities to one created. OCSD has continued to develop this compare their asset management document to better understand its short-term and practices to those of other utilities. These long-term business obligations related to the tools will allow agencies to benchmark assets that it currently owns and will own. It also against each other. reveals how the business decisions related to these assets will affect the ability to sustain the o Develop models for predicting the asset performance and consequently sustain the remaining asset life for both above and conditions of cost-effective services to customers. below-ground assets. This will .+ OCSD has traditionally performed many of these complement the risk-based modeling tasks across the organization; however prior to approach used to date for OCSD condition 2005, the results of this work had never been assessment and CCTV programs; r compiled into a single document to allow the organization to clearly understand the overall ► Future participation with AwwaRF to expand business ramifications on the efforts of the WERF Asset Management advancement efforts. This effort will focus on r Recent improvements key asset data for utilities, which will result in As part of the annual ongoing asset management the establishment of data standards. and business planning processes within OCSD the following efforts continue: ► The Risk Plan developed in 2006 continues to r be a tool for the Executive Management Team, ► Asset Management Plan has just undergone a which provides an ongoing process for two-year revision: managing organizational risk; r Section 2—Page 21 2008-09 & 2009-10 Budget ► The Condition Assessment Guidelines will result in millions in increased maintenance and developed in 2006 continues to be a resource operations annual costs due to these future for staff to perform condition assessment of changes. our plants and the collection system; Some of the major Levels of Service that will or Levels of Service have changed include: For the 2005 Asset Management Plan, OCSD developed a summary of its present and future a Adopting 100%Secondary Treatment Standards Levels of Service requirements using the a Adopting 100%Class"A" Biosolids international triple bottom line categories. This a Increasing reclamation to 70 mgd documented the measurable outcomes, or key a Reducing odor complaints performance indicators that OCSD is committed to a Fire and Safety Code Compliance meeting under each of the following categories: Environmental, Social, and Economic. In 2006, Inventory of Assets these performance categories were modified to be Understanding our asset characteristics is critical consistent with OCSD Core Strategies. This to our continued success. Our assets can placed additional importance on OCSD generally be split between two main groups: environmental responsibilities as demonstrated Collection System —the assets responsible for the with the new categories: Environmental collection and transfer of sewage from the cities to Stewardship, Wastewater Management, Business the treatment plants, and; Treatment and Disposal Principles, and Workplace Environment. In 2007 — the assets that treat the sewage and dispose of OCSD executive management refined the goals for the treated effluent and byproducts. these categories and gained the support of the _ Board of Directors by involving them in the process The following charts present the investment history and obtaining their approval. Overall OCSD in both of these systems and the age profile of Levels of Service will increase significantly as a these assets. result of its large capital investment program. This .. Figure Et —Collection System (Weighted Average Life) r �0 �Colloctlon CansWction lSMl - :�:. 40 —Are,pe Ape(By Repleumenl Value) 700 35 as 600 500 _ ;f. -25 C 9 w — 20 r Za 3W - 15 s�s 3 � 2W 10 j ID6 5 � 010 ^ q'55 p 'Pe 0 p i a 9 9 0 � o �9",9� o�^' Yor Section 2—Page 22 Business Plan Figure E2 -Treatment Plants (Weighted Average Life) NI1V to Plonk Cons,nm (SM) Aoumnr/,Je BYy ROPlnavnu IV 1, 1 �55 r 500 �rF C H son a aoo z5 a 200 0 mp � 1�����a.—_-1���.��_._�s•. ����Ie. ���� ��.—_—�._._�_._�._�� n e P 4,95� 9�ry n` 91116 9"4, I'll, 14P 14P 11+ wry 4' 10 0 If'f� � Vur This average age and value of the assets OCSD $7.1B after the completion of the existing three own is increasing steadily over time, the latent billion dollar Capital Improvement Program. The asset replacement obligation is rising, and as a major reasons for this increase are all the new consequence, OCSD needs to be planning for assets added to the asset register and basing the decreased capital projects for expansion and replacement costs on a metropolitan environment increased renewal expenditures in the future rather than a vacant land situation. relative to past expenditure levels. Additional focus will need to be given to ensuring that Valuation Plants Collection Total appropriate operation and maintenance strategies are being applied that consider the different ages Replacement 3.12 3.14 6.26 of assets being maintained. Value($B) Depreciated 1.87 1.79 3.46 Asset Valuation Value($B) The replacement valuation for all of OCSD's assets has been updated. The table below presents the current replacement and depreciated Planned Expenditure values of OCSD's assets. The replacement value A computer model was developed to produce the represents the cost for December, 2007 dollars to future expenditure aspects of this Asset completely rebuild all the assets to a new Management Plan. This model was used to condition. The depreciated value is the book value perform a series of calculations on information of the assets based on their current condition. related to the current and future OCSD assets. The current replacement value is estimated to be The following chart is the result of the modeling $6.268, which compares to the 1998 prediction of work undertaken, including current and predicted $2.03B, which was based on original purchase future Capital Improvement Program projects and cost. This will increase by 2012 to approximately Section 2-Page 23 2008-09 & 2009-10 Budget operations (including maintenance), improved by OCSD for each of the next 100 years. The understanding of asset life and asset condition. actual annual expenditure will vary depending of The model has been revised to account for the actual work required. At present the business rules for future CUP projects. expenditure is greater due to the accelerated building program, however, additional income in The flat black line is the average of all the future the future will also be required to pay back the cash Flows, which represents the average capital that is currently being borrowed. expenditure ($411M current value worth) required Figure E3—OCSD Expenditure—Total Future Predicted Cash Flows 1,000 1,000 900 900 800 800 a 700 700 0 0 600 600 0 500 500 _ a 400 400 a 300 300 200 200 100 100 0 0 m M m m w .n m �n m m m n m - m M w - m �n o n r m m pp S m v. m m r m m rn o (�V (mV Year t• CIP Fume-Predicted Program eEN CIP6dstng-Current Program seeOperators/Maintenance I Overhead —Annual Annuity Expenditure Future Funding Requirements The predicted overall expenditure in future years Continue to be selective of the Capital will not -drop off" as dramatically as previously Improvement Program projects based on predicted after the current Capital Improvement economic justification and risk presented to Program spending drops off significantly in OCSD in order to free up available funds and approximately five years. This means that staff resources to concentrate on other areas of pressures on rate increases are likely to grow greatest risk; more than previously thought. Fully funding the replacement and rehabilitation costs of the assets Continue to validate future maintenance program will mean that the likely scenario is greater-than- and workload with a view toward investing in inflation rate increases over the next 20 years. maintenance where it will defer capital. Some observations have indicated that an increase in Future Efforts maintenance expenditures could result in In order to move forward with Asset Management, deferred capital investments and a reduction in the District will need to: I life-cycle costs this is especially relevant for civil Section 2—Page 24 r Business Plan . assets). Also, an increased understanding of the future maintenance costs associated with capital projects will help to identify the potential Impacts on the maintenance program; . Continue to improve the existing data standards, processes and data collection programs; . Continue the effort to Implement an information system strategy to ensure that this data collection and data flow is stored and recovered I manipulated to suit the needs for planning and optimizing future asset management decision making; . Continue the implementation of a works management system and workload allocation / justification / prioritization system for all Engineering, Operations and Maintenance activities; . Consider ways to influence customer r expectations while working to try and to avert or reduce the cost Impacts of current and future levels of service; . Review management strategies and design guidelines with a view to considering revised redundancy requirements. r Next Steps A number of improvement tasks have also been identified for future years to Improve the overall .. accuracy and coverage of the Asset Management Plan. This includes completing Business Risk Exposures for the asset system summaries, and r using more accurate data as it is collected for the models. Future editions of the Asset Management Plan are r critical to the work OCSD is planning for improving its overall asset management performance. Many of the improvements to future Asset Management Plans will derive from other work that is planned to r be undertaken across the organization. Sustainability and cultural organizational change are important Issues for the Asset Management .0 program, and they need to be well managed to ensure the ongoing Improvement in stewardship of the OCSD assets r r r Section 2—Page 25 2008-09 & 2009-10 Budget This page was intentionally left blank W w L 4 Section 2—Page 26 ` u Business Plan Wastewater Management OCSD beneficially reuses and recycles water and other resources using safe and effective wastewater systems. Goals to support the Wastewater Management Level of Service include: 1. Sustainable Biosolids Program—Prepare request for proposal or sole source for selecting a technology for managing the remaining one-twhird of our biosolids capacity. Develop long-term agreement and implement management option. Evaluate the feasibility of deep well injection/methane recovery including commissioning a study of the geological formations below Plants 1 and 2, and availability and acceptability of any existing wells; and processing some of our biosolids at the City of Los Angeles Terminal Island demonstration wall. Complete new In-county Compost Take-Back Program Plan strategy. 2. Implement Energy Master Plan—The Energy Master Plan Is In final stages and will provide recommendations to ensure adequate power resources and energy management. 3. Odor Control—Implement Odor Control Projects at Plant 1 (trickling filters)and Plant 2(solids loading facility) by 2016. - Wastewater Management Levels of Service OCSD will provide an effluent quality suitable for FY 08.00 FY 07-08 protecting public health and being a source for water Target Results recycling. Concentration of emerging chemical constituents NDMA•< 150 apt Not of concern in Plant No. 1 secondary effluent 1,4-Dloxane<2ppb Analyzed Thirty-day geometric mean of total coliform bacteria In <1,000 mpn 148 effluent after initial dilution of 180:1 _ Industry permit compliance to discharge into OCSD sewers 100%permit compliance 100% Meet secondary treatment standards BOD 100 mg/L 45 TSS 55 mg/L 33 r OCSD will manage flows reliably. FY 08.09 FY 07.08 Target Results Frequency of use of emergency one-mile(78-Inch diameter) 0 per year during dry weather,less than 0 outfall once per 3 years in peak wet weather Sanitary sewer spills per 100 miles <2 1 <2 1 Contain sanitary sewer spills within 5 hours 100% 100% OCSD effluent will be recycled. FY O FY s Targgetet Ressultult s Provide up to 104 mgd specification effluent to the 104 mgd 35.1 mgd Groundwater Replenishment System (11/07) OCSD will Implement a sustainable biosolids FY 08.09 FY 07.08 management program. Target Results r National Blosollds Partnership Certification for Blosolids Maintain certification Maintained Environmental Management System Percent of biosolids recycled >95%recycled 100%recycle r <5%landfill 0%landfill Section 2 —Page 27 2008-09 & 2009-10 Budget Environmental Stewardship OCSD participates collaboratively in the protection of regional water resources for the benefit of the people we serve. Goals to support the Environmental Stewardship Level of Service include: 1. SARI Line Relocation—Support the County of Orange Resources and Development Management Department effort to relocate the SARI Line by 2011. 2. Management System for Environmental Compliance—Implement a management control system for environmental compliance information that incorporates a"dashboard" reporting approach. 3. Contaminants of Potential Concern (CPC)—Complete three phase testing and analysis of 550+ CPC, prepare report on findings and recommendations, develop initial source control strategy if there are CPCs identified that require control. 4. Climate Change/Greenhouse Gases—Complete development of statewide emission inventory protocol for Publicly-owned Treatment Works and submit mandatory emission inventory to the California Air Resources Board for FY 07-08. 5. Engine Emission Compliance—Complete study to evaluate alternatives for complying with lower emission limits in the South Coast Air Quality Management's Rule 1110.2. Initiate planning and design of demonstration testing of the most promising technology(s) identified In the study. e. Reclaiming SARI Line flows—Meet with stakeholders, develop a list of obstacles that need to be overcome to reclaim the SARI Line, and develop an initial strategy for obtaining regulatory approval to allow SARI Line Flaws to be treated at Reclamation Plant No. 1. Environmental Stewardship Levels of Service FY 08.09 FY 07-OB OCSD will protect public health and the environment. Target Results Provide capacity to collect and treat dry weather urban runoff Up to 4 mgd 1.59 mgd/month Maximum off-site odor impact(in D/T•) 42 DR 42 D/T • Reclamation Plant No. 1 48 D/T 48 D/T • Treatment Plant No.2 Air emissions health risk to community and employees per one million people <10 <10 Permit compliance(air,land,and water) 100% 100 IY 08.09 FY 07-08 OCSD will be a good neighbor. Target Results Odor complaint response: • Treatment Plants within l hour 100% 100% • Collections System within 1 working day 100% 100% Number of odor complaints: • Reclamation Plant No. 1 32 28 • Treatment Plant No.2 4 7 • Collection System 34 14 r Restore collection service to customer within 8 hours 100% 100% Respond to collection system spills within 1 hour 100% 100% Section 2—Page 28 Business Plan Workplace Environment OCSD provides an environment of partnership, growth, opportunity, responsibility and accountability. Goals to support the Workplace Environment Level of Service Include: 1. Succession Plan—Implement the elements of the succession plan including management training and the creation of a Leadership Academy to train future leaders. 2. Improve the Sanitation District's Security—Provide long-term security enhancements at both treatment plants and within OCSD's Collections System. 3. Space Planning Study Recommendations—Complete relocations of staff housed in Information Technology Trailers, Administration Building, Control Center and Building 6. 4. North County Yard—Open the North County Yard and training facility and complete the relocation of selected staff and equipment to the facility. Implement Flex space for added agency-wide needs as appropriate. 5. Safety and Health Strategic Plan—Develop and implement a Safety and Health Strategic Plan for all Sanitation District activities. Workplace Environment Levels of Service OCSD will take care of its people. FY 08.09 FY 07-08 Target Results _ Training hours per employee 45 per year 34 Employee Injury incident rate of 5.2 Industry Dlsklct 5.8 average O&M 2.6 Mandatory OSHA training requirements 100% 13% Annual employee volunteer participation in programs that enhance safety and 15%per Not implemented security culture and awareness Division Section 2—Page 29 2008-09 & 2009-10 Budget Business Principles OCSD makes every decision based on short and long-term environmental, societal, and financial impacts (the triple bottom line). Goals to support the Business Principles Level of Service include: 1. Strategic and Business Plan—With Board concurrence,annually update and implement the Strategic Plan and Business Plan. 2. Review Interagency Agreements—Conduct a comprehensive review of agreements with the Santa Ana Watershed Project Authority and Irvine Ranch Water District and, if appropriate, reopen for discussion. 3. Enterprise Information Technology Strategic Plan—Complete a District-wide information technology Strategic Plan. a. Complete Facilities Master Plan Update—Complete a comprehensive update of the Facilities Master Plan and obtain Board approval. s. Sewer Rate for"Green Development"—Submit for board approval an amendment to sewer rate ordinance with incentives for green developments. s. Business Accountability Charters—Create BACs for each department consistent with BACs developed by managers and supervisors. ]. Local Sewer Services—Implement the Board's four recommendations based on findings of staffs Revenue Adequacy Report. Continue to seek an asset transfer to another agency. Also transfer other local assets back to cities that are not serving a true regional purpose. e. Annex Unincorporated Areas—With board concurrence, annex unincorporated areas into OCSD's service area. Business Principles Levels of Service OCSD will exercise sound financial management. FY 08-09 FY 07.08 Target Results COP service principle and interest <O&M expenses O&M Expenses .. Annual user fees Sufficient to cover all O&M Sufficient requirements Annual increase in collection,treatment,and disposal costs per <10 9 92N million gallons Annual variance from adopted reserve policy <5% 0.18% OCSD will be responsive to our customers. FY 08-09 FY 07-08 Target Results Respond to public complaints or inquires regarding >90% >90% construction projects within 1 working day New connection permits processed within >90% >90$ one working day Section 2—Page 30 Business Plan This page was intentionally left blank. Section 2 — Page 31 La 2008-09 & 2009-10 Budget y Strategic Initiatives for FY 2008-09 & FY 2009-10 Initiative Strategic Importance Desired Outcome Next Steps 1. Succession This program provides Development of man- Complete supervisor Planning opportunities for staff to agement training pro- talent assessments, V take on broader respon- grams and Leadership train mentors, and sibllitles and Increases Academy, and to pro- complete training cycle leadership proficiency, vide an opportunity for (12 topics)for the first thus ensuring organize- all employees to partick and second groups Le tional viability/success. pate. (EMT,Mgrs.,Supv.). 2. Santa Ana Regional Ensure the stability of Relocate the SARI from Complete design and Interceptor(SARI) the SARI Line from the bottom of the Santa award construction L Line Relocation goods. Ana Riverbed to run contract by 12/15/09. alongside the riverbed. 3. Management Implement a manage- Continuous Monitoring and Determine performance System for ment control system for reporting of ongoing Indicators for Air Quality, 6ri Environmental environmental com- Environmental Compliance Biosolids,and Waste Compliance pliance information. efforts. Discharge Requirements. 4. Odor Nuisance To design and build Implement odor control Develop the required 13 L Management odor control facilities trickling filers at Plant 1 project milestones for that will comply with the and solids loading an overall completion odor control policy facility at Plant 2. date to occur no later adopted by the Board. I than 2016. 5. Facilities Master Optimize investments in Identification of all Complete the five Plan Update to infrastructure while capital Improvement volume document by Maintain Sustain- balancing level of projects to be construct- the end of calendar year able Capital Impr. service, risk,and user ed out to 2030 and the 2008. Program rates. timelines for completion. 6. Implement Energy The Energy Master Plan To ensure that adequate Complete project design Master Plan provides options to en- power is available In the and award construction to I" sure power resources& future at the lowest pos. five energy projects energy management sable cost to the District. totaling$45.6 million by January 2010. 7. Reclaiming Santa SARI would add 38 Identify options that Conduct a study to Ana River MGD of effluent for could be implemented determine Issues, Interceptor(SARI) recycling. with regulatory approval options, and potential Line Flows and minimal costs. solution by 06/30/09. pj 8. Manage and Biosolids Management Monitor the development Obtain proposals, nego- — Optimize a is a major priority as of technologies for man- slate long-term agree- Sustainable low-cost options have aging the remaining ments, notify stakehold- Biosolids Program disappeared. one-third of biosolids am.and obtain Board capacity. approval by 9/30/09. 9. North County Yard This building facility was Customize the existing Award construction u acquired for the purpose facility to meet the contract in FY 200"g. of staffing sewer collec- needs of the selected tion crews closer to the staff and the housing of L work location. the needed equipment. 10. Enhance the Sani- Long-term security To provide a safe and A Central CCTV station tation District's enhancements at both secure work place limit- monitoring and security Securlly Plan treatment plants and ing access throughout response system will be r, throughout the sewer the facilities to those installed by the end of FY collection system. having valid business. 2009A0. r Section 2—Page 32 Financial Overview & Budgetary Issues y 'OCSD Long-Term Planning r Type of Planning Description of Process Budget Impacts Process Development Achieve a 5-year In November 2007, the The Strategic Plan was ,r of a Five-Year comprehensive strategic District's Board approved the foundation for the Strategic Plan plan that addresses the a 5-Year Strategic Plan development of this two- sanitation health and that updated the District's year budget. The level of safety needs of the 2.5 Mission,Vision, Levels of service identified within million people we serve. Services, and Business this document was the Plan. Also included are underlying basis for the the strategic objectives Board to adopt rate listed below. Increases of approx- imately 10 percent a year for the next five years. ,r Plan for Capital Plan,design, and build District staff conducted The newly validated CIP Improvements capital Improvement strategic planning Budget Includes 114 pro- out to 2023 projects(CIP)out to 2023 workshops with the Board jects with a 15-year cash to meet the regulatory, of Directors to layout a outlay of$1.47 billion. ,r environmental, health,and capital program to deliver This$149 million safety needs of a growing the levels of service increase from the 2007- population. desired by the Board of 08 CIP budget includes Directors. The approval $50 million from the of the strategic plan by Strategic Plan,$28 the Board of Directors million In newly Identified added$50 million of new renewal projects,and$71 capital projects over the million in project budget next ten years. revisions for on-going projects. Biosolids Aggressively pursue Staff Is studying blosolids Annual cost of remaining Management biosolid disposal altema- energy markets for the 113 blosolids options: lives for the remaining 1/3 remaining 1/3 blosolids Energy Pmoeceon-$7.8M of non-contractually com- because of concerns that Deep Well Injection-$3.7M mitted blosolids production composting markets are L.and$ll 01sposal-$5.5 M that make fiscal and saturated making this environmental sense. options non-sustainable. Odor Control Direct sufficient resources Design all new processes Two odor control projects and Investigate new so that odors remain have been added to the technologies to effectively within 10 dilutions to CIP totaling$18 million. deal with odor issues. threshold(D/T),or within Future O&M budgets will treatment plant include annual increases ,r boundaries. of$300,000. Air Emissions Apply sufficient resources It is anticipated new air An additional$31 million Control to meet regulatory toxic emission regula- has been included in the requirements related to air bons will require the newly validated CIP bud- emissions. installation of additional get to address the new air pollution control equip. air toxic emission suds. ,., Groundwater Continue partnershipp with Maximize the use of The District will provide: Replenishment the Orange County Water treated effluent for water 70 mod of reclaimed water System District in support of recycling to defer the 50%of uphill costfor Phase I (GWRS) GWRS. need for second ocean 50%of Dioune removal ouffall Section 2—Page 33 V 2008-09 & 2009-10 Budget u Background Information and Description of District's operating permit,the District's plants must Services: meet strict conditions set jointly by the USEPA and the CRW QCB. The Orange County Sanitation District (the "District")is a public agency that operates the sixth The District operates under an ocean discharge largest wastewater facility in the U.S. Originally permit Issued by USEPA and the Santa Ana W formed in 1954 pursuant to a joint powers provision Regional Water Quality Control Board. This permit under the County Sanitation District Act of the is renewable every five years and was last issued in California Health and Safety Code,the District then December 2004. consisted of independent special districts responsible for wastewater collection within their The District maintains and operates a large system own geographical boundaries.These districts were of trunk sewers and pumping stations in addition to j co-participants in a Joint Agreement to provide for the two modern treatment plants. The plants use Ir the joint construction, ownership, and operation of chemical, physical and biological processes to the District's Joint Facilities for the treatment and produce a high-quality effluent. Chemicals used disposal of wastewater. are either environmentally neutral or biodegradable. On July 1, 1998,the nine individual existing districts Most of the treated effluent is combined and requested to be consolidated into one district by pumped through a five-mile, 10-foot diameter, resolution of the Board of Supervisors of the ocean ouffall pipe. The outall has a one-mile long County of Orange and special legislation. diffuser section that discharges treated water through more than 500 portholes four miles off The District is governed by a board of directors shore. Some secondary effluent is pumped from made up of mayors or members of city councils, our Fountain Valley plant to the Orange County directors of independent special districts, and one Water District (OCWD) where it is further - member from the County Board of Supervisors. A processed and distributed for reuse. variety of board committees,made up of members of the Board of Directors,consider topics for action The OCWD and the District recently completed an by the Board and make recommendations to the additional joint project for water reclamation. In Board. January 2008, the Groundwater Replenishment System project began reclaiming up to 70 million The District is responsible for collecting, treating, gallons of water per day for percolation into the and safely disposing of approximately 250 million groundwater basin. If successful and economical, gallons of wastewater each day for an area the two agencies may expand the project in two covering 471 square miles in metropolitan(central additional phases to reclaim up to 130 million and northwestern) Orange County. The District's gallons each day by the year 2020. service area Includes approximately 2.5 million residents and businesses, or approximately 81 .+ percent of the Countys total population. Professional staff of 641 full-time equivalent v employees supports the District's around-the-clock operation.Staff is organized into four departments, including Administration, Engineering, Technical Services, and Operations and Maintenance. W As working environmentalists, the District's staff is — regulated by many agencies, including the U.S. V Environmental Protection Agency (USEPA), the California Regional Water Quality Control Board (CRWQCB), the California Integrated Waste Management Board, the California Environmental u Protection Agency and the South Coast Air Quality Management District(SCAQMD). To maintain the L Section 2-Page 34 W Orange County at a Glance Community Profile of the County of Orange 2007 to 4.6 percent in March 2008; however, it The County of Orange is bordered on the north by remains well below the state unemployment rate of r Los Angeles and San Bernardino counties, on the 6.4 percent. Assessed value (AV) growth in the east by Riverside County, on the southeast by San district has been strong,particularly in recent years, Diego County, and on the west and southwest by with peak growth in 2007 of 11.9 percent.Growth in the Pacific Ocean. Approximately 42 miles of fiscal 2008 slowed to a still healthy 8.14 percent, ocean shoreline provide many beaches, marinas resulting in $292.7 billion in total district AV. and other recreational areas for use by residents Projections for fiscal 2009 are for a significant and visitors. deceleration of growth to 4 percent, less than half r the prior year rate. While the local economy is The climate in the County is mild, with an average currently undergoing stress, the long-term outlook rainfall of 13 Inches. The mean temperature remains strong. ranges from a minimum of 48 degrees to a maximum of 76 degrees. However, the Housing prices in Orange County have taken a tumble. Based on California The County has become a tourist center in Association of Realtors'data,after reaching a peak r Southern California by offering a broad spectrum of of$747,000 in April 2007, the median price of an recreational opportunities that is enhanced by the existing single-family home fell to $597,000 in mild climate. Along the shoreline are five state February 2008. This is a decline of 22 percent over beaches and parks, five municipal beaches and a period of 22 months or approximately 1 percent r five county beaches. There are two small-craft par month. The current median house price is docking facilities in Newport Harbor,one located in about the same as in February 2004. Sunset Beach and another In Dana Point. r In their spring of 2008 economic forecast, the Other major recreational and tourist facilities Mihaylo College of Business and Economics at include Disneyland, California Adventure, Knott's California State University, Fullerton (CSUF) Berry Farm and Soak City, Mission San Juan predicts that, although hall of the anticipated Capistrano, the Anaheim Convention Center, and adjustment has taken lace in housing p l p g prices and the Art Colony at Laguna Beach with its annual art related industries, Orange County will experience festival. Also located within the County is Anaheim further downward adjustment in housing prices and r Stadium, home of the Los Angeles Angels of related industries for the remainder of the year and Anaheim of Major League Baseball,and the Honda possibly into early 2009. Although the pace of job Center, home of the Mighty Ducks of the National losses so far is below that of the first three-month Hockey League. losses of the 1991-92 and 2001 recessions,further weakness in economic activity and labor market are Economic Outlook anticipated through the rest of this year. CSUF Orange County enjoys a diverse economy with no expects non-farm payroll in the county to decline by ,�. single sector accounting for more than one-third of approximately 1 percent for all of 2008 but show the county's economic output or labor market. slow positive growth next year. Although the Total payroll employment, the best measure of continuing economic slowdown is technically not a economic health for the local economy, was 1.56 recession yet, it will definitely feel like one before it " million as of April 2008 according to the State is over. Employment Development Department (EDD), down from 1.59 million, or 1.9 percent from one year ago. Orange County is notable for the wealth of its residents,encapsulated by per capita and median family income figures which, as of the last census, stood at 113.7 percent and 121.9 percent of the state figures respectively.The ecenomycurrently is r, showing signs of weakness, with local economists suggesting a recession including some job loss. Unemployment has risen from 3.4 percent in March Section 2-Page 35 r rl 2008-09 & 2009-10 Budget r r This page was intentionally left blank r r w r L Ir LJ •.I L $ecUon 2-Page 36 f..l r Fiscal Policy in r Fiscal Policy Statement Completed Progress Comments General Financial Goals To maintain a financially viable Sanitation District that can maintain an appropriate level of wastewater treatment r services. ✓ To maintain financial flexibility by adapting to local and regional economic changes. ✓ To maintain and enhance the sound fiscal condition of the District. ✓ .. To ensure that the value added by every program and activity within the District is proportional to its cost;and to eliminate those programs and activities that do not contribute to the r District's mission. ✓ To provide training opportunities to the greatest extent possible for available jobs within the organization for those s, employees working in programs or activities that have been reduced or eliminated. ✓ To provide employees with cross-training opportunities in r order to achieve multi-tasking capabilities. ✓ Operating Budget Policies r The District will adopt a balanced budget by June 30 of each year. ✓ r The budget will be used as a fiscal control device as well as a financial plan. ✓ Budget preparation and monitoring will be performed by each division within the District, the organizational level of accountability and control. ✓ The Director of Finance&Administrative Service will prepare a budget calendar no later than January of each year. ✓ An annual operating budget will be developed by conservatively projecting revenues and expenditures for the 'r current and forthcoming fiscal years. ✓ During the annual budget development process,the existing r programs will be thoroughly examined to assure removal or reduction of any services or programs that could be eliminated or reduced in cost. ✓ r r Section 3-Page 1 LW 2008-09 8r. 2009-10 Budget L+ In Fiscal Polky Statement CompleW Progress Comments v Current operating revenues will be sufficient to support current y operating expenditures. ✓ Annual budgets including reserves will provide for adequate I design,construction, maintenance and replacement of District capital facilities and equipment. ✓ The District will maintain all physical assets at a level adequate to protect the District's capital investment and to `+ minimize future maintenance and replacement costs. ✓ The District will project equipment replacement and maintenance needs for the next five years and will update this V projection each year. From this projection a maintenance and replacement schedule will be developed and followed. ✓ The District will avoid budgetary and accounting procedures kr that balance the current budget at the expense of future budgets. ✓ The District will forecast its expenditures and revenues for L each of the next five years and will update this forecast at least annually. ✓ V Revenue Policies Because revenues are sensitive to both local and regional it economic conditions, revenue estimates adopted by the Board of Directors must be conservative. ✓ I Staff will estimate annual revenues by an objective, analytical L process that utilizes trend,judgmental,and statistical analysis as appropriate. ✓ Ad valorem property tax revenues of the District will be dedicated to debt service. ✓ Sewer Service User Fees will be projected for each of the next ten years and this projection will be updated annually. ✓ Expenditure Policies La The District will maintain a level of expenditures that provides for the health, safety and welfare of the residents of the community. ✓ 4J IL 4 Section 3-Page 2 La Fiscal Policy ,r Fiscal Policy Statement Completed In Comments Progress The District will set fees and user charges at a level that fully supports the total direct and indirect costs of operations, capital improvements, and debt service requirements not covered by reserves. ✓ r Capital Improvement Budget Policies The District will make all capital improvements in accordance with an adopted and funded capital improvement program. The adopted capital improvement program will be based on _ need. ✓ The District will develop an annual five-year plan for capital Strategic Plan Improvements, including design, development, projects needs Implementation,and operating and maintenance costs. ✓ through 2020. All capital Improvement projects approved in the annual operating budget are approved at the budgeted amounts through the completion of the project. The Board of Directors approves both the individual project total budget and the projected cash outlays for all capital improvement projects for the current fiscal year. ✓ r Staff will Identify the estimated costs, potential funding sources and project schedule for each capital project proposal before it _ is submitted to the Board of Directors for approval. ✓ Included in the Staff will identify the estimated on-going future Operating and Asset Maintenance costs, as well as staffing requirements upon completion for each capital project proposal before it is Management Plan II. submitted to the Board of Directors for approval. ✓ The District will use Intergovernmental assistance and other outside resources whenever possible to fund capital Improvements providing that these improvements are consistent with the Capital Improvement Plan and the District's priorities, and that the future operating and maintenance costs of these Improvements have been Included in the budget. ✓ Staff will coordinate development of the capital improvement r budget with the development of the operating budget. All operations and maintenance resources required to implement the CIP have been considered and appropriately reflected in the operating budget for the year the CIP is to be implemented. ✓ Cost tracking for components of the capital improvement program will be updated quarterly to ensure project completion .. against budget and established time lines. ✓ Section 3-Page 3 r L 2008-09 & 2009-10 Budget L Fiscal Policy Statement Completed Progress In I r Comments Asset Management Policy L In order to provide for the systematic planning, acquisition, In 2002, the deployment, utilization control, and decommissioning of capital Board approved assets, the following policies have been established: a Strategic Plan for Tor development • The condition, performance, utilization,and cost of assets of a state f-the- _ will be recorded down to the maintenance managed item art Asset component level. ✓ Management �.. • A detailed, planned maintenance program is in place to In 20 Program. n the ensure that the assets,facilities and systems perform to Boardand approved their design criteria and meet their design lives. ✓ advanced AM • A system is in place to blend planned and unplanned practices. In activity to optimize the cost against the asset performance 2007,the Board requirements. ✓ directed a staff driven approach • Reliability Centered Maintenance techniques will be used on all future to optimize the maintenance plans and to identify any initiatives of the L design alterations that are economically justified. ✓ AM program as • Current levels of asset management service in terms of opposed to -- quantity and quality of service including condition, continued function/size/type, regulatory requirements, reliability, and reliance on repair response times have been determined and outside documented. ,. consultants. • The full economic cost is charged on all asset management activities. ✓ L • Asset Management maintains appropriate pricing and funding strategies that match the needs of the business to - ensure sustainability. ✓ u • Asset Management considers the real growth of the District's service area and the way in which demands for — service will change in the future, including population, unit demand, demographics,changing customer expectations, ✓ and changing regulatory requirements. • Monitoring and reporting is performed on the condition, performance and functionality of the District's assets against prescribed service levels and regulatory requirements. ✓ Ikw-, • A conditiontfunction index is linked with customer expectations at a cost that customers are willing to pay. ✓ 1w ys Section 3-Page 4 I w r Fiscal Policy in — Fiscal Policy Sfafament Completed Progress Comments . Future level of service options available and their r associated costs are constantly analyzed. ✓ . An assessment of the relative risks,costs and benefits is derived for all Investments in capital works, maintenance, 'r and operations. ✓ . Individual asset management decisions are made only when the cost of all programs has been analyzed and the — funding needs of the whole organization is known together with the knowledge of its impact on rates. ✓ . Necessary renewal programs to sustain the existing levels of service and condition of assets, as identified through the best appropriate process, is approved ahead of new capital works and services. ✓ r . New capital assets for new works and services are approved only with the commitment of the recurrent (operations and maintenance)funding necessary to - sustain the new works and services. ✓ . The financial, social, and environmental aspects of asset r management will be reported on bi-annually. ✓ Vehicle Replacement Policy •+ In order to provide safe, reliable transportation appropriate to the work to be performed, the following policies have been established: . The newest vehicles will be used for those purposes requiring the highest annual mileage. ✓ . Vehicles will be replaced when they are 10 years old or r have accumulated 100,000 miles. ✓ . A vehicle may be replaced in advance of the above criteria r If it can be reallocated to a low mileage use between the plants. ✓ . Electric carts are to be utilized for in-plant only uses. ✓ — . When available, CNG vehicles or bi-fuel vehicles are to be utilized within the County(pump station runs, Source Control inspections, etc). ✓ . When available, CNG vehicles or bi-fuel vehicles are to be utilized to travel outside of Orange County(e.g., Environmental Compliance Monitoring of biosolids application sites, etc). ✓ r Section 3-Page 5 r L 2008-09 & 2009-10 Budget u Fiscal PolicyStatement In Completed Progress Comments Short-Term Debt Policies The District may use short-term debt to cover temporary or L emergency cash flow shortages. All short-term borrowing will be subject to Board approval by resolution. ✓ I Ld The District may utilize Board approved antra-agency loans rather than outside debt instruments to meet short-term cash needs. Intra-agency loans will be permitted only if an analysis L of the affected Revenue Areas indicates funds are available and the use of these funds will not impact current operations. The principal,along with interest at the prevailing rate as I established by the District's Treasurer,will be paid to the V lending Revenue Area. ✓ I Long-Term Debt Policies W Proceeds from long-term debt will not be used for current on- going operations. ✓ l V Before any new debt is issued, the impact of debt service _ payments on total annual fixed costs will be analyzed. ✓ Develop and maintain a board adopted debt policy. ✓ Accumulated Funds&Reserve Policies L A cash flow reserve will be established to fund operations, maintenance, and certificates of participation expenses for the first half of the fiscal year, prior to the receipt of the first L installment of the property tax allocation and the sewer service user fees which are collected as a separate line item on the property tax bill. The level of this reserve will be established as the sum of an amount equal to six months operations and V maintenance expenses and the total of the annual debt(COP) _ service payments due in August each year. An operating contingency reserve will be established to provide for non-recurring expenditures that were not r anticipated when the annual budget and sewer service fees U were considered and adopted. The level of this reserve will be established at an amount equal to ten percent of the annual - operating budget. ✓ L I � W L Section 3-Page 6 LI r Fiscal Policy r in Fiscal Policy Statement Completed Progress Comments A capital improvement reserve will be maintained to fund annual Increments of the capital Improvement program. The long-term target is for one half of the capital improvement program to be funded from borrowing and for one half to be r funded from current revenues and reserves. With this program in mind,the target level of this reserve has been established at one half of the average annual capital improvement program through the year 2020. Levels higher and lower than the target can be expected while the long-term financing and capital improvement programs are being finalized. ✓ r A renewal/replacement reserve will be maintained to fund the District's renewal, rehabilitation and replacement requirement costs associated with the District's existing capital plant and r collection system over the next twenty years. The reserve was _ initially set at$50 million in 1998-99 and is annually augmented by interest earnings and a small portion of the annual sewer user fees in order to meet projected needs through the year 2030. ✓ Catastrophic loss, or self-insurance, reserves will be .e maintained for property damage including fire,flood, and earthquake;for general liability;and for workers' compensation. These reserves are intended to work with r purchased insurance policies, FEMA disaster reimbursements, and State disaster reimbursements. Based on the current infrastructure value of$1.3 billion,the reserve level has been set to fund the District's non-reimbursed costs, `+ estimated to be$57 million. ✓ Investment Policies The District's Treasurer will annually submit an investment policy to the Board of Directors for review and adoption. ✓ The investment policy will emphasize safety and liquidity before yield. ✓ Accounting,Auditing,and Financial Reporting The District's accounting and financial reporting systems will be maintained in conformance with generally accepted accounting principles and standards promulgated by the Governmental Accounting Standards Board. ✓ r Section 3-Page 7 r 2008-09 & 2009-10 Budget L Fiscal Policy Statement In Completed Progress Comments A capital asset system will be maintained to identify all District i assets, their condition, historical cost, replacement value, and V useful life. ✓ Quarterly financial reports will be submitted to the Board of L Directors and will be made available to the public. ✓ Full disclosure will be provided in the general financial statements and bond representations. ✓ The District will maintain a good credit rating In the financial The District's community. ✓ AA rating was reaffirmed with fr the COP Series 2007A and 2007E debt issuances. An annual audit will be performed by an independent public - accounting firm with the subsequent issue of an official L Comprehensive Annual Financial Report,Including an audit opinion and a management letter. ✓ I ! lr L L V L I V L I. Section 3-Page 8 1 j GFOA Recommended Practices GFOA Recommended Practice Compliance Not In Comments _ Met Applicable Progress Accounting Auditing and Financial Reaortino Recommended Practices Governmental Accounting,Auditing, and Financial Reporting Practice ✓ Prepare Popular Reports ✓ Not being considered at this time due to other communication efforts. Competitive Audit Procurement ✓ r Use the Comprehensive Annual Financial Report to Meet SEC Requirements for Periodic Disclosure ✓ Establish Appropriate Capitalization Thresholds for Tangible Capital Assets ✓ .,r Internal Audit Function Established ✓ Administrative Committee directs Internal Audits Audit Committees Established ✓ Administrative Committee serves as _ an audit committee. The Need for Periodic Inventories of Capitalized Tangible Assets ✓ r Application of Full-Cost Accounting to OCSD does not provide solid waste Municipal Solid Waste Management services. Activities ✓ r Present Securities Lending OCSD does not have Securities Transactions In Financial Statements ✓ Lending Activities r Technology(Computer) Disaster Managed by Information Technology Recovery Planning ✓ Division Present Budget to Actual Comparisons Not required for audited financial r Within the Basic Financial Statements ✓ statement reports of Enterprise Funds. Budgettactual comparisons are included within unaudited quarterly financial reports. r Use W ebsdes to Improve Access to Budget Documents and Financial Reports ✓ r Use of Trend Data and Comparative Data for Financial Analysis ✓ Appropriate Level of Unreserved Fund OCSD only has Proprietary Fund Balance in the General Fund ✓ Types-established a formal policy on the level of unrestricted net assets r Document Accounting Policies and Procedures ✓ r Section 3—Page 9 r i Ir 2008-09 & 2009-10 Budget GFOA Recommended Practice Compliance Not In Comments 1 Met Applicable Progress L Establish the Estimated Useful Lives of Capital Assets ✓ Lr Improve the Effectiveness of Fund Accounting ✓ — Enhance Management Involvement L with Internal Control ✓ Voluntary Presentation of I Management's Discussion and Analysis in Departmental Reports ✓ Auditor Association with Financial LStatements Included in Offering Statements or Posted on Websites ✓ Ensuring Control over Noncapitalized Items ✓ V Considerations on Using the Modified OCSD depreciates all capital assets; Approach to Account for Infrastructure OCSD has no govemmentel fund L Assets ✓ types Mitigating the negative effects of auditing standard No.112 i (communicating internal control related W matters identified in an audit) ✓ Encouraging and facilitating the L reporting of fraud and questionable accounting and auditing practices ✓ Ensuring adequate documentation of L coats to support claims for disaster recovery assistance ✓ Improving the timeliness of financial L reports ✓ 1 L Cash Management Recommended Practices Collaterelizatlon of Public Deposits ✓ YJ Government Relationships with Securities Dealers ✓ Use of Various Types of Mutual Funds Investment Policy does not allow �u by Public Cash Managers ✓ Mutual Fund Investments Debt Service Payment Settlement Procedures ✓ L.I Use of Derivatives by State and Local Investment Policy does not allow Governments ✓ Derivative Investments Section 3—Page 10 Li L. r GFOA Recommended Practices GFOA Recommended Practice Compliance Not In Comments r Met Applicable Progress Markel Risk(Volatility)Ratings ✓ Managed by PIMCO r Master,Trust,Custodial,and Safekeeping Security Lending Programs ✓ r Use and Application of Voluntary Agreements and Guidelines for Cash Management ✓ r Diversification of Investments in a Portfolio ✓ r Managing Markel Risk in a Portfolio ✓ Electronic Commerce ✓ r Procurement of Banking Services ✓ Purchasing Card Programs ✓ r Acceptance of Credit and Debit Cards ✓ OCSD does not have sufficient transactions to offer the use of credit cards r Frequency of Purchased Securities Valuation In Repurchase Agreements ✓ Selection of Investment Advisors for r Non-Pension Fund Assets ✓ Mark-to-Market Reporting Practices ✓ Repurchase Agreements and Reverse Repurchase Agreements ✓ Use of Lockbox Services ✓ OCSD does not have sufficient cash r related trensacbons to use Lockbox services. The majority of revenues are collected on the property tax roll. ao Commercial Paper ✓ Revenue Policy:Cash Receipts r Controls ✓ Revenue Policy:Accounts Receivable Controls ✓ r Use of Cash Flaw Forecasts in Operations ✓ r Bank Accountant Fraud Prevention ✓ r Section 3— Page 11 r 2008-09 & 2009-10 Budget 6.1 GFOA Recommended Practice Compliance Not In Comments ) Met Applicable Progress y Use of Local Government Investment ✓ Pools V Revenue Control and Management ✓ Policy — Payment Consolidation Services Lai Budgeting and Fiscal Policy Recommended Practices V Economic Development Incentives ✓ Use of Performance Measurement for Decision Making ✓ V Providing a Concise Summary of the Budget ✓ 1 W Setting of Government Charges and Fees ✓ Recommended Budget Practices of the L National Advisory Council on State and Local Budgeting(NACSLB) ✓ Financial Forecasting in the Budget Preparation Process ✓ Relationships Between Budgetary and V Financial Statementent Information ✓ Use of Financial Status in the I Budgeting Process ✓ W Adoption of Financial Policies ✓ Appropriate Level of Unreserved Fund OCSD only has Proprietary Fund L Balance in the General Fund ✓ Types-established a formal policy on the level of unrestricted net assets I Include Sustalnability as a Core Value L in Setting Organizational Policy and in Establishing Business Practices ✓ I Establish Strategic Plans ✓ Ld Measuring the Cost of Government - SeNlces ✓ L Using Websites to Improve Access to Budget Documents and Financial Reports ✓ V Business Preparedness and Continuity Guidelines ✓ LI Section 3- Page 12 j r GFOA Recommended Practices GFOA Recommended Practice Compliance Not In Comments r Met Applicable Progress Statha caliSupplemental Section of the Budget Document ✓ r Budgeting for Results and Outcomes ✓ Capital Project Budget ✓ r Alternative Service Delivery:Shared J Services Long-Tenn Financial Planning J Debt Management Recommended Practices Select and Manage the Method of Sale r of State and Local Government Bonds ✓ Analyze an Advance Refunding ✓ r Develop a Debt Management Policy ✓ Board approved Debt Policy completed In 2001-02. Investment of Bond Proceeds ✓ Included in Trustee Documents r Use of Debt-Related Derivatives No Derivative Products Products and Development of Derivatives Policy ✓ Maintain an Investor Relations r Program ✓ Payment of the Expense Component of Underwriters'Discount r Securitization of Tax-Exempt Meet qualifications of arbitrage Obligations r Prepare RFPs to Select Financial Advisors and Underwrtters ✓ Evaluate the Use of Pension Obligation OCSD does not manage pension fund ,r Bonds Sale and Secudtization of Property Tax Liens ✓ r Use Variable Rate Debt Instruments ✓ Issuer's Role In Selection of r Underwriter's Counsel ✓ Issuing Taxable Debt by U.S.Stale OCSD does not have plans to issue and Local Governments ✓ taxable debt r Section 3—Page 13 2008-09 & 2009-10 Budget u GFOA Recommended Pmcdce Compliance Not in comments Met Applicable Progress L Select Bond Counsel ✓ ; ' V Price Bonds in a Negotiated Sale ✓ Underwriter Disclaimers in Official Statements ✓ LI Use a Web Site for Disclosure ✓ Tax Increment Financing as a Fiscal L Tool ✓ Caution in Regard to OPEB Bonds ✓ Pay-As-You-Go funding,no plan on issuing bond Retirement and Beneflts Administration Recommended Practices L Public Employee Retirement System Managed by OCERS Investments ✓ Funding of Public Employee Managed by OCERS L Retirement Systems J Employee Involvement in Retiree I 6o Health Plan Changes ✓ Preparing an Effective Summary Plan Managed by OCERS Description ✓ Retirement and Financial Planning Managed by OCERS Services J L Directed Brokerage Programs J OCERS manages all"soft dollar' transactions I A Policy for Public Retirement Plan J L Design Option Asset Allocation—Guidance for Managed by OCERS Defined Benefit Plans ✓ W Asset Allocation-Guidance for OCERS is a defined benefit plan. - - Defined Contribution Plans ✓ Ir Aftemative Investment Policy for Public Managed by OCERS Employee Retirement Systems(PERS) ✓ - PensionlnvestmentPolicy ✓ Managed by OCERS Selection of Investment Advisors for Managed by OCERS - Pension Fund Assets ✓ L.i Brokerage Window Options for Defined Managed by OCERS Contribution Retirement Plans ✓ L Section 3—Page 14 'V r GFOA Recommended Practices GFOA Recommended Practice Compliance Not In Comments r Met Applicable Progress Framework for Understanding Pension Managed by OCERS Fund Risk ✓ Investment Policies Governing Assets Managed by the plan sponsors in a Defamed Compensation Plan ✓ r Health Care Cost Containment ✓ Evaluating Use of Early Retirement Incentives ✓ r Defamed Retirement Option Plans (DROPs) ✓ r A Policy to Participate in Securities Managed by OCERS Litigation Class Actions r Ensuring the Sustainability,of Other ✓ Pay-ASYou-Go funding Postemployment Benefits Design Elements of Defined Benefit ✓ Managed by OCERS Retirement Plans Design Elements of Defined Contribution Plans as the Primary ✓ Retirement Plan Design Elements of Hybrid Retirement ,. r Plans Monitoring and Disclosure of Fees for Defined Contribution Plans ✓ Economic Development and Capital Planning r Multi-Year Capital Planning ✓ The Role of the Finance Officer in r Economic Development ✓ Public-Private Partnerships for Economic Development ✓ r Capital Project Monitoring and Reporting ✓ Capital Maintenance and Replacement ✓ Will develop a complete inventory of all capital assets The Role of Master Plans in Capital Improvement Planning ✓ r Section 3—Page 15 r L 2008-09 & 2009-10 Budget V Issuance of Budget Financial Review Training and Instructions of Performance \ v District's Budget Administration of Development Finance/Policy in Budget I✓ 1 � � 1 Compilation/Analysis Executive Board of District's Requests Enactment by Financial/Plan ning V General Manager's Consideration of Budget V Review and Preparation by District's Board of Executive Budget and Committee �. � L Budget Process: the preceding budget and the subsequent budget. L As shown in the chart above,the budget process Two years ago,the District prepared its first consists of four major parts. These parts occur at complete budget document covering two years various stages throughout the year as follows: i instead of one. Last year a smaller budget update Lr document was prepared to summarize revisions to . Preparation/Planning-takes place from the second year of the previously adopted two-year January through March. budget period. This two-year cycle approach to Integration-runs from March through May. budget preparation is expected to continue. Passage-adoption of the budget usually occurs in June of each year. This change has not caused any modification to the Execution-starts from the first day of the Ilw previously established stages of the annual budget budget year,July 1,through the entire budget process except with regard to the level of detail year and beyond into November with the _ which is provided. The timing of all stages of the presentation of the annual audit report. budget process remains consistent from year to V year. In the second year of a two-year cycle, Team Approach however,the focus is on any changes that need to be made to the upcoming year's budget relative to As identified by one of the fiscal policies,the budget what was previously submitted, reviewed,and preparation process originates at the division level, approved for that budget during the prior year. the organizational level of accountability and control. Budget coordinators are established to represent The District's annual budget preparation process each operating division. A comprehensive budget Lr begins in January of each year and concludes in manual is prepared and used as the training manual June upon its adoption. However, the entire budget during a training session with the budget process extends beyond one year and overlaps with coordinators. Section 3—Page 16 ICI r Overview of the Budget Process r After the initial divisional budgets are prepared, exercised at the individual Department level. budget review sessions are scheduled for each Administrative policies provide guidelines on budget r division with the General Manager. It is during these transfers and the authorization necessary to sessions that all proposed staffing levels, programs, implement transfers. Generally, there are two types and line item expenses are justified. Next senior of budget transfers: management representatives from each department r analyze opportunities for consolidating programs 1. Budget Adjustment and eliminating unnecessary requests. Guidance is also sought and utilized from District's committees This is a transfer which does not change the total on various issues that affect budget development. appropriated amount and does not require Board action. Depending on the budget category affected The Process by the transfer, approval may be granted at the General Manager or Department Head level as r The budget preparation process begins in January follows: with the distribution of the budget manual, budget preparation training, and issuance of personnel Department Heads have discretion to reapportion budget and justification forms,and equipment funds between certain line items within a division but budget forms to all of the Divisions. may not exceed total appropriated amounts for each department. They also may transfer staff across In March, the Administrative Services Department divisional lines within their department. The General develops divisional level budgets based on the Manager and Board of Directors must approve request forms received from the various divisions. additional capital outlay items. Funds appropriated These divisional budgets are then reviewed in mid- for salaries and benefits may not be expended for March by the General Manager along with the any other purpose unless approved by the Board. r Department and Divisional managers for each The General Manager may transfer operating funds program request and for new, additional,or reduced within and between divisions and departments. The services, positions, and capital outlay. General Manager may also transfer staff positions r between departments. The Capital Improvement Program requests are prepared from October through March and are 2. Budget Amendment: reviewed by Engineering and Department and r Divisional managers prior to being submitted to the This is an adjustment to the total appropriated General Manager for review and evaluation as part amount,which was not included in the original of the budget process. budget. These supplemental appropriations require formal action by the Board of Directors. Types of In determining recommended allocation levels, the modifications can be categorized as follows: General Manager takes into consideration the projected amount of available resources,direction Prior year reserves or fund balances may be r provided by the Directors, the District's fiscal appropriated to fund items not previously policies, and how to best provide the most cost- included in the adopted budget. effective and efficient service levels to the public. After a final review of the operating budgets by the Reservesffund balances exceeding minimum General Manager,the proposed annual budgets are amounts required by fiscal policy may be finalized in late May and then distributed to the appropriated if it is determined to be in the best Directors for consideration. interest of the District. Directors may also r appropriate reserves in case of emergencies or The General Manager presents the proposed budget unusual circumstances. to the various Directors'Committees for deliberations throughout the month of June. The Transfers between Revenue Areas require formal •+ proposed budget is scheduled for adoption, along action by the Board of Directors. with any revisions by the Board, at the Board of Directors meeting in June. Unexpended appropriations automatically lapse at the end of the fiscal year and are included in the Level of Control and Amendments to the Budget ending equity balances. Budgetary control, the level at which expenses r cannot legally exceed the appropriated amount, is Section 3-Page 17 r I V 2008-09 & 2009-10 Budget u 2008-09 &2009.10 Proposed Budget building of new facilities necessary to j Assumptions provide additional wastewater treatment L capacity. The rate study also verified: that Economic Assumptions the cost of providing the service and the • Inflation for Orange County in FY 2008-09 allocation of these costs among fee payers u is projected to be 2.4 percent based on the is adequately based on appropriate cost of 2008 projected percentage change in the service principles and applicable legal consumer price index obtained from the standards, the appropriate allocation of V December 2007 Economic Forecast Report costs between and among pollutants (BOD, prepared by Chapman University. A 2.4 SS, and Flow, including the basis for percent inflation factor will also be used for allocation of non-assignable costs), and the FY 2009-10. appropriate amount of charges and the allocation of those charges among fee Revenue Assumptions payers for the added costs of providing (I) L full secondary treatment and (ii)the ground • Years 1 and 2 of the five-year Proposed water replenishment system. Sewer Service Fee Rate Schedule will be ratified by the Board. • Capital Facilities Capacity Charges will increase 3.41 percent in accordance with • For FY 2008-09& FY 2009-10 the district- the Engineering News Record (ENR) wide rate for a single-family residence Construction Cost Index as of December (SFR)will increase by approximately 10.4 2007. and 10.0 percent to $201.00 and $221.00, respectively. Revenues will be budgeted to reflect 4,000 L Equivalent Dwelling Unit (EDU) • A Proposition 218 rate increase notification connections, the average of the past ten is required to be mailed to all Revenue years. L Areas except 14. Note that each $1 increase in rates generates approximately Permit User Rates for Flow and BOD will $900,000 in annual revenue. increase 9.32% and 14.86% respectively, while rates for TSS will decrease 18.44% in • The connection fees, or capital facilities accordance with the rate study completed in capacity charges, that were adopted in February 2008. L March 2004 will capture only those infrastructure costs that relate to additional The annexation fees, effective as of March capacity. Other infrastructure costs such as 2004, rapture both the net current assets L improved treatment, rehabilitation, and the equivalent property tax allocations refurbishment, and replacement, will be totaling $4,235 per acre. Annexable j supported through user fees. property is minimal in the District's service V area sphere of influence, so no annexation • A rate study for all existing revenue fee revenue is budgeted. programs was completed in February 2008. u The rate study verified the appropriateness Property tax revenues in FY 2008-09 and of the allocation of costs for operating, 2009-10 are being proposed with a - - maintaining, refurbishing and replacing conservative 5.0 percent increase. A 2.0 L facilities to serve existing wastewater percent annual increase in assessed value dischargers and the appropriateness of the authorized by the state constitution, is allocation of costs for expanding and regarded as being somewhat automatic, u Section 3-Page 18 r Budget Assumptions and is included in the 5.0 percent increase reach secondary treatment standards as noted above. The additional 3.0 percent quickly as possible. increase in assessed value is from Operating Assumptions authorized increases up to market value Operating, maintenance, and administration .. when property is sold at a higher value. A cost estimates for FY 2008-09 and 2009-10 5.0 percent increase represents are expected to increase. Increases, approximately$3.3 million in additional anticipated as a result of general inflation property taxes. and as a result of usage variances, are anticipated in personnel salaries, natural • Each year, earnings on the investment of gas, chemicals, and biosolids management. the District's operating cash and reserves will be budgeted at 4.0 percent, the same The operating budget will include costs by as the current year estimate. Staff has division for all collection, treatment, and consulted with PIMCO to get estimates for disposal or reuse costs. The cost per r the next year's rate of return on million gallons will include all the investments. components of operations and maintenance. . A$220 million COP debt issuance is scheduled for FY 2008-09 in order to assist . Dry weather urban run off will continue to be in the funding of the $374 million CIP outlay treated for free up to 4 mgd with a 10 mgd •+ scheduled for FY 2008-09. maximum. • A$150 million COP debt issuance is • Average daily flow for FY 2008-09 and FY .. scheduled for FY 2009-10 in order to assist 2009-10 is projected to be 230 million in the funding of the$229 million CIP outlay gallons per day(mgd). This is 38 mgd scheduled for IY 2009-10. below the Interim Strategic Plan Update projection, but is 6 mgd above the actual for Level of Treatment Issues the first 5 months of the current year. The • In July 2002 the Board decided not to apply final actual flow for FY 2006-07 was 229 1e, for a renewal of the 301(h)NPDES permit. mgd. This decision and its impacts on future capital and operating budgets will be . The cost to collect, treat, and dispose of 1 reflected in the FY 2008-09 and future million gallons of wastewater is estimated to budgets. increase from the FY 2007-08 budget of $1,478.08 per million gallons, due to an • All existing and operational secondary increase in costs and the decrease in r treatment facilities will be operated and estimated flows. maintained at full rapacity during FY 2008- 09 and 2009-10 (approx 200 mgd). The total authorized staffing for FY 2008-09 and 2009-10 will increase by approximately • Interim short-term disinfection facilities will 1 percent per year to 641.0 and 648.0 full- continue to be operated and maintained at time equivalents, respectively. `r existing levels and cost. • MOUs for OCEA, Local 501, and SPMT . Ten-year cash flow projections will be were completed in FY 2006-07 and will be prepared considering the District's desire to considered in the IY 2008-09 and 2009-10 budgets. Salary adjustments based on the r Section 3—Page 19 r L. 2008-09 & 2009-10 Budget u MOUs include a range adjustment of 4% 1 that will be effective for all employees as of Capital Improvement Program Assumptions 61 the first pay period beginning in July each The FY 2008-09 and 2009-10 treatment year. Additionally, all employees not plant and collection system capital j already at the top step will be budgeted to u receive a 5.0 percent step (merit) increase. improvement program budgets are the amounts based on the current validated • A vacancy factor of 5 percent will be Capital Improvement Program (CIP). budgeted for all authorized positions to The 2008-09 CIP cashfiow budget includes account for time spent for recruitment and 114 projects in the following categories: I turnover. U Total (in millions) • Employee benefits and insurances, other Planning $ 9.2 than CIDERS, will be budgeted to increase Design $ 25.4y 10.0 percent in total in FY 2008-09 and Construction $337.1 another 10.0 percent in total in FY 2009-10. Capital Equipment $ 2.0 • OCERS will be budgeted to be 21.34 Total percent of eligible salaries each fiscal year. The District's 5-year Strategic Plan, as - In addition, the District pays percent of validated in preparation for the FY 2008-09 Lj employees' required contribution. budget process, is the basis for the FY 2008-09 and 2009-10 CIP cashflow budget. I- -��� • The proposed operating budget will The FY 2008-09 and 2009-10 CIP budgets U continue to reflect an emphasis on safety, will increase only for critical projects that technical, and management training. The were not previously identified in the proposed FY 2008-09 and 2009-10 budgets Strategic Plan Update. L will include a budget for training that is equal to 2 percent of regular salaries and The FY 2008-09 CIP budget will not exceed wages' $373.7 million. The FY 2009-10 CIP budget Iw • An amount equal to approximately half of will not exceed $228.9 million. one percent of the operating materials and Debt Financing j supplies budget, will be a contingency for The District will issue new debt as LI prior year re-appropriations. Since the Certificates of Participation for the Capital current year's budget lapses on June 30, a Improvement Program as needed to fund j contingency is needed in the succeeding the CIP and to maintain reserves. Debt L,i budget year for goods or services ordered financing issuance of$220 and $150 million at the end of one budget year but not is projected for FY 2008-09 and 2009-10 j delivered until the following year. respectively to assist in the funding of the j,,; CIP outlay scheduled for the year. • An amount equal to approximately half of one percent of the operating materials and Debt will only be used for CIP, not for supplies budget, will be the General operating expenses. Manager's contingency budget. These funds will be allocated to appropriate line items during the year once requests and Capital financing plans which include fewer justifications for unanticipated needs have borrowings and higher user fees after FY been approved by the General Manager. 2009-10 will be considered. u Section 3—Page 20 y r Budget Assumptions '•' Borrowing is proposed only for facilities which do not add capacity and that are funded by all users for replacement, r rehabilitation, and improved treatment. Reserve Assumptions The current reserve policy was reviewed by Public Resources Advisory Group(PRAG) and the Board during FY 2003-04. No r changes were proposed and direction was given to continue to maintain reserve levels at a level that is adequate to offset r exposure to variable rate COPS due to interest rate increases. The reserve policy is presented in the Fiscal Policy which is located in the budget book at the beginning of Section 3. • Reserves must be no less than 95 percent r of the policy during the five-year planning period. The year-end reserve balances are expected to be within the Board's policy " level for the five-year period of FY 2008-09 through FY 2012-13. r r r r r r r Section 3—Page 21 r L 2008-09 & 2009-10 Budget Accounting System and Budgetary Control portion of long-term debt on the balance sheet of the Enterprise Fund. �y Fund Accounting &Proprietary Funds The accounts of the District are organized within one Internal Controls Enterprise Fund,a Proprietary Fund Type. The The District is responsible for establishing and v District's Enterprise Fund is comprised of two maintaining an internal control structure designed to Revenue Areas which are Identified as Revenue ensure that the assets of the government are Area 14 and the Consolidated Revenue Area protected from loss, theft,or misuse and to ensure L (Revenue Area 15). Each Revenue Area includes a that adequate accounting data are compiled to allow share of capital outlay activities, self-insurance for the preparation of financial statements in activities,debt service activities,and operating conformity with generally accepted accounting activities. These activities are allocated to each s principles. The internal control structure is designed Revenue Area based sewage Flows, location, or to provide reasonable, but not absolute, assurance level of participation in specific programs. that these objectives are met. The concept of reasonable assurance recognizes that the cost of a Enterprise Funds are used account for operations control should not exceed the benefits likely to be L that are financed and operated in a manner similar to derived and that the valuation of costs and benefits a private business enterprise,where the costs requires estimates and judgments by management. (expenses, including depreciation)of providing goods or services to the general public on a continuing basis are financed or recovered through Budgetary Control user charges. Budgetary controls are maintained to ensure L compliance with legal provisions embodied in the Basis of Accounting annual appropriated budget approved by the Board of Directors. The budgetary level of control,the level Basis of accounting refers to the point at which at which operating expenses cannot legally exceed 6� revenues and expenses are recognized in the the appropriated amount, is exercised at the accounts and reported in the financial statements. department level. Enterprise funds are accounted for on the flow of v economic resources measurement focus and use the accrual basis of accounting. In an enterprise fund, revenues are recognized when earned and expenses are recognized when incurred,regardless Id of the timing of related cash flows. i Budgetary Basis of Accounting v The operating budget for the Enterprise Fund is adopted on a basis consistent with generally accepted accounting principles. Except as noted in V the following paragraph, the basis of accounting and the budgetary basis of accounting are the same. Budgeted amounts are as originally adopted and as L further amended by Board action of the District. Although the District does budget for capital L improvement projects,the related capital outlays are recorded as increases in Property, Plant,and Equipment on the balance sheet of the Enterprise Fund. Similarly, the District budgets for the LI retirement of debt. However, the principal payments on debt are recorded as reductions in the'current L Section 3—Page 22 r Enterprise Fund OCSD Enterprise Fund Consolidated Revenue Revenue Area Area F1--51 14 Each Revenue Area Self- Debt Capital -----: is comprised of Operating, Insurance Operating service Outlay p p g' ' Debt Service, Capital, and .d ---- Self-Insurance components. Share of Direct Direct Share of r Joint Works Revenues Capital Joint Capital Operating &Expenses Outlay Outlay Joint Works Net Operating Expenses and Joint Capital utlays are Joint Works Joint Capital : each Revenue)ocated Area sto Net Operating Outlay Operating and Capital '" Expense Outlay components, .---, respectively, based on sewage flows. Section 3 - Page 23 2008-09 & 2009-10 Budget Revenue Sources primarily attributable to a reduction in new debt issuances from $378.7 million debt issuances in FY The District has a variety of revenue sources 2007-08 to a proposed debt issuance in FY 2008-09 •- available for operating and capital expenses. The of$200 million. This decrease in overall revenues is major revenue sources are as follows: being partially being offset by the$25.2 million that is er Taxes expected to be generated from the Flat 10.5 percent • Property ty increase in all user fees. • Capital Facilities Capacity Charges • User Fees In FY 2009-10, revenues are being proposed at • Industrial Waste Permit User Fees $483.9 million, a decrease of $72.1 million, or 13.0 •• • Interest Earnings percent over the prior year. This decrease is • Debt Proceeds primarily attributable to the $80 million reduction in new debt financings proposed in FY 2009-10 totaling These sources have generally accounted for more $120 million as opposed to the total of $200 million than 90 percent of the total revenue to the District. proposed for FY 2008-09. This decrease in The following graph summarizes revenues from all proposed revenues is more than offset by the _ sources for the District as a whole over the past two additional $20 million proposed increase in user fees fiscal years, the current year, and through the of 10.0 percent. following two proposed budget years: The new money debt financings of$200 million in FY 2008-09 and $120 million in FY 2009-10 are •" Totes Rewnn.s necessary to assist in funding of the current $2.0 Flue Year Trend billion ten-year capital improvement program. on mill..) Property Tax" ndd -- - - - - - The County is permitted by State law (Proposition sede -- - - - - 13)to levy taxes at 1 percent of full market value (at mee - - - time of purchase) and can increase the assessed -' $40e -- - -- - value no more than two percent per year. The $3ee District receives a share of this basic levy $200 - - - - proportionate to what was received in the 1976 to $,aa 1978 period less $3.5 million, the amount that zoosoe m0e47 :ooT.a zoos0 moesd represents the State's permanent annual diversion Actual Actual Pnlect•d rr.pin.ed Proro••d from special districts to school districts that began in 1992-93. The District's share of the one percent ad .r Total revenues decreased from $442.0 million in FY valorem property tax levy is dedicated for the payment of COP debt service. The apportionment of 2005-06 to $399.9 million in FY 2006-07. The lower the valorem tax is pursuant to the Revenue .. revenues in FY 2006-07 were primarily due to the Program adopted in April 1979 to comply with issuance of $200 million in certificates of regulations of the Environmental Protection Agency participation (COP) debt issuance in the FY 2005-06 and the State Water Resources Control Board and in versus only $95.2 million in FY 2006-07. This accordance with COP documents and Board policy. reduction in revenues was partially offset by the $13.5 million generated from the $14.80 increase in the annual single family residential user fee, the A airai l.a. underlying basis used in calculating all user fees. �n msr•.� Total projected revenues for FY 2007-08 are expected to increase to $698.7 million due to the sm.o sir new debt issuances of$378.7 million and the $15.8 se0.6 $61.8 $114.9 million that is expected to be generated from the s•^^ increase of $16.20 In the annual single family uss residence user fee. $•o.e In FY 2008-09, revenues are being proposed at $m.o $556.0 million, a decrease of 142.7 million, or 20.4 0.0 percent over the prior year. This decrease is eels. 2ees4r 20074e 2eee4e za.-to Actual Actual pros," rmpoa•d PmPw.d Section 3-Page 24 Revenue Sources As shown in the graph above, property tax revenues the sewer systems. Revenue Area No. 14 need's are increased from a low in FY 2005-06 of$39.9 million funded by Irvine Ranch Water District. to $60.6 million in FY 2006-07. This increase is due Up until seven ears ago, the District had been able to the end of the State's recent $1.3 billion property to avoid or minimize user fee increases b reducing tax shift in FY 2004-05 and FY 2005-06 from non- y 9 education local governments to solve their fiscal operational costs through reorganizing and crisis back in 2004. Of this $1.3 billion shift for FY streamlining District operations. As a result of the 2004-05 and FY 2005-06, $350 million a year was capital improvement program expansion, the projected to be contributed from independent special District's debt service obligations continue to districts, an amount equal to 40 percent of secured increase beyond the level of its primary funding property taxes. The overall reduction on total source, property tax revenues. Thus, annual property tax revenue received by the District was increases in user fees have become a requirement. minimized to 23.7 percent in FY 2004-05 and 18.6 In the Fall of 2007, District staff conducted strategic percent in FY 2005-06 due to the steady increase planning workshops with the Board of Directors to attributed to the home sales market and the layout a capital program to deliver the levels of corresponding increase in home values. service desired by the Board of Directors. These Historically the District's property tax revenues were levels of service and resulting capital projects are at a level where they could support the District's debt included in the District's 5-year Strategic Plan. This service obligations. However, future capital includes approximately $50 million of new CIP improvement needs averaging $200.0 million a year projects over the next 10 years. In addition, District over the next ten years will require new COP debt staff has reviewed each CIP project to ensure that issuances that will eventually increase future debt the scope of the project was appropriate, and that service payments above the ability to be funded the cost estimates were accurate. The validated CIP solely from property tax revenues. includes 86 large capital projects and 28 special projects with a 15-year expenditure of $1.47 billion. COP Funding Requirements vs. This total represents a $149 million increase from Property Tax Funding Source the 2007-08 CIP estimate. This increase includes $50 million from the District's 5-year Strategic Plan, Ee5.000.000 $28 million in newly Identified rehabilitation and renewal needs, and $71 million in project budget $u,000.000 revisions for 9 on- oin projects. 9 E75,000.000 E65A5g.000 In February of 2008, the Board approved rate increases for each year over the next five years. Ees,no0,000 These increases are necessary for compliance with su,0oo,a0o ,a_ _ the District's debt fiscal policy of balancing the _ E35,000,000 funding of new capital improvements with current E25.000,000 revenues and new debt, and to minimize rate E15,000.000 increases over an extended period of time. '00 rl< 95 Vs g1 roe 19 '10 t Property Taxee - 0 COP Serviea Net User Fees (in millions( User Fees User fees are ongoing fees for service paid by 3,100.0 customers connected to the sewer system. A property owner, or user, does not pay user fees until $300.0 connected to the sewer system and receiving E1Ea.E $103 $1eE.1 $zt0.1 MIA services. Once connected, a user is responsible for E200.1; his share of the system's costs, both fixed and E1010 variable, in proportion to his demand on the system. In addition, the Consolidated Revenue Area charges $0.0 9 aactues zooeey comae alOose Proposed industrial and commercial user fees to customers nauai npwai Projected Proposed Propoeea discharging high-strength or high-volume wastes into Section 3-Page 25 2008-09 & 2009-10 Budget The impact of this five-year sewer fee schedule has percent, an increase from the prior year earnings increased the single family residence user fee rate of rate of 2.4 percent. $182.00 in FY 2007-08 to $201 in FY 2008-09, to $221 in FY 2009-10, to $244 in FY 2010-11, to$267 Although the yield through the third quarter of FY in 2011-12, and to $294 in FY 2012-13. These rate 2007-08 was only at 2.8 percent, investment increases by the District are still well below the earnings are projected to rise to $17.3 million due to average annual sewer rate of $406 currently being the high average cash balances for the year as the charged according to the 2008 California as the $300 million debt issuance occurred prior to Wastewater Charge Survey of 726 agencies the third quarter. conducted by the State Water Resources Control Mi Board encompassing all 58 counties in California. The District is proposing an interest earnings rate of 4.0 percent in FY 2008-09 and FY 2009-10 to Interest Earnings generate earnings of$19.2 million and $18.6 million, Interest earnings are generated from the investment on investment portfolio projections of $460.9 million of accumulated reserves consisting of a cash and $479.0 million at June 30, 2009 and 2010, flow/contingency, a capital improvement, a respectively. renewal/replacement, and a self-insurance reserve, all projected to total $512.3 million at July 1,2008. Debt Proceeds Over the next ten years, the District is projecting an The District's reserves are invested in accordance additional $2.0 billion in future treatment plant and with the District's investment policy and the State collection system capital improvements. In order to Government Code through an outside money minimize future annual sewer rate increases, a total manager, and an independent custodian bank. of $550 million in certificates of participation debt is Interest Earnings being proposed over the next five years. (in millions) In FY 2008-09 and FY 2009-10, new certificates of 30 participation debt issuances are being proposed in the amounts of$200 million and$120 million, �93 a+s+ respectively. These debt issuances will assist in the m funding of the proposed CIP budgeted cash outlays of$373.7 million and$228.9 million accordingly 70 within these two fiscal years. 0 Ao 21 :oosai arxw>ar lanes r xwn gseo.e nrmoW r.,eI.oa.ae Interest earnings fluctuate from year-to-year based on the timing of CIP outlays and debt issuances, which impact the available balance in reserves for investing, and in the rise and fall of fixed-income investment market yields. The District's investment policy is structured conservatively towards liquidity to avoid having to sell investments at a loss and having unrealized losses become realized losses. Total projected cash balances reached a high of 489.8 million at July 1, 2006 and a low of $371.9 million at June 30, 2007 as no new money debt issuances occurred during the year and cash balances were brought down to fund current year CIP. However, interest earnings of $21.7 million were attributable to higher yields earned on investments, as investments earnings yielded 5.5 Section 3-Page 26 r Where the Money Comes From InlraOblrbl Transfers Capital lmp...M.t Self-Insuranos $3,881,700 Reserve Reserve 04% $186,365,210 $57,OOQ000 17.5% Cash Flow Contingenry Reserve Debt Service R,aarv. $153,iB2,000 $115,715.000 14.3% 10.8% $54.255.880 5.1% Properly Taxes u Cerh6cataaof Wsil0.00o PaMiclpalion 6.1% 200,000,000 18.7% sas bell-Ire iranoe Fees Revenues $231 761 500 $1,094,300 21.7% 0.1% FY 2008-09 Total Funding Sources-$1,068,235,390 Where the Money Goes Op.rabons ass $146,771,150 Self- 13J% JoinlCapnel Insurance $262.54t.000 $1,886,200 26.5% 0.2% Capital Unprovenent Re.erv. $104,100.2a0 _ 9.8% Inba01tlrl's Colledlon Transfers $3.861,]00 System Capital 0.4% $91.116.000 _ 8.5% Sell4n.urance Reserve $57.500.000 5.4% Dabt Servlce _ 14 623.000 Debt Service )0% Reserve $133,288.000 Cash Flow 12.5% Contingency Reserve wis $172,360,030 16.1% FY 2008.09 Total Funding Uses-$1,068,235,390 Section 4—Page 1 u 2008-09 & 2009-10 Budget Revenues by Category FY 2008-09 L Consolidated Revenue Revenue Total Area Area 14 Sources 64 Beginning Reserves $ 600,139.311 $12,132,898 $ 512,272,210 61 SerAces Fees 191,333,080 9,303,420 200,636,500 L User Fees 9,483,000 - 9,483,000 Capital Facilities CapecltyCharge 21,662,000 - 21,662,000 Capacity Rights - - - V Debt Proceeds 200,000,000 - 200,000,000 Property Tams 63,276,831 1.663,169 64,940,000 u Insadlsbict Transfers 3,961,700 - 3,961,700 L Insurance In-Lieu Premiums 981,640 62,660 1,044,300 Interest and Other Revenue 32,077,980 22,177,700 54,255,680 y Total Sources $1.022.895.542 $45,339,848 $1,068,235,390 L 6,1 6w Yd V 1-I Section 4—Page 2 V r Expense by Category Expenses by Category FY 2008-09 r Consolidated Revenue Revenue Total Area Area 14 Uses r Directors Fees $ 185.100 $ 15.000 $ 200,100 r Salaries B Benefits 79,207,920 4,436.060 83.643,980 ,r Administrative Expenses 1,255,070 70,290 1,325,360 Printing&Publications 616,490 34,530 651,020 r Training&Meetings 1,357,670 76.040 1,433,710 r Operating Expenses 21.182.210 1,186,310 22,368,520 Contractual Expenses 26.991.490 1.511,660 28.503.150 Professional Expenses 3.574,150 200,170 3.774,320 r Research&Monitoring 1,350.760 75,660 1,426,410 Repairs&Maintenance 10,720,770 600,420 11,321,190 `I Utilities 9.203.900 515,470 9,719,370 Self-Insurance Requirements 1.876,430 119,770 1,996,200 r Other Materials,Supplies.&Services 2.469.170 138,290 2,607,460 r Capital Grants to Member Agencies 300,000 - 300,000 Cost Allocation (19,427,530) (1,075,880) (20,503,410) r Joint Works Capital Improvement Program 265.589.000 16,952,000 282,541,000 Collection System Capital Improvement Prog. 91,116.000 - 91,116,000 Certificate of Participation Service 74,623,000 - 74,623,000 r Intradistrict Transfers - 3,961,700 3,981,700 Ending Reserves 450,703,942 16.522.368 467.226,310 Total Uses $ 1,022,895,542 $ 45.339,848 $ 1,D68.235,390 r Section 4—Page 3 r 2008-09 & 2009-10 Budget y L L This page was intentionally left blank. L 1 V I Yi L L L IV L L Section 4—Page 4 L as as Where the Money Comes From as Inbadispld Transfers Re serve, ($2,099.300) Capital Imp mverni Reserve (02%) Reserve $S7,500,000 $104.100,280 8.0% 11 O% Me Cash Flow Conlingenry Reserve �� Debt Service Reserve $1T2,380.030 Sl%,266,000 8.1% as19.0% as Intere8l8Miec. $41,846.930 4.4% CediBcelesof Participation as12 120.000 6;000 Pro toerty Taxes .8% $68187000 72% as Self-Ineuran. Revenues $1,641,200 Fees 0 2% $254.313,1 70 26 T% Me as FY 2009-10 Total Funding Sources-$951,115,310 Where the Money Goes n.Op.'aue $154,03 en. 16,20% Joinl Cepesl Sell- $18L413.090 Insurance 18.92% 52,141,200 as 0,23% Capital Implpvemml Collection Syeten Reserve Capital $100.859,330 $$1.494.000 as10.60% 7.10% Debt Service self-Insurance 84,297,030 Reserve 6.66% $5T,000,000 5.99% as In Vadlalrld Iranafare ($2.09%300) (022%) Caeb FIovd Debt Sarmce Cpntin9en,Raearve se, Reserve $183.607.020 $142,355.000 1930% 14 97% as FY 2009-10 Total Funding Uses-$951,115,310 Section 4—Page 5 L 2008-09 & 2009-10 Budget Revenues by Category FY 2009-10 Consolidated Revenue Revenue Total y Area Area 14 Sources I Beginning Reserves $ 452,105,410 $ 15,120,900 $ 467.226,310 u Services Fees 211,251,130 9,764,040 221.015.170 L User Fees 10,405,000 - 10,405,000 r Capital Facilities Capacity Charge 22,893,000 - 22,893,000 Capacity Rights - - - Debt Proceeds 120,000,000 - 120,000,000 �+ Property Taxes 66,457,754 1,729,246 68,187,000 Intradistdct Transfers (2,099,300) - (2,099,300) L Insurance In-Lieu Premiums 1,542,730 98,470 1.641.200 V Interest and Other Revenue 32,798,230 9,048,700 41,846,930 Total Sources $ 915,353,954 $ 35,761.356 $ 951.115,310 Yr V V LI ti V Section 4—Page 6 V r Expense by Category r Expenses by Category FY 2009-10 r Consolidated Revenue Revenue Total Area Area 14 Uses r Direotoes Fees $ 185,100 $ 15,000 $ 200,100 r Salaries 8 Benefits 85,047,010 4.761.050 89,808.060 Administrative Expenses 1,224,950 68,570 1,293.520 Printing 8 Publications 619.910 34,700 654,610 r Training 8 Meetings 1,364,010 76.360 1,440.370 r Operating Expenses 22.473,730 1,258,110 23.731,840 Contractual Expenses 27.358.150 1,531,650 28,889.700 r Professional Expenses 2.798.740 156,680 2,955,420 r Research 8 Monitoring 1,335,120 74.740 1,409,860 Repairs 8 Maintenance 9,557,490 535.040 10,092,530 r Utilities 9,670.870 541,390 10.212,260 r Self-Insurance Requirements 2,012.730 128,470 2.141,200 Other Materials,Supplies,8 Services 2,666.660 149.280 2,815.940 r Capital Grants to Member Agencies 2,064,530 - 2,064,530 r Cost Allocation (20,494,350) (1,036,360) (21,530,710) Joint Works Capital Improvement Program 151,728,000 9,685.000 161,413,000 r Collection System Caphal Improvement Frog. 67,494,000 - 67,494,000 Certificate of Participation Service 84,297,030 - 84,297.030 r Intradistrict Transfers - (2,099,300) (2,099,300) Ending Reserves 463,950,274 19,881,076 483.831,350 Total Uses $ 915.353,954 $ 35,761.356 $ 951,115,310 r Section 4—Page 7 r V 2008-09 & 2009-10 Budget �y ACTUAL APPROVED PROJECTED PROPOSED PROPOSED DESCRIPTION OR ACCOUNT TITLE 2006-07 2007-08 2007-08 2006-09 2009-10 I-1 BEGINNING ACCUMULATED FUNDS $ 489,838,782 $ 364,269.980 $ 371.905,480 $ 512272.210 $ 467,226.310 OPERATING REVENUES r Permitted User Fees 14,166,298 18.853.000 8.568.510 9,463.000 10,405,000 - GeneralSewerServiceUserFees 150,106,818 164,620.000 166,270,000 191,333.080 211.251,130 08 M Assessment Service Fees(IRWD) 3,973,362 5.467,410 8.300,660 9,303,420 9,764,040 Interest 22243.554 15,505,000 17,337,000 19.206,000 18,646,000 Miscellaneous Receipts 2.387,367 9.114,000 13,527,670 1 14,135.980 15,613,230 Operating Revenue Subtotal 192,967,419 213,559,410 214,003.840 243.441.480 265,681.400 r NON-OPERATING REVENUES Property Tax Allocation 50.205.417 56,167,000 59,794,000 62,903,000 66,048,000 Le Redevelopment Agency Pass Thru 1,359,891 2,171,000 2,054,000 2,037,000 2.139,000 State Subventions Subtotal-Taxes 60,565,308 58,338,000 61.948,000 64,940.000 68,187,000 Capital Facilities Capacity Charge 18,425,567 11.647,000 16.707,000 21,662,000 22,893,000 r Sale of Capacity Rights,SAWPA 8 SSBSD 12,852,090 Capital Assessment(IRWD) 18,929,179 18.661.300 19,454,000 20,913,7D0 7,685,700 Nan-Opere5ng Revenue Subtotal 110.772,134 88,646,300 98,009.009 107,516,700 98,665,700 V INTRADISTRICT REVENUES Annual lntrdistrici Joint Equity Purchase/Sale 4.528,612 2,645.300 5,374.000 3.961,700 (2,099.300 La FINANCING REVENUES Sale of Certificates of Participation 89.818,081 300,000,000 378,680,000 200,000,000 120,000,000 Financing Revenues Subtotal 89.818.081 300.000.000 378.680.000 200.000,000 120,000.000 V SELF INSURANCE REVENUES Womem'Cump SFl 315.163 559.400 569,400 108,100 535,000 1.1 General Liability SFl 1,513,804 2,055200 2,055,200 936,200 1,108,200 SubtotelSelf lnwance 1.528.987 2.614.600 2,614,600 1,044,300 1.641,200 Total Revenues 399.915213 607.365,610 698,681,440 555,963,180 483.859,000 L TOTAL AVAILABLE FUNDING $ 889.753.995 $ 971,635,590 $ 1,07g586,920 $ 1.068.235,390 $ 951.115.310 V V V La Section 4—Page 8 r Budget Resources r ACTUAL APPROVED PROJECTED PROPOSED PROPOSED DESCRIPTION OR ACCOUNT TITLE 200647 2007-08 2007.08 20DS09 2009.10 r OPERATING REQUIREMENTS Director's Fees $ 141,198 $ 157,600 $ 200,100 200.IDD 200.100 Salaries It Benefits 71.433,525 79.766,960 79.245,330 83,643,980 89,808,080 Administrative Expense 1,D95,519 1,520,74D 1,367,090 1,325.360 1.293.520 Printing B Publications 459,051 660.730 604,D50 651,020 654,610 Training B Meetings 1,124,856 1,503.140 1,313,710 1,433,710 1.440.370 r Operating Expense 16.694.653 23.051t340 17,767.630 22,388,520 23.731.840 Contractual Expense 15.630.140 21,417.440 19,871.840 28,503,150 28,889,700 Professional Expanse 2.367.736 3,731,840 2,782,390 3.774.320 2.955,420 Research B Monitoring 1.426.408 1.572,740 1,096,440 1,426,410 1.409.860 r Repaim B Maintenance 7,567,162 10.333,750 10,744.060 11,321,190 10.092,530 UNifiaa 8,072,262 9.883.260 8.403,370 9,719,370 10.212,260 Other Materiels,Supplies,B Services 2,119,593 3,656,060 2.890,680 2,607,460 2.815,940 r Capital Grants to Member Agencies 2,127,154 2.500,000 2,403,250 300,000 2,064,53D Cost Allocation (16,101,402) (19,779,200) (17.742,100) (20,503,410) (21.530,710) r Subtotal-Operating 114,147,875 139,973,400 130,947.850 146,771,190 154.038.030 CAPITAL IMPROVEMENTS r Joint Works Capital Improvements 199,263.687 231,619,700 234.665,900 282.641,000 161,413,000 Colleclon System Capital Improvements 74,380576 71,094,000 44900,00D 91,116.000 67,494,000 Annual lntradishict Joint Equity Purchaea/Sels 4,528.612 2,646.300 5,374,000 3,961,700 (2,099,300) r Subtotak Capital Improvements 278.172,877 305,359.000 284.639,900 377,618,700 226.807,700 FINANCING REQUIREMENTS Cerdficets of Participation Service 123,402,887 65.273.720 141.031,950 74,623,000 84,297,030 Subtotal-Financing Req 123.402887 65.273,720 141.031.950 74.623.000 84.297,030 r BELF INSURANCE REQUIREMENTS Workae'Comp SFl 356,700 559,400 417,310 49BADD 535.000 General Liability SFl 1.766.176 2.055200 1277,700 150Q209 1.608.200 SubtotelSeff Insurance 2.124.876 2.614,600 1.695,010 1,996200 2.141,200 TOTAL REQUIREMENTS 517,848,515 513,220,720 658,314.71D 6D1,009,080 467,263,960 r REVENUES EXCEEDING REQUIREMENTS 117,933,302 94,144.890 140.305,730 45.045,90D 16,606,040 ENDING ACCUM FUNDS B RESERVES $ 371,906.480 $ 468,414,870 $ 51 2 2 72 210 $ 467226,310 $ 483,831.360 r r r r Section 4—Page 9 r y 2008-09 & 2009-10 Budget BUDGET RESOURCES BY REVENUE AREA-FY 08-09 L Consolidated DESCRIPTION OR ACCOUNT TITLE Revenue Area Rev Area 14 Total Proposed Proposed Proposed y BEGINNING ACCUMULATED FUNDS $ 500,139.311 $ 12,132.898 $ 512272.210 OPERATING REVENUES v Permitted User Fees 9,463,000 9,463,000 General Sewer Service User Fees 191,333,080 - 191,333,080 O 6 M Assessment Service Fees(IRWD) 9,303,420 9,303.420 y Interest 18,412,000 794,000 19,208,000 Miscellaneous Receipts 13,666.980 470,000 14,135,980 Operating Revenue Subtotal 232,874,060 1 10,507,420 243 441.480 y NON-OPERATING REVENUES Property Tax Allocation 61,292,000 1.811.000 62,903,000 Redevelopment Agency Pass Thru 1,954.831 52,169 2,037,000 State Subventions Subtotal-Taxes 63.276.831 1,663.169 64.940.000 Capital Facilities Capacity Charge 21,662.000 - 21,6ezoo0 u Sale of Capacity Rights,SAWPA 8 SSBSD - - Capital Assessment(IRWD) 20.913,700 20.913,700 Nan-Operating Revenue Subtotal 84,938,831 22.576,869 107 515,700 y INTRAOISTRICT REVENUES Annual intradistdct Joint Equity Purchase/Sale 3.961.700 _ 3,051.700 N FINANCING REVENUES Sale of Certificates of Participation 200.000.000 - 200,000,000 y Intradistrict Loans,Advances&Repayments Financing Revenues Subtotal 200,000,000 200,000.000 L SELF INSURANCE REVENUES Workers'Comp SFI 101,610 8,490 108,100 General Liability SFI 880,030 56,170 938.200 Subtotal-Self insurance 081,640 62,660 1,644,300 L+ Total Revenues 522.756.231 33,206,949 555,963,180 L TOTAL AVAILABLE FUNDING $ 1.022.885,542 $ 45,339,848 $ 1,088,235.390 L L L Section 4—Page 10 v Budget Resources r r Consolidated DESCRIPTION OR ACCOUNT TITLE Revenue Area Rev Area 14 Total Proposed Proposed Proposed r OPERATING REQUIREMENTS Director's Fees $ 185,100 $ 15,000 $ 200,100 Salaries 8 Benefits 79,207,920 4,436,060 83,643,980 Administrative Expense 1,255,070 70,290 1,325.360 Printing 8 Publications 616,490 34.530 651,020 Training 8 Meetings 1,357,670 76,040 1,433,710 Operating Expense 21,182,210 1,186,310 22,368,520 r Contractual Expense 26,991,490 1.511,660 25,503,150 Prafessional Expense 3,574,150 200,170 3,774.320 Research&Monitoring 1,350,760 75.650 1,426,410 Repairs B Maintenance 10.720,770 800,420 11.321.190 r Utilities 9.203.900 515.470 9,719,370 Other Materials,Supplies,&Services 2,469,170 138,290 2,607,460 Capital Grants to Member Agencies 300.000 - 300.000 Cost Allocation (19,427,530) (1,075.880) (20,503.410) Subtotal-Operating 138,987,170 7.784,010 14Q771,180 r CAPITAL IMPROVEMENTS r Joint Works Capital Improvements 265.589,000 18,952,000 282,541,000 Collection System Capital Improvements 91,116,000 91.116,000 Annual Intradistrict Joint Equity Purchase/Sale 3.961,700 3.961,700 Subtotal-Capital Improvements 356.705.000 20,913,700 377,618,700 r FINANCING REQUIREMENTS Certificate of Participation Service 74,623,000 74,623.000 Subtotal-Financing Req 74,623,000 74.623,000 r SELF INSURANCE REQUIREMENTS Workers'Comp SFI 460,600 29,400 490.000 r General Liability SFI 1,415,830 90,370 1,506,200 SubtotalSelf Insurance 1.876,430 119.770 1.996,200 r TOTAL REQUIREMENTS 572,191,600 28,817.480 601,009.080 REVENUES EXCEEDING REQUIREMENTS 49.435,369 4.389,469 45,045,900 r r ENDING ACCUMULATED FUNDS 8 RESERVES $ 450,703,942 $ 16,522,368 $ 467226,310 r r Section 4-Page 11 r 2008-09 8l 2009-10 Budget u I BUDGET RESOURCES BY REVENUE AREA-FV OO-10 L.i Consolidated DESCRIPTION OR ACCOUNT TITLE Revenue Area Rev Area 14 Total Proposed Proposed Proposed r BEGINNING ACCUMULATED FUNDS $ 452.105,410 It 15.120,900 $ 467,226.310 L OPERATING REVENUES Permitted User Fees 10,405.000 - 10,405.000 General Sewer Service User Fees 211261,130 211,251,130 08 M Assessment Service Fees(IRWD) 9,764,040 9,764,040 LJ Interest 17,672,000 976,000 18.648.000 Miscellaneous Receipts 15126,230 487.000 15.613.230 Operating Revenue Subtotal 254454,360 11 227.040 265,681,400 L+ NON-OPERATING REVENUES Property Tex Allocation 64,373.000 1,675.000 e8,048,000 L Redevelopment Agana Pass Thro 2,084,764 54,246 2,139.000 State Subventlona Subtotal-Taxes 66,467,754 1,729,246 68,187,000 Capital Facilities Capacity Charge 22.893,O0 - 22.893.000 Li Sale of Capacity Rights,SAWPA 8 SSBSD - Capital Assessment(IRWD) - 7686.700 7.586700 Non-Operating Revenue Subtotal 89.350,754 9 314,946 98.665,700 INTRADISTRICT REVENUES Annual lMradlstricl Joint Equity Purchase/Sale 2,099,300 2,099.300 L FINANCING REVENUES Sale of Certificates of Participation 120,000,000 120,000,000 LJ Intredieldct Loans,Advances 8 Repayments Financing Revenues Subtotal 120.000 000 120 000,000 i L SELF INSURANCE REVENUER Workers'Camp SFI 502,900 32,100 536,000 General Liability SFl 1.039,830 e6,370 1,106,200 Lr Subtotal-Self Insurance 1,542,730 98470 1,641,200 Total Revenues 463,248,544 20640.466 483,889.000 V TOTAL AVAILABLE FUNDING $ 915,353,954 $ 35,761.356 $ 951.115,310 u V 1r Section 4—Page 12 u r Budget Resources r Consolidated r DESCRIPTION OR ACCOUNT TITLE Revenue Area Rev Area 14 Total Proposed Proposed Proposed OPERATING REQUIREMENTS r Directors Fees $ 185.100 $ 15,000 $ 200,100 Salaries 8 Benefits 85,047,010 4.761.050 89,808,060 Administrative Expense 1.224.950 68,570 1.293.520 Printing&Publications 819,910 34,700 654,610 r Training 8 Meetings 1,364,010 76,380 1.440.370 Operating Expense 22,473,730 1.268,110 23,731,840 Contractual Expense 27.358,150 1,631,550 28,889,700 r Professional Expense 2,798,740 156,680 2,956,420 Research 8 Monitoring 1.335.120 74,740 1,4D9,860 Repairs&Maintenance 9,557,490 535,040 10,092,530 U011ties 9.670.870 541.390 10.212.260 r Other Materials,Supplies,8 Services 2,666,660 149,280 2,815.940 Capital Grants to Member Agencies 2.064,630 2,064,530 Cost Allocation (20.494,350) (1,036,360) (21,530,710) r Subtotal-Operating 145,871.920 8,166.110 154.038,030 r CAPITAL IMPROVEMENTS Joint Works Capital Improvements 151,728,000 9,685,000 161,413,000 r Collection System Capital Improvements 67,494,000 - 67,494,000 Annual Imradisaicl Joint Equity Purchase/Sale 2,099,300 2,099,300 Subtotal-Capital Improvements 219.222,000 7,585.7001 226.807,700 r FINANCING REQUIREMENTS Certificate of Participation Service 84,297.030 $4,297.030 Subtotal-Financing Req 84,297 030 54,297,030 r SFI c INSURANCE REQUIREMENTS Workers'Comp SFI 502.900 32,100 535,000 General Liability SFI 1,509.830 98,370 1.606,200 Subtotal-Sell Insurance 2,012.730 128,470 2.141.200 TOTAL REQUIREMENTS 451,403.eao 15.880280 467,283.980 r REVENUES EXCEEDING REQUIREMENTS 11,844,864 4,760,176 16,605,D40 r ENDING ACCUMULATED FUNDS 8 RESERVES $ 463,950,274 $ 19,881,076 $ 483,831,350 r r Section 4—Page 13 r L 2008-09 & 2009-10 Budget i u Projected Reserves at June 30, 2008, 2009 and 2010 V Projected Proposed Proposed 6/30/2008 6I3012009 6130/2010 u Cash Flow Requirements Operating Expenses $ 65,474,000 $ 73,386,000 $ 77,019.000 COP Payments 74,623,000 84,297,030 91,184.020 Operating Continge ncies 13,095,000 14,677,000 15,404,000 Capital Improvement Program 132,244,210 48,897,280 44,552,330 L Catastrophe 8 Self Insurance 57 000 000 57 500 000 57 000 000 Sub-total 342,436,210 278,757,310 285,159,350 Capital Replacement&Refurbishment 54,121,000 55,203.000 56,307,000 � COP Service Required Reserves 115 715 000 133 286 000 142 365 000 Total $512 272 210 $467,226 310 $483,831,350 L Accumulated Funds and Reserves Policy Levels higher and lower than the target can be V A cash flaw reserve will be established to fund expected while the long-term financing and capital operations, maintenance and certificates of improvement programs are being finalized. participation expenses for the first half of the fiscal r, year, prior to the receipt of the first installment of the Catastrophic loss, or self-insurance, reserves will be property tax allocation and the sewer service user maintained for property damage including fire, flood fees which are collected as a separate line Rem on and earthquake; for general liability; and for workers' the property tax bill. The level of this reserve will be compensation. These reserves are intended to work established as the sum of an amount equal to six with purchased insurance policies, FEMA disaster months operations and maintenance expenses and reimbursements and State disaster reimbursements. the total of the annual debt(COP) service payments Based on the current infrastructure replacement L due in August each year. value of$6.3 billion,the reserve level has been set to fund the District's non-reimbursed costs, estimated An operating contingency reserve will be established to be$57 million. to provide for non-recurring expenditures that were not anticipated when the annual budget and sewer A capital replacementlrenewal reserve policy has service fees were considered and adopted. The been established to provide thirty percent of the level of this reserve will be established at an amount funding to replace or refurbish the current collection y equal to ten percent of the annual operating budget. and treatment and disposal facilities at the end of their useful economic lives. The current replacement A capital improvement reserve will be maintained to value of these facilities is estimated to be $3.14 fund annual increments of the capital improvement billion for the collection facilities and $3.12 billion for program. The long-term target is for one half of the the treatment and disposal facilities. The initial capital improvement program to be funded from reserve level was established at $50 million, which borrowing and for one half to be funded from current will be augmented by interest earnings and a small V revenues and reserves. With this program in mind, portion of the annual sewer user fees in order to the target level of this reserve has been established meet projected needs through the year 2030. - at one half of the average annual capital I improvement program through the year 2020. 60 Provisions of the various Certificate of Participation (COP) issues require debt service reserves to be under the control of the Trustee for that issue. V Section 4—Page 14 � v r Projected Reserves These reserve funds are not available for the general needs of the District and must be maintained at specified levels. The projected level of required COP service reserves at June 30, 2008 is $115.7 million. Accumulated funds exceeding the levels specified by District policy will be maintained in a rate stabilization fund. These funds will be applied to future years' needs in order to maintain rates or to moderate annual fluctuations. There is no established target for this reserve. r r r r r r r r r .r r Section 4—Page 15 r y 2008-09 & 2009-10 Budget Orange County Sanitation District i Consolidated Cash Flow Projections L Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Rgl Descidifion 08-09 09.10 10.11 1112 1213 13.14 L Revenues'. 1 General User Fees 191.333.080 211,251,130 234,181,545 257,401,009 284,687476 308,242,404 2 Permitted Usar Fees 9.463,000 10.405,000 11.488.000 12,671,000 13,842,000 14,811,000 I 3 Properly Taxes(5%yr) 64.940,000 SB,187,000 71,596,000 75.176,000 78.935.000 82,882,000 dal 4 Nex COP Issues 200,000,000 120,000,000 90.000,000 60,000,000 BORK= - 5 Intereel Revanues(4%) 19,206,000 18,648,000 19,548,000 20,58 ,000 21.823.000 21,973,000 6 Capital Peculiar Capacity Charges 21,652000 22.893,000 24.194,000 25,569,DD0 27,022,000 28,W.W0 7 Other Revenues 49.359.100 32,504,870 38.285,815 39,440,500 42,033,324 61,D50248 8 Reyenuea 555,963,180 483,889,OD0 489,293.360 490,737,509 548,342,800 515,515,652 Requirements: I l 9 Oper B Mlcs Exp(7.0%yr) 146,771,180 164,038,030 184.141,000 199,728,000 216,939,00D 231,646.000 I6d 10 Capital lmpmuremed Program 373,657,000 228,907,000 181,519,000 166.757.000 118,061,000 133,727.000 11 Repl,Rates 8 Refmb - - 1,000,000 3,000.000 70,596,000 63.612.000 12 COP Service(50%,30 yrs) 74,623,000 84297,030 91,184,020 95,822,530 '08,,480 L0,541,20 8.14120013 Other Requirements 5,957,900 41,900 2,141,200 2141,200 00 14 Requirements 601,009,080 467.283,960 459.985.220 467,448,730 508,248,680 647,932,68D 15 Revenues-Requirements (45,045,900) 16,605,040 29,308,140 23,208,779 40.094,220 (32,417,028) L Accumulated Funds: 16 Beginning of Year 512,272,210 467.226,310 483,831,350 513,139,489 536,428,268 576,522,489 17 End of Year 467,226,310 483,931,350 513,139,489 536,428,26E 576,522,489 544,105,460 18 Consolidated Reserve Policy 46D,945,030 479.001,020 507434.530 524.421.350 554,391.480 542,414,640 Lr 18a Oyu(Under)Reserve Policy 6,281,280 4.830,330 5,704.959 12,008,888 22,131,009 1,690,820 Saner Service User Fees: 19 Avg SFR Annual User Fee S201.00 $221.00 $244,00 $267.00 $294.CD $314.58 V 20 Percentage Change 1044% 9.95% 10.41% 9.43% 10.11% 7.00% 21 EwhisMrd DxelSrg Units 919.511 925.480 931.504 937,558 943,653 949,786 22 SFR Connection Fee $4,743 $4,980 $5.229 $5,490 $5,765 $6.053 23 Outstanding COPS $1,332,660,000 $1,423,650,000 $1.481,250,000 $1,508,236,000 $1,548,582,000 $1,493,712.000 L Reserve Policy 24 50%Next Year Operating 73,306.000 77,019,000 92,071,000 99.864,000 108,470,000 115.823,000 25 10%Nina Year Operating 14,677,000 15,404,000 18,414,000 19.973,000 21,694,000 23,165.000 26 100%Ned Year AUG COP Svg 84,297,030 91,184,020 95,822,530 100,511,380 116,806,480 103,563,640 Isi 27 50%wmage CIP bal to 2020 a2,616,000 79,722,000 78.568,000 77,867,000 75,809,000 72.543.000 28 Short term CIP,GWRS - - - - - _ 29 DER®10%Outstanding COPS 133,266,000 0 149371 142,365,000 146,126,000 150,624,C00 154,858,00 , ,D00 L 30 SFI@$57mm INPUT 57,500,000 57.000,000 57,000,000 67,000,000 57,D00,000 57,000,000 31 Repl B Refudl®2%fyr 55,203,0D0 56,307,D00 57.433.000 58.582,000 59,754.000 60,949,000 32 Total 500,M.030 519.001,020 547,434,530 564.421,380 594,391,480 582,414,840 COP L 33 Sr Lien Covelge,Min 1.25 2.51 2.22 2.09 2.14 2.23 2.19 V Section 4—Page 16 1 V r r Cash Flow Projection Orange County Sanitation District r Consolidated Cash Flow Projections Preliminary Preliminary Preliminary Preliminary 10 Year Rg( Description 1�19 1"6 10-17 Total r Revenues: 1 General User Fees 326,379,362 338.233.843 350.521.012 363.251,600 9 2,863,492.461 2 Permitted User Fees 15.700,000 16,171,000 16,856,000 17,156,000 136,263,000 `+ 3 Property Taxes(5%yr) 97,026,000 91,377.000 95.946.000 100.743.000 816,808,000 4 Nev,COP Issues - - - - 550,000,000 5 Interest Revenues(4%) 21.446,00D 21.924.000 22,508,000 22,926,000 210,580,000 r 6 Capilel Famlities Capacity Charges 30,180,000 31.895.000 33.707.000 35.623,000 281,302,000 7 Other Revenues 46,226.356 47.687,871 56,476,159 62,212,742 465.276.984 8 Revenues 526,957.718 547.280.714 575.812.171 591.912,342 5.325.712.445 Requirements'. 9 Oper B Mtce Exp(7.0%yd 247,657,000 266,494,000 287,091.000 310,365,000 2,245,660,210 10 Capital lmprovemenl Program 84.166.000 64.896.000 50,252,000 32.056.000 1,424,020.000 11 Red,Rehab B Refutb 83,895,000 101.382.000 116,770,000 133.214.000 573,469.000 r 12 C0P Serulce(5.0%,3D tyre) 103,563.640 1D3,502,930 107,940.230 103.568,980 981.820,220 13 Omer Requirements 2.141,200 2,141.200 2.141,200 2,141.200 23.129,400 14 Requirements 621,442.840 528.406.130 564,994,430 581,347,180 5,248,098,830 yr 15 Revenues-Requ1rements 5,514.878 18,882,554 10.817,741 10,565,162 77,613.615 Accumulated Funds. 16 Beginning of Year 544.105,460 549,620,338 $68.502.922 579,320,663 612,272,210 r 17 End of Year 549,620,338 568,502,922 579.320.663 589,886.825 589,885.825 18 Consolidated Reserve Policy 546.996,930 558,012,230 559,036.980 563.227,164 $ 563,227,164 r live Over(Under)Reserve Policy 2,623OB 10,490,692 20.294,683 26,650.661 Sauer Service User Fees: r 19 Avg SFR Annual User Fee $333.45 $343,46 $363.76 6384.36 20 Percentage Change 6.00% 3.00% 3.00% 3,00% 21 Equivalent Dwelling Units 955,96D 952,174 968.428 974,723 '+ 22 SFR Connection Fee $6,356 $6.674 $7,007 $7,358 23 Outsmnding COPS $1,451,038,000 61,406,469,000 $1,355,252.000 $1,306,329.000 r Reserve Policy 24 50%Next Year Operating 123.829,000 133.242.000 143.946.000 155,183,000 r 25 10%Nag Year Operating 24,766.000 26,640,000 28,709.000 31.037.000 26 100%Next YMAUG COP Svc. 103502,930 107,940.230 103.568,980 103,576,164 27 50%average CIP but to 2020 70.627,000 69,124,000 65,528,000 59.625.000 28 Short term CIP,GWRS - - - - r 29 DSR@10%Outstanding COPs 145.104,000 140,647,000 135,525,OD0 130.633,000 30 SFI@357mm INPUT 57,000,000 57.000.000 57.000,000 57.089.000 31 Reid&Refurb®2%lyn 62.168.000 63.411.00D 64,679,000 65,973,OOD r 32 Tole] 586.996,930 598.012,230 599.035.980 603,227.164 COP Ratios 33 Sr Lion Coverge,Min 1.25 241 240 236 2.37 r Section 4— Page 17 r 2008-09 & 2009-10 Budget YI y L V V This page was intentionally left blank. V u V L I V V L V Yr Section 4—Page 18 ri r Operations Budget Overview OPERATING REQUIREMENTS to regulate the quantity and quality of FOG-laden wastewater that is discharged into the District's The net operating budget finances the sewerage system. administrative, operations and maintenance,and program costs for collecting,treating,and disposing Operating Chemicals: Chemicals are used for of wastewater. The net operating budget for FY disinfection, coagulant, and odor control programs. r 2008-09 is$138.939 million and for FY 2009-10 is Recently bid chemical contracts have indicated that $145.920 million. costs will increase. The budgetary allocations for these major expenses for FY 2008-09 and FY 2009- ,�, Following are descriptions of the major factors that 10 have been increased accordingly. comprise the operating budget: . Disinfection: The District is committed to Regulatory Requirements: Stringent air pollution disinfecting the effluent. The largest cost related r control requirements that are mandated or expected to disinfection is that used for chemicals, to be mandated by the South Coast A r Quality specifically bleach. After disinfecting the effluent Management District(AQMD)for control and with bleach,sodium bisulfite is used to ensure reduction of hydrogen sulfide(1-12S), oxides of that no residual chlorine is discharged into the nitrogen (NOx)and oxides of sulfur(SOx) ocean. The disinfection process reduces the emissions, result in high operational costs to remove effluent bacteria levels at the shore to the pollutants from the digester gas produced in our standards required by Assembly Bill 411. treatment plants and to control emissions from our digester-gas-fired engines used for the Central . Coagulants: Coagulant chemicals are used to Power Generation Facilities. enhance the primary treatment and solids removal processes. They are also used to The Environmental Laboratory and Ocean control hydrogen sulfide in the digesters. Monitoring and Source Control divisions carry out monitoring, enforcement outside and in-house Ferric chloride and anionic polymer are used laboratory services,and special project activities. to enhance the primary treatment process. These activities are necessary to comply with the Ferric chloride is an iron salt which is used to ocean monitoring and pretreatment program increase the solids removal efficiencies in the provisions of our NPDES permit as well as our primary treatment process and to control AOMD permit requirements. digester hydrogen sulfide. Ferric chloride is also used to control hydrogen sulfide levels in Urban Runoff Program: The Urban Runoff the digester gas as required by AQMD Rule program was established to protect and improve the 43.1. regional water quality of Orange County's coastal watershed by accepting dry weather urban runoff . Cationic polymer is added to digested sludge ,r into the District's sewerage system. This program prior to dewatering in order to improve the addresses the public health and environmental sludge and water separation process. impacts associated with the urban runoff discharge Cationic polymer is also added to the waste that cannot be economically or practically controlled activated sludge dissolved air flotation by alternative means. The Source Control division thickeners to improve solids coagulation. As administers the program through a permitting and more secondary treatment processes come monitoring program to regulate the quantity and on-line,the usage of cationic polymer is ,r quality of urban runoff that is discharged into the expected to increase in order to meet the District's sewerage system. needs of the increased solids production. Fats, Oil, and Grease(FOG) Control Program: . Odor Control: Hydrogen sulfide Is naturally This program was established to respond to the generated in trunk sewers when oxygen is not RWQCB's General Waste Discharge Requirements present. Hydrogen suede then converts into (Order No. R8-2002-0014)to control sanitary sewer sulfuric acid which erodes concrete and metal. overflows. The District's Source Control Division In an effort to extend the useful life of the facilitated the regional efforts to develop FOG District's trunk line assets,the District adds Control Programs and has a program for the District r Section 5—Page 1 61 2008-09 & 2009-10 Budget y chemicals to key trunk lines to control hydrogen sulfide levels and corrosion. L • Hydrogen peroxide and sodium hydroxide (caustic soda)are used in the trunk sewers for control of sulfides and in the foul air scrubbers to control hydrogen sulfide. y • The largest cost for odor control is for ferrous chloride along with magnesium hydroxide. L These costs cover chemicals,tanks, pumps, and servicing for continuous treatment for odor control within four trunklines. Residuals Management These costs are for the L hauling and private beneficial reuse of biosolids. These costs continue to be a significant budget item as reuse options are reduced,hauling costs increase, and as biosolid production Increases as a result of performing more secondary treatment. A I smaller component of waste disposal is for hauling 4 and disposal of grit and screenings. Grit and screenings waste is not able to be reused and cannot be disposed of In a municipal landfill. L Repairs and Maintenance: Preventive maintenance and repair activities throughout the I District's expanded and upgraded treatment facilities V continue to keep this budgetary category at a significant amount. Outsource service agreements are included in this category. L Utilities: The cost for utilities is a significant component of the operating budget. The largest utility cost Incurred by the District is the electricity L that is purchased to run the plant processes. Natural gas is purchased to supplement the digester gas that is used to run the central generation V facilities. The central generation facilities produce some electricity that is used for running the plants, but since FY 2005-06 the central generation I production was reduced in order to meet new air U emission limits. Cooperative Projects Grant Program: To reduce inflow and infiltration to the District's sewage system, Ir local sewers which are not owned or maintained by the District must be repaired. The Cooperative Projects Grant Program funds projects that are led V by local agencies to reduce the inflow and Infiltration entering the District's sewerage system. Funds are provided for an approved project on a L reimbursement basis after the project has been completed. L Section 5—Page 2 Operations Summary Proposed Budget Comparisons by Department Ye 200748 Budget Budget Revised 2007-08 2008-09 Percent 2009-10 Percent Department and Division Budget Projected Proposed Change Proposed Change r General Management Department General Management Administraton $ 1,785.500 $ 1,107,601) $ 2,053,360 15.00% $ 2,128,580 3.66% Assistant General Manager 797.000 909,540 910,72D 14.27% 974.500 7.00% Board Services 837,290 717,170 649,250 -22.46% 686.270 5.70% r Public Information Office 959,390 947,260 1.020.900 6.42% 1,038,960 1.76% Safety and Health 2,161,130 1,860,920 2,118,910 -1.95% 2,211,450 4.37% Department subtotal 8,,,�U ----r5'7490 3.25% 7,039,760 4.24% .w Finance Department Admininistrative Services Admin 380,850 423,360 440,210 15.59% 472.010 7.22% Financial Management 5.342,160 5,087,800 3.874,460 -27.47% 4.224,560 9.04% Contracts,Pumh,&Materials Mgmt 3.751.150 3,382.190 3.616,690 -3.59% 3,866,19D 6.90% Human Resources 4,103,980 3.474.200 3,697,940 -9.89% 4,774,710 29,12% Information Technology e,580,270 6,804.840 7.329,460 11.39% 7,688,440 4.90% Department subtotal 20,158.410 1B�0 18,9P8,860 �-5.9 �G1, 25TW D% Technical services Department Technical Services Admin&Research 1,124,000 1.103.360 1,277,600 13.65% 1,325,500 3.75% Environmental Compl&Reg Affairs 3,901,650 3.005,150 3.813,560 -2.26% 3.629,970 4.81% Envlmnmental Lab&Ocean Monitoring 8,340,760 7,891,810 8.413.300 0.87% 8.711,130 3.54% Source Control 5,285120 6.521.800 5.740.200 9.02% 6,031200 5.07% Department subtotal 1 17, F{20 ,2 S'.Lt�% 19,697,800 2.35% r Engineering Department Engineerng Administration 574,170 409.090 412.790 -28.11% 443.390 7.41% Planning 4.550.080 5,018,880 3.250,440 -28.56% 5.065.550 55,84% Pmjed Management Office 2,692.930 2,359,3D0 2.613,870 -2.94% 2,777,370 626% r Engineering&Construction 7,950,300 7,750,320 9.260,750 16.48% 9,799,140 5.81% Facilities Engineering 1.570280 1,278,730 1.495,750 4.75% 1,588,050 6.17% Department subtotal 17,37� 15,816,430 17,033,600 -1.75% 19,673500 15 a/o Operations&Maintenance Dept. Operators and Maintenance Admin. 536,850 384.560 373,250 -30.47% 402.500 7.84% Reglonal Assets&Services 1,081,79D 973.440 -100.00% - 0.00% Collection Fadlites O&M 9,488,39g 9,538,920 8.333,200 -12.17% 8,602,600 3.23% r Facilities Maintenance&Fleet Services 4,367,810 4,313,650 7.286.430 66.82% 7,849.230 7.72% Operators 8 Maint.Process Eng. 2,101.320 1,975.850 2.428.830 15.59% 2,538.160 4.50% Plant No.t Operations 22,839,515 19,088,310 27.086,620 18.51% 30,768,110 13.68% Plant No.2 Operations 26,973,635 22.278.150 28,611,960 6,07% 29,041,730 1.50% r Mechanical&Reliability Maintenance 17,16D,140 18,358.880 15,997.260 -6.78% 13,085.770 -18.20% Instrumentation&Electrical Maint. 12.535.040 13,824,750 15.186,930 21.16% 15,843.670 4.32% Department subtotal 97.084.490 89.636,51 1 708,731,77 % Less:Cost Allocation (19,779,200) (17,742,100) (20,503,410) 3.68% (21,530,710) 5.01% Lass:Operating Revenues (5,099,000) (7,640,520) (7,836.000) 53.68% (8,122,000) 3,65% Net Operating Expenses $ 134.874,400 $ 123,307,320 $ 138.935,180 3.01% $ 145,916,030 5.02% Section 5-Page 3 r V 2008-09 & 2009-10 Budget Proposed Budget Expense by Category 2007-08 2006-07 Revised 2007-08 2006-09 2009.10 Description Actual Budget Projected Proposed Proposed u Salaries,Wages,8 Benefits $ 71,574,723 $ 79.924,560 $ 79,445.430 $ 83,844,080 $ 90,00$160 Administrative Expenses 1,095,519 1,520,740 1,367,090 1.325,360 1,293,520 L Printing 8 Publication 459,051 650,730 604,050 651,020 654,810 Training B Meetings 1,124,856 1,503,140 1.313.710 1,433.710 1,440,370 Operating Materials 8 Supplies 16,684,653 23,058,340 17,767,630 22,368,520 23,731,840 y Contractual Services 15,630,140 21,417,440 19,871,840 28,503,150 28,889,700 Professional Services 2.367.736 3,731,840 2,782,390 3,774.320 2.955.420 b Research B Monitoring 1.426.408 1,572,740 1,096,440 1,426,410 1,409,860 Repairs B Maintenance 7,567,182 10,333,750 10,744.060 11,321,190 10,092,530 Utilities 8,072,262 9.883.260 8,403,370 9,719.370 10,212,260 Other Materials,Supplies,and Svc. 2,119,593 3.656.060 2,89D,670 2.607,460 2.815.940 L Capital Grants to Member Agencies 2,127,154 2,500,000 2,403,260 300,000 2,064,530 Cost Allocation (16,101,402) (19.779.200) (17.742,100) (20,503,410) (21,530,710) 1 Net Operating Requirements 114,147,875 139.973.400 130.947,840 146,771,180 154.038,030 L! Net Operating Revenue (8,033,660) (5.099,000) (7,640,520) (7,836,000) (8,122,000) Net Operating Budget $ 106.114,215 $ 134,874,400 $123.307,320 $138,935,180 $ 145,976.030 L Cost to CollectfTrsat 1 Million Gallons $ 1.268.38 $ 1,478.08 $ 1,516.06 $ 1,654-98 $ 1,738.13 Flow,Million Gallons 83,661 91,250 81,334 83,950 83,950 u Flaw Per Day,MGD 229.21 250.00 222.83 230.00 230.00 La y it V u Section 5-Page 4 r Operations Summary r Proposed Budget Allocation to Individual Revenue Areas r ,r Total Gallonage Flows, Million Gallons per Year(MG) Revenue 2007-08 Projected 2008-09 2009-10 Area Projected Increase Budgeted Percent Budgeted Percent No. Flow(MG) (MG) Flow(MG) of Total Flow(MG) of Total r Consolidated 76,698.00 2,466.89 79,164.89 94.30% 79,164.89 94.30% 14 4,636.00 149.11 4,785.11 5.70% 4,785.11 5.70% r TOTALS 81,334,00 2,616.00 83,950.00 100.00% 83,950.00 100.00% Average Daily Gallonage Flows,Million Gallons per Day(MGD) Revenue 2007-08 Projected 2008-09 2009-10 Area Projected Increase Budgeted Percent Budgeted Percent r No. Flow(MGD) (MGD) Flow(MGD) of Total Flow(MGD) of Total Consolidated 210.13 6.76 216.89 94.30% 216.89 94.30% 14 12.70 0.41 13.11 5.70% 13.11 5.70% `. TOTALS 222.83 7.17 230.00 100.00% 230.00 100.00% r FY 2008-09 Estimated Allocation of Net Costs to Revenue Areas Revenue Net Treatment r Area Collection &Disposal Total Total No. Costs Costs Costs Cost/MG Consolidated $ 20,007,840 $ 111,589,980 $ 131,597,820 $ 1.662.33 r 14 592,260 6,745,100 7,337,360 1,533.37 TOTALS $ 20,600,100 $ 118,335,080 $ 138.935,180 $ 1,654.98 r FY 2009.10 Estimated Allocation of Net Costs to Revenue Areas r Revenue Net Treatment Area Collection &Disposal Total Total No. Costs Costs Costs CostfMG r Consolidated $ 21,112,050 $ 117,100,820 $ 138,212,870 $ 1.745.89 14 624,950 7,078.210 7.703,160 1,609.82 TOTALS $ 21,737,000 $ 124,179.030 $ 145.916.030 $ 1,738.13 r r Section 5—Page 5 r I-I 2008-09 & 2009-10 Budget 4. Proposed Budget Net Operating Expense by Line Item Adjusted %Budget %Budget 61 2006-0T budget 2007-0B 2008-09 Change 2009.10 change Description Actual 2007418 Projected Proposed to 0"9 Proposed to 09.10 Salaries.Weass.&Benefits Salaries&Wages r Salaries B Wages $ 53,184,653 $ 58,708,100 $ 58,126.100 $ 60.541.500 3.12% $ 64,531.100 6.59% Employee Bedside, OCERS ReNroment 12,308,342 13.972,560 13.983.000 15,241,300 9.08% 16,20SWO 6.33% V Group Insurance 5,576,M 6.451,400 6,525,600 7,351,980 13.96% 8,136,160 10.67% Tuelon Reline&Educ Desel 112,231 150,D00 152,700 503,100 235,40% 513,100 0.00% Uniform Rental 73.845 63,200 84,800 84,800 34.18% 84,800 0.00% Workers Compensation 310.103 559.300 559,400 107.400 .80.80% 533,000 39628% Unemployment Insurance 9.469 20.000 13,830 14.000 -30.00% 14.000 D.W% Ld Salad",Wages,&generics 71.574.723 79,924.560 79.445,93D 83,844,080 4.90% 90,0D8,16D 7.W% Materials supplies.&$.naps$ Administrative Expenses 1.. Memberships 264,768 337,300 288.400 302,800 -10.23% 314,280 3.79% Office Exp-Supplies 119,708 145,520 134,140 142,440 -2.12% 144,200 124% pounds 38,971 298,300 233.020 68.451) -80.41% 58.450 0.00% Becks B Puldcalione 4Q310 48,540 45,780 59.070 21.69% 55,070 -6.77% haw Forms 2.068 3,900 3.250 3.350 -14.10% 3,350 0.OD% Smell Computer Name 575,294 574,100 574,10D 634.400 10.50% 634,100 -0.05% Minor FumNure B Fixtures 54,380 113,080 80.400 124.851) 10.41% 84,070 -32.86% I-I Printing&publication Repm1n-ytouse 352,422 464,440 439,770 481.670 3.71% 484.220 0.53% Priming-Outside 77.012 146,890 127.180 131.450 -10.51% 132,49D 0.79% I honest&Ads 28,083 W.250 35,500 35,W0 -7.19% 35.500 0.00% Photo processing 734 1,150 1,60D 2,400 1W.7D% 2,400 0.00% Tenure If Meetings Meetings 255.384 389,240 259.810 348,710 -10.41% 355,370 1.91% Training 869,472 1,113,9W 1.053.900 1.085.000 -2.59% 1,085,00D 0.00% 6. Opersthm Materials&Supplies Chemical Coagulants 4,446A51 5,870.260 5,004,000 6,171.300 5.13% 7,063,500 14.46% Odor Control 4.724.834 5,914.600 5,625,240 6,673.120 12.82% 7.184,5111) 7.66% V, Disinfection 5.180,789 9,007,300 4,935,400 7,149,900 -20.62% 7,062,700 -1.22% ChemialsCogen.Off. 33,982 21,600 21,600 22,11D0 1.85% 22,600 2.73% Mlscellarrews Chemicals 19,071 21,600 21,600 22.000 1.85% 22,630 2.41% Gancthre,Diesel&Oil 566.429 653.780 620210 648,770 -0.77% 687.160 5.92% Tools 357,749 307,310 290.810 399,800 30.10% 380.590 4.80% Safety Equipmengbols 313.008 264.740 295,280 312.560 18.06% 323,170 3.39% Solv,paints.B Jan.Supplies 98.025 89.650 103,530 109,45D 22.09% 110,670 1.11% Lab Chemicals&Supplies M.793 668.600 662,050 662,650 aid9% fln'490 2.24% y, Mist.Operating Supplies 140,836 203,500 157.210 161,270 -20.75% 161.230 -0.02% Property Tax Fees W,616 M.400 27.700 35.70D 0.85% 35,700 0.00% Contractual Servloaa Solids Removal 11733,832 14.302,460 14,302,450 19.890,000 39.OT% 21.840,WD 9.60% 6. Other Waste Disposal 637,SB9 2,7W.DW 1.631,150 4.330,300 80.38% 2,854,800 -34.07% Groundskeepirg 333.449 3D4,000 3W,700 345,00D 13.49% 355,000 2.90% Janitorial 447.591 tS2,100 452.500 462,5W 2.30% 492,50D 6.49% Outside Lab Services 140.660 132,000 129,500 150.5 14.02% 153.100 1,73% W Oxygen Plant Door 308.768 378,600 278.500 429,000 13.34% 442,000 3.03% County Service Fee 333,117 474,000 380.0W W7,000 -18,35% 394ADD 1.81% Temporsry Services 337.543 356.390 573.540 421.000 18,13% 412.800 4.95% Sam*Services 201,997 436.000 436,0110 479,6W 10.00% 479.600 0.00% V Other 1,155,694 1,882,000 1.381.500 1,608,2W -14.55% 1,466,91)) 41.85% u Section 5-Page 6 L. r Operations Summary r Proposed Budget Net Operating Expense by Line Item (Continued) r Budget Budget 200fi-07 Budget 2007-M 2008-09 Change 200E-1g Change Descriptlon Actual 2001-08 Projected proposed AeA% Proposed ABA% Pmleasonal Services r Legal 670,201 642,28D 466,940 683,900 6.48% 480,900 -29.68% Audit&Accounting 228,771 200,300 153.440 241,50D .7.22% 235,940 .2.30% Engineering 222,991 1,111,300 850,000 1,341,500 20.71% 922.000 31.27% Enviro Scientific Consul 232,480 192.000 75,DD0 155,ODO -19.27% 139.000 -10.32% r ERP Support 33.973 247,160 247,160 - rda - Na Sollware Pry.Consult 76.571 100,200 30,00D 361.500 260.78% 363,000 0.41% Advocacy Efforts 333.016 249,000 249,000 264,001) 6.02% 275,250 426% Industrial Hygiene Svcs 26,873 2D,000 2D,000 20,000 O.OD% 201DOO OAO% r Labor Negotiation Svc 3D9 20,000 - - n1a - We Other 542,551 880,600 69OA50 706,920 -20.54% 519,330 -26.54% Research&Monitored r Environmental Monitoring 624,180 757,30D 346,OOO 539,150 .28.81% 478,600 .11.23% Air Quality Monitoring 82,477 226,000 161.000 210,000 -7.08% 250,0D0 19.05% Research 719,751 589.440 50.440 677.260 14.90% 681,260 0.59% Repairs&Maintenance Materials&Services 6=.160 8,849,050 9,322,090 9,685,330 9.45% &375,360 -13.53% Service Maint.Agreements 1,340.022 1,484,69D 1,421,970 1,635.860 10.18% 1,717,170 4.97% bi INes ,r Telephone 2)7,632 218,5W 25700 267,000 22.20% 267.340 0.13% Diesel For Generators 23.022 16,640 18,OO1) ISSD0 11.18% 19,000 2.70% Natural Gas 1,346,817 1,279= 1,649,370 2,042,000 59.66% 2,042.000 0.00% Electricity, 5,293.057 7,016.600 5.089= 5,935,000 -15.41% 6,281,D00 5.49% r Water 1,2D1,734 1,352,520 1,389.300 1,456,870 7.72% 1,622,920 11.00% Other Operation Costs Outside Equip Rental 1.078 7280 - 300 -95.58% 30D DAD% Insurance Premiums 29,819 27.000 30,270 4&D00 6&67% 46.00D 2.22% In-Lieu Insurance Premium 1,466.800 1,998,210 1,998,200 912,100 54.35% 1,002,10D 18.64% Freight 114.377 111,210 116.910 121,D10 &81% 124,130 2.50% Misc.Operating Expense 78,364 102,880 84,040 108,600 5.58% 94,250 .13.21% Uncolleceble Accounts 8 6,000 - - We - his r Regulatory Operating Fees 396.756 518,000 432,400 445,200 -14.05% 471.500 5.91% Contingency - 738,500 - 413,ODO -44.08% 423.SDO 2.57% Prior year reappropriation - - - 413,ODO nla 423,600 2.57% r Other Interest Expense 3,06D 1,0DO 500 SDO -60.OD% SO 0.D0% Loss on Obsolete inventory 612 104,500 191,540 103,400 .1.05% 104,500 1.16% Other Nor-Oper Expense 28,719 42,510 36,810 45,350 6.66% 45,360 0.02% Capital Grans-Member Agencies 2,127,154 2,500,0O1) 2.403.260 3DD,DDO -08.00% 2,064,630 588.18% r Materials,Supplies,&Services 58,674,554 79.828.040 69,244,510 83,430,510 4.51% 55,560,530 2.55% Total Operating Requirements 130,249.277 159,752,600 148.689.940 167,274,590 4.71% 175568.740 4.96% Cost Allocation (16,101,402) (19.779,2I0) (17,742,100) (20,503,410) 3.66% (21,53D,710) 5.01% r Net Operating Requirements 114.147,875 139.973,400 130,947,840 146,771,180 4,86% 154,038.030 4,95% Net Operating Revenue (8,033,6801 (5,D99,000) (7,640,520) (7,836,000) 53.68% (8.122,000) 3.65% Net Operating Budget $ 106,114,215 $ 134,874.400 $ 123.307,320 $ 138,935,180 3.01% $ 145.916.030 5.02% r Cost to Collect Treat,& Dispose of l Million Gallons S 1,268.38 $ 1,478.08 $ 1.510.06 $ 1,654.98 $ 1.738.13 Flow,Million Gallons 83,661 91,250 81,334 83.950 83,950 r Flaw Per Day,MGD 229.21 250A0 222.83 230.00 230.00 r Section 5—Page 7 r 2008-09 & 2009-10 Budget L Proposed Budget Operating Revenue by Category Actual Budget Projected Proposed Proposed Description or Account Title 2006-07 2007-08 2007-08 2008-09 2009-10 v Inter District Sewer Use (SAWPA) $4,338,719 $3,100,000 $4,601,400 $4,470,000 $4,649,000 Wastehauler Disposal Fees 1,196,975 600,000 1.117.900 1,157,000 1,203,000 Sludge Disposal Fees 1,053,832 925,000 1.053,600 1,054,000 11096,000 w CNG Sales 343,420 300,000 537,100 440,000 458,000 Rents& Leases 34,171 34,000 33,900 34,000 7,000 16d General Non Operating Income 1,020,493 100,000 266,100 643,000 669,000 V Power Sales 46,050 40,000 30,520 38,000 40,000 Total $8,033.660 $5,099,000 $7,640,520 $7,836,000 $8,122,000 V V u tJ 6tl Section 5—Page 8 v Notes to Operations Summary NOTES TO THE FISCAL YEAR 2008.09 and 2009-10 OPERATIONS BUDGET Unemployment Insurance-The District Is on an actual claims paid basis,which has historically Salaries, Wages&Benefits resulted in an overall lower cost because of Salaries & Wages-The proposed budget is set favorable claims history. This appropriation is at 641.0 and 648.0 Full Time Equivalent(FTE) proposed at a level consistent with the prior year's positions for FY 2008-09 and 2009.10, actual costs. respectively. Provision has been made in these salary projections in order to comply with the Memberships—The District has memberships in terms of the most recently adopted MOU's. agencies such as Orange County Business Council, National Association of Clean Water(NACW), Retirement-The District's employees are California Association of Sanitation Agencies members of the Orange County Employees' (CASA), Southern California Association of Public Retirement System(OCERS). The employer's Owned Treatment Works(SCAP),and the Center required contribution rate has been increased for Demographic Research. from 20.06%to 21.34%. In addition,the District pays 3.5%on behalf of each employee. Administrative Expenses-These accounts include supplies, postage,technical journals and Group Insurance—This Includes the District's publications,forms, small office equipment,and share of employees' medical plans,dental small computer items. The small equipment and insurance plans,and life and disability insurance computer items cost less than $5,000 per item and premiums. This also includes the other post- exclude Items that are capitalized. employment benefits that the District is obligated ,r to pay for retirees. The FY 2008-09 budget Printing and Publication—The budget provides for Includes an estimated 10%increase for all plans in-house and outside reproduction costs and reflects except the dental plan which reflects no increase. an expanded management information system and The FY 2009-10 budget includes an estimated administrative requirements as well as a continuing "d 10%increase for all plans. demand by the public and regulatory agencies for information. This group of accounts also Includes Tuition B Certification Reimbursements—To costs for photo processing, advertisements,and ,., encourage the self-development and training of notices. employees, the District has a tuition and certification reimbursement program. This Training& Meetings-Expanding activities of appropriation is set at$200,000 each year. regulatory agencies have required increased Board member and staff travel in recent years. It Is Development Pay—To further promote expected that considerable travel will continue to be employee efforts that Increase job knowledge, required in connection with efforts related to the .. skills, and abilities,the District has established renewal of our NPDES permit. This category also this new benefit for employees obtaining includes ongoing technical training and materials for educational degrees and job-related staff; a program to provide supervisors with training certificates/licenses. The budget of$303,100 is to effectively manage their groups;training for based on estimated employee participation. computerized plant monitoring and control systems, Laboratory Information Management System (LIMS), Uniforms-This budget projection Is for uniforms Computerized Maintenance Management System W provided to field and lab employees in (CMMS), Enterprise Resource Planning (ERP), and accordance with employee MOU's. other"high tech"equipment,processes and systems; and training to allow for an adaptive and ,r Wwkers'Compensation—This item is used to flexible work force. The District continues to place maintain the level of accumulated reserves for an emphasis on safety, technical,and management workers'compensation self-insurance. The training. The training budget is approximately two amount recommended is$107,400 for FY 2008- percent of budgeted, regular salaries. 09 and$533,000 for FY 2009-10. The total estimated expenditures for the workers' compensation program are set forth in detail in ,r the Self-Insurance section. Section 5—Page 9 L,1 2008-09 & 2009-10 Budget u Operating Materials & Supplies Chemical Coagulants—Chemical coagulants Gasoline, Oil and Fuel-This group of accounts are used to enhance the primary treatment includes gasoline, oil,and diesel fuel required to process by increasing the solids removal operate stationary treatment plant equipment as efficiencies and are used to control hydrogen well as approximately 300 pieces of major mobile sulfide levels in the digester gas. equipment such as trucks,cranes,etc. Also included in this group of accounts is the cost for v Anionic polymer and cationic polymer usage is filling the compressed natural gas tanks. Much of estimated to Increase over FY 2008-09 due to the cost of the compressed natural gas is increased solids production and in order to recovered by selling the compressed natural gas enhance primary clarifier performance. Ferric to outside users. We are anticipating budget for chloride usage,however, is anticipated to this group of items to be essentially unchanged. — decrease. These estimated usage changes along with expected cost increases result in slightly Other Operating Supplies—This group of L. higher budget amounts for the next two years. accounts is for miscellaneous items such as scrubber acids, activated carbon,solvents, Odor Control Chemicals-The District uses cleaners, hardware,janitorial supplies,tools, L hydrogen peroxide and sodium hydroxide(caustic safety equipment, laboratory supplies,etc.,that soda)as the primary odor control chemicals are required to operate and maintain existing and within the treatment plants;hydrogen peroxide, expanding facilities. This group of accounts Is mudatic acid,magnesium hydroxide, and bleach expected to Increase by approximately$200,000 L are the primary odor control chemicals used in FY 2008-09 as a result of Increased staff, within the collection system. technology changes driving the purchase of new tools,and increased safety consciousness The FY 2008-09 budget for these chemicals is causing greater use of protective equipment Increased to$6.7 million primarily as a result of higher usage and unit cost for magnesium Contractual Services-The major component of hydroxide in the collection system trunklines as this category is biosolids removal and transport two additional treatment locations are planned. costs. Contracts have been executed with firms for The FY 2009-10 budgeted amount increases to agricultural reuse of residual solids. Since the $7.2 million mainly as a result of an anticipated closure of the Coyote Canyon Landfill in 1990, no L Increase in the unit cost of odor control chemicals. replacement site for sludge disposal has yet been approved within Orange County. A total of$24.2 Disinfection Chemicals—The disinfection million has been budgeted for solids and other waste process reduces the bacteria in the plant effluent removal and transportation in FY 2008-09 and$24.7 discharge by using bleach (12.5%hypochlorite million in FY 2009-10. solution). This is followed by dechlorination using sodium bisulfte to remove chlorine by-products. This category also includes appropriations for groundskeeping services,janitorial services, security Bleach and sodium bisulfite usage is expected to services,toxic removal services, outside laboratory increase in FY 2008-09,essentially due to a services,trash pickup, plant site sweeping, higher number of construction shutdowns. The temporary help to level out periodic increases in staff L construction shutdowns require an increase in the workload,a maintenance contract for the Plant 2 chlorine residual buffer capacity to reduce the oxygen generation plant, CCTV services, and line coliform spikes caused by interruptions In normal cleaning services. operations. This increase is more than offset by a decrease in the unit cost for bleach In FY 2008-09 Professional Services-Includes General Counsel, as compared to the anticipated unit cost for special labor counsel, audit and miscellaneous bleach at the time of the FY 2007-08 budget. accounting services, legislative advocacy, it Overall, disinfection chemical costs are budgeted engineering,and other technical consulting services. to decrease$1.9 million in FY 2008-09. While the disinfection chemical usage is estimated to Research and Monitoring—Overall this category of decrease somewhat in FY 2009-10, unit cost costs is expected to decrease approximately increases are expected to largely offset the $150,000 in FY 2008-09 and then remain stable the decreased usage. following fiscal year. The costs in this category Section 5—Page 10 v r Notes to Operations Summary r consist of contract services to carry out the extensive ocean monitoring program required by Other Materials, Supplies, and Services EPA Region IX under the provisions of the District's Insurance Premiums- Other than approximately NPDES permit; air quality monitoring costs; the $45.000 budgeted each year in the operating District's contribution to the Southern California section to insure the District's ocean vessel,the Coastal Water Research Project(SCCWRP)being cost for general liability and property Insurance conducted under a joint powers agreement with premiums is budgeted entirely within the Self- other Southern California municipal dischargers;and Insurance section, also provides for operational and ocean research ,r and evaluation to develop optimum operating In-Lieu Insurance Premium-This Rem is used to parameters in the treatment plants. maintain the level of accumulated reserves for property and general liability self-insurance. The Repairs and Maintenance-This item,which is for amount recommended is$912,000 for FY 2008.09 parts and services for repairing plant and collection and $1.082 million for FY 2009-10. The total facilities, reflects an authorization to allow for routine estimated expenditures for the insurance program equipment maintenance. Out-sourced annual are set forth in detail in the Self-Insurance section. service contracts and maintenance agreements are also included. Both FY 2008-09 and FY 2009-10 Capital Grants to Member Agencies—The include non-annual, routine maintenance casts payments to agencies in connection with the totaling $2.6 million and$0.8 million, respectively. Cooperative Projects Grant Program are expected r to total$300,000 in FY 2008-09 and$2.1 million in The FY 2008-09 non-annual,routine maintenance FY 2009-10. includes the Ocean Outfall Booster Station (DOSS) r discharge line repair budgeted at$400,000. In Other Operating&Non-Operating Expenses- addition$800.000 is budgeted for the overhaul of Expenses not chargeable elsewhere,such as two central generation system engines scheduled to freight and miscellaneous items,and annual be done in FY 2008-09. regulatory fees assessed by the SCAOMD,are recorded within these groups of accounts. Utilities—The cost for utilities is a significant component of the operating budget. The overall Cost Allocation—This represents direct labor and r cost for utilities is anticipated to decrease by benefit charge outs and materials,supplies and $200,000 over the FY 2007-08 budget and then to services cost allocation to the capital project where increase by$500,000 in FY 2009-10. the related work was performed. Natural Gas-Natural gas is purchased to Net Operating Requirements-This line Rem supplement the digester gas that Is used to run represents the net salary,wages, benefits, the central generation facilities. The FY 2008-09 materials,supplies, and services related to operating and 2009.10 budgets reflect essentially consistent costs for collection,treatment,and disposal levels of natural gas used,except for a small activities,after charge backs to CIP. increase at Plant 2,since central generation production has been reduced in order to meet Net Operating Revenue—This budget amount is new air emission limits. for revenues from the wastehauler disposal facilities at Plant No. 1,charges to other agencies, surplus Electricity-Electricity is the largest utility,cost power sales to Edison, sales of compressed natural incurred by the District and is used to run the gas, and other miscellaneous items. plant processes. The FY 200"9 proposed budget is decreased$1.1 million. The reduction Net Operating Budget-This line item represents is due to lower rate estimates for the plants as the Net Operating Requirements after reductions for previously anticipated rate increases did not revenues generated from the sale of by-products, occur. This reduction is tempered by a forecast charges to other agencies, and other miscellaneous increase in energy imports due to further operating revenues. r reductions in CenGen production and an increase in secondary treatment levels at Plant 2. The $326,000 increase in the FY 2009-10 proposed budget is due to anticipated rate Increases. r Section 5—Page 11 r it 1..1 2008-09 & 2009-10 Budget Listing of Proposed Purchases Over$100,000 Resolution 07-04,"Establishing Policies and Procedures For.The Award of Purchase Orders and Contracts; Public Works Project Contracts; Professional Services Contracts;and Delegation of Authority to Implement Said Policies and Ir Procedure,'was adopted by the Board on February 28,2007. Article IV,Section 4.03(B)of the Resolution provides that, "Purchases of supplies, materials,equipment or services, including Professional Service Consultants...as outlined in each Fiscal Years annual budget,to include capital equipment,shall be bid and awarded directly by the Contrects/Pumhasing Manager." The annual authorization amount for a multi-year contract is determined in the year the contract Is bid/let. t1 Therefore,the contract authorization amount Indicated herein is valid only when the contract is bid/let in FY 2008-09. Following are services or supply items identified in the budget process with a cost greater than$100,000. Staff requests the Board approve the purchase of these items and those listed in the Proposed CORP Equipment Detail listing,found in I„r Section 8—Page 120 through 121,without further Board action In accordance with the referenced policy. Contract Change Order Description of Services or Supplies Division Authorization Conungency(1) Chemical Cantrncte y Anionic polymers for solid&removal 420/820/830/640 It 324.000 0%(2) Cationic polymers for solids removal 4201820/8301840 2,233.000 0%(2) Fame chloride 4201820/830/840 3,614.300 0%(2) Caustic soda for disinfection and odor control 420/830/840 623.900 0%(2) Hydrogen peroxide for disinfection and odor control 830/840 1.630.000 0%(2) Ir Bleach for disinfection and odor control 830/840 7.001.900 0%(2) _ Magnesium hydroxide for odor control 420/8301840 1.926.820 0%(2) Famous chloride for odor control 420/8301840 2.128.000 0%(2) i Sodium bisulfite for dechlorination 830/840 427,000 0%(2) V Other Contreras Security services contract 153 479,600 10% Hazardous waste services 153 117.000 10% uniform contract 230 300.000 10% v Printshop managed service program 250 300,000 10% Local Sewer Line Cleaning 420 350,000 10% CCTV Services for sewers 420 300,000 10% Replacinghrusing manhole frames 8 covers 420 325.000 10% Easement/right-of-way maintenance 420 200.000 10% V Sewer repair/relining 420 100,D00 10% Sewer spot repair 420 100.000 10% Manhole stnrcturel repair and coating services 420 100.000 10% Dig Alen program contract 420 176,800 10% V Field Inspection of manholes services 420 110,000 10% Groundskeeping services contract 420/430 345,000 10% Custodial services contract 430 460.000 10% Process area preventive maintenancelpainting program 430 725,000 10% Gasoline and lubricants-cardlock fuel contract 430 235.000 10% 1.1 Compressed natural gas 430 230.000 10% CEGA compliance for Kem County litigation-court order 620 200.000 10% Soil dean-up for autoshop contamination 620 150.000 10% Air quality compliance testing 620 210,0D0 10% Air quality emissions and permit fees 620 215.000 10% NPDES permit fees 620 178.000 10% Outside laboratory services 630 112,000 10% Core OMP benthic Infauna taxonomy 630 175.000 10% Physical oceanographic data analysis 630 175,000 10% L Thomas Bros.map production(150) 740 110,000 10% Solids removal 830/840 19,890.000 10% Grit and screenings hauling and disposal 830/840 553.500 10% Natural gas 830/ 10/860 2,042.000 10% I.+ Oxygen plant services B40 429,000 10% Digester cleaning and disposal 850 3,600.000 10% _ P2 gas holder bladder replacement e50 250,000 10% Engine overhauls 850 800,000 10% Electric are gash study(OSHA requirement) 860 150.000 10% 6s GAP water 860 956.500 10% Total $55,058,320 Note 1: The change order contingency is for the lifetime of the contract and is based on she annual authorized amount In the year the contract is bidmet.(For example,a three-year contract which is authorized for an annual contract amount bal of$300,000 wish a 10%change order contingency must be Initially bitl8et for less than or equal to$300,000;over the life of the contract,the total change orders may not exceed 10%of$300,000,or$30,000.) Note 2: Once a chemical contract is bid/let.there is no Increase in unit cast allowed without Board approval. Section 5-Page 12 General Management Administration 110 BOARD OF DIRECTORS GENERAL MANAGER INTERN SECRETARY To (.5 THE GENERAL MANAGER MANAGEMENT DISCRETION (4) Staffing Trends 2008.09 8. 2009-10 Authorized FTE Positions Executive Manager 1.0 /6.5-6.5- 6.5 Supervisors/ Professionals 5.0 Intern 0.5 0 2 _ 2/ Total 6.5 —� I I 2005 2008 2007 2008 2009 2010 Section 6-Page 1 L 2008-09 & 2009-10 Budget u Service Description ' The mission of the General Manager's Office is to provide general oversight of the District's operations;set or approve standards, policies and procedures;and establish the overall goals and strategic plan of the District to meet the District's mission.The office reports directly to the Board of Directors. V 2007-08 Performance Objectives 2007.08 Performance Results i V • Ensure collection,treatment, and disposal cost ♦ Through 9 months the cost has been$1,397.00/mg. per million gallons does not exceed While expenditures are below budget,flows are also $1,478.081MG by the end of FY 2007-08. 11.27% below estimates. ♦ Ensure District does not exceed 634.0 FTEs by ♦ Actual FTE count of 597 as of March 31,2008. the end of FY 2007-08. V • Maintain 100%compliance with terms and • No violations. conditions of the permit. • Deliver 80%+of FY 2007-08 CIP budget. ♦ 83.72%of FY 2007-08 CIP budget estimated for L delivery. 2008.09&2009.10 Performance Objectives _ ♦ Ensure collection,treatment,and disposal cost per million gallons does not exceed $1,654.98 by end of fiscal year 2008-09 and $1,738.13IMG by and of fiscal year 2009-10. ♦ Ensure the District does not exceed 641.0 FTEs by the end of fiscal year 2008-09 and 648.0 FTEs by end of fiscal year 2009-10. ♦ Maintain 100%compliance with terms and conditions of the NPDES permit. W ♦ Deliver 80%+of each fiscal yeaes CIP budget. Performance Measures 6. Summary 2006-07 2007-08 2008-09 2009-10 Justification Actual Projected Proposed Proposed V • Cost per Million $1,268.36 $1,516.06 $1,654.98 $1,738.13 In-house standard Gallons y ♦ FTE Count 589 619 641 648 Budgeted Staffing Plan ♦ 100% Compliance 11/14/06 100% 100% 100% In-house standard L+ Chronic Toxicity L ♦ 80+%of CIP Budget 105.65% 83.72% 80%+ 80%+ In-house standard V Section 6- Page 2 I.+ r General Management Administration Budget Overview The FY 2008-09&2009-10 budgets for the General Manager's office reflect increases of 15%and 4%over the prior year, respectively. The FY 2008-09 change is primarily due to salaries budgeted for the 4 FTE Management Discretion posifions added in FY 2007-08. The other notable factor affecting the overall increase is the net result of decreasing the General Managers contingency to 0.5% percent of the District's overall non-salary related r 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 adjusted budget. r 2007-08 Adjusted Budget -Total Operating Requirements $ 1,785,560 Salaries for Position Changes: Transfer of Positions from/(to)Other Divisions - s New or(decreased)FTE - Changes in Personnel Expenses: Other net salary adjustments(Management Discretion positions funded) 230,500 Change in OCERS retirement costs 51.400 Change in group insurance costs 7,980 Other benefit cost adjustments 24,100 Other Cost Adjustments: Decrease in memberships (40,260) Decrease in meetings (17,500) Decrease in legal services (30,000) Decrease in other professional services (50,000) Increase in electricity costs of the administration building 5,000 Increase in General Managers contingency I reappropriations 87,500 r Aggregate change in Other Categories: Aggregate change in other materials,supplies, and services (920) 2008-09 Proposed Budget -Total Operating Requirements $ 2,053,360 Changes in Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs, vacancy, etc.) 30.300 r Change in OCERS retirement costs 7.600 Change in group insurance costs 2,680 Other benefit cost adjustments 1,400 Other Cost Adjustments: Increase in memberships 1,690 Increase in meetings 2,920 Increase in electricity costs of the administration building 7,000 Increase in General Manager's contingency! reappropriations 21,200 a+ Aggregate change in Other Categories: Aggregate change in other materials,supplies, and services 430 2009-10 Proposed Budget -Total Operating Re uirements $ 2,128,580 Section 6-Page 3 r 2008-09 & 2009-10 Budget a. 2007-08 Operating Expenses 2006-07 Revised 2007-08 200849 Budget 2009-10 Budget B Category Actual Bud et Projected Pro osed %Chance Pro osed %Chance Personnel $ 482,004 $ 561,600 $ 765,300 $ 875,580 55.91% $ 917.560 4,79% Supplies 173,350 250.000 196,300 191.110 (23.56%) 195780 2.44% prof essional&Contractual Services 89,652 100,000 10.000 20,000 (80.00%) 20,000 - Research 8 Monitoring - Repairs 8 Maintenance - - - - Utilities 112.953 120,000 121,000 125.000 4.17% 132,000 5.60% Other 10,912 753,960 15,000 841.670 11,63% 863.240 2,56% Total $ 86B,881 $1,785,560 $1.107,600 $2,053,360 15.00% $2,128,580 3.66% Expenditure Trends _ $1,785,560 $z.128s80 +. $2,053,360 $1.375229 s. $1,042,585 $868.881 r 2005 2006 2007 2008 2009 2010 +M Y 11 6r Section 6- Page 4 V Assistant General Manager Administration 150 GENERAL MANAGER E TLR LEGISLATIVE PRINCIPAL AFFAIRS LIAISON FINANCIAL ANALYST Staffing Trends 2008-09 & 2009-10 Authorized FTE Positions Executive Manager 1.0 Supervisors/Professionals 2.0 Total 3.0 2005 2006 2007 2008 2009 2010 Section 6-Page 5 r L 2008-09 & 2009-10 Budget w Service Description ' The Assistant General Managers Office provides general oversight to all District Operations and is responsible for interagency relations and communications, Legislative Affairs and the Strategic Plan. The Assistant General Managers Office directly oversees the Public Information Office and the Board Services and Safety and Health Divisions. y 2007-08 Performance Objectives 2007.08 Performance Results y ♦ Complete updated Strategic Plan by 12/31/07. • Strategic Plan approved by the Board 11/28107 ♦ Seek$100 Million authorization to relocate SARI ♦ $100 Million authorization obtained on FY2007-08 Line and a$6 Million appropriation for Secondary Treatment Upgrades. I�1 ♦ Update performance dashboard quarterly. ♦ Initial dashboard updated in April 2008. ♦ Present for Board approval the proposed ♦ In process; possible SAWPA Board vote last quarter L+ updated District agreements with SAWPA and FY2007-08 IRWD. i ' L 2008-09&2009-10 Performance Objectives ♦ Complete Strategic Plan update by 12/31/08 and 2009 'y • Obtain$4.5 million appropriation for relocation of SARI Line and Secondary Treatment • Update performance dashboard quarterly I"r • Present for Board approval the proposed updated District agreements with SAWPA and IRWD. Performance Measures ' Summary 2006-07 2007-08 2008-09 2009-10 Justification ~ Actual Projected Proposed Proposed - I ♦ Strategic Plan NA Complete Complete by Complete by In-House Standard v 11/28/07 12/31/08 12/31/09 _ ♦ Funding NA NA Determined Determined Federal Budget approved V by 12/31/08 by 12131/09 ♦ Dashboard NA By end of By end of By end of In-House Standard r each quarter each quarter each quarter W ♦ IRWD/SAWPA NA SAWPA IRWD NA In-House Standard I Complete Complete V Section 6- Page 6 -- V r Assistant General Manager Administration w Budget Overview The FY 2008-09&2009-10 budgets for the Assistant General Manager Administration Division reflect increases of 14%and 7%over the prior year, respectively. The FY 2008-09 change is primarily due to staff reallocations during FY 2007-08. r 2007-08 Adjusted Budget -Total Operating Requirements $ 797,000 Salaries for Position Changes: Transfer of Positions from/(to)Other Divisions - r New or(decreased) FTE - Changes In Personnel Expenses: Other net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 74,200 w Change in OCERS retirement costs 23,700 Change in group insurance costs 5,400 Other benefit cost adjustments (1,100) Other Cost Adjustments: Decrease in meetings (9,900) Increase in other professional services 25,000 r r r Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (3,580) •+ 2008-09 Proposed Budget -Total Operating Requirements $ 910,720 Changes in Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs, vacancy, etc.) 37,400 Change in OCERS retirement costs 9,300 Change in group insurance costs 3,600 Other benefit cost adjustments 2,000 r' Other Cost Adjustments: Increase in advocacy efforts 11,250 r r r Aggregate change in Other Categories: Aggregate change in other materials,supplies, and services 230 r 2009-10 Proposed Budget -Total Operating Requirements $ 974,500 r Section 6-Page 7 r r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006.07 Revised 2007-08 t1:212 Budget 2009-10 Budget B Category Actual Budget Projected %Change Proposed %Change ` Personnel S382,211 S 540,100 S 619200 18.92% $ 694,600 8.14% Supplies 17,134 26,900 14,020 (35.24%) 17,450 0,17% Professional&Contractual Services 14,343 225,000 275,317 11.11% 261,250 4.50% — Research&Monitoring Repairs&Maintenance Utilities Other 287 5,000 11,000 80A0°b 1,200 20IM, To $413,975 $ 797,000 $ 909,537 $ 910720 14.27% $ 974,500 Expenditure Trends $974,500 $797,000 $910,72C r t_ $413.975 A $0 $0 2005 2006 2007 2008 2009 2010 r Section 6 - Page 8 r Board Services r 151 r r ASSISTANT GENERAL MANAGER r r CLERK OF THE BOARD r ASSOCIATE RECORDS r OFFICE ADMINISTRATIVE CLERK OF THE ASSISTANT(2) MANAGEMENT ASSISTANT(.25) BOARD II SPECIALIST r r r r r r Staffing Trends 2008-09& 2009-10 Authorized FTE Positions Supervisors/Professionals 3.00 Administrative &Clerical 2.25 5,525_525_5.25 r Total 5.25 2005 2006 2001 2008 2009 2010 Section 6-Page 9 L 2008-09 & 2009-10 Budget ; Service Description The mission of the Board Services Division is to provide high levels of customer service through the Clerk of the Board's office,reception,meeting planning,audio visual and conference room setup,and records management. The Clerk of the Board's office supports the Board of Directors and the public by preparing and publishing agendas In accordance with legal requirements for meetings of the Board of Directors; recording the actions taken by the Board; publishing notices as required by law; acting as filing officer for Statement of Economic Interests filings; receiving and processing summons and complaints filed against the District; and, maintaining rosters of the Board of Directors and appointed committee assignments. Services include oversight, .. preservation and protection of the District's records for public, private and governmental use, Including coordinating and documenting all Public Records Act requests. L 2007.08 Performance Objectives 2007.08 Performance Results • Mail Board Agenda packages six calendar days prior to • Achieved 100%success rate. V Board meetings, 100%of the time, unless otherwise authorized by the General Manager. • Monitor and update annually the District Records Retention • Presented to the Boats In May 2008. L Schedule and Policy and Procedures to reflect any changes In laws, operations, and District structure.To be presented for Board approval annually,through adoption of a resolution. y • Coordinate quarterly District-wide disposal of retention • Quarterly purges of paper and electronic expired records. documents, including onsite shredding of confidential documents. Lr • Provide Public Records Act(PRA)response coordination to • 100%response compliance rate; 98% ensure compliance with CPRA,Government Code 6250. processed within 10 days. V 2008-09&2009-10 Performance Objectives • Mail Board Agenda packages six calendar days prior to Board meetings, 100%of the time, unless otherwise authorized by the General Manager. ♦ Ensure oompllance and operational effectiveness by revising the records retention policy and schedule annually. ♦ Conduct quarterly District-wide disposal of expired records per records retention policy. 6d ♦ Comply with CPRA, GC 6250,on response to requests for public records within 10 days, unless extension is _ deemed appropriate by legal review. lr Performance Measures . Summary 2006-07 2007.08 2008-09 2009-10 Justification y Actual Projected Proposed Proposed • Board Agenda Package 100%-6 100%-6 100%-6 100% -6 In-house Standard 6w days days days days ♦ Retention Schedule and 5I2007 512008 512009 5/2010 In-house Standard — Policy and Procedures Resolution Resolution Resolution Resolution ♦ Coordinate quarterly 10106;4107 10/07; 7/08; 7/09; In-house Standard disposal of retention 1/08;4/08 10/00; 10/09; expired records 1/09;4/09 1/10;4/10 ♦ Provide Public Records 98%;93% 100%;98% 100%;98% 100%;98°k CPRA Regulations Act response coordination within 10 within 10 within 10 within 10 Government Code to ensure compliance with days days days days 6250 -- CPRA, GC 6250 i.• Section 6-Page 10 r Board Services r Budget Overview The FY 2008-09&2009-10 budgets for the Board Services Division reflect changes of(22%)and 6%over the prior year,respectively. The decrease is mainly due to staff reallocations during FY 2007-08. The other significant factor affecting the overall decrease is the transfer of postage costs to the Information Technology Division. r 2007-08 Adjusted Budget -Total Operating Requirements $ 837,290 Salaries for Position Changes: r Transfer of Positions fromt(to)Other Divisions New or(decreased) FTE r. Changes in Personnel Expenses: Other net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) (61,100) Change in OCERS retirement costs (8,400) Change in group insurance costs (2,000) d+ Other benefit cost adjustments (2,100) Other Cost Adjustments: Decrease in postage(costs transferred to Division 250) (51,700) r Decrease in legal services (45,000) Decrease in other professional services (19,500) .r Aggregate change in Other Categories: r Aggregate change in other materials,supplies,and services 1,760 2008-09 Proposed Budget -Total Operating Requirements $ 649,250 r Changes in Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs, vacancy,etc.) 19,700 Change in OCERS retirement costs 4,900 Change in group insurance costs 5,600 r Other benefit cost adjustments 2,000 Other Cost Adjustments: Increase in meetings 4,550 r r r Aggregate change in Other Categories: r Aggregate change in other materials,supplies,and services 270 2009-10 Proposed Budget -Total Operating Requirements $ 686,270 Section 6-Page 11 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007.08 2008-09 Budget 2009-10 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $492,217 $ 617,400 $ 524,300 $ 543,800 (11.92%) $ 576,000 5.92% Supplies 63,917 87.740 66,650 36,100 (58.86%) 40,700 12,74°% Professional&Contractual Services 113,223 131,000 124,500 67,200 (48.70%) 67,400 0.30% Research&Monitoring - - - Repairs&Maintenance 630 400 1,150 1,580 295,00% 1,600 1.27% Utilities - - - .. Other i 30 750 570 570 24.00% 570 Total S670,017 $ 837,290 $ 717,170 $ 649,250 22.46% $ 686,270 5.70% Expenditure Trends $837,290 $623.59 1 $605 $670 017 $686,275 $649,250 a 2005 2006 2007 2008 2009 2010 Section 6- Page 12 Public Information Office r 152 r ASSISTANT GENERAL r MANAGER r PUBLIC r INFORMATION MANAGER PRINCIPAL SENIOR PUBLIC PUBLIC INFORMATION INFORMATION SPECIALIST(2) SPECIALIST r ADMINISTRATIVE PUBLIC ., ASSISTANT INFORMATION SPECIALIST(2) r r r r Staffing Trends 2008.09 & 2009-10 Authorized FTE Positions Manager 1.0 Supervisors I Professionals 5.0 Administrative & Clerical 1.0 9�7.5� r Total 7_0 I I I I r 2006 2006 2007 2008 2009 2070 Section 6-Page 13 V 2008-09 & 2009-10 Budget - 'u Service Description The Public Information Office provides services and implements programs to meet the communications needs of both internal and external audiences for the Orange County Sanitation District. The seven-person division plans and Implements media relations,Web site content,community relations, construction outreach,community education and outreach, employee newsletter, intranet development,corporate identity program,collateral - material and graphics development, presentation development,and crisis communications. The goal is to create a total communications program that promotes clear and transparent communications with all designated audiences and to promote the understanding of OCSD's mission to protect the environment. 2007-08 Performance Objectives 2007-08 Performance Results Ni • Provide services and Implement ♦ Produced and circulated a monthly employee newsletter. programs that meet the communications ♦ Managed content and further development of employee needs of OCSD's internal audiences. intranet site. u • Coordinated"Bring a Kid to Work Day"event ♦ Assisted engineering with contractor outreach activities. • Assisted staff in developing communications plans for .. Pharmaceuticals Program, Fats, Oils,and Grease Program, and Biosolids Program. ♦ Worked with OCWD to continue public outreach efforts and celebrate the commissioning of the GWRS Project. �+ ♦ Provide services and implement • Designed agency website OCSD.com for greater efficiencies programs that meet the communications • Mailed two community newsletters to 18,000 residents and needs of OCSD's external audiences. business in the vicinity of Plants 1 &2. V • Increased public awareness by conducting more than 70 tours ♦ Taught three classes of sewer Science at local high schools. y ♦ Managed communications for more than a dozen construction projects. ♦ Enhanced public outreach by expanding audiences to include service groups and community Influencers. r ♦ Responded promptly to media requests. • Support General Manager activities and ♦ Conducted Board Orientation. provide Information on current issues to ♦ Developed Director website. v Board of Directors. ♦ Assisted In developing communications for Board of directors. Lr 2008-09&2009-10 Performance Objectives ♦ Provide services and implement programs that meet the communications needs of OCSD's internal de audiences. ♦ Provide services and implement programs that meet the communications needs of OCSD's external audiences. ♦ Support General Manager activities and provide information on current issues to Board of Directors. u Performance Measures Summary 2006-07 2007.08 2008.09 2009-10 Justification Actual Projected Proposed Proposed ♦ Internal Services& Programs 95% 95% 95% 95% In-house standard 6. ♦ External Services& Programs 95% 95% 95% 95% In-house standard ♦ Board of Directors&GM 95% 95% 95% 95°/a In-house standard V Section 6-Page 14 - Public Information Office r Budget Overview The FY 2008-09&2009-10 budgets for the Public Information Office Division reflect an increase of 6%and 2% from the prior year, respectively. The increase is mainly due to anticipated salary and benefits adjustments. .. 2007.08 Adjusted Budget -Total Operating Requirements $ 959,390 Salaries for Position Changes: Transfer of Positions froml(to)Other Divisions - �! New or(decreased) FTE - Changes in Personnel Expenses: Other net salary adjustments(MOU-related,leave payoffs,vacancy,etc.) 41,500 �+ Change in OCERS retirement costs 18,000 Change in group insurance costs 10,500 Other benefit cost adjustments (400) Other Cost Adjustments: Increase In memberships 2,850 Decrease in postage (costs transferred to Division 250) (15,000) Decrease in outside printing services (12,000) Increase In photo processing services 2,000 Increase in meetings 3,150 Decrease in temporary services (3,500) Decrease in legal services (7,500) Increase in other professional services 8,500 Increase In miscellaneous operating expense 14,930 Aggregate change In Other Categories: Aggregate change in other materials,supplies,and services (1,460) 2008-09 Proposed Budget -Total Operating Requirements $ 1,020,960 Changes in Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs,vacancy,etc.) 43,000 Change in OCERS retirement costs 10.600 Change in group insurance costs 7.900 Other benefit cost adjustments 4,600 r Other Cost Adjustments: Decrease in other professional services (30,000) Decrease in miscellaneous operating expense (15,700) r r Aggregate change In Other Categories: Aggregate change in other materials,supplies,and services (2,400) 2009-10 Proposed Budget -Total Operating Re uirements $ 1,038,960 r Section 6-Page 15 r r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006.07 Revised 2007-08 2008-09 Budget 2009.10 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $781,961 $ 808,800 $ 850,800 $ 878,400 8.61% $ 944,500 7,53% Supplies 42,287 81,120 47,690 65,860 (18,81%) 63,460 (3.64%) Professional&Contractual Services 21,872 42,500 27,000 40,000 (5.88%) 10,000 (75.00%) Research&Monitoring Repairs&Maintenance 100 (100.00%) - Utilities 10ther 13,952 26,870 21,770 36,700 36.58% 21,000 42.78% Total 5860,072 S 959,390 S 947,260 $1,020.960 6.42% 51,038,960 Expenditure Trends r $910,638 $1,020,960 $1,038,960 r $0ti0 oi: $628,430 7 r 2005 2006 2002 2008 2009 2010 Section 6- Page 16 r r Safety & Health r 153 ASSISTANT r GENERAL MANAGER SAFETY& HEALTH r MANAGER SAFETY& HEALTH SUPERVISOR r r SECURITY& SAFETY& ALTH EMERGENCY REPRESENHETATIVE PLANNING (2) r SPECIALIST r HUMAN SAFETY& HEALTH RESOURCES SPECIALIST(2) ASSISTANT r r r Staffing Trends 2008-09&2009-10 Authorized FTE Positions Manager 1.0 r Supervisors I Professionals 6.0 Administrative & Clerical 1.0 7 8 -8 -8.5-88 r Total g_g I I I I I i 2005 2006 2007 2008 2009 2010 Section 6—Page 17 r 2008-09 & 2009-10 Budget u Service Description We enable OCSD to meet Its purpose by Improving and reinforcing a workplace safety culture, and providing guidance on safe and healthful work practices. r 2007-08 Performance Objectives 2007-08 Performance Results u • Total Injury Incident Rate of 3.40 with a vision of • Total Injury Incident Rate of 7.0 for calendar year 0.0 2007. • Recruit Active Safety and Health Program ♦ Achieved 11% involvement rate involvement by 15%of OCSD employees �+ • Develop and Implement a Safety Management • Deferred pending completion of divisional strategic Performance System to track manager's safely plan - performance ♦ Compare Safety and Health compliance training ♦ Conducted 87 classes resulting in 2,414 hours of conducted to Safety and Health compliance training training required. • Conduct six emergency drills to exercise the • Three(3)EOC activations and Two(2) IERP drill Integrated Emergency Response Plan conducted for 2007/2008 period • Develop security pollcles and procedures based on ♦ Plan has been developed but needs EMT and the security program assessment Board approval. y 2008-09&2009.10 Performance Objectives ♦ Implement Strategic Plans developed for the Safety Division with measurable objectives. 6d ♦ Complete Security Capital Improvement Projects by 2009 Calendar year. • Develop a Hazardous Waste Dashboard measurement to monitor the Hazardous Waste for Plant 1 and Plant 2. y • Implement a behavior based safety program to improve the safety culture for the District. • Actively champion the Owner Controlled Insurance Program (OCIP)to gain a 1% return on Capital -- Improvement Projects. ♦ Conduct two plant wide emergency evacuation drills per year for Plant 1 and 2. Performance Measures V Summary 2008-07 2007.08 2008-09 2009-10 Justification Actual Projected Proposed Proposed I ♦ Total Injury Incident Rate 4.1 7.0 5.2 5.2 OCSD Goal v ♦ Emergency Drills 4 4 2 2 Cal-OSHA Requirement • Manager Safety Deferred pending completion of Best Management Practice in Performance Program divisional strategic plan accordance with the concepts w of a Safety and Health Management System. - - ♦ Recruit Active Safety 11% 11% 15% 15% Best Management Practice in Program Involvement accordance with the concepts v of a Safety and Health _ Management System. • Compliance Training 66% 48% 100% 100% Best Management Practice in u Compliance accordance with the concepts of a Safety and Health Management System. ♦ Security Program 80% 80% 100% 100% Best Management Practice V v Section 6-Page 18 - V r Safety & Health Budget Overview r The FY 2008-09&2009-10 budgets for the Safety& Health Division reflect a decrease of 2%and an increase of 4%from the prior year, respectively. The decrease is primarily the result of reductions in costs for training and other professional services. r 2007.08 Adjusted Budget -Total Operating Requirements $ 2,161,130 Salaries for Position Changes: r Transfer of Positions from/(to)Other Divisions (12,400) New or(decreased)FTE _ Changes in Personnel Expenses: Other net salary adjustments (MOU-related, leave payoffs,vacancy, etc.) 49,200 Change in OCERS retirement costs 22,200 Change in group insurance costs 10,800 r Other benefit cost adjustments 18,500 Other Cost Adjustments: Increase in memberships 1,180 r Decrease in training (55,0(0) Decrease in other professional services (85,000) r r Aggregate change in Other Categories: Aggregate change in other materials, supplies,and services 81300 r 2008-09 Proposed Budget -Total Operating Requirements $ 2,118,910 Changes In Personnel Expenses: r Net salary adjustments(MOU-related, leave payoffs, vacancy, etc.) 61,900 Change in OCERS retirement costs 15,400 Change in group insurance costs 9,000 r Other benefit cost adjustments 5,300 Other Cost Adjustments: Increase in memberships 940 r r Aggregate change in Other Categories: Aggregate change in other materials, supplies,and services - 2009-10 Proposed Budget -Total Operating Requirements $ 2,211,450 r Section 6—Page 19 r r 2008-09 & 2009-10 Budget r 2007.08 Operating Expenses 2006-07 Revised 2007-08 2008-09 Budget 2009.10 Budget r By Category Actual Budget Projected Pm posed %Change Proposed %Change Personnel $ 824,466 $ 980,700 S 820,100 $1,069,000 9.00% $1.160,600 8.57% Supplies 153,306 395,180 326,400 355,310 (10.09%) 356,250 0.26% Professional&Contractual Services 371,779 760.900 699,820 672,900 (11.57%) 672,900 r Research&Monitoring - Repairs&Maintenance 1,944 5,000 1,900 2,000 (60,00%) 2,000 Utilities - - - - r Other, 12,883 19,350 12,700 19,700 1.81% 19,700 Total 51,364,378 $2.161,130 S1,860,920 S2,118.910 1.95% $2,211,450 4.37% Expenditure Trends $2,161,130 $2211.450 $2.118,910 w $1.460.610 $1.355.404 $1,364,378 2005 2006 2007 2008 2009 2010 Section 6 - Page 20 r Administrative Services Administration 210 r GENERAL MANAGER r DIRECTOR OF r FINANCE & ADMINISTRATIVE SERVICES r r EXECUTIVE ASSISTANT r r r r r r r Staffing Trends 2008-09&2009-10 Authorized FTE Positions Executive Manager 1.0 Administrative/Clerical 1.0 r 2 2-2 - 2 -2 - 2 Total 2.0 Sri r 2005 2006 2001 2008 2008 2010 Section 6-Page 21 6W 2008-09 & 2009-10 Budget Service Description The mission of the Administrative Services Administration Division is to oversee the functions of the Financial Management, Contracts, Purchasing,8 Materials Management, Human Resources,and Information Technology r Divisions. This oversight includes both day-today operations and strategic planning. The Office is the departmental liaison with Executive Management,the Administration Committee,the Board of Directors,and other departments of the District V 2007-08 Performance Measures 2007-08 Performance Results ♦ Achieve rate of return on the Liquid Operating ♦ As of April 2008.the Liquid Operating Portfolio out- y Portfolio comparable to 90-day Treasury Bill rate. performed the 90-day T-Bill rate by 52 basis points. • Achieve rate of return on the Long Term Operating • As of April 2008,the Long Term Operating Portfolio Portfolio comparable to Merrill Lynch 1-5 year outperformed the index by 63 basis points for the Corporate/Government Bond Index. year to date. ♦ Achieve average Interest rates paid on variable rate ♦ The average Interest rate paid on the COP debt COPS comparable to Variable Rate COP Composite program was 3.13 percent compared to the 3.09 Index. percent paid by the composite Index for the last 12 consecutive months through March 2008. • Achieve General Liability insurance premium cost, ♦ The ratio of General Liability insurance premium V as a percentage of operating budget,comparable to cost to the total operating budget was 0.28 percent the index contained in most recent Cost of Risk for FY 2007-08 in comparison to the index of 0.60 Evaluation survey published by PRIMA. percent. • Achieve Worker's Compensation Insurance ♦ The ratio of Worker's Compensation insurance premium cost, as a percentage of payroll, premium cost to total budgeted payroll cost of 0.29 comparable to index contained in most recent Cost percent for FY 2007-08 was lower than the index of I of Risk Evaluation survey published by PRIMA. 1.49 percent, y 2008.09&2009-10 Performance Objectives • Submittal of annual sewer service fees(SSF)within property parcel database to the County by August toe. • All Treasury Investments will be in compliance with the State Government Code 100%of the time. • Sustain succession management and leadership academy programs through June 2010. ♦ Recommendations for Reinvention of Stalling Program by March 2009. y • Coordinate and uphold solicitation schedules in support of planned projects and emergency procurements. ♦ Implement Enterprise Content Management System by 2009-10. Performance Measures Summary 2006.07 2007-08 2008.09 2009.10 Justification Actual Projected Proposed Proposed • Timely Submittal of annual SSF Yes Yes August 2009 August 2010 In-house standard ♦ Investment Compliance Yes Yes Expected Expected In-house standard W • Sustain Succession Management N/A Yes Expected Expected In-house standard ♦ Reinvention of Staffing Program N/A N/A Expected Expected In-house standard • Implement Enterprise Content N/A N/A NIA Expected In-house standard Management System u y Section 6-Page 22 u r Administrative Services Administration r Budget Overview r The FY 2008-09 8 2009-10 budgets for the Administrative Services Administration Division reflect an increase of 16%and 7%over the prior year,respectively. The increases are a result of anticipated annual salary and benefit adjustments. r 2007-08 Adjusted Budget-Total Operating Requirements $ 380,850 Salaries for Position Changes Transfer of Positions fromi(to)Other Divisions - r New or(decreased)FTE - Changes In Personnel Expenses Other net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 33,300 Change in OCERS retirement costs 12,000 Change in group insurance costs 3,100 Other benefit cost adjustments 12,300 Other Cost Adjustments Decrease in legal services (1,000) r r w Aggregate change In Other Categories Aggregate change in other materials, supplies, and services (340) 2008-09 Proposed Budget-Total Operating Requirements $ 440,210 r Changes In Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 22.400 Change In OCERS retirement costs 5,500 r Change in group insurance costs 2,500 Other benefit cost adjustments 1.400 Other Cost Adjustments: r r Aggregate change in Other Categories r No other cost changes - 2009-10 Proposed Budget-Total Operating Requirements $ 472,010 Section 6-Page 23 r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007-08 2008.09 Budget 2009.10 Budget B Category Actual Budget Projected Proposed %Change Pro osed %Chance — Personnel $382,191 $ 366,100 $ 410,900 $ 426.800 16.58% $ 458,600 7,45% Supplies 3,075 2,650 2,210 2,360 (10.94%) 2,360 Professional B Contractual Services 9,437 12,000 10,200 11,000 (8.33%) 11,000 -„ Research 8 Monitoring - Repairs 8 Maintenance - - - Utilities - - Other 88 100 50 50 50,00% 50 ` Total $394,791 $ 3B0,850 $ 423,360 $ 440,210 15.59% $ 472,010 7.22% r Expenditure Trends — $472,010 $371264 $440.210 �— S394.7P $350,664 r 2005 2006 2007 200.4 2000 2010 Section 6- Page 24 r r Financial Management r 220 r DIRECTOR OF FINANCE& ADMINISTRATIVE SERVICES r CONTROLLER `+ PRINCIPAL PRINCIPAL ACCOUNTING ACCOUNTING ACCOUNTING ACCOUNTANT- FINANCIAL SUPERVISOR- MANAGER- MANAGER. DebtANALYST-Risk Revenue Operations Financial r Management Management Plannin a rtin r SENIOR STAFF PRINCIPAL PRINCIPAL ANALYST- FINANCIAL gCCOUNTANT- Sewer Service ANALYST- General Ledger& Fee Program Construction Budget r Accounting ACCOUNTING gCCOUNTANT- PRINCIPAL ,r ASSISTANT II- ConstrACCOUNTANT- Sevver Service Accounting Payroll Fee Program Accountlng r ACCOUNTING ACMUNTIN PAYROLL ASSISTANT II- ASSTECHNICIAN(2)Accounts -PaymllReceivable& Permg Program r r Staffing Trends 2008-09 &2009-10 Authorized FTE Positions r Manager 3.0 Supervisors/ Professionals 8.0 2020�_ig�18-18 18 Administrative& Clerical 7.0 r r Total 18.0 2005 2006 2007 2008 2009 2010 Section 6- Page 25 V 2008-09 & 2009-10 Budget V Service Description The mission of the Financial Management Division is to maintain financial oversight and administration of all District funds and accounts. The Financial Management Division is responsible for administering the treasury management, debt financing,and risk management programs, the processing of cash receipts, accounts payable, accounts receivable, user fees, and payroll,accounting for fixed assets,and coordinating the capital and operating budget process throughout the District. The annual audit required by law and all financial reporting required of special districts by the State of California is coordinated and administered through this division. 2007-08 Performance Measures 2007-08 Performance Results V ♦ Issue monthly financial reports within 10 working ♦ Through April, monthly reports were distributed days of the following month for 92 percent of the within 10 working days of the following month 100 year. percent of the time. ♦ No more than 30 invoices for payment shall be ♦ No more than 30 invoices for payment were L� outstanding longer than 30 days during the outstanding longer than 30 days during the completion of any one accounts payable cycle 90 completion of any one accounts payable cycle percent of the time. 100 percent of the time. ♦ All sewer service fee refund requests will be ♦ All sewer service fee refund requests were processed within 45 days 90 percent of the time. processed within 45 days 100 percent of the time. • Payroll processing will be completed on time 100 ♦ Payroll was processed with an error-free rate of percent of the time and error free >99.5 percent of 99,99%on a bi-weekly and interim basis. the time. • All debt service payments will be paid ♦ All debt service payments were paid electronically, on the actual due dates,and error electronically,on the actual due dates, and error i. free 100 percent of the time. free 100 percent of the time. ♦ All treasury investments will be in compliance with • All treasury investments were in compliance with the California State Government Code 100%of the the California State Government Code 100%of time. the time. 2008.09&2009-10 Performance Objectives ♦ Issue monthly financial reports within 10 working days of the following month for 92 percent of the year. ♦ No more than 30 invoices for payment shall be outstanding longer than 30 days during the completion of any one amounts payable cycle 90 percent of the time. ♦ All sewer service fee refund requests will be processed within 45 days 90 percent of the time. tr ♦ Payroll processing will be completed on time 100 percent of the time and error free>99.5 percent of the time. ♦ All debt service payments will be paid electronically,on the actual due dales, and error free 100 percent of V the time. • All treasury investments will be In compliance with the California State Government Code 100%of the time. V Performance Measures Summary 2006-07 2007-08 2008-09 2009-10 Justification Actual Projected Proposed Proposed y ♦ Financial reports issuance standard 92% 100% 92% 92% In-house standard ♦ Accounts payable standard 100% 100% 90% 90% In-house standard ♦ Sewer ServiceRefund Standard 100% 100% 90% 90% In-house standard ♦ Payroll Error Free Standard 99.8% 99.7% 99.50/6 99.5% In-house standard ♦ Debt Service Payment Standard 100% 100% 100% 100% In-house standard ♦ Treasury Investment Standard 100% 100% 100% 100% In-house standard it u Section 6-Page 26 Ld r Financial Management r Budget Overview ,r The FY 2008-09&2009-10 budgets for the Financial Management Division reflect a decrease of 27%and an Increase of 9%over the prior year, respectively. The decrease is primarily due to a decline in the estimate to be paid to the self-Insurance fund for property and general liability Insurance activities. Additionally, postage and printing costs decrease after preparation and mailing of proposition 218 notices In FY 2007-08. The Increase in r FY 2009.10 is primarily due to a higher estimate to be paid to the self-Insurance fund for property and general liability insurance in order to maintain the reserve levels. 2007-08 Adjusted Budget -Total Operating Requirements $ 5,342,160 Salaries for Position Changes: Transfer of Positions from/(to)Other Divisions - New or(decreased) FTE Changes in Personnel Expenses: Other net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 1,400 Change In OCERS retirement costs 21,800 ` Change in group insurance costs 17,000 Other benefit cost adjustments 29,500 Other Cost Adjustments: Decrease in postage (228,050) Decrease in outside printing (60,900) Decrease in county service fee (87,000) Decrease in temporary services (10,000) Decrease in other professional services (57,380) Decrease In property/general liability Insurance in-lieu premium (1,086,100) r Aggregate change in Other Categories: r, Aggregate change in other materials, supplies,and services (7,980) 2008-09 Proposed Budget -Total Operating Requirements $ 3,874,450 Changes in Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs,vacancy, etc.) 100,900 Change in OCERS retirement costs 25,000 Change in group Insurance costs 19,700 `+ Other benefit cost adjustments 11.900 Other Coat Adjustments: Increase in county service fee 7,000 r Decrease In other contractual services (2,550) Increase in other professional services 12,410 Increase in property/general liability insurance in-lieu premium 170,000 r r Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 5.750 2009-10 Proposed Budget -Total Operating Requirements $ 4,224,560 Section 6 - Page 27 if 2008-09 & 2009-10 Budget 2007.08 Operating Expenses 2006-07 Revised 2007-08 2008-09 Budget 2009-10 Budget r By Category Actual Budget Projected Proposed %Change Pro osed %Chance Personnel $2,032,359 $2,256,600 $2,141,600 $2,326,300 3.09% $2,483,800 6.77°% Supplies 32,651 326,060 289,060 33,830 (89,62%) 34,040 0.62% Professional B Contractual Services 526,313 751,400 656,690 599,770 (20.16%) 622,070 3.72% r Research 8 Monitoring - Repairs 8 Maintenance 2,076 2,550 850 900 (64.71%) 950 5.56% Utilities - - - r Other 1,470,721 2,005,550 1,999,600 913,650 1 11 1,083,700 Total $4,064,120 S5,342,160 $5,087,800 $3.874,450 27.47% $4,224,560 9.04% Expenditure Trends S5,342,160 S4,624,171 r Z S4,224,5 $4.064,120 $3,074,450 60 r $2,009.946 r 2005 2006 2007 2008 2009 2020 r r Section 6- Page 28 r Contracts, Purchasing, & Materials Management 230 r DIRECTOR OF FINANCE S ADMINISTRATIVE SERVICES r CONTRACTS, '� PURCHASING,AND MATERIALS MGMT. MANAGER r r CONTRACTS PURCHASING MATERIALS ATE IAL SUPERVISOR SUPERVISOR SROL UPERVISOR r PRINCIPAL ADMINISTRATIVE ADMINISTRATIVE SENK)R LEAD SENIOR ADMINISTRATOR ASSISTANT ASSISTANT ACONTRACTS D�MINI RAATOR STORESKEEPER STORESKEEPER ,r (2) (2) (3) (S) (31 13) SENIOR CONTRACTS CONTRACTS ADMINISTRATOR SENIOR BUYER BUYER STORESKEEPER �+ ADMINISTRATOR (2) (2) (2) (2) (4) r r r Staffing Trends r 2008.09 & 2009-10 Authorized FTE Positions Manager 1.0 2T5 29.5�1-5�39.5 29.5 Supervisors/Professionals 15.5 22.5/ Administrative &Clerical 13.0 r Total 29.5 2005 2006 2007 2008 2009 2010 r Section 6- Page 29 Ir 2008-09 & 2009-10 Budget Service Description The Contracts, Purchasing and Material Management Division's goal is to provide equipment, services and Information with the commitment to achieving the highest ethical,economic,and progressive contracts and r purchasing standards possible. The division is responsible for contract administration and procurement for all District's departments utilizing request for quotations, request for proposals,open blanket orders, lease agreements, and oversees the sale of surplus equipment. The District's warehouses receive, Inventory,and distribute supplies, materials,and equipment to all departments in addition to Inventory control and analysis and surplus disposition management. 2007.08 Performance Objectives 2007-08 Performance Results ♦ Continue the cycle count program and maintain a ♦ 97%accuracy rate achieved by the end of the 97%accuracy rate or better fiscal year. ♦ Successfully search, edit, and Incorporate 500+ ♦ Specification entries reached 275. new technical or professional services L, specifications Into OCSD's specification library. • Obtain the 2006&2007 'Achievement of ♦ 2007 AEP award received. Excellence in Procurement"(AEP)award by meeting all national requirements .. ♦ Materials reorganization at Plants 1 &2 to ♦ Reorganization completed at both plants. Improve customer service levels and Inventory accuracy ♦ Develop a new contracts filing system ♦ New system completed by expansion into Incorporating all CIP contracts specimens and mezzanine area. locate In a new area. V 2008-09&2009.10 Performance Objectives ♦ Continue the cycle count program and maintain a 97%accuracy rate or better. ♦ Obtain the 2008&2009"Achievement of Excellence In Procurement"(AEP)award by meeting all National requirements. ♦ Research E-Procurement systems and complete a successful implementation by end of fiscal 2008. ♦ Successfully develop a PDSA(Professional Design Service Agreement)Contracts Program by end of fiscal 2009. • Successfully revise Delegation of Authority 07-04 and have approved by all Committees and Board by end of fiscal 2009. Performance Measures Summary 2006.07 2007-08 2008-09 2009.10 Justification Actual Projected Proposed Proposed y ♦ Cycle Count 97% 97% 97% 97% APICS standard ♦ AEP Award Obtained Obtained Obtain Obtain NPI, NAPM,NIGP, &CAPPO standards. • E-Procurement N/A NIA Complete N/A Internal need to Increase system productivity. ♦ PDSA Program N/A N/A Preliminary Complete Final phase of Contracts Research program. • New DOA NIA NIA Preliminary Complete Inconsistencies in DOA Research necessitate revision. r Section 6-Page 30 v Contracts, Purchasing, & Materials Management Budget Overview s. The FY 2008-09&2009-10 budgets for the Contracts, Purchasing, R Materials Management Division reflect a decrease of 4% and an increase of 7%over the prior year,respectively. These changes are primarily due to decreased staffing costs as a result of reallocating two positions from contracts administration to other �+ departments. 2007-08 Adjusted Budget -Total Operating Requirements $ 3,751,150 Salaries for Position Changes: Transfer of Positions fromi(to)Other Divisions (158,400) r New or(decreased) FTE - Changes in Personnel Expenses: Other net salary adjustments(MOU-related,leave payoffs,vacancy,etc.) 73,200 r Change in OCERS retirement costs 7,800 Change in group insurance costs 14,600 Other benefit cost adjustments (9,500) Other Cost Adjustments: r Decrease in minor furniture and fixtures (12,000) Decrease in in-house reproduction services (4,000) Decrease in meetings (4,000) ,r Decrease in temporary services (25,000) Decrease in legal services (11,000) r Aggregate change In Other Categories: Aggregate change in other materials,supplies,and services (6,260) 2008-09 Proposed Budget -Total Operating Requirements $ 3,616,590 h1" Changes in Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs, vacancy,etc.) 171,400 Change In OCERS retirement costs 41,000 ,r Change in group Insurance costs 32,600 Other benefit cost adjustments 19,600 Other Cost Adjustments: r Decrease in minor furniture and fixtures (15,000) +r Aggregate change In Other Categories: No other cost changes 2009-10 Proposed Budget -Total Operating Requirements $ 3,866,190 r Section 6- Page 31 m 2008-09 & 2009-10 Budget r 2007-08 Operating Expenses 2006-07 Revised 2007-08 2008-09 Budget 2009-10 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change r Personnel $2,779,775 $3,489,800 $3,191,800 $3,417,500 (2,07%) $3,682.100 7.74% Supplies 45.417 80,350 42.890 56.590 (29.57%) 41,590 (26.51%) Professional&Contractual Services 71,336 136,000 100,500 100,500 (26,10%) 100,500 r Research 8 Monitoring - Repairs 8 Maintenance 887 3,500 1,000 1,000 (71 A3%) 1,000 Utilities r Other 44,738 41,500 46,000 411000 1.20"0 41,000 Total $2,942,153 S3,751,150 53,382,190 53,fii6,590 3.59% S3AR190 6.90% Expenditure Trends S'1751 150 $3,866,190 83.618.590 $2476.367 $2,942,153 r $1.886,454 r 2005 2006 2007 200a 2009 2010 r r Section 6- Page 32 r _ Human Resources 240 DIRECTOR OF FINANCE S ADMINISTRATIVE SERVICES HUMAN RESOURCESB EMPLOYEE RELATIONS MANAGER HUMAN HUMAN RESOURCES RESOURCES SUPERVISOR SUPERVISOR SENIOR HUMAN HUMAN PRINCIPAL SENIOR HUMAN RESOURCES RESOURCES HUMAN RESOURCES ANALYST(2) ANALYST RESOURCES ANALYSTES ANALYST HUMAN RESOURCES HUMAN HUMAN ASSISTANT RESOURCES RESOURCES ANALYST(2) ASSISTANT(2) PROGRAM ASSISTANT _ Staffing Trends 2008-09 d 2009-10 Authorized FTE Positions Manager 1.00 27-28 Supervisors l Professionals 12.00 \+9 7 Administrative/Clerical 3.00 +e—16 Total 16.00 2005 2006 2007 2008 2009 2010 Section 6-Page 33 V 2008-09 & 2009-10 Budget Service Description We enable OCSD to meet its purpose by attracting and retaining a high quality workforce,and providing development opportunities. it 2007.08 Performance Objectives 2007-08 Performance Results ♦ Manage Department budget within 90-100%of • The Department budget is 48.3%expended as of �+ authorized expenditures. 2129108. Project 90%or higher by the end of the fiscal year. • Manage the Meet and Confer process. ♦ Ensure 100%compliance with external and internal regulatory requirements. ♦ Manage Division Performance Objectives. • All objectives met. ♦ Develop and implement a Leadership Academy. • Implemented February 2008. ♦ Manage staffing within authorized levels. ♦ Managed within Board authorized level. ♦ Implement a Succession Management Program. ♦ Pilot program implemented August 2007. 2008-09&2009.10 Performance Objectives ♦ Meet the training level of service of 45 hours per employee by June 2009 and June 2010. • Sustain succession management program through June 2010. • Implement NEOGov Applicant Tracking System by September 2008. ♦ Sustain the Leadership Academy through June 2010. ♦ Recommend management total compensation system by August 2008. ♦ Develop labor relations plan for MOU expiration by June 2009. ♦ Recommend reinvention of staffing program by March 2009. r Performance Measures u Summary 2008.07 2007.08 2008.09 2009-10 Justification Actual Projected Proposed Proposed ♦ Meet the training level of N/A N/A 45 bra. per 45 hrs. per Strategic Plan service. employee employee ♦ Sustain the Succession N/A Implement Sustain Sustain Organizational Management Program. change • Implement the NEOGov N/A Implement N/A N/A Best management V Applicant Tracking practice System. ♦ Sustain the Leadership N/A Implement Sustain Sustain Organizational jr Academy. change • Recommend N/A Develop Implement Implement Best management management total practice Ld compensation system. ♦ Develop labor relations N/A N/A Develop Implement Organizational plan for MOU expiration Change • Recommend reinvention N/A N/A Develop Implement Best management of staffing program. practice u Section 6-Page 34 r Human Resources r Budget Overview r The FY 2008-09 8 2009-10 budgets for the Human Resources Division reflect a decrease of 10%and an Increase of 29%over the prior year, respectively. The decrease is mainly due to staff reallocations during FY 2007-08. The increase in FY 2009-10 is primarily due to reflecting the planned District-wide increase of 7 FTE positions in this division for budget purposes until specific positions and divisional assignment are determined. r 2007-08 Adjusted Budget -Total Operating Requirements $ 4,103,980 Salaries for Position Changes: Transfer of Positions from/(to)Other Divisions - ,r New or(decreased)FTE - Changes In Personnel Expenses: Other net salary adjustments (MOU-related, leave payoffs,vacancy,etc.) (65,800) Change in OCERS retirement costs 3,100 Change in group insurance costs 21,800 Other benefit cost adjustments (405,460) H Other Cost Adjustments: Increase in training 26,100 Increase in temporary services 11,500 Increase in legal services 8,400 r Decrease in labor negotiation services (20,000) Increase in other professional services 11,700 r r Aggregate charge In Other Categories: Aggregate change in other materials, supplies, and services 2,620 2008.09 Proposed Budget -Total Operating Requirements $ 3,697,940 r Salaries for Position Changes: New or(decreased) FTE(Specific positions to be determined) 658,100 r Changes In Personnel Expenses: Net salary adjustments (MOU-related,leave payoffs, vacancy,etc.) 98,000 Change in OCERS retirement costs 187,800 Change in group insurance costs 106.000 r Other benefit cost adjustments 16,500 Other Cost Adjustments: Increase in other professional services 10,000 r Aggregate change In Other Categories: r No other cost changes 370 2009-10 Proposed Budget -Total Operating Requirements $ 4,774,710 r Section 6—Page 35 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007-08 2009-09 Budget 2009-10 Budget By Category Actual Budget Projected Proposed %Change Pro osed %Change Personnel $2,023,469 $2,806,360 $2,228,230 $2,360,000 (15.91%) $3,426,400 45.19% Supplies 923,103 933,920 925,870 957,140 2.49% 957,510 0.04% Professional&Contractual Services 266,074 335,000 292,100 343,600 2.57% 353,600 2.91 Research&Monitoring - - - - - - Repairs&Maintenance - - - - Utilities - - - - Other 26,760 28,700 28,000 37,2it 29.62% 37,200 Total $3,239,406 $4,103,980 53,474,200 $3,697,940 9.89°h) $4,774,710 29.12% r Expenditure Trends $4,774,710 $4,1o3seo .. $3,239 406 $2,654,789 2005 2006 2007 2009 2009 Zola Section 6- Page 36 . Information Technology r 250 DIRECTOR OF FINANCE& r ADMINISTRATIVE SERVICES INFORMATION TECHNOLOGY SYSTEMS& �+ OPERATIONS MANAGER a EXECUTIVE STAFF ASSISTANT ANALYST PRINCIPAL INFORMATION INFORMATION INFORMATION TECHNOLOGY TECHNOLOGY TECHNOLOGY MANAGER MANAGER ANALYST(5) r SENIOR PRINCIPAL SENIOR INFORMATION INFORMATION INFORMATION TECHNOLOGY TECHNOLOGY TECHNOLOGY ANALYST(4) ANALYST(2) ANALYST(4) r INFORMATION INFORMATION INFORMATION TECHNOLOGY TECHNOLOGY TECHNOLOGY ANALYST III(3) ANALYST II '+ ANALYST III(2) INFORMATION ENGNEERING TECHNOLOGY DATA r INFORMATION MANAGEMENT ANALYST I(2) TECHNOLOGY TECHNICIAN II TECHNICIAN II(2) r r Staffing Trends 2008-09 &2009.10 Authorized FTE Positions Manager 3.0 3I _32 32_30— 3 31 Supervisors/ Professionals 25.0 Technical Staff 2.0 Administrative/Clerical 1.0 Total 31.0 2005 2006 2002 2008 2009 2010 y Section 6—Page 37 2008-09 & 2009-10 Budget w Service Description The Information Technology Division provides support to the users of District's Information Technology related �r assets and services as well as developing and implementing technology solutions that best meet the needs of the District. The Division procures and manages computer hardware/software and provides end user support with a HELP Desk that performs computer and telecommunications installations, moves, and changes. The Division Is also responsible for the design, Installation, maintenance,troubleshooting, and upgrades of all networking infrastructure components and beck-end computer system, wireless connectivity, plant radio/public address, fire/security, reprographics, and mailroom services. Additionally,this Division works closely with every Department and Division In developing an understanding of the organization's software application and V information requirements and providing systems analysis and design, custom computer programming, system Implementation and Integration, and database/data warehousing availability and support. I L 2007.08 Performance Objectives 2007.08 Performance Results - • Replace obsolete computers. ♦ Replaced computers less than 4 years old. • Complete category 1 &2 Internal Service Level ♦ Category 1 &2 at 99%; category 3&4 at 94%. Agreement(SLA)at 100%and category 3&4 I SLA at 90%. W ♦ Establish a software-based collaboration ♦ Microsoft Office SharePoint Server is Installed, infrastructure. configured,and in production. • Maintain an average uptime or availability of • Projected uptime availability is 95%. r 95% for all Oracle and Mlcrosoft SOL Server computer database-related services. ♦ Meet 75%of all IT project milestones and ♦ Projected to achieve 80%of project milestones. strategic goals by targeted due dates. W 2008.09&2009.10 Performance Objectives • Uphold and endorse OCSD's Strategic Plan Levels of Service(LOS); ascertain the measurement of IT Strategic Plan(ITSP)target achievement based on the importance and completion of goals supporting the LOS in the DOW Strategic Plan. ♦ Complete 80% of ITSP Planned Annual Objectives. • Replace obsolete computing equipment. ♦ Reduce existing licenses/maintenance agreements by 10%. m.+ ♦ Maintain an average uptime of 90%for critical applications. V Performance Measures Summary 2006.07 2007-08 2008.09 2009-10 Justification Actual Projected Proposed Proposed • Maintain internal SLA n/a n/a expected expected In-house standard ♦ IT Strategic Plan n/a n/a 12 12 IT Strategic Plan Objectives objectives objectives ♦ Critical systems availability We n/a 90% 90% Minimum business Impact ♦ Security patches applied We n/a 48 hrs. 48 hrs. Network security y� ♦ Replace obsolete We n/a 25%of total 25%of total Service level computers computers computers agreement r Section 6-Page 38 u Information Technology Budget Overview LA The FY 2008-09&2009-10 budgets for the Information Technology Division reflect increases of 11%and 5% over the prior year, respectively. The increases are primarily due to anticipated annual salary and benefit adjustments and to an expected increase in the cost of software licensing and maintenance agreements. There ..i is also an increase related to the transfer of 1 FTE position into this Division in FY 2008-09. 2007-08 Adjusted Budget -Total Operating Requirements $ 6,580,270 e, salaries for Position Changes: Transfer of Positions fromt(lo)Other Divisions 84,800 New or(decreased)FTE r Changes In Personnel Expenses: Other net salary adjustments(MOU-related,leave payoffs,vacancy,etc.) 217.400 Change in OCERS retirement costs 113.300 Change in group insurance costs 57,200 r Other benefit cost adjustments 10,500 Other Cost Adjustments: Increase in postage(transferred from Divisions 151 and 152) 55,000 n Increase in small computer items 60,000 Decrease in other contractual services (10,000) Decrease in ERP support(costs transferred to software program consulting) (247,160) r Increase in software program consulting 259,800 Decrease in other professional services (14,000) Increase in service maintenance agreements 121,750 Increase in telephone 48,500 wl Aggregate change in Other Categories: Aggregate change in other materials, supplies,and services (7,900) r 2008-09 Proposed Budget -Total Operating Requirements $ 7,329,460 Changes In Personnel Expenses: ti Net salary adjustments(MOU-related, leave payoffs, vacancy,etc.) 187,200 Change in OCERS retirement costs 46,500 Change in group insurance costs 34.200 r Other benefit cost adjustments 20,600 Other Cost Adjustments: Increase in service maintenance agreements 70,000 r r r Aggregate change In Other Categories: Aggregate change in other materials, supplies,and services 480 2009-10 Pro osed Budget -Total Operating Requirements $ 7,688,440 r Section 6—Page 39 r 2008-09 & 2009-10 Budget Lr Service Description - The mission of the Technical Services Administration and Research Division is to provide leadership on L environmental issues for the District to oversee the functions of the Environmental Compliance and Regulatory Affairs Division, Environmental Sciences and Ocean Monitoring Division,Source Control Division, and the I �� Research Program. This includes overseeing strategic planning of issue management and day to day operations. W The Director of Technical Services is responsible for all regulatory issues related to air,land and water quality protection and provides support to the District's legisla0ve advocacy and grants programs. The Director is the Department liaison with the Executive Management Team and the Board of Directors. The Technical Services j I Department provides environmental support services to other departments to accomplish the mission and goals 4+1 of the District. I y 2007.08 Performance Objectives 2007.08 Performance Results - ♦ Ensure reporting divisions achieve 90%+of the ♦ Reporting divisions achieved performance L year's performance objectives. objectives at 95%-100%through February 2008. lI ♦ Ensure the Technical Services Department's ♦ Total operating expenditures on target at 60.90% t� expenditures are managed within 90%-100%of through February 2008. the proposed budget. • Ensure reporting divisions achieve 90%+of ♦ Projects completed at 100%. 4.4 strategic goals and objectives. i • Secure at least$250,000 in grant funds for ♦ This objective is the responsibility of Division 150. �+ OCSD. L 2008-09 8 2009-10 Performance Objectives • Ensure reporting divisions achieve 90%+of the year's performance objectives. • Ensure the Technical Services Department's expenditures are managed within 90%-100%of the proposed budget. L • Ensure reporting divisions achieve 90%+of strategic goals and objectives. Performance Measures L Summary 2006-07 2007.08 200849 2009-10 Justification I� Actual Projected Proposed Proposed LI ♦ Performance objectives 100% 95.100% 90% 90% In-house standard j ♦ Manage expenditures 100% 90-100% 90-100% 90.100% In-house standard W ♦ Strategic goals and 100% 100% 90% 90% In-house standard L objectives L Section 6-Page 42 ti Information Technology Budget Overview r The FY 2008-09&2009-10 budgets for the Information Technology Division reflect increases of 11%and 5% over the prior year, respectively. The increases are primarily due to anticipated annual salary and benefit adjustments and to an expected increase in the cost of software licensing and maintenance agreements. There is also an increase related to the transfer of 1 FTE position into this Division in FY 2008-09. 2007-08 Adjusted Budget -Total Operating Requirements $ 6,580,270 .y Salaries for Position Changes: Transfer of Positions froml(to)Other Divisions 84,800 New or(decreased)FTE - y+ Changes in Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy, etc.) 217,400 Change in OCERS retirement costs 113,300 Change in group insurance costs 57,200 •+ Other benefit cost adjustments 10,500 Other Cost Adjustments: Increase in postage(transferred from Divisions 151 and 152) 55,000 w Increase in small computer Items 60,000 Decrease in other contractual services (10,000) Decrease in ERP support(costs transferred to software program consulting) (247,160) r Increase in software program consulting 259,800 Decrease in other professional services (14.000) Increase in service maintenance agreements 121.750 Increase in telephone 48,500 r Aggregate change in Other Categories: Aggregate change in other materials, supplies,and services (7,900) r 2008-09 Proposed Budget -Total Operating Requirements $ 7,329,460 Changes in Personnel Expenses: „e Net salary adjustments(MOU-related, leave payoffs,vacancy, etc.) 187,200 Change in OCERS retirement costs 46,500 Change in group insurance costs 34,200 Other benefit cost adjustments 20,600 r Other Coat Adjustments: Increase in service maintenance agreements 70,000 r r V Aggregate change in Other Categories: Aggregate change in other materials, supplies,and services 480 r 2009-10 Proposed Budget -Total Operating Requirements $ 7,688,440 r Section 6—Page 39 r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007.08 2008-09 BudgetL$4,68O.600 Budget B Category Actual Budget Projected Proposed %Change d %Change Personnel $3.825,054 $3,908,900 $4,029,300 $4,392,100 12,36% 0 6.57% Supplies 883,713 964,460 949,750 1,077,360 11.71% 0 0.04% Professional&Contractual Services 177,423 352,360 437,540 340,000 (3.51%) 0Research&Monitoring - - - Repairs&Maintenance 1,088,617 1,148,250 1,148,250 1,270,000 10.60% 00 5S1%Utilities 194,362 201,500 240,000 250,000 24.07% 00Other 3,264 4,800 100.00%Total $6,172,433 $6,580,270 $6,804,845 $7,329,460 11.39% 40 Ii r w_ Expenditure Trends $7,785,657 $7,649,509 $7,688.440 $8,580,270 $7,329,460 w $6,172,433 r 2005 2006 2007 2009 2009 2010 1 r Section 6- Page 40 Technical Services Administration & Research 610 r GENERAL MANAGER r r DIRECTOR OF TECHNICAL SERVICES w EXECUTIVE RESEARCH ASSISTANT PROGRAM W w SENIOR ENGINEER s ASSOCIATE ENGINEER II r r r r r Staffing Trends 2008-09 E 2009-10 Authorized FTE Positions Executive Manager 1.0 Supervisors/Professionals 2.0 Administrative/Clerical 1.0 r /4-45\ , -4-4 2 I I i F I Total 4-0 2005 2006 2007 2008 2009 2010 r Section 6-Page 41 V 2008-09 & 2009-10 Budget Service Description - � t The mission of the Technical Services Administration and Research Division is to provide leadership on v environmental issues for the District to oversee the functions of the Environmental Compliance and Regulatory Affairs Division, Environmental Sciences and Ocean Monitoring Division, Source Control Division,and the Research Program. This includes overseeing strategic planning of issue management and day to day operations. i✓ The Director of Technical Services is responsible for all regulatory issues related to air, land and water quality protection and provides support to the District's legislative advocacy and grants programs. The Director is the Department liaison with the Executive Management Team and the Board of Directors. The Technical Services Department provides environmental support services to other departments to accomplish the mission and goals W of the District. I� Le 2007-08 Performance Objectives 2007-08 Performance Results ♦ Ensure reporting divisions achieve 90%+of the • Reporting divisions achieved performance year's performance objectives. objectives at 95%-100%through February 2008. ♦ Ensure the Technical Services Department's • Total operating expenditures on target at 60.90% W expenditures are managed within 90%-100%of through February 2008. the proposed budget. ♦ Ensure reporting divisions achieve 90%+of ♦ Projects completed at 100%. strategic goals and objectives. I ' ♦ Secure at least$250,000 in grant funds for ♦ This objective is the responsibility of Division 150. 6' OCSD. I , 2006-09&2009-10 Performance Objectives ♦ Ensure reporting divisions achieve 90%+of the year's performance objectives. V ♦ Ensure the Technical Services Department's expenditures are managed within 90%-100%of the proposed budget. L ♦ Ensure reporting divisions achieve 90%+ of strategic goals and objectives. Performance Measures L Summary 2006-07 2007-08 2008-09 2009-10 Justification Actual Projected Proposed Proposed ♦ Performance objectives 100% 95-100% 90% 90% In-house standard i ♦ Manage expenditures 100% 90-100% 90-100% 90-100% In-house standard - ♦ Strategic goals and 100% 100% 90% 90% In-house standard objectives I u Section 6- Page 42 L r Technical Services Administration & Research r Budget Overview r The FY 2008-09&2009-10 budgets for the Technical Services Administration and Research Division reflect Increases of 14%and 4%from the prior year, respectively. The Increase is primarily due to increased research costs. The impact of the 1 FTE position transferred to this Division is largely offset by the effect of staff reallocations in FY 2007-08. 2007-08 Adjusted Budget-TotalOperating Requirements $ 1,124,060 Salaries for Position Changes: Transfer of Positions from/(to)Other Divisions 34,000 Now or(decreased)FTE r Changes in Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy,etc.) 1.700 Change in OCERS retirement costs 14,400 Change in group Insurance coats 14,900 Other benefit cost adjustments (800) Other Cost Adjustments: Decrease in memberships($10,000 transferred to Division 740) (10,350) w Increase in meetings 3,760 Increase in research costs 97,820 Aggregate change in Other Categories: Aggregate change in other materials,supplies,and services (1,890) r 2008-09 Proposed Budget -Total Operating Requirements $ 1,277,600 Changes In Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs, vacancy, etc.) 31,400 Change in OCERS retirement costs 7,800 Change in group Insurance costs 4,600 r Other benefit cost adjustments 2,600 Other Cost Adjustments: Decrease in minor furniture and Fixtures (2,500) ,r Increase in research costs 4,000 r V Aggregate change In Other Categories: No other cost changes - r 2009-10 Proposed Budget -Total Operating Requirements $ 1,325,500 r Section 6-Page 43 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007-08 2008-09 Budget 2009.10 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 302.357 $ 559,100 $ 554,500 $ 623,300 11.48% $ 669,700 7,44% Supplies 20,909 34,120 18,260 25,790 (24.41%) 23,290 (9.69%) Professional&Contractual Services 273,498 6,000 6,000 6,000 - 6,000 ~ Research&Monitoring 689,751 524,440 524,440 62.2,260 18.65% 626,260 0.64% _ Repairs&Maintenance 200 (100.00%) Willies w Other 162 200 160 250 25.00°/a 250 Total S1,286,677 S1,124,060 $1,103,365 51,277,600 13.66% S1,325,500 Expenditure Trends $1.286,6n $1.277.600 $1,325.500 $1,051.894 $1,124.060 $871,694 2005 2006 2007 2008 200 2010 Section 6-Page 44 r. Environmental Compliance & Regulatory Affairs 620 .+ DIRECTOR OF TECHNICAL SERVICES !1 ENVIRONMENTAL ASSESSMENT y MANAGER ADMINISTRATIVE y ASSISTANT w ENVIRONMENTAL ENVIRONMENTAL SUPERV180R SUPERVISOR LAND AIR WATER SPECIAL (SIOSOLIOS) QUALITY GROUP PROJECTS PRINCIPAL PRINCIPAL SENIOR REGULATORY ENVIRONMENTAL ENVIRONMENTAL Y/ SPECIALIST SCIENTIST SPECIALIST SPECIALIST SENIOR SENIOR SENIOR ENVIRONMENTAL ENVIRONMENTAL ENGINEER � SPECIALIST ENGINEER gpECIALIST(2) INTERN REGULATORY INTERN SPECIALIST (.5) .I ASSOCIATE ENGINEER III INTERN (.5) w 2008A9 8 2009.10 Authorized FTE Positions Staffing Trends Manager 1.00 Supervisors/ Professionals 13.00 te. Administrative/Clerical 1.00 Is-15—16_ � 6.5 Intern 1.50 r Total 16.50 zoos zeee zooT zoos zoos zoto ti Section 6— Page 45 r L 2008-09 & 2009-10 Budget Service Description The Environmental Compliance and Regulatory Affairs Division (ECRA)protects public health and the environment by securing and maintaining permits from regulatory agencies for activities that may impact climate, air quality,land,and wastewater. ECRA Is responsible for assuring that the District maintains compliance with all wastewater,air quality/climate change and residual-related miss, regulations and permit requirements; implementation of the recommendations of the Long-Term Biosollds Management Plan; oversight of biosolids L management contractors'operations;auditing and evaluating plant processes and compliance activities; evaluating and proactively developing new regulations;and building positive relationships with the regulatory community and the public. W 2007-08 Performance Objectives 2007-08 Performance Results ♦ Meet 100%of regulatory deadlines for required ♦ Met performance goals compliance reports and applications ♦ Conduct four(4)environmental audits ♦ In progress,four(4) planned to be completed by the end of fiscal year • Perform Interim audit of the EMS program by the • Met performance goals NBP's required date W' ♦ Evaluate biosolids compliance data and produce a ♦ Met performance goals timely annual report • ECAP—Test SharePoint, Go No-Go decision, • Testing completed and SharePoint will be used for begin implementation of SharePoint or alternative ECAP _ 2008.09&2009.10 Performance Objectives ♦ Complete NPDES permit renewal application on time by April 2009 W ♦ Complete implementation of ECAP in all core environmental areas with active dashboard as required by the District's Strategic Initiative ♦ Meet 100%of regulatory deadlines for required compliance reports and permit applications ♦ Complete the development of a Greenhouse Gas emission inventory protocol and represent the District's — interest in the development of climate change regulations as required by the District's Strategic Initiative on . Climate Change y ♦ Monitor the development of technologies for the remaining one-third of the District's biosolids production and select a management option as part of the Sustainable Biosolids Program a Strategic Initiative Performance Measures W Summary 2006-07 2007-08 2008-09 2009-10 Justification Actual Projected Proposed Proposed ] ♦ NPDES Permit Renewal N/A Begin Complete Conduct Required for continuous r.r process renewal negotiation of operation by regulatory and budget application permit agencies I ♦ ECAP Implementation Conducted Test Implement Implement Strategic Initiative Goal L feasibility SherePoint core other areas analysis and decide environmental as agreed to on software areas with with dashboard management L ♦ Meet 100%of regulatory 100% 100% 100% 100% In-house standard/ deadlines Regulatory Requirement ♦ Implement a new biosolids N/A N/A RFP process New Level of service management technology for in progress management conformance and Lr the remaining 1/3 of OCSD option Strategic Initiative biosolids. contract • Development of Greenhouse N/A N/A Submit Submit Regulatory requirement Gas emission inventory annual GHG annual GHG &part of District tar protocol/represent District's emissions emissions Strategic Initiative on Interest In development of inventory to Inventory to Climate Change climate change regulations CARS CARB Section 6-Page 46 — u r Environmental Compliance & Regulatory Affairs Budget Overview The FY 2008-09&2009-10 budgets for the Environmental Compliance& Regulatory Affairs Division reflect decreases of 2%and 5%over the prior year, respectively. The decrease due to the reduction of 2 FTE positions is largely offset by net increases in other categories such as legal and other professional services as well as regulatory operating fees transferred into this Division. The costs for legal and other professional services are expected to decrease in FY 2009-10. 2007-08 Adjusted Budget -Total Operating Requirements $ 3,901,650 Salaries for Position Changes: Transfer of Positions from/(to)Other Divisions (192,700) New or(decreased)FTE - '�' Changes In Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs, vacancy, etc.) (392,700) Change in OCERS retirement costs (113.600) Change In group insurance costs (22,900) Other benefit cost adjustments 13,850 Other Cost Adjustments: „y Decrease in in-house reproduction services (6,240) Decrease in outside printing services (4,030) Increase in property tax fees(costs transferred from Division 840) 33,000 Increase in temporary services 25,000 Increase in legal services 180,000 Increase in auditing fees 86,000 Increase in engineering services 10,000 Decrease in environmental scientific consulting (25,000) Increase in advocacy efforts 15,000 Increase in other professional services 192,000 Decrease in environmental monitoring&research costs (93,300) r Increase in regulatory operating fees(transferred from Division 840) 215,000 Aggregate change In Other Categories: Aggregate change in other materials,supplies,and services (7,470) 2008-09 Proposed Budget -Total Operating Requirements $ 3,813,560 Changes in Personnel Expenses: r Net salary adjustments(MOU-related, leave payoffs, vacancy,etc.) 88,500 Change in OCERS retirement costs 22.000 Change in group insurance costs 16.800 Other benefit cost adjustments 9.900 Other Cost Adjustments: Decrease in temporary services (25,000) Decrease in legal services (205,000) Decrease in auditing fees (10.000) Decrease in other professional services (150,000) Increase in environmental monitoring&research costs 40,000 ., Increase in regulatory operating fees 26,000 Aggregate change in Other Categories: .. Aggregate change in other materials,supplies,and services 3,210 2009-10 Proposed Budget-Total Operating Requirements $ 3,629,970 ds Section 6—Page 47 r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007-08 2008-09 Budget 2009-10 Budget By Category Actual Budget Projected Proposed %Change Pro need %Chan e Personnel $2,006,990 $3,021.150 S2,336,800 $2,313,100 (23.44%) $2,450,300 5.93% Supplies 110,622 69,950 55,650 87,460 25,03% 90,670 3.67% Professional&Contractual Services 312,322 216,000 151,000 699,000 223.61% 309,000 (55.79%) Research&Monitonng 653,714 358,300 226,000 265,000 (26.04%) 305,000 15.09% Repairs&Maintenance 38,213 4,600 4,600 4,600 (2.17%) 4,500 - Utilities - - - - - - r. Other 40,908 231,650 231,100 444,500 91.88% 470,500 5.85% Total 53,162,769 $3,901.650 S3,005,150 $3,813,560 2.26% 53,629,970 4.81% r Expenditure Trends $3.901.650 s3,813,560 -� $3,629,9n $2,586,508 $3,162J69 $2,920.989 ri C Y� 2005 2006 2002 2008 2009 2010 A r Section 6-Page 48 Environmental Laboratory and Ocean Monitoring 630 DIRECTOR TECHNICAL SERVICES - LABORATORY MANAGER 1 DUALITY ANALYTICAL ADMINISTRATIVE MICROBIOLOGY ENVIRONMENTAL ASSURANCEILIMS CHEMISTRY ASSISTANT SUPERVISOR SUPERVISOR &SAMPLE MGMT SUPERVISOR SUPERVISOR .r LIMB SCIENTIST SENIOR SENIOR ADMINISTRATOR SCIENTIST SCIENTIST(2) PRINCIPAL PRINCIPAL PRINCIPAL LABORATORY LABORATORY SCIENTIST ENVIRONMENTAL ANALYST(2) ANALYST(4) SPECIALIST(2) •1 SENIOR SENIOR SENIOR PRINCIPAL LAB LABORATORY ENVIRONMENTAL LABORATORY ANALYST(3) ANALYST ANALYST(4.5) SPECIALIST(4) I/ LABORATORY LABORATORY SENIOR LAB ENVIRONMENTAL ASSISTANT(3) ANALYST(2) ANALYST(5.5) SPECIALIST LABORATORY INTERN ANALYST(2) (S) e. Staffing Trends 2008-09&2009-10 Authorized FTE Positions _ Manager 1.0 48Z 06.5 6.5 Supervisors/ Professionals 41.0 3]-3]-38/ Administrative/Clerical 1.0 Technical Staff 3.0 Intern 0.5 Total 46-5 2005 2006 2007 2008 2009 2070 Section 6—Page 49 2008-09 & 2009-10 Budget u Service Description r Provide laboratory testing services and data interpretation to OCSD customers in order to monitor the operation of the wastewater treatment plant,the impact of treated and discharged wastewater on the receiving waters, and to assure compliance to regulations within the Ocean Discharge Permit. 60 2007.08 Performance Objectives 2007-08 Performance Results L ♦ Meet test/FTE standards within 10%of FY O6/07. • YTD through February performance above previous Meet benchmark standard within 10%variance. year and benchmark standards. Turnaround time Meet turnaround time standard-10%variance. standard met. ♦ Compliance test standards 95%correct on first ♦ All compliance lest samples(about 80)accurately and 100%on second attempt. analyzed on first attempt. ♦ Complete GWR removal study by 6/30/08. ♦ Phases I & II complete and report in preparation. W Phase III delayed for GWR technical reasons and will be rescheduled. ♦ Manage division cost within 10%of budget ♦ Through February,expenses 8%underbudget ♦ Collect/test all ocean monitoring samples as ♦ All samples collected on schedule. Annual Report scheduled. File Annual Report by March 1. filed with regulators on schedule. W 2008-09&2009-10 Performance Objectives 6a ♦ Meet test/FTE standards within 10%of FY O6107. Meet benchmark standard within 10%variance. Meet turnaround time standard-10%variance. • Compliance lest standards 95%correct on first and 100%on second attempt. ♦ Manage division cost to within 10%of budget u ♦ Support GWR routine monitoring requirements as defined by project goals. • Collect and test all sediment and water quality ocean samples according to schedule. File Annual Report L4 with regulators by March 1. Performance Measures Summary 2006.07 2007-08 2008-09 2009-10 Justification I Actual Projected Proposed Proposed r • Lab Standards 100% 100% 95% 95% In house standard ♦ Lab Productivity 113% 95% 95% 95% In house standard • OMP Productivity 100% 100% 100% 100% Compliance/In house standard ♦ Budget vs actual 96% 95% 100% 100% Percent of budget spent ♦ GWR Goals NA 90% 90% 90% Percent of goal complete Id Section 6- Page 50 Ld Environmental Laboratory and Ocean Monitoring Budget Overview The FY 2008-09&2009-10 budgets for the Environmental Laboratory and Ocean Monitoring Division reflect increases of 1%and 4%over the prior year, respectively. The increases are mainly due to the anticipated annual salary and benefit adjustments. The increase is partially offset in FY 2008-09 by the reallocation of two Interns and a program assistant for a reduction of 2 FTEs in this division. Further offset is achieved through a decrease in strategic process studies within the area of environmental monitoring. w 2007-08 Adjusted Budget -Total Operating Requirements $ 8,340,760 Salaries for Position Changes: Transfer of Positions froml(to)Other Divisions (79,400) w New or(decreased)FTE Changes In Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy,etc.) 132,000 Change in OCERS retirement costs 75,600 Change in group insurance costs 55,600 Other benefit cost adjustments 2,600 Other Cost Adjustments: Increase in meetings 6,450 Increase in gas,diesel, &oil 81600 Decrease in tools (10,000) Increase in outside lab services 21,000 Increase in temporary services 10,000 Decrease in auditing fees (104,000) Decrease in environmental scientific consulting (12,000) Increase in other professional services 30,000 Decrease in environmental monitoring &research costs (150,850) Increase in repairs and maintenance 17,200 Increase in service maintenance agreements 47,180 Increase in insurance premiums 18,000 Aggregate change in Other Categorles: r Aggregate change in other materials,supplies,and services 4,560 2008-09 Proposed Budget -Total Operating Requirements $ 8,413,300 r Changes in Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs, vacancy, etc.) 226,700 Change in OCERS retirement costs 56,000 Change in group insurance costs 50,300 r Other benefit cost adjustments 30,600 Other Cost Adjustments: Increase in laboratory chemicals 14,500 r Increase in temporary services (8,200) Decrease in environmental scientific consulting (16,000) Decrease in other professional services (30,000) r Decrease in environmental monitoring &research costs (60,550) Increase in repairs and maintenance 19,750 Increase in electricity 14,000 w Aggregate change in Other Categories: Aggregate change in other materials,supplies,and services 730 2009-10 Proposed Budget -TotalOperating Requirements $ 8,711,130 r Section 6—Page 51 r 2008-09 & 2009-10 Budget r 2007-08 Operating Expenses 2006-07 Revised 2007-08 2008-09 Budget 2009-10 Budget By Category Actual Budget Projected Proposed %Change Pro osed %Chancle r Personnel $4,306,964 $5,898,000 $5,924,900 $6,OB4,400 3.16% S6,448,000 5.98% Supplies 752,296 738,440 731,140 746,650 1.11% 758,580 1.60°% Professional B Contractual Services 144,338 345,000 166,000 290,000 (15.94%) 238,400 (17,79%) r' Research&Monitoring 466 690,000 346,000 539,150 (21.86%) 478,600 (11.23%) Repairs B Maintenance 186,579 218,820 276,000 283,200 29A2% 301,950 6.62% Utilities 370,775 390,000 390,000 396,000 1,54% 410,000 3.54% !� Other 24,812 60.500 57,770 73,900 22,15% 75,600 2.30% Total S5,786,230 $8,340.760 S7,891,B10 $8,413,300 0.87% $8,711,130 3.54% r Expenditure Trends $8.340.760 $0.413,300 $8,]11,130 $5,154.0n $5,786,230 $5.292.826 2005 2006 2007 2008 2009 2010 t• Section 6-Page 52 w Source Control w 640 r DIRECTOR OF w TECHNICAL SERVICES SOURCE CONTROL MANAGER ADMINISTRATIVE OFFICE ASSISTANT ASSISTANT SENIOR SOURCE 'w1 REGULATORY ENGINEERING ENGINEERING CONTROL SPECIALIST SUPERVISOR SUPERVISOR SUPERVISOR SENIOR SENIOR ENVIRONMENTAL ENGINEER ENGINEER ENVIRONMENTAL SPECIALIST (3) (3) SPECIALIST ri PROGRAM ASSOCIATE PRINCIPAL MCTOR ASSISTANT(2) ENGINEER III(3) ENVIRONMENTAL C '�' SPECIALIST(3) INSP1) PROGRAM PROGRAM ENVIRONMENTAL ASSISTANT ASSISTANT TECHNICIAN(3) r PROGRAM ASSISTANT w ,. 2008.09 &2009-10 Authorized FTE Positions Staffing Trends Manager 1.0 a, Supervisors/Professionals 18.0 Administrative/Clerical 7.0 q0-40— 40— 40 Technical Staff 14.0 39-39 w Total 40.0 y� 2005 2006 2007 2008 2009 2010 Section 5—Page 53 i V 2008-09 & 2009-10 Budget u Service Description The Source Control Division is responsible for administering and enforcing the District's Ordinance and General -- Pretreatment Regulations by administering extensive permitting, monitoring, inspection,compliance screening, follow-up enforcement, and reporting programs to regulate industrial discharges into sewer facilities. During the past few years, the division's responsibilities and functions have been expanded to comply with the newly added regulatory mandates and the District's goal of participating in the overall management of the region's water resources. The expansion includes the addition of 1)Urban Runoff program to improve the condition of the Iwo regional coastal area by accepting runoff from storm diversions,2)Fat,Oil and Grease(FOG)Program to eliminate the sewerage blockages and spill resulted from grease discharge from food establishments,and 3) Non-pant Source Control Program to control pollutants of concern from drinking water perspective. 2007.08 Performance Objectives 2007-08 Performance Results ♦ Conduct monitoring of industrial facilities within ♦ Staff conducted monitoring of industrial facilities within 95%of the benchmark. an average of over 95%of the benchmark. ♦ Conduct 100%enforcement action and follow- ♦ Staff conducted 100%enforcement action and follow- up monitoring within 30 days of each up monitoring within 30 days of each noncompliance noncompliance event. event. �, • Issue and renew 100%of the industrial ♦ Staff issued and renewed 100%of the industrial wastewater permits prior to the expiration date. wastewater permits prior to the expiration date. • Coordinate the efforts by a consultant to ♦ Due to process of Request for Proposal in hiring a conduct Industrial Wastewater Treatment consultant, about half of the Wastewater Treatment V' Operator Training Courses as budgeted. Operator Training Courses were completed _ successfully utilizing about half of budgeted amount. ♦ Conformance with the biosolids EMS Program ♦ All the requirements of the biosolids EMS program W as it pertains to Source Control program. regarding Source Control Program are met and completed. ♦ Develop a Non-Industrial program to control • Different modules of the Non-Industrial program for pollutants of concern from a drinking water tackling drinking water pollutants of concern were W perspective. developed and implemented. 2008-09&2009.10 Performance Objectives 1� ♦ Conduct monitoring of industrial facilities within 95%of this benchmark. ♦ Conduct 100%enforcement action and follow-up monitoring within 30 days of each noncompliance event. ♦ Issue and renew 100% of the industrial wastewater permits prior to the expiration date. ♦ Continue to conduct the Industrial Wastewater Treatment Operator Training Course. • Continue to implement the fats,oil&grease(FOG)control program and strategies on a regional basis in conformance with the Wastewater Discharge Requirements Order. ♦ Develop proactive source control strategies and continue to implement a Non-point Source Control Program v to control pollutants from drinking water perspective. ♦ Conformance with the biosolids EMS program as it pertains to the Source Control Program. Performance Measures N Summary 2006-07 2007.08 2008.09 2009.10 Justification Actual Projected Proposed Proposed ♦ Field inspection performance 92% 95% 95% 95% In-house standard w ♦ Enforcement follow-up 100% 100% 100% 100% In-house standard • Permit issuancelrenewal 100% 100% 100% 100% In-house standard • Industrial Wastewater 100%of 100%Of 100%of 100%of In-house standard Treatment Operator Training milestone milestone milestone milestone • Fats, Oil&Grease Program 100%of 100%of 100%of 100%of In-house standard milestone milestone milestone milestone ♦ Implementation of a Non-Point 100%of 100%of 100%of 100%of In-house standard l+' Source Control program milestone milestone milestone milestone ♦ Conformance with the biosolids 100%of 100%of 100%of 100%of In-house standard EMS program milestone milestone milestone milestone V Section 6-Page 54 LI Source Control Budget Overview The fiscal year 2008-09&2009-10 budgets for the Source Control Division reflect increases of 9%and 5%over the prior year, respectively. The increase is mainly due to the combination of a net increase of 1 FTE position along with anticipated annual salary and benefit adjustments. Reproduction and printing costs also increase.as the Division prepares public outreach materials pertaining to disposal of pollutants of concern. These increases are minimally offset by a decrease in costs for legal services. 2007-08 Adjusted Budget -Total Operating Requirements $ 5,265,120 Salaries for Position Changes: Transfer of Positions from/(to)Other Divisions 109,500 New or(decreased)FTE - "� Changes In Personnel Expenses: Other net salary adjustments(MOU-related,leave payoffs,vacancy,etc.) 124,700 Change in OCERS retirement costs 110,300 Change in group insurance costs 69,100 Other benefit cost adjustments 7,400 Other Cost Adjustments: „d Increase in in-house reproduction services 35,000 Increase In outside printing services 60,000 Decrease in meetings (7,200) Decrease in legal services (30,000) Decrease in miscellaneous operating expense (4,500) d Aggregate change In Other Categories: s, Aggregate change in other materials,supplies,and services 780 2008-09 Proposed Budget -Total Operating Requirements $ 5,740,200 y Changes In Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs, vacancy,etc.) 177,900 Change in OCERS retirement costs 43,100 Change In group insurance costs 43,400 Other benefit cost adjustments 26,600 Other Cost Adjustments: es r d Aggregate change in Other Categories: No other cost changes - 2009-10 Proposed Budget -Total Operating Requirements $ 6,031,200 r Section 6-Page 55 r r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006.07 Revised 2007.08 2008-09 Budget 2009-10 Budget _ By Category Actual Budget Projected Proposed %Change Pro osed %Chance Personnel $4,643,195 $4,894,000 $5,242,200 $5,315,000 8.60% $5,606,000 5.48% Supplies 132,847 162,820 147,800 251,400 54.409/6 251,400 Professional&Contractual Services 308,964 197,000 125,000 167,000 (15.23%) 167,000 Research&Monitoring Repairs&Maintenance 3,122 4,300 4,300 4,300 4,300 - Utilities - Other 2,027 7,000 2,500 2,500 64.29% 2,500 Total $5,090,165 $5,265,120 $5,521,800 $5,74Q200 9.02% 56,031,200 Expend iture Trends $6,031200 $5.740,200 $4,438.598 $5,090,155 $5,265,120 $4.791,712 2005 2006 2007 2008 2009 2010 Section 6-Page 56 Engineering Administration 710 .z GENERAL MANAGER 4 V DIRECTOR OF ENGINEERING ti EXECUTIVE ASSISTANT r d y r r V r 2008A9 8 2009.10 Authorized FTE Positions Staffing Trends Executive Managers 1.0 Administrative/Clerical 1.0 r 3— 3 3 2 -2 —2 Total 2_g —I I 2005 2008 2007 2008 2009 2010 r Section 6-Page 57 r I. 2008-09 & 2009-10 Budget L. Service Description W The mission statement of this Department is to deliver world class engineered projects through skilled staff, technical excellence, proactive project planning,effective project delivery,effective communication, and critical thinking. b 2007-08 Performance Objectives 2007-08 Performance Results W • Expend minimum of 90%of project annual cash ♦ Will expend min 90%of project budgets. (101%for flows. 2007-08 projected) 4„d • Ensure that reporting division's expenditures are ♦ All divisions were managed to< 100%. managed to less than < 100%of proposed Lo budgets. ♦ Ensure that reporting divisions achieve 90%of ♦ Reporting divisions were <90% of performance performance measures. measures. 4 i V 2008.09&2009-10 Performance Objectives ♦ Expend minimum of 90%,of project annual cash flows. W ♦ Ensure that reporting divisions'expenditures are managed to less than 100% of the proposed budgets. ♦ Ensure that reporting divisions achieve 90%of individual performance objectives. V Performance Measures Summary 2006-07 2007-08 2008-09 2009-10 Justification Actual Projected Proposed Proposed �+ ♦ Manage project annual 109% 101% 90% min. 90% min. In-house standard cash flows(CIP)Min 90% ♦ Manage Division <100%except <100% <100% <100% In-house standard Budgets. (JO)< 100% Division 740 r" (106.8%) ♦ Ensure reporting 76.9% 77% 90% min. 90% min. In-house standard W divisions achieve performance measures. Min. 90% L• 6J Section 6-Page 58 - V r Engineering Administration Budget Overview The FY 2008-09&2009-10 budgets for the Engineering Administration Division reflect a decrease of 28% and an increase of 7%over the prior year, respectively. The FY 2008-09 decrease is primarily due to staff reallocations during FY 2007-08. The increase in FY 2009-10 is essentially a result of anticipated annual salary and benefit K„ adjustments. 2007.08 Adjusted Budget -Total Operating Requirements $ 574,170 r Salaries for Position Changes: Transfer of Positions fromi(to)Other Divisions - New or(decreased)FTE - af Changes in Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy, etc.) (150,400) Change in OCERS retirement costs (31,600) Change in group insurance costs (8,300) Other benefit cost adjustments 17,200 Other Cost Adjustments: y, Increase in meetings 1,550 Increase in legal services 9,920 r r Aggregate change in Other Categories: r Aggregate change in other materials,supplies,and services 250 2008-09 Proposed Budget -Total Operating Requirements $ 412,790 ,d Changes in Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs, vacancy, etc.) 21.400 Change in OCERS retirement costs 5,300 Change in group insurance costs 2,500 Other benefit cost adjustments 1,400 Other Cost Adjustments: rr r r Aggregate change in Other Categories: r No other cost changes - 2009-10 Proposed Budget -Total Operating Requirements $ 443,390 r Section 6—Page 59 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006.07 Revised 2007.08 2008.09 Budget 2009-10 Budget B Category Actual Budget Projected Pro osed %Change Pro osed %Chan e Personnel $410,481 $ 568,800 $ 395,000 $ 395,700 (30.43%) $ 426,300 7,73% Supplies 1,542 3,130 2,990 5,090 62.62% 5,090 - Professional&Contractual Services 21,393 2,080 11,000 12,000 476.92% 12,000 - Research&Monitoring - - - - Repairs&Maintenance - - - - Ulililies - - Other 160 100 100.00% Total $433,416 $ 574,170 $ 409,090 $ 412,790 28.11% $ 443,390 7.41% Expenditure Trends $574.170 $511.769 $51a,190 $433 416 $412,790 $443.390 ti 2005 2006 2007 2008 2009 2010 Y1 Section 6- Page 60 r Planning 740 DIRECTOR OF ENGINEERING r ENGINEERING MANAGER ENGINEER ADMINISTRATIVE AS r ENGINEERING ENGINEERING SUPERVISOR SUPERVISOR r SENIOR SENIOR ENG. DATA SENIOR ENGINEER ENGINEERING .r MANAGEMENT ENGINEER (2) ASSOCIATE(3) SPECIALIST - =DATA ENGINEERING M ENGINEERING ASSOCIATE ASSOCIATE r ENGINEERING ENGINEERING r ASSISTANT 1 (2) ASSISTANT II r .,r 2008.09 &2009-70 Authorized FTE Positions Staffing Trends Manager 1.0 Supervisors/ Professionals 17.0 Administrative/Clerical 1.0 16-16-16 16- 19-19 r Total 19.0 I I I i 1 I r 2005 2006 2007 2006 2009 2010 Section 6-Page 61 r 6r 2008-09 & 2009-10 Budget J Service Description �.i The mission of the proposed Planning Division is responsible for facility records management, master planning, water resources management,and California Environmental Quality Act review. The Division will also be responsible for annexations, connection permitting, easements, and agency agreements. I 6. 11 2007.08 Performance Objectives 2007-08 Performance Results W ♦ Ensure that division's expenditures are managed to • <100%for FY 2007-08 of proposed budget. <100%of proposed budget. • Respond to 100%of environmental correspondence ♦ Will respond to correspondence 100%within the within the specified deadline of 30-45 days. 30 -45 day timefreme. L ♦ Process 90%of connection permits within one day ♦ Will process a minimum of 90%of connection of request. permits within one day of request. v 2008.09 8 2009-10 Performance Objectives jr ♦ Ensure that the division's expenditures are managed to<1 00% of proposed budget. • Respond to 100%of environmental comespondence within the specified deadline of 30-45 days. W ♦ Process 95%of connection permits within one day of the request. V ♦ Validate 100%facility records for compliance with CAD standards at completion of projects. :J Performance Measures - Summary 2006-07 2007-08 2008-09 2009.10 Justification Actual Projected Proposed Proposed I ♦ Division's Expenditures 106.8% <100% <100% <100% In-house standard ♦ Environmental 100%- Will meet Will meet Will meet In-house standard Correspondence Met Goal Goal 100% Goal 100% Goal 100% ♦ Process Connection Met Min Will meet Will meet Will meet In-house standard ._ fees with one day 90% min 90% min 95% min 95% V ♦ Validate Facility NIA NIA 100% 100% In-house standard Records V U Section 6-Page 62 - - L r Planning Budget Overview The FY 2008-09&2009-10 budgets for the Planning Division reflect a decrease of 29%and an Increase of 56% over the prior year, respectively. The decrease is due to a decrease in the amount of capital grants that will be paid to member agencies in FY 2008-09 which is partially offset by the transfer of 3 FTE positions to this division. The increase in FY 2009-10 is due to an increase in the amount of capital grants that will be paid to member agencies as well as to annual salary and benefit adjustments. 2007-08 Adjusted Budget -Total Operating Requirements $ 4,550,080 r Salaries for Position Changes: Transfer of Positions froml(to)Other Divisions 303,400 New or(decreased)FTE - Changes in Personnel Expenses: Other net salary adjustments(MOU-related,leave payoffs,vacancy,etc.) 191,500 Change in OCERS retirement costs 141,700 Change in group insurance costs 69,400 Other benefit cost adjustments 12,900 Other Cost Adjustments: Increase in memberships($10,000 transferred from Division 610) 16,200 Increase in outside printing services 2,960 Increase in meetings 4,170 Increase in temporary services 61,510 Increase In other professional services 110,000 Decrease in legal services (12,200) Decrease in capital grants to member agencies (2,200,000) .d Aggregate change in Other Categories: r Aggregate change in other materials, supplies,and services (1,180) 2008-09 Proposed Budget -Total Operating Requirements $ 3,250,440 d^ Changes In Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs,vacancy, etc.) 97,100 Change in OCERS retirement costs 24,200 r Change in group insurance costs 20,800 Other benefit cost adjustments 12,700 Other Cost Adjustments: Increase in memberships 5,530 Decrease in other professional services (110,000) Increase in capital grants to member agencies 1,764,530 r Aggregate change In Other Categories: r Aggregate change in other materials,supplies,and services 250 2009-10 Proposed Budget -Total Operating Requirements $ 5,065,550 ti Section 6—Page 63 r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007.08 2008-09 Budget 2009-10 Budget By Category Actual Bud et Pro'ected Proposed %Change Pro osed %Change Personnel $1,980.163 $1,902.900 $2.469,000 $2,621,800 37.78% $2,776,600 5.90% Supplies 78,410 84,720 84,270 106,870 26.14% 112,650 5.41% Professional&Contractual Services 145,296 60,690 60,690 220,000 262.50% 110,000 (50.00%) Research&Monitodng - Repairs&Maintenance 1,040 1,040 1.040 1,040 Utilities - - - r Other 2,128,050 2,500,730 2,403,990 310,730 87.97°/ 2,065,260 586.75% Total $4,331,919 $4,550,080 $5,018,990 $3,250,440 28.56% $5,065,550 1 55.84% Expenditure Trends $5,379,939 $5,085,550 $4,550,Oe0 rr $4,331.919 ee $3,250.440 _ r $1,691,872 2005 2006 2007 2009 2009 2010 w Section 6- Page 64 Nee r Project Management Office 750 r DIRECTOR OF r ENGINEERING r y ENGINEERING MANAGER r `. SENIOR CIP ENGINEERING PROJECT SUPERVISOR r MANAGER PRINCIPAL PRINCIPAL CIP PROJECT ENG. DATA STAFF MANAGER(7) MANAGEMENT ANALYST(2) SPECIALIST r ,� ENGINEERING COST PLANNER/ ASSISTANT II ESTIMATOR SCHEDULER r OFFICE ASSISTANLE T r Stefling Trends 2008.09 & 2009.10 Authorized FTE Positions rl Manager 1.00 Supervisors/Professionals 14.00 Administrative/Clerical 1.00 i77S-10.70 1675 17-17-17 Engineering Insp./Asst. 1.00 I I y I I Total 17.00 2000 2000 2007 2008 2009 2010 Section 6—Page 65 r II W 2008-09 & 2009-10 Budget Service Description The mission of the Project Management Office Division (PMO)is to be responsible for managing the design and L construction of new collection and treatment and disposal facilities plus the rehabilitation of older facilities to ensure the safe cost effective transport and treatment of in0uent/effluent.This division is responsible for the delivery of capital projects from the preliminary design stages through closeout of construction. The PMO provides standards, processes, and methodologies to improve project quality, cost and timeliness. 2007.08 Performance Objectives 2007.08 Performance Results I" ♦ Ensure that the division's expenditures are ♦ Will be managed to< 100%of proposed budget. I managed to less than 100%of the proposed W budget. • Expend minimum 90%of project budgets. ♦ Will expend min 90%of project budgets. 101% for 2007-08 projected. L ♦ Meet 100%of project milestones. ♦ Will meet 85% (1051123)for FY 2007-08 • CIP utilization staff rate @ 80% min. ♦ 80%through February 2008. • Baseline PMO level of maturity and increase PMO • Model being restructured. Measurement of level of maturity by minimum of 1 point on a 5 point increase to occur in the next FY. u scale. 1 : ✓r 2008-09&2009-10 Performance Objectives ♦ Ensure that the division's JO expenditures are managed to less than 100%of the proposed budget. L ♦ Expend minimum 90%of project annual cash flow. (CIP) ♦ Meet 100%of project milestones. ♦ CIP Staff Utilization Rate 80% min. I ♦ Develop and implement an effective Lessons Learned Program for next FY year. L • Increase PMO level of maturity minimum of%2 point(1-5 point scale)based on the 9 Project Management -_ Book of Knowledge(PMBOK)areas each FY year. ♦ Maintain or improve non-construction costs @ 31%or less. V i " Performance Measures � w Summary 2006-07 2007-08 2008-09 2009.10 Justification Actual Projected Proposed Proposed ♦ Manage Division's(JO) 98.86% <100% <100% <100% In-house standard iw • Maturity Model— N/A N/A Inc. by%2 pt. Inc.by%: In-house standard increase Div. level pt. ♦ Expend min 90%of 109% 101% Min 90% Min 90% In-house standard W (CIP) ♦ Meet 100% Project 70% 85% 100% 100% In-house standard -" Milestone ♦ CIP Staff Rate at 80% 80% 80% Min 80% Min 80% In-house standard min. ♦ Develop effective N/A N/A LL in Place LL in Place In-house standard Lessons Learned W Program ♦ Non Constr. Costs N/A N/A <31% <31% In-house standard i W Section 6- Page 66 L Project Management Office Budget Overview The FY 2008-09&2009-10 budgets for the Project Management Office Division reflect a decrease of 3%and an increase of 6%over the prior year, respectively. The decrease is mainly due to staff reallocations during FY 2007-08. .r 2007-08 Adjusted Budget-Total Operating Requirements $ 2,692,930 Salaries for Position Changes: Transfer of Positions froml(to)Other Divisions - New or(decreased) FTE - Changes in Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy, etc.) (90,600) Change in OCERS retirement costs 2,700 Change in group insurance costs 5,400 .. Other benefit cost adjustments 10,000 Other Cost Adjustments: Decrease in in-house reproduction services (8,040) `+ Increase in legal services 1,000 r Aggregate change in Other Categories: Aggregate change in other materials,supplies,and services 480 e.i 2008-09 Proposed Budget -Total Operating Requirements $ 2,613,870 r Changes in Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs,vacancy,etc.) 107,000 Change in OCERS retirement costs 26,600 Change in group insurance costs 18,900 Other benefit cost adjustments 11,300 Other Cost Adjustments: No other significant cost changes - w r ..I Aggregate change in Other Categories: .. Aggregate change in other materials, supplies,and services (300) 2009-10 Proposed Budget -Total Operating Requirements $ 2,777,370 .r Section 6—Page 67 r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007-08 2008.09 Budget 2009.10 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $2,051,970 $2,659,700 $2,340,100 $2,587,200 (2.73%) $2,751,000 6.33% Supplies 26,750 31,980 17,230 24,470 (23.48%) 24,170 (1.23%) Professional B Contractual Services 40,049 720 1,000 1,000 e1 Research B Monitoring Repairs B Maintenance 133 Utilities - - w Other 3,533 1,250 1,250 1,200 4.00% 1200, Total S2,122,435 $2,692,930 $2,359,300 S2.613,870 2.94% $2,777,370 6.26°/ Expenditure Trends 62.692.930 r S2,777,370 S2,613.870 - r $2.122.435 S 1.855.631 $1,627.165 r 2005 2006 2007 2008 2009 2010 1111 Section 6- Page 68 r Engineering and Construction r 760 r DIRECTOR ENGINEERING r ENGINEERING MANAGER r q 0 CIPAI SENIOR STAFF IALVST ADMINISTRATIVE CONSTRUCTION ASSISTAMrl INSPECTOR. SAFETY ENGINEERING ENGINEERING ENGINEERING ENGINEERING SR.CONST. r SUPERVISOR- SUPERVISOR- SUPERVISOR SUPERVISOR- INSPECTION CIVIUMECH ELEC40ONMOW CONST.P1& CONST.P26 SUPERVISOR- PUMPSTATIONS COLLECTIONS COLLECTIONS y SENIOR SENIOR SENIOR CONSTRUCTION SENIOR CONSTRUCTION ENGINEER(4) ENGINEER r4i ENGINEER(2) ENGINEER(1) INSPECTION CONSTRUCTON INSPECTION SUPERVISOR-P1 INSPECTOR(2) SUPERVISOR-P2 ENGINEER(4) ENGINEER pI ENGINEER A830CWTE ENGINEER III R) SENIOR SENIOR SENIOR CONSTRUCnON ENGINEERING CONSTRUCTION ENGINEERING INSPECTOR( ) ASSOCIATE INSPECTOR ASSOCIATE pS60CIATE ENGINEER III ENGINEERIII I21 ASSISTANT II(2) N CONSTRUCTION CONSTRUCTION rANBTRUCTION ENGINEERING ADMINISTMTNE INSPECTOR p) INSPECTOR INSPECTOR@) ASSIST 1 ABSISTANT(2) ADMINISTRATIVE ASSISTANT INTERN LS) 2008.09 & 2009-10 Authorized FTE Positions Staffing Trends Manager 1.0 Supervisors/ Professionals 35.0 se Administrative/Clerical 4.0 Engineering Insp. /Asst. 20.0 r Intems 0.5 r Total 60.5 2006 2006 2007 2008 2000 2010 Section 6—Page 69 r y 2008-09 & 2009-10 Budget Service Description The mission at the Engineering and Construction Division is to provide administration, design, Inspection and L other necessary engineering services to the Project Management office and Planning Division for the Engineering Department and other District Divisions for the execution of projects which meet the operational needs of the District at a reasonable cost, in a timely manner and to an acceptable degree of quality. 2007.08 Performance Objectives 2007.08 Performance Results y • Ensure that the division's expenditures are ♦ Expenditures managed to< 100%. managed to<100%of JO Budget. ♦ Return 80%of construction submittals by date. ♦ Will return a minimum of 80% by due date. 6d ♦ Overall Staff Utilization rate at 75%minimum for ♦ Staff utilization rate at 73% through February 2008- Construction. will be 2%short of goal. ♦ Reduce program Change Order toward COMP ♦ Change order cost projected to be at 8.76%end of L Goal. FY 2007-08. 2008.09&2009.10 Performance Objectives • Ensure the division's expenditures are managed to< 100%of the proposed budget. • Return 80%of construction submittals by specified due date. ,r • Overall Staff Utilization rate > 75%. • Reduce program change order performance towards COMP goal. • Meet Full Secondary Consent Decree Dates. L • Support SARI project relocate by 2011. • Implement CIP with no serious accidents. w Performance Measures - Summary 2006-07 2007-08 2008.09 2009.10 Justification Actual Projected Proposed Proposed ♦ Manage division budget 93.7% <100% <100% <100% In-house standard L ♦ Return construction 91% 92% >80% >80% In-house standard submittals within specified time ♦ Overall Staff Utilization 73% 73% >75% >75% In-house standard Rate Through 02/08 ♦ Reduce Prog CO 16.06% 8.76% 8.37% 8.22% In-house standard u Performance ♦ Meet Consent Decree N/A N/A Meet Dates Meet Dates In-house standard Dates L+ ♦ Support SARI project N/A N/A Continued Continued In-house standard relocation Support Support • CIP-No serious N/A N/A 0% 0% In-house standard accidents u i v Section 6-Page 70 u r r Engineering and Construction Budget Overview The FY 2008-09&2009-10 budgets for the Engineering and Construction Division reflect increases of 16%and 6%over the prior year, respectively. The increase is due to a net addition of 2 FTE positions due to staff reallocations and the anticipated salary and benefit adjustments each year. The division's staff composition is changed due to addition of professional engineering staff and loss of 2lntern positions. There is also an Increase for engineering services transferred from the disbanded Regional Assets&Services Division. r 2007-08 Adjusted Budget -Total Operating Requirements $ 7,950,300 Salaries for Position Changes: Transfer of Positions froml(to)Other Divisions 255,100 r New or(decreased)FTE - Changes In Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy, etc.) 357,700 r Change in DOERS retirement costs 239,500 Change in group insurance costs 118,200 Other benefit cost adjustments 30,700 r Other Cost Adjustments: Decrease in memberships (3,490) Decrease in minor furniture and fixtures (2,850) Increase in meetings 8,090 r Increase in engineering services 317,700 Decrease in repairs and maintenance (9,340) r r Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (860) 2008.09 Proposed Budget -Total Operating Requirements $ 9,260,750 r Changes In Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs,vacancy, etc.) 339,700 Change in OCERS retirement costs 82,000 r' Change in group insurance costs 66,200 Other benefit cost adjustments 39,900 Other Cost Adjustments: r Increase in engineering services 8,000 r r Aggregate change in Other Categories: Aggregate change in other materials, supplies,and services 2,590 2009-10Proposed Budget-Total O eratin Requirements $ 9,799,140 r Section 6—Page 71 r r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006.07 Revised 2007.08 2008-09 Budget J325,700 Budget B Category Actual Budget Projected Proposed %Change %Change Personnel $7,489,749 $7,804,700 $7,622,900 $8,805,900 12.83% 5.99% Supplies 62,994 103,910 97,130 107,100 3.07% 0 1.86°% Professional BContractual Services 109 317,700 0 2.52%Research 8 Monitoring Repairs 8 Maintenance 6,544 12,400 3,000 3,060 (75.32%) 0 1.96% Utilities 13,222 17,000 17,500 17,000 0 2,00%Other 5,398 12,290 9,790 9,990 18.71% 0 2.00% otal $7,576,016S7,950'30057,750,320 59,260,750 16,48% 0 5.81: Expenditure Trends $9,260.750 $9,799,140 $7,950,300 $7,191,815 � r $7.578.016 $6,074,955 r 2005 2006 2007 2008 2009 2010 M Section 6- Page 72 _ Facilities Engineering 770 r DIRECTOR OF ENGINEERING ENGINEERING MANAGER ADMINISTRATIVE ASSISTANT ENGINEERING SUPERVISOR ENGINEER ASSOCIATE ENGINEERING (5) ENGINEER III ASSOCIATE Staffing Trends 2008.09 & 2009-10 Authorized FTE Positions Manager 1.0 Supervisors/ Professionals 8.0 Administrative /Clerical 1.0 1 1e_10 Total 10.g zoos 2006 2007 2009 2009 2010 Section 6—Page 73 U 2008-09 & 2009-10 Budget Service Description .. The mission of the Facilities Engineering Division is to provide engineering, design and construction services for L completing fast-track type projects,special projects, repair project works, and/or emergency projects. Iv 2007-08 Performance Objectives 2007.08 Performance Results ♦ Manage division expenditures to less than 100%of • Expenditures managed within 100% of project the budget amounts. budgets. (80%for 2007-08 projected) ♦ Expend minimum 85%of CIP project budgets. ♦ CIP fiscal year expenditures projected at 81%. 6W • Manage CIP change orders to no more than 20% ♦ Change order cost projected at 12% by end of of construction cost. fiscal year. Ly ♦ Complete 50 to 65 projects ♦ Projected to complete 30 projects i 2008-09&2009-10 Performance Objectives W ♦ Manage division expenditures to less than 100%of budget amounts. ♦ Manage CIP change orders to less than 20% of construction costs. 1i4 ♦ Expend at least 85%of CIP cash Flow. ♦ Complete at least 50 CIP project designs/bid submittals. 'W Performance Measures 6J Summary 2006.07 2007-08 2008-09 2009.10 Justification Actual Projected Proposed Proposed W ♦ Manage Division N/A 80% <100% <100% In-house standard Operating Budgets. iv • Manage CIP Change N/A 12% <20% <20% In-house standard Orders ♦ Manage CIP Cash Flow N/A 81% 85% min 85% min In-house standard ♦ Complete CIP Projects N/A 30 Projects 50 Projects 50 Projects In-house standard min min 6W V Section 6-Page 74 L r Facilities Engineering Budget Overview The FY 2008-09&2009-10 budgets for the Facilities Engineering Division reflect a decrease of 5%and an increase of 6%over the prior year, respectively. The decrease is due to a reduction of 1 FTE position with the reallocation of a senior engineer position to another division within the Engineering Department. The increase In r FY 2009-10 is due to anticipated salary and benefit adjustments. 2007-08 Adjusted Budget -Total Operating Requirements $ 1,570,260 r Salaries for Position Changes: Transfer of Positions froml(to)Other Divisions (98,600) New or(decreased)FTE - r Changes in Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy,etc.) 37,600 Change in OCERS retirement costs (700) Change in group insurance costs 4,500 r Other benefit cost adjustments (2,100) Other Cost Adjustments: Increase in books and publications 1,760 Decrease in minor furniture and fixtures (5,500) Decrease in safety equipment and tools (7,100) Decrease in engineering services (5,000) r r Aggregate change in Other Categories: Aggregate change in other materials,supplies,and services 630 r 2008.09 Proposed Budget -Total Operating Requirements $ 1,495,750 Changes in Personnel Expenses: Net salary adjustments(MOU-related,leave payoffs,vacancy,etc.) 60,600 Change in OCERS retirement costs 15,000 Change in group insurance costs 11,300 r Other benefit cost adjustments 6,700 Other Cost Adjustments: Decrease in books and publications (2,000) r r r Aggregate change in Other Categories: Aggregate change in other materials, supplies,and services 700 2009-10 Proposed Budget -Total Operating Requirements $ 1,588,050 r Section 6—Page 75 r b 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007-08 I Budget 2009-10 Budget B Category Actual Budget Projected %Change Proposed %Change Personnel $ - $1,513,000 $1,223,700 (3.92%) $1,547,300 6.44% Supplies 31,810 32,714 (31.78%) 20,400 (5.99%) Professional&Contractual Services 25,000 22,000 (20.00%) 20,000 Research&Monitoring - Repairs&Maintenance - Utilities - - Other 450 320 22.22% 350 Total 5 - S1,570,260 $1.278.734 4.75% $1,588,050 6.17% r Expenditure Trends $1,570,260 $1,588,050 $1.495,750 r r $0 $0 $0 2005 2ao6 2002 2ao8 2009 2010 1�1 r Section 6-Page 76 r Operations & Maintenance Administration 810 r GENERAL MANAGER r r DIRECTOR OF r OPERATIONS & MAINTENANCE r EXECUTIVE ASSISTANT r r r r ,r Staffing Trends 2008-09 & 2009-10 Authorized FTE Positions r Executive Manager 1.0 Administrative/Clerical 1.0 8�8 _ r I d ---2 -2—= Total 2.0 ~ I F r zoos zoos zoos zoos zoos zoto Section 6-Page 77 r Ld 2008-09 & 2009-10 Budget Service Description The mission of the Operation & Maintenance Administration Division is to provide leadership,support,as well as L management oversight and development of the Department. Ratepayer owned facilities and assets managed by the O&M divisions have a replacement value that exceeds$5.5 Billion.The Director as a member of the Executive Management Team provides counsel and expertise in developing the necessary strategies to maintain alignment with the District's Strategic Plan, Levels of Service and annual Divisional workplans in alignment with resource availability.The Director and staff also proactively network with the OCSD member cities and sewering agencies and regional regulators on operational issues. 2007-08 Performance Objectives 2007.08 Performance Results V • Achieve 100%compliance with water,solids,air, ♦ In compliance. and energy permits. I • Manage all O&M expenditures to within 96-100%of ♦ Estimated to be at 93.26% r approved budget and related risk levels. • Ensure that the annual OCSD City and Agency ♦ Survey completed and distributed on schedule. 6d Collection Facilities O&M and sewer fee survey is completed on schedule. I ♦ Ensure that the Strategic Initiative regarding the ♦ Local Sewer Services Staff report completed.The W "Local Sewer Services"is completed for third party Board also supported staffs recommendation to analysis and possible action by our Board. establish a new and separate local sewer service fee. it 2008-09&2009-10 Performance Objectives u ♦ Achieve 100%compliance with water,solids,air, and energy permits. • Achieve a compliance level of>_80%of the Level of Service(LOS)targets consistent with resource V availability. ♦ Manage O&M expenditures to within 96-100%of approved budget. ♦ Ensure that the annual OCSD City and Agency Collection Facilities O&M survey is completed on schedule. Performance Measures Summary 2006.07 2007-08 2008-09 2009-10 Justification �+ Actual Projected Proposed Proposed ♦ Compliance with One chronic 100% 100% 100% In-house standard for all Permits toxicity facilities exceedance ♦ Budget compliance 84.78% 93.26% 96% - 100% 96% - 100°/ In-house standard u ♦ LOS compliance - - a 80% >_80% New In-house standard u Section 6- Page 78 V Operations & Maintenance Administration Budget Overview r The FY 2008-09&2009-10 budgets for the Operations&Maintenance Administration Division reflect a decrease of 30% and an increase of 8% over the prior year, respectively. These changes are mainly due to staff reallocations during FY 2007-08. 2007-08 Adjusted Budget -Total Operating Requirements $ 536,850 Salaries for Position Changes: Transfer of Positions from/(to)Other Divisions - New or(decreased)FTE - Changes In Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy, etc.) (117,600) Change in OCERS retirement costs (24,200) Change in group insurance costs (7,800) .+ Other benefit cost adjustments 11,400 Other Cost Adjustments: Decrease in meetings (10,300) ,., Decrease in legal services (8,000) Decrease in other professional services (8,500) re r Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 1,400 2008-09 Proposed Budget -Total Operating Requirements $ 373,250 Changes in Personnel Expenses: .. Net salary adjustments(MOU-related, leave payoffs, vacancy, etc.) 19,400 Change in OCERS retirement costs 4,800 Change in group insurance costs 2,500 ,r Other benefit cost adjustments 1,400 Other Cost Adjustments: Increase in legal services 1,000 w r Aggregate change in Other Categories: Aggregate change in other materials,supplies,and services 150 r 2009-10 Proposed Budget -Total Operating Requirements $ 402,500 Section 6—Page 79 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007-08 2008-09 Budget 2009.10 Budget By Category Actual Budget Projected Proposed %Change Pro osed %Chance Personnel $ 637,831 $ 497,900 $ 362.600 $ 359,700 (27.76%) $ 387,800 7.81% Supplies 32,279 16,520 7,360 6,450 (60.96%) 6,600 2.33% Professional&Contractual Services 11,056 21,500 13,300 5,000 (76.74/°) 6,000 20.00% Research&Monitoring - - - - Repairs&Maintenance - - - Utilities - - - - Other 1,083 930 1,300 2,100 125.81°h 2,100 Total S 682,249 S 536,850 S 384,560 S 373,250 30.47°/ $ 402,500 1 7.84% Expenditure Trends 5795.117 $682.249 $734,356 $536,850 w $373,250 $402.500 2005 2006 2007 2008 2009 2010 Section 6-Page 80 r Collection Facilities Operations & Maintenance 420 r DIRECTOR OF OPERATIONS & MAINTENANCE r r ENGINEERING r MANAGER r ADMINISTRATIVE ASSISTANT MAINTENANCE SUPERVISOR (2) LEAD SENIOR MECHANIC (7) r MECHANIC (4) MECHANIC (9) r r r Staffing Trends 2008-09 &2009-10 Authorized FTE Positions Manager 1.0 sa Supervisors/ Professionals 2.0 �za—za—za—za—xa Operations & Maintenance 20.0 Administrative/Clerical 1.0 Total 24.0 zoos 2006 2007 2006 zoos 2010 r Section 6-Page 81 L 2008-09 & 2009-10 Budget L Service Description The mission of the Collection Facilities Operations and Maintenance Division is to provide reliable collection and L transportation of wastewater and efficient, safe operation and maintenance of the system in the 471 square mile regional service area.Assets consist of the 429 mile long regional interceptor and trunk sewer system's piping, sixteen off-site pumping facilities,and the 152 mile long local sewer system serving portions of the City of Tustin and the Unincorporated Areas north of Tustin and in east Orange. Services are delivered through trained and certified staff and/or contractors.The Division maintains a regional leadership role in the District's WDR Compliance effort in the areas of O&M,repairs, and staff development including certl0cation.The Division is in its fifth year of developing the Dig Alert compliance program for protecting collection facilities assets. Inl 2007.08 Performance Objectives 2007-08 Performance Results • Ensure division expenditures are managed within • Expect to achieve 90%expenditure of Div.420 96-100%of the approved budget. budget by end of FY 2007-08 N ♦ Keep preventable manhole overflows due to • Manhole overflows are currently at 6 spills through mainline blockages below the national average of the end of Feb.2008 which represents 1.03 spills 2.1 per hundred miles per year or less than 13 per per 100 miles of sewer which is about half of the Ir year. national average ♦ Achieve 80%wrench time for pump station crew. ♦ Achieved 68%wrench time so far this year • Complete an average of 90%of scheduled ♦ Completed 79%of scheduled maintenance in maintenance in troubled spot areas through FY trouble spots so far this year 2006/07. ♦ Complete 80%of weekly production targets for • Completed 100%of weekly production targets for contractors on small diameter(12"and smaller) contractors who clean the small diameter sewers L sewer cleaning. (12"and below)In Service Area 7 ♦ 100%Compliance of mandatory safely training • Achieved 100%compliance(zero no shows) L with zero"no shows". 2008.09&2009.10 Performance Objectives ♦ Ensure division JO budget expenditures are managed within 95-100%of the approved budget. 6w ♦ Keep preventable sanitary sewer overflows due to mainline blockages below the national average of 2.1 per hundred miles per year or less than 13 per year. • Complete an average of 90%of scheduled maintenance for pump station crews in the pump stations V • Complete an average of 90%of scheduled maintenance In troubled spot areas. • Complete 80%of weekly production targets for contractors on small diameter(12"and smaller)sewer cleaning. L• Maintain 100%compliance with mandatory safety training with zero"no shows". Performance Measures Summary 2006.07 2007-08 2008-09 2009.10 Justification Actual Projected Proposed Proposed • Joint operating budget 84.68% 90% 95-100% 95-100% In-house standard y ♦ Preventable overflows 8 spills 6 spills < 13/yr < 13/yr WDR/ASCE/EPA Report ♦ Pump Station Scheduled N/A 80% >90% >90% In-house standard Maintenance r • Trouble Spot Scheduled 78% 85% >90% >90% In-house standard Maintenance • Meet weekly local sewer 95% 100% 100% 100% In-house standard V targets • Safety Training Compliance 96% 100% 100% 100% In-house standard L.I Section 6- Page 82 u r Collection Facilities Operations & Maintenance Budget Overview The FY 2008-09&2009-10 budgets for the Collection Facilities Operations&Maintenance Division reflect a decrease of 12%and an Increase of 3%over the prior year, respectively. The reduction is primarily due to the transfer of a portion of odor control costs to Plant No. 1 and Plant No. 2 Operations Divisions. This transfer is r based on a determination that 40 percent of the usage and cost of certain chemicals applies to the treatment plant and the remaining 60 percent applies to the collection facilities. r 2007-08 Adjusted Budget-Total Operating Requirements $ 9,488,390 Salaries for Position Changes: Transfer of Positions froml(to)Other Divisions - r New or(decreased) FTE - Changes In Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy,etc.) 215,800 J Change in OCERS retirement costs 69,600 Change in group Insurance costs 46,200 Other benefit cost adjustments 33.800 Other Cost Adjustments: Decrease in odor control chemicals(costs transferred to Divisions 830 &840) (1,114,600) Increase in safety equipment/tools 15,000 r Decrease in other contractual services (385,000) Increase in engineering services 116,800 Decrease in other professional services (191,500) J Increase in repairs&maintenance costs 57.000 Decrease in utility costs of pump stations (21,900) J Aggregate change In Other Categories: Aggregate change in other materials, supplies,and services 3.010 J 2008-09 Proposed Budget -Total Operating Requirements $ 8,333,200 Changes In Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs,vacancy, etc.) 116,500 Change in OCERS retirement costs 27.800 Change in group insurance costs 26,200 r Other benefit cost adjustments 15.900 Other Cost Adjustments: Increase in odor control chemicals 174,500 r Increase in tools 30,000 Decrease in engineering services (212,500) Increase in repairs&maintenance costs 70,000 Increase in utility costs of pump stations 20,000 r Aggregate change In Other Categories: Aggregate change in other materials, supplies, and services 1.000 2009.10 Proposed Budget-Total Operating Requirements $ 8,602,600 r Section 6 - Page 83 r I L 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006.07 Revised 2007-08 2008-09 Budget 2009.10 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $2,048,717 $2,236.000 $2,463,000 $2,601,400 16.34% $2,787,800 7.17% Supplies 74,788 3,785,590 3,806,820 2,693,200 (28.86%) 2,898,700 7,63% .. Professional&Contractual Services 1,265,919 1,984,200 1,899,200 1,522,800 (23.25%) 1,310,300 (13,95%) Research&Monitoring Repairs&Maintenance 584,111 853,000 793,000 910,000 6.68% 980,000 7.69% Utilities 547,123 626,900 576,900 605,000 (3,49%) 625,000 3.31% Other 5,567 2,700 800 70.37% 800 Total S4,526,225 59,488,390 S9,538,920 58,333,200 12.17% $8,602,600 13.23% r Expenditure Trends $9,488,390 $8,333,200 $9,602,600 54.822.427 $4,526,225 $2,664,266 2005 2006 2007 2008 2009 2010 I� r Section 6-Page 84 r Facilities Maintenance & Fleet Services r 430 r DIRECTOR OF �+ OPERATIONS S MAINTENANCE r r FACILITIES MANAGER r MAINTENANCE MAINTENANCE MAINTENANCE MAINTENANCE SUPERVISOR SUPERVISOR SUPERVISOR SUPERVISOR (FLEET SERVICES) (FACILITIES) (CMMS) MAINTENANCE LEAD LEAD FACILITIES LEAD FACILITIES CMMS r SPECIALIST(T) MECHANIC WORKER(P2) WORKER(PI) TECHNICIAN II(6) r AUTOMOTIVE/ FACILITIES LEAD FACILITIES ENGINEERING HEAVY EQUIP. WORKER/ WORKER ASSISTANT I TECHNICIAN(3) PAINTER (IRRIGATION) r EQUIPMENT FACILITIES FACILITIES OFFICE WORKER/ WORKER/ ASSISTANT r OPERATOR(2) BUILDER PAINTER AUTOMOTIVE/ FACILITIES r HEAVY EQUIP. WORKER/ ASSISTANT BUILDER r Staffing Trends 2008.09 S, 2009.10 Authorized FTE Positions Manager 1.0 Supervisors/ Professionals 4.0 Operations S Maintenance 28.0 02—_00 34 34 r Administrative/Clerical 1.0 �19�n/ Total34-0 2005 2006 2007 2008 2009 2010 r Section 6- Page 85 C 2008-09 & 2009-10 Budget L Service Description The mission of the Facilities Maintenance and Fleet Services Division is to provide cost-effective,quality focused asset management with staff and/or contractors in the following areas:Grounds, Custodial, Painting, Signage and Structure Maintenance Including appurtenances, Computerized Maintenance Management System(CMMS) support,Vehicles and mobile equipment,mobile crepe support and motor pool management. The Division ads as a liaison between O&M divisions and other stakeholders in the areas of procurement, change management, project management,and contractual services. 2007-08 Performance Objectives 2007-08 Performance Results i. ♦ Ensure division expenditures are managed to ♦ Estimated to be at 98.6%. within 96-100%of the approved budget. V ♦ Implement Fleet Management software with ♦ Implementation of Fleet Management software standardized reporting tools similar to other best system with standardized reporting tools practices cities and agencies. completed. ♦ Maintain a monthly fleet services technical staff ♦ Maintained a monthly average of 61.8%. V wrench time of 57%based on actual available site hours. ♦ Maintain an annual fully burdened divisional wrench ♦ Maintained an annual divisional average of time of 55%.The wrench time component is 57.2%. ` comprised of preventative maintenance,predictive maintenance,corrective maintenance, managed activities,and construction (Improvements) L ♦ Implement a Pavement Management program. ♦ Implementation of Pavement Management Develop and install attribute data, condition program.Asset register and PM/CM program to assessment tools, populate asset register in CMMS be implemented in new asset management (or other)and implement PM/CM program in in- software scheduled for implementation FY house CMMS or other. 2008-09. 2008.09&2009-10 Performance Objectives ♦ Volatile Organic Compound (VOC's). 100%records compliance for painting/coatings glues,solvents and other VOC's. V ♦ Safe and Reliable vehicle and equipment operations.Zero incidents or accidents and 10%rework as a result of Fleet Services staffs performance. ♦ Clean work environment,facilities maintenance. In house survey publishes with results meeting at or above a minimum of 80%very satisfied or extremely satisfied. ♦ Vehicle and equipment emissions. Fleet Services to maintain 100%of compliance with state regulations. ♦ Total Injury Frequency Rate. Maintain a frequency rate of less than 6.0 Performance Measures Summary 2006-07 2007.08 2008-09 2009.10 Justification Actual Projected Proposed Proposed ♦ Joint operating budget 89.6% 98.7% NIA N/A In house standard ♦ Technical staff wrench time 57.0% 61.8% NIA N/A In house standard ♦ Facilities Clean Work NIA NIA 80%very 80%very In house standard Environment(Survey) satisfied satisfied ♦ Vehicle&equipment NIA N/A 100% 100% Compliance with CARS emissions compliance regulations. ♦ Volatile Organic Compounds NIA N/A 100% 100% Comptiance with AOMD compliance regulations. Section 6-Page 86 v r r Facilities Maintenance & Fleet Services Budget Overview The FY 2008-09&2009-10 budgets for the Facilities Maintenance and Fleet Services Division reflect increases of 67%and 8% over the prior year, respectively. The increase is a result of transferring the duties of Computerized Maintenance Management System(CMMS)support and Departmental contract services management along with the associated 17 FTE positions from the Mechanical and Reliability Maintenance Division within the Operations &Maintenance Department. 2007-08 Adjusted Budget -Total Operating Requirements $ 4,367,810 �+ Salaries for Position Changes: Transfer of Positions fromt(to)Other Divisions 1,569,500 New or(decreased) FTE - r Changes in Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy,etc.) 75,800 Change in OCERS retirement costs 397,900 r Change in group insurance costs 204,000 Other benefit cost adjustments 33,200 Other Cost Adjustments: Decrease in vehicle fuel&lubricants (45,000) Increase in compressed natural gas 12,300 Decrease in miscellaneous operating supplies (30,000) r Increase in groundskeeping contractual services 42,700 Increase in janitorial services 10,400 Decrease in engineering services (13,400) r Increase in repairs and maintenance costs 623,000 Increase in services maintenance agreements 31,100 Aggregate change In Other Categories: Aggregate change in other materials,supplies,and services 7,120 r 2008-09 Proposed Budget -Total Operating Requirements $ 7,286,430 Changes in Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs, vacancy,etc.) 153,900 Change in OCERS retirement costs 33,900 Change in group insurance costs 36,900 Other benefit cost adjustments 22,600 r Other Cost Adjustments: Increase in vehicle fuel&lubricants 15,000 Increase in compressed natural gas 15,000 r Increase in groundskeeping contractual services 10,000 Increase in janitorial services 30,000 Increase in repairs and maintenance costs 227,000 Increase in services maintenance agreements 10,000 r Aggregate change in Other Categories: r Aggregate change in other materials, supplies,and services 81500 2009.10 Proposed Budget -Total Operating Requirements $ 7,849,230 r Section 6-Page 87 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006.07 Revised 2007.08 2008.09 Budget 2009.10 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $1,621,757 $1.976,300 $1.863,500 $4,256,700 115.39% $4,504,000 5.81% Supplies 496,844 618,610 536,350 564,230 (8.79%) 597,730 5.94% Professional&Contractual Services 876,417 840,300 835,000 880,000 4.72% 925,000 5.11% Research&Monitoring Repairs B Maintenance 912,381 928,900 1,075,000 1,5B3,000 70.42% 1,820,000 14.97% Utilities 48 - - .. Other 5,099 3.700 3,800 2,500 32.43% 2,500 Total S3,912,546 $4,367,810 S4,313,650 57,286,430 66.82% $7,849,230 Expenditure Trends $7,286,430 $7,849,230 $5,554,908 $5,583,559 $4.367.810 $3,912,546 2005 2006 2007 2008 2009 2010 Section 6- Page 88 Operations & Maintenance Process Engineering 820 DIRECTOR OF r OPERATIONS 8 MAINTENANCE ..1 y ENGINEERING SUPERVISOR r SENIOR SENIOR it ENGINEER(3) SCIENTIST SENIOR d+ ENVIRONMENTAL ENGINEER SPECIALIST(3) r PRINCIPAL REGULATORY FINANCIAL SPECIALIST ANALYST r ENVIRONMENTAL ASSOCIATE r TECHNICIAN ENGINEER III(2) v INTERN(5) r 2008.09 &2009-10 Authorized FTE Positions Staffing Trends Supervisors/Professionals 14.0 Intern 0.5 15.5 14.E_44. 144 4.5 r Total 14.5 2005 2008 2007 2008 2009 2010 r Section 6-Page 89 V 2008-09 & 2009-10 Budget Service Description Provide process support so that OCSD operates in compliance with air, land, and water regulations,odor and corrosion are minimized and treatment is optimized,with minimal impact on the regional collection system and plant neighbors. YY 2007.08 Performance Objectives 2007.08 Performance Results ♦ Manage to within 96-100%of the division's joint ♦ Division 820 budget is projected to be 94% operating expenses budget. ♦ Ensure the utility, chemical, biosolids, and oxygen ♦ Contracts are projected to be managed to 92% service contracts are managed to within 90-100% of the approved operating budget($38.64 million) ♦ Assist Operations in achieving optimization through ♦ Optimized chemicals by>1%of budget 1%savings($400,000) ♦ Manage the collection system chemicals to within • Collection system chemicals are projected to be 60-100%(from div.660) managed to 99% L. • Prepare 35 specifications ♦ Responsibility moved to Division 770 L. 2008-09&2009.10 Performance Objectives ♦ Manage the division's joint operating expenses budget to<- 100%. L ♦ Ensure the utility,chemical,and oxygen service contracts are managed to less than 100%of the approved operating budget. V ♦ Assist Operations in achieving optimization through 2 2%reduction in chemical dosing without decreasing level of service. L� ♦ Ensure continuous odor and corrosion treatment in the Collection System to achieve Level of Service and internal targets for 100%of time based upon average 6. Performance Measures Summary 2006.07 2007-08 2008.09 2009.10 Justification G Actual Projected Proposed Proposed ♦ Manage Division Budget 88% 94% < 100% 5 100% In-house standard r ♦ Contract Management 81% 92% <100% 5 100% In-house standard • Optimization >1% > 1% a2% >_2% In-house standard L, • Odor and corrosion treatment N/A N/A 100% 100% Level of Service in the Collection System L ♦ Manage the collection system 94% 99% N/A N/A In-house standard chemicals to within 80-100% (from Div. 660) Section 6- Page 90 Ir r Operations & Maintenance Process Engineering r Budget Overview The FY 2008-09&2009-10 budgets for the Operations& Maintenance Process Engineering Division reflect increases of 16% and 5%over the prior year, respectively. The increase is due to a net transfer of 2.5 FTE positions into this division. This increase is slightly offset by a decrease in costs for repairs and maintenance. r 2007.08 Adjusted Budget -Total Operating Requirements $ 2,101,320 Salaries for Position Changes: a+ Transfer of Positions from/(to)Other Divisions 176,500 New or(decreased)FTE - Changes in Personnel Expenses: Other net salary adjustments (MOU-related, leave payoffs,vacancy,etc.) 76,000 Change in OCERS retirement costs 80,100 Change in group insurance costs 45,200 Other benefit cost adjustments (50) Other Cost Adjustments: Increase in minor furniture and fixtures 10,800 r Decrease in meetings (2,500) Decrease in safety equipment and tools (6,400) Decrease in laboratory supplies (5,500) Decrease in outside lab services (4,000) Increase in temporary services 35,000 Increase in other contractual services 9,000 Decrease in other professional services (24,000) �+ Decrease in repairs and maintenance (54,900) Decrease in regulatory operating fees (4,800) Aggregate change in Other Categories: Aggregate change in other materials,supplies,and services (2,940) 2008-09 Proposed Budget -Total Operating Requirements $ 2,428,830 Changes in Personnel Expenses: Net salary adjustments(MOU-related,leave payoffs,vacancy, etc.) 79,100 Change in OCERS retirement costs 19,600 r Change in group insurance costs 15.400 Other benefit cost adjustments 9,300 Other Cost Adjustments: r Decrease in minor furniture and fixtures (6,000) Increase in temporary services 25,000 Decrease in other contractual services (30,000) r Decrease in repairs and maintenance (4,200) r Aggregate change in Other Categories: °e Aggregate change in other materials, supplies,and services 1,130 2009-10 Proposed Budget -Total Operating Requirements $ 2,538,160 r Section 6—Page 91 r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007-08 2008-09 Budget 2009.10 Budget By Category Actual Budget Projected Proposed %Change Pro osed %Chance Personnel $1,562,852 $1,643,050 $1,685,000 $2,020,800 22.99% $2,144,200 6.11% Supplies 34,969 55,270 41,050 49,180 (11.02%) 43,810 (10.921/6) Professional&Contractual Services 182,615 292,000 216,500 308.000 5A8% 303,000 (1.62%) Research&Monitonng Repairs&Maintenance 2,056 92,850 21,500 39.950 (56.97%) 35,950 (10.01%) Utilities - Olher 183,343 1$150 11,800 10,900 39.94% 11,200 2.75% Total S1,965,835 S2.101,322 51,975,850 S2A28,830 15.59°/ $2,538.160 4.50% Expenditure Trends 32,538.160 $2.089.8]5 51.065.835 $2,101.320 $2,429.830 -, $1.883,600 2005 2006 2007 2008 2009 2010 Section 6-Page 92 r Plant No. 7 Operations r 830 r DIRECTOR OF OPERATIONS& MAINTENANCE r OPERATIONS MANAGER r CHIEF PLANT r OPERATOR ADMINISTRATIVE r ASSISTANT(.75) r FRONT SIDE BACKSIDE DAY SHIFT/ FRONT SIDE BACKSIDE NIGHTSHIFT NIGHTSHIFT PROCESS DAY SHIFT DAY SHIFT r OPERATIONS OPERATIONS OPERATIONS OPERATIONS OPERATIONS SUPERVISOR SUPERVISOR SUPERVISOR(3) SUPERVISOR SUPERVISOR r SENIOR PLANT SENIOR PLANT LEAD PLANT LEAD PLANT LEAD PLANT OPERATOR(2) OPERATOR(2) OPERATOR(3) OPERATOR OPERATOR r PLANT PLANT SENIOR PLANT SENIOR PLANT SENIOR PLANT OPERATOR(3) OPERATOR(3) OPERATOR(9) OPERATOR(2) OPERATOR(2) r CONTROL PLANT PLANT CENTER OPERATOR(2) OPERATOR(2) r TECHNICIAN CONTROL CONTROL r CENTER CENTER TECHNICIAN TECHNICIAN ,r Staffing Trends 2008.09&2009-10 Authorized FTE Positions `+ Manager 1.00 ors/Professionals 8.00 4125�2I_42.25 41.7$�4.75 44.7s Supervisors Operations & Maintenance 35.00 Administrative/Clerical 0.75 r Total 44.75 2005 2006 2007 200$ 2009 2010 r Section 6—Page 93 r 2008-09 & 2009-10 Budget Service Description To safely, reliably, and cost effectively operate Plants Nos. 1 and 2 to meet all regulatory requirements for the land, air,and water environments of Orange County and the 2.5 million residents we serve. L 2007-08 Performance Objectives 2007-08 Performance Results L ♦ Achieve 100%NPDES Compliance ♦ 100%Compliance j • Maintain a Total Injury Frequency Rate(TIFR)at • Through eight months the was rate was 11.6 L• below the Industry average of 5.2 ♦ Maintain overtime at less than 10%of the total • Through eight months overtime was I"I hours worked approximately 7%of the total hours worked L+ 2008-09& 2009-10 Performance Objectives ♦ Achieve 100%NPDES Compliance ♦ Maintain 30 day geometric mean for total coliform at the final sampler at or below 100.000 MPN • Maintain overtime at less than 10%of the total hours worked r • Maintain total accident rate below 5.2 accidents per 100 employees L L Performance Measures Summary 2006-07 2007-08 2008-09 2009-10 Justification L Actual Projected Proposed Proposed ♦ Compliance < 100% 100% 100% 100% Permit Requirement r ♦ 30 Day Geo Mean NA NA <=100,000 4=100,000 In-house standard • Overtime% <= 10% <= 10% <= 10% <= 10% In-house standard L ♦ Accident Rate 5.0 < 11 <5.2 <5.2 Industry standard 1 61 L Section 6-Page 94 V r Plant No. 1 Operations r Budget Overview r The FY 2008-09&2009-10 budgets for the Plant Number 1 Operations Division reflect increases of 19% and 14%over the prior year, respectively. These increases are mainly the result of an increase of 3 FTE positions reallocated from other divisions and increases in the cost of solids removal and odor control chemicals. These r cost increases are slightly offset by decreases in the cost of utilities and disinfection chemicals. 2007-08 Adjusted Budget -Total Operating Requirements $ 22,839,515 r Salaries for Posidon Changes: Transfer of Positions fromt(to)Other Divisions 182,300 New or(decreased)FTE - r Changes In Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy, etc.) 150,900 Change in OCERS retirement costs 143,900 Change in group Insurance costs 94,800 Other benefit cost adjustments 18,700 Other Cost Adjustments: Increase in chemical coagulants 267,960 Increase in odor control chemicals(Includes costs transferred from Division 420) 1,054,200 Decrease in disinfection chemicals (541,795) Increase in solids removal costs 3,315,800 r Increase in other waste disposal 69,500 Increase in repairs and maintenance 55,000 Decrease in electricity costs (611,000) r Increase in water costs 26,080 Aggregate change In Other Categories: r Aggregate change in other materials,supplies,and services 760 2008.09 Proposed Budget -Total Operating Requirements $ 27,066,620 r Changes In Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs,vacancy,etc.) 219,600 Change in OCERS retirement costs 50,900 Change in group Insurance costs 49,000 �+ Other benefit cost adjustments 29,800 Other Cost Adjustments: Increase in chemical coagulants 835.500 �+ Increase in odor control chemicals 255,180 Decrease in disinfection chemicals (2,900) Increase in solids removal costs 2,070,000 Increase in other waste disposal 13,000 Increase in electdcity costs 150,000 Increase in water costs 30,010 r Aggregate change in Other Categories: Aggregate change in other materials, supplies,and services 1,400 r 2009-10Proposed Budget-TotalOperating Requirements $ 30,768,110 r Section 6-Page 95 r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006.07 Revised 2007-08 2008-09 Budget 2009.10 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel S 4,582,952 $ 4,788,800 $ 4,882,300 $ 5,379,400 12.33% $ 5,728,700 6.49°% Supplies 4,533,678 6,248,755 5,031,960 7,030,220 12.51% 8,118,200 15,48% Professional B Contractual Services 5,660,729 7,974,200 7,205,000 11,359,500 42.45% 13,442,500 18.34% Research 8 Monitoring - Repairs 8 Maintenance 6,605 3,000 8,000 58,000 1833.33% 59,200 2.07% Utilities 2,739,220 3,819,920 2,854.550 3,232,000 (15,39%) 3,412,010 5.57% Other 3,639 4,840 6,500 7,500 54.96% 7,500 Total S 17,526,823 $22,839,515 $AgRS,310 $27,066,620 18.51% $30,768,110 13.68% Expenditure Trends $30.768.110 $22,839.515 $27,066,620 r S14.426.60 $17,526,823 r $15.887,253 r r 2005 2006 2007 2008 2009 2010 r r Section 6- Page 96 r r Plant No. 2 Operations Sao r DIRECTOR OF OPERATIONS MAINTENANCEE r OPERATIONS r I MANAGER 1 r A LAN r FRONTSIDE BACKSIDE DAY SHIFT/ FRONT SIDE BACKSIDE NIGHTSHIFT NIGHTSHIFT PROCESS DAY SHIFT DAY SHIFT r OPERATIONS OPERATIONS OPERATKNS OPERATIONS OPERATIONS SUPERVISOR SUPERVISOR SUPERVISOR(3) SUPERVISOR SUPERVISOR r SENIOR PLANT SENIOR PLANT LEAD PLANT LEAD PLANT LEAD PLANT OPERATOR(2) OPERATOR(2) OPERATOR(3) OPERATOR OPERATOR r PLANT PLANT SENIOR PLANT SENIOR PLANT SENIOR PLANT r OPERATOR(5) OPERATOR(5) OPERATOR(5) OPERATOR(2) OPERATOR(2) r PLANT PLANT PLANT OPERATOR(3) OPERATOR(3) OPERATOR(3) EpUIPMENT OPERATOR r Staffing Trends 2008-09&2009-10 Authorized FTE Positions Supervisors/Professionals 8.0 46.I 4 7.s 47. Administrative/Clerical 1.0 �as�as-48 Operations& Maintenance 39.0 r Total de.g r 2005 2006 2007 2008 2009 2010 Section 6-Page 97 r V 2008-09 & 2009-10 Budget L Service Description L To safely, reliably,and cost effectively operate Plants Nos. 1 and 2 to meet all regulatory requirements for the land, air, and water environments of Orange County and the 2.5 million residents we serve. V W 2007-08 Performance Objectives 2007-08 Performance Results • Achieve 100%NPDES Compliance • 100% Compliance V • Maintain a Total Injury Frequency Rate (TIFR)at ♦ Through eight months the case rate was 21.3 _ below the industry average of 5.2 Id ♦ Maintain overtime at less than 10%of the total ♦ Through eight months overtime was hours worked approximately 6%of the total hours worked V 2008.09 &2009-10 Performance Objectives ♦ Achieve 100% NPDES Compliance L. ♦ Maintain 30 day geometric mean for total coliform at the final sampler at or below 100,000 MPN • Maintain overtime at less than 10%of the total hours worked r • Maintain total accident rate below 5.2 accidents per 100 employees - 6. 6. Performance Measures - Summary 2006-07 2007-08 2008-09 2009-10 Justification 6. Actual Projected Proposed Proposed ♦ Compliance < 100% 100% 100% 100% Permit Requirement it ♦ 30 Day Geo Mean NA NA <=100,000 <=100,000 In-house standard ♦ Overtime <= 10% <= 10% <= 10% <= 10% In-house standard 6w ♦ Accident Rate 20.7 <21 <5.2 <5.2 Industry standard 1 L+ L Section 6-Page 98 ; bl r Plant No. 2 Operations r Budget Overview The FY 2008-09&2009-10 budgets for the Plant Number 2 Operations Division reflect Increases of 6%and 2% over the prior year, respectively. These increases are mainly the result of an Increase of 2 FTE positions reallocated from other divisions and increases In the cost of solids removal and odor control chemicals. These cost increases are offset somewhat by a reduction In cost of disinfection chemicals and utilities. 2007-08 Adjusted Budget -Total Operating Requirements 26,973,635 r Salaries for Position Changes: Transfer of Positions froml(to)Other Divisions 38,600 New or(decreased) FTE 56,600 r Changes In Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy, etc.) 203,400 Change in OCERS retirement costs 91,900 Change in group Insurance costs 81,600 r Other benefit cost adjustments 39,000 Other Cost Adjustments: Increase In chemical coagulants 33,080 r Increase in odor control chemicals(includes costs transferred from Division 420) 818,920 Decrease in disinfection chemicals (1,315,605) Increase in safety equipment and tools 14,400 Decrease in property tax fees(costs transferred to Division 620) (33.000) r Increase in solids removal costs 2,271,750 Decrease in other waste disposal (26,000) Increase in oxygen plant operations 501500 Increase in repairs and maintenance 50,680 Decrease in electricity costs (457,000) Decrease in regulatory operating fees(transferred to Division 620) (283,000) r Aggregate change in Other Categories: Aggregate change in other materials, supplies,and services 2,500 r 2008-09 Proposed Budget-Total Operating Requirements $ 28,611,960 Changes In Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs, vacancy, etc.) 200,800 Change In OCERS retirement costs 49,900 Change in group Insurance costs 51,900 Other benefit cost adjustments 31,900 Other Cost Adjustments: r Increase in chemical coagulants 56,700 Increase in odor control chemicals 81,700 Decrease in disinfection chemicals (84,300) Decrease in safety equipment and tools (9,380) r Increase in solids removal costs (120,000) Increase in other waste disposal 6,500 Increase in oxygen plant operations 13,000 Increase in electricity costs 135,000 Increase in water costs 13,610 Aggregate change In Other Categories: r Aggregate change In other materials, supplies,and services 2,440 2009-10 Proposed Budget -Total Operating Requirements $ 29,041,730 r Section 6—Page 99 r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007-08 2008-09 Budget 2009-10 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 5,105,833 $ 5,299,500 $ 5,502,600 $ 5,810,600 9.64% $ 6,145,100 5.76% Supplies 6,891,863 11,050,285 7,024,360 10,570,960 (4.34%) 10,616,860 0.43% Professional&Contractual Services 6,890,046 7,701,750 7,838,950 9,998,000 29,81% 9,897,500 (1.01%) r Research 8 Monitoring Repairs 8 Maintenance 3,715 4,320 5.000 55,000 1173.15% 56,200 2.18% Utilities 1,995,221 2,831.000 1,703.420 2,173,400 (17, 2,322,010 6.84% r Other 2,995 286,780 203,820 4,000 98.61% 4,060 1.50% Total S 20,889.673 S 26,973,635 S 22,278.150 $28,611,960 6.07% 1 S 29.041.730 1,50% Expenditure Trends $26,973,635 $28,611,960 $29,041,730 $21,451,006 r $20,8B%M S18.737,961 r 2005 2006 2007 20e 2009 2010 r r Section 6 - Page 100 _ Mechanical and Reliability Maintenance 850 DIRECTOR OF OPERATIONS& MAINTENANCE MAINTENANCE MANAGER ADMINISTRATIVE UTILITIES ASSISTANT MANAGEMENT SPECNLIST FPLANTI PLANT1 SENIOR PUNT2 PLANT2 REBUILD SUPERVISOR. SUPERVISOR- MAINTENANCE SUPERVISOR- SUPERVISOR. SUPERVISOR WATER SOLIDS SUPERVISOR WATER SOLIDS .........., LEAD LEAD UTILITY RELIABILITY LEAD LEAD LEADWELDERI MECHANIC MECHANIC MAINTENANCE MECHANIC MECHANIC FABRICATOR SENIOR SENIOR LEAD ASSOCIATE SENIOR SENIOR SENIOR MECHANIC(S) MECHANIC I51 MECHANIC ENGINEER III MECHANIC(8) MECHANIC(5) MECHANIC Id) SENIOR RELIABILITY MAINTENANCE WELDERI MECHANIC(3) TECHNICIAN WORKER MECHANIC(2) FABRICATOR i2) MACHINIST Staffing Trends 2008-09 & 2009-10 Authorized FTE Positions Manager 1.0 /73-74 Supervisors/ Professionals 8.0 sa.s 50y \57-57 Administrative/Clerical 1.0 Operations & Maintenance 47.0 Total 57.0 2005 2006 2007 2008 2009 2010 Section 6—Page 101 2008-09 & 2009-10 Budget Service Description L To provide appropriate maintenance support for wastewater treatment processes in a safe,efficient, and effective manner so that OCSD can meet all discharge requirements. r 2007-08 Performance Objectives 2007.08 Performance Results v ♦ Maintain a work order backlog of no less than 4 ♦ Through 8 months the average backlog was 8.59 weeks and no greater than 6 weeks based on weeks available on-site technical staff hours for the V division. ♦ Maintain overtime between 5 percent and 7 percent ♦ Through 8 months the overtime percentage was u of total hours worked. 8.49 percent ♦ Maintain an Injury Case Rate below 5.2. ♦ Through 8 months the case rate is 15.7 V r 2008.09 8 2009.10 Performance Objectives ♦ Maintain a total work order backlog of no less than 4 weeks and no greater than 6 weeks V ♦ Maintain overtime between 5% and 7%of total hours worked r ♦ Maintain an Injury Case Rate below 5.2 v Performance Measures r Summary 2006-07 2007-08 2008-09 2009.10 Justification Actual Projected Proposed Proposed �. • Work Order Backlog 6.43 8 Weeks >4Wks, >4Wks, Industry Standard <6Wks <6Wks - ♦ Overtime 6.71% 8% 5-7% 5-7% In-House Standard Based on Industry Standards ♦ Injury Case Rate 7.8 <15.7 5.2 5.2 Industry Standard r, r Section 6-Page 102 r Mechanical and Reliability Maintenance r Budget Overview r The FY 2008.09&2009.10 budgets for the Mechanical and Reliability Maintenance Division reflect decreases of 7%and 18%from the prior year, respectively. The decrease is primarily due to a net reduction of 17 FTE positions resulting from transferring 17 FTEs to the Facilities Maintenance&Fleet Services Division as well as 4 additional FTEs to Construction Engineering and O&M Process Engineering Divisions,and adding 4 new FTE r positions. These decreases are partially offset by an Increase In other waste disposal cost In FY 2008-D9 related to increased digester cleaning. r 2007-08 Adjusted Budget -Total Operating Requirements $ 17,160,140 Salaries for Position Changes: Transfer of Positions from/(to)Other Divisions (1,989.200) r New or(decreased)FTE 218,300 Changes In Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy,etc.) (159,100) Change In OCERS retirement costs (358,300) Change In group Insurance costs (105,900) Other benefit cost adjustments (8,000) Other Cost Adjustments: Decrease in meetings (2,850) Increase In gas, diesel, 8 oil 19,050 Increase in safety equipment and tools 86.100 r Increase in solvents, paint,and janitorial supplies 3,600 Increase in other waste disposal 1.600.000 Decrease in temporary services (3,500) Decrease in engineering services (205,000) r Decrease In repairs and maintenance (223,600) Decrease in service maintenace agreements (52,140) Increase In freight 11,250 r Aggregate change In Other Categories: Aggregate change In other materials, supplies,and services 6,410 2008-09 Proposed Budget -Total Operating Requirements $ 15,997,260 Changes In Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs, vacancy, etc.) 244,200 Change In DOERS retirement costs 56,500 r Change In group insurance costs 81,600 Other benefit cost adjustments 37,900 Other Cost Adjustments: r Increase in gas, diesel,&oil 3,050 Decrease in safety equipment and tools (19,450) Decrease in other waste disposal (1,500,000) Decrease In engineering services (65,000) r Decrease in repalm and maintenance (1,733,000) r Aggregate change In Other Categories: Aggregate change in other materials, supplies,and services 2,710 r 2009-10 Proposed Budget -Total Operating Requirements $ 13,085,770 r Section 6—Page 103 r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007.08 2008-09 Budget 2009.10 Budget B Category Actual Budget Projected Pro osed %Change Proposed %Change Personnel $ 7,668,970 $ 8,813,600 $ 8,872,200 $ 6,411,400 (27.26%) $ 6,811,600 6.24% Supplies 359,768 292,950 314,540 401,7WI 37.12% 385,450 (4.05%) Professional&Contractual Services 306 2,423,500 1,300,000 3,815,000 57.42% 2,250,000 (41.02%) Research&Monitoring - Repairs&Maintenance 3,645,706 5,546,400 5,676,500 5,270,660 (4.97%) 3,537,720 (32.88%) Utilities 23,022 16,640 18,000 18,500 11.18% 19,000 2,70% Other 27,033 67,050 177,645 N" 19.31% 82,000 2.50% .Total S 11,724,805 S 17,160,140 S 16,358,885 S 15,997,260 6.78% S 13'085,770 18.20 ExpenditureTrends $17,160.140 $15,997.260 $12.756,307 $13,085.770 $11 p24,805 + $10,882,951 2005 2005 2007 2008 2009 2010 Section 6- Page 104 Instrumentation & Electrical Maintenance a 860 DIRECTOR OF OPERATIONS S — MAINTENANCE — ENGINEERING MANAGER — ADMINISTRATIVE ASSISTANT — PLINTI PIANT2 PLANT PLANT2 ELECTRICAL ELECTRICAL ENGINEERING INSTRUMENT INSTRUMENT ENGINEERING MAINTENANCE MAINTENANCE SUPERVISOR MAINTENANCE MAINTENANCE SUPERVISOR SUPERVISOR SUPERVISOR SUPERVISOR SUPERVISOR — LEAD LEAD SENIOR PoWER PST LEAD LEAD SENIOR ELECTRICAL ELECTRICAL ENGINEER MAINTENANCE INSTRUMENTATION INSTRUMENTATION ENGINEER - TECHNICIAN(2) TECHNIC AN SUPERVISOR TECHNICIAN TECHNICAN(2) ELECTRICAL ELECTRICAL ELECCAL LFAD POVVI:R INSTRUMENTATN)N INSTRUMENTATION ENGINEER I2) — TECHNICIAN II(S) TECHNICIAN II(S) TECHNICIAN OPEUMTOR TECHNICIAN II III TECHNICAN II(10) PRINCIPAL INFO. ELECTRICAL ANALYST I2) ELECTRICAL pRpT INSTRUMENTATION INSTRUMENTATON TECHNOLOGY TECHNICMNI TECHNICAN I110) OpERATORII(9) TECHNICIANI TECHNICMNI SENIORINFO. — TECHNOLOGY ANALYST(S) INFORMATION TECHNOLOGY ANALYST III(2) INFORMATION TECHNOLOGY ANALYST II 2008.09 & 2009.10 Authorized FTE Positions Staffing Trends _ Manager 1.0 SS 171�75- 75 Supervisors/ Professionals 19.0 sa.s/ Administrative/ Clerical 1.0 sA.s Operations & Maintenance 54.0 Total 75.0 2005 2006 2007 2008 2009 2010 Section 6— Page 105 2008-09 & 2009-10 Budget L Service Description _ We protect public health and the environment by providing reliable power distribution, power generation, electrical and instrument maintenance, and process control systems. Our professional, highly skilled staff use best practices and technology to provide Collections, Plant Operations,and District staff with electrical power, control systems, and environmental controls that are safe, on line,and available for use. 4,. 2007-08 Performance Objectives 2007-08 Performance Results • Maintain a Total Injury Frequency Rate (TIFR)at or ♦ The Total Injury Frequency Rate was 11.7. `r below Industry Average of 6.0. ♦ Maintain all three Supervisory Control and Data ♦ All servers were available greater than 99.5%. Acquisition (SCADA)Servers availability above 99.5%. ♦ Maintain a workorder backlog of less than 6 weeks for ♦ The average work order backlog is 4.2 weeks. Instrument and Electrical Maintenance. ♦ Maintain an average Federal Energy Regulatory ♦ The facilities averaged 34%efficiency. Commission(FERC)efficiency rating for the �+ Central Generation Plants greater than 34%. 2008.09&2009.10 Performance Objectives ♦ Maintain electrical power availability at the distribution level greater than 99.9%(8 hr/yr of unplanned outage). ♦ Maintain all three supervisory control and data acquisition system servers above 99.9%(8 hrtyr of unplanned downtime). ♦ Maintain a safe work environment measure by a National Case Rate lower than the national standard for Electrical Contractors. ♦ Maintain an average Federal Energy Regulatory Commission(FERC)efficiency rating for the Central Generation Plants greater than 34%. ♦ Maintain a workorder backlog of less than 6 weeks for Instrument and Electrical Maintenance. Performance Measures Summary 2006-07 2007-08 2008-09 2009-10 Justification Ir Actual Projected Proposed Proposed ♦ Power Availability >99.9% >99.9% >99.9% >99.9% In house standard W ♦ SCADA Availability >99.9% >99.9% >99.9% >99.9% In house standard ♦ Safe Work Environment NA 8.2 <5.8 <5.8 Electrical Contractor Avg. L+ ♦ Can Gen Efficiency 35% 34% >34% >34% Federal Energy Standard V ♦ Backlog 6.75 4.2 <6 weeks <6 weeks Industry Standard Section 6-Page 106 �I r Instrumentation & Electrical Maintenance Budget Overview The FY 2008-09 8 2009-10 budgets for the Instrumentation and Electrical Maintenance Division reflect increases r of 21%and 4%over the prior year, respectively. The increase is mainly due to the addition of 4 FTE positions in FY 2008-09 as well as increased costs for natural gas and repairs and maintenance. 2007-08 Adjusted Budget -Total Operating Requirements $ 12,535,040 Salaries for Position Changes: Transfer of Positions froml(to)Other Divisions 103,600 r New or(decreased)FTE 165,600 Changes In Personnel Expenses: Other net salary adjustments (MOU-related, leave payoffs,vacancy, etc.) 497,900 r Change in OCERS retirement costs 188,600 Change in group insurance costs 153,000 Other benefit cost adjustments 162,600 r Other Cost Adjustments: Increase in minor furniture and fixtures 28,270 Increase in safety equipment and tools 18,500 r Increase in engineering services 150,000 Increase in repairs and maintenance 328,000 Increase in service maintenace agreements 2,080 Increase in natural gas costs 765,000 `+ Increase in GAP water costs 77,170 Decrease in outside equipment rental (4,000) Increase in freight 8,400 r Aggregate change in Other Categories: Aggregate change in other materials,supplies,and services 7,170 2008-09 Proposed Budget -Total Operating Requirements $ 15,186,930 Changes In Personnel Expenses: Net salary adjustments(MOU-related, leave payoffs,vacancy, etc.) 375,500 Change in OCERS retirement costs 85,700 Change in group insurance costs 82,100 Other benefit cost adjustments 49,800 r Other Cost Adjustments: Decrease in minor furniture and fixtures (17,050) Decrease in safety equipment and tools (11,100) r Decrease in engineering services (150,000) Increase in repairs and maintenance 108,000 Increase in GAP water costs 122,430 r Increase in freight 2,000 r Aggregate change In Other Categories: Aggregate change in other materials, supplies,and services 9,360 r 2009-10 Proposed Budget -Total Operating Requirements $ 15,843,670 r Section 6—Page 107 r 2008-09 & 2009-10 Budget 2007-08 Operating Expenses 2006-07 Revised 2007-08 2008.09 Budget 2009.10 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel S 7,746,299 $ 8,600,900 $ 9,294,800 $ 9,872,200 14.78% $10,465,300 6.01% Supplies 259,425 240,720 238,430 293,060 21.74% 270,670 (7.64%) Professional B Contractual Services 51,281 60,000 30,000 211,500 252.50% 63,000 (70.21%) Research&Monitoring Repairs&Maintenance 1,068,876 1,502,920 1,722,920 1,833,000 21,96% 1,943,000 6.00% Utilities 2,076,316 2,060,300 2,482,000 2,902,470 40.88% 3,024,900 4.22% r Other 17,308 70,200 56,600 74,700 6.41% 76,800 2.81°70 Total 511,219.505 S12,535p40 $13,824,750 515,186.930 21.76% 515,843,670 r r Expenditure Trends $15.186,930 r $15,643,670 $11,219,505 $12,535,NO r $6,894 484 $6,287,613 2005 2006 2007 2008 2009 2010 r Section 6- Page 108 r Self-Insurance Program Overview r SELFFUNDED INSURANCE PLANS .+ The District is partially self-insured for general liability and workers'compensation. The General Liability and Property program and the Workers' r Compensation program have been in existence since 1979. The annual in-lieu premiums and charges to the Revenue Areas or Operating Divisions are the revenue sources within these r programs. Expenses primarily consist of settlement claims, legal fees and excess loss insurance premiums. Ending Reserve Balances are projected at$57,500,000 in FY 2008-09 and $57,000,000 in FY2009-10. .. General Liability and Property - The District's current outside excess general liability insurance coverage is$25 million with a " self-insured retention of$250,000. - The District's current property insurance coverage r is$1 billion for perils of fire and $300 million for Perils of Flood,subject to a self-insured retention of $25,000 for fire and $100,000 for Flood. The r District is completely self-insured for earthquake. - In order to maintain a reserve balance of$55.5 million for IY 2008-09 and$55.0 million for FY r 2009-10 for the Properly,and General Liability program,appropriations for in-lieu premiums charged to the Revenue Areas are recommended at$912,100 and$1,082,100 for FY 2008-09 and FY 2009-10, respectively. r Workers'Compensation - The District's mment outside excess workers' compensation coverage is$300 million with a self- insured retention of$500,000 per occurrence. - In order to maintain the reserve balance of$2 r million for the Workers'Compensation program, appropriations for in-lieu premiums charged to operating divisions are recommended at$108,100 and$535,000 for FY 2008-09 and FY 2009.10, respectively. Y Section 7-Page 1 r 1-I 2008-09 & 2009-10 Budget Total of the self-Insurance Programs y 2006-07 2007-08 2007-08 2008-09 2009-10 DESCRIPTION OR ACCOUNT TITLE Actuals Budget Projected Proposed Proposed L. Beginning Reserves $ 57,828,172 $ 57,000,000 $ 57,532,300 $ 58,451,900 $ 57,500,000 L. Revenues In-Lieu Premiums 1,776,900 2,557,600 2,557,600 1,020,2001 1,617,100 u Miscellaneous Other Revenue 5,063 10,000 - - r Claims Reimbursementfrom Other Funds 10,000 - Service Department Allocation 47,004 47,000 47,000 24.100 24,100 r Total Revenues 1,828,967 2,614,600 2,614,600 1,044,300 1,641,200 L Expenses Benefits/Claims 299,052 400,000 300,000 425,000 450,000 y Contractual Services 18,231 31,200 21,200 31,200 31,200 Legal Services 388,565 350,000 280,000 335,000 335,000 Professional Services 3,052 30,000 1,500 15,000 15,000 u Subtotal 708,900 811,200 602,700 806.200 831,200 Policy Premium Expense 1,415,976 1,803,400 1,092,310 1,190,000 1,310,000 L Total Expenses 2,124,876 2,614,600 1,695,010 1,996,200 2,141,200 V Excess Revenue(Expenses) (295.909) 919,590 (951,900) (500,000) r Ending Reserves $ 57,532,263 $ 57,000,000 $ 58,451,890 $ 57,500,000 $ 57,000,000 r 1.1 Section 7-Page 2 Self-Insurance Program General Liability and Property Self-Insurance Program r 2006-07 2007-08 2007-08 2008-09 2009-10 DESCRIPTION OR ACCOUNT TITLE Acluals Budget Projected Proposed Proposed r Beginning Reserves $ 55,546,842 $ 55,000,000 $ 55,292,500 $ 56,070,000 $ 55,500,000 r Revenues �+ In-Lieu Premiums 1,466,800 1,998,200 1,998,200 912,100 1,082,100 Miscellaneous Other Revenue - 10,000 r Claims Reimbursement from Other Funds 10,000 Service Department Allocation 47,004 47,000 47,000 24,100 24,100 Total Revenues 1,513.804 2,055,200 1 2,055.200 936,200 1,106,200 r Expenses r BenefitslClaims 183,361 200,000 100,000 200,000 200,000 Contractual Services 1,200 1,200 1,200 1,200 1,200 Legal Services 366,333 300,000 250,000 300,000 300,000 Professional Services 3,052 5,000 1,500 5,000 5,000 Subtotal 553,946 506,200 352,700 506,200 506,200 ,+ Policy Premium Expense 1,214.230 1.549,000 925,000 1,000,000 11100,000 Total Expenses 1,768,176 2,055,200 1,277,700 1,506,200 1,606,200 W Excess Revenue(Expenses) (254,372) 777,500 (570,000) (500,000) r Ending Reserves $ 55,292470 $ 55,000000 $ 56,070,000 $ 55,500.000 $ 55,000,000 rr r Section 7-Page 3 r 11„I 2008-09 & 2009-10 Budget Workers' Compensation Self-Insurance Program 2006-07 2007-08 2007-08 2008-09 2009-10 �y DESCRIPTION OR ACCOUNT TITLE Actuals Budget Projected Proposed Proposed r Beginning Reserves $ 2,281.330 $ 2,000,000 $ 2,239,800 $ 2,381,900 $ 2,000,000 r Revenues In-Lieu Premiums 310,100 559,400 559,400 108,100 535,000 �+ Miscellaneous Other Revenue 5,063 r Service Department Allocation - Total Revenues 315,163 559,400 559,400 108,100 535,000 Expenses y Benefits/Claims 115,691 200,000 200,000 225,000 250,000 Contractual Services 17,031 30,000 20,000 30,000 30,000 Legal Services 22,232 50,000 30,000 35,000 35,000 r Professional Services 25,000 10,000 10,000 Subtotal 154,954 305,000 250,000 300,000 325,000 Policy Premium Expense 201.746 254,400 167,310 190,000 210,000 Total Expenses 356,700 559,400 417,310 490,000 535,000 r Excess Revenue(Expenses) (41.537) 142,090 (381,900) Ending Reserves $ 2,239,793 $ 2,000,000 $ 2,381,890 $ 2,000,000 $ 2,000,000 u 6w u Section 7-Page 4 r r Overview r CIP BUDGET REQUEST SUMMARY service and resulting capital projects are included in the District's 5-year Strategic Plan. This includes r Each year, the Board of Directors, through their approximately $50 million of new CIP projects over committee process, reviews and approves the the next 10 years. Capital Improvement Program (CIP) prepared by r, staff for both sewage collection system projects In addition, District staff has reviewed each CIP (collections) and the joint works treatment and project to ensure that the scope of the project was disposal system projects. appropriate, and that the cost estimates were accurate. The validated CIP includes 86 large r Many of the District's projects take several years to capital projects and 28 special projects with a 15- complete the planning, design and construction year expenditure of $1.47 billion. This total cycle. The budget for a construction project covers represents a $149 million Increase from the 2007-08 r the life of the project. This budget is reevaluated CIP estimate. This increase Includes $50 million each year for the purpose of managing annual cash from the District's 5-year Strategic Plan, $28 million flows. Thus, many of the projects in the CIP Budget in newly identified rehabilitation and renewal needs, for 2008-09 are continuing projects that were and $71 million in project budget revisions for on- approved in prior years. going projects. In October 1999, the District adopted a new Planning for water reclamation facilities is an r Strategic Plan, a planning effort to define District's element that has had a significant impact on the goals, responsibilities, and requirements over the District's capital Improvement program. The District next twenty years, and including projections through and the Orange County Water District (OCWD) are the assumed "build-out" of the District's service area currently in the last year of completing a joint project r to the year 2050. This effort to update the 1989 30- that will be the largest water reclamation project in year "2020 Vision" Master Plan was necessary the nation. When completed, the Groundwater because many of the assumptions used then have Replenishment System (GWRS) would reclaim now changed. Critical factors such as population approximately 100 million gallons of water each day. growth, new construction, the volume of wastewater The District is matching OCWD funding for this delivered to the plants and viable water conservation project and has budgeted $248.4 million, with up to and reclamation programs have been reevaluated. $46 million of this budget being off-set by grants. r In June 2002, the District completed the Interim The proposed 2008-09 CIP budget is organized by Strategic Plan Update (ISPU) which further updated treatment process. The funds requested for the these critical factors and developed revised cost current cash flow budget total $373.7 million, an estimates and user fee projections for upgrading the increase of 35 percent from last year's cash flow District's level of treatment to secondary standards. request of $277.1 million. The current year cash On July 17, 2002, after reviewing: (1) the ISPU flow is part of an overall total cost of $2.484 billion r treatment alternatives, (2)ocean monitoring data, (3) for active projects. public input, (4) regulatory issues, and (5) financial considerations, the Board of Directors made the Following is a chart of the 2008-09 Proposed CIP decision to upgrade our treatment to meet Cash Flows and the total Project Costs for all secondary treatment standards. proposed projects, by project phase, in millions: The CIP includes 3 projects totaling $679 million to Total r upgrade the District's treatment plants to meet 2008-09 Project secondary treatment standards. Implementation of Current Status Cash Flo Costs secondary treatment standards Is scheduled to be Future $0.0 $60.8 completed by December 31, 2012. This schedule Planning 9.2 464.2 was reviewed and determined to be reasonable and Design 25.4 1,630.7 achievable by two independent Peer Review Teams. Construction 337.1 312.5 Capital Equipment 2.0 16.0 ., In conjunction with preparation for the 2008.09 Total W-3-Z g4. Budget, District staff conducted strategic planning workshops with the Board of Directors to layout a There are currently 26 projects In the Planning capital program to deliver the levels of service Phase with proposed capital outlay spending in desired by the Board of Directors. These levels of 2008-09. Two of the larger 2008-09 cash flow Section 8—Page 1 r L 2008-09 & 2009-10 Budget projects in the Planning Phase are the Solids Area shown as graphics in the individual CIP Detail Cable Tray Improvements at Plant No. 2 and the Sheets to give the reader insight about where a Oxygen Plant Rehabilitation with current year project correlates to the treatment process. w projected expenditures of $2.72 million and $1.25 million respectively. A total of $464.2 million in Wastewater is collected from 17 pump stations or capital outlay, currently listed within the Planning gravity sewers in outlying areas that total 471 square Phase, is being projected for future budgets based miles. Influent wastewater undergoes Preliminary on the capital Improvement needs that are identified Treatment upon entry to the treatment plants where through the 2002 Interim Strategic Plan Update and it is filtered through bar screens and grit chambers. the annual CIP validation effort. Primary Treatment consists of large clarifying basins r where solids are settled out and sent to Solids There are currently 19 projects in the Design Phase Processing. Treated wastewater is pumped either to with proposed capital outlay spending in 2008-09. Secondary Treatment where it is aerated and The two largest projects in the Design Phase are the additional solids are settled out, or to advanced Sludge Dewatedng and Odor Control at Plant 1 primary, a physical-chemical process. The resulting Project and the Interplant Gas Line Rehabilitation water from these processes is blended to become Project with projected current year expenditures of final effluent. L+ $7.60 million and$2.96 million respectively. . Methane gas generated during the natural There are currently 44 projects in the Construction decomposition of the solids in the Digesters is used Phase with proposed capital outlay spending in to fuel the Central Power Generation and produce 2008-09. The two most sign scant projects in the electricity used to operate both treatment plants. construction phase are the New Secondary Treatment System at Plant No. 1 and the Trickling Solids are dewatered to a 20 percent solids r Filters at Plant No. 2 with a projected current year consistency, called biosolids, and recycled for direct expenditure of $100.1 million and $73.7 million land application, composting or landfill. respectively. V Approximately 50 to 90 million gallons per day of Standard contingency factors have been applied to secondary treated wastewater is sent to improve cost estimates. The rates of 20, 20, and 10 Reclamation uses such as groundwater injection or i percent have been applied respectively to the landscape irrigation. The remaining treated W estimates made during the project development, wastewater is discharged through the ocean ouffall design, and construction project phases. This about five miles offshore. reflects standard practice for estimating construction L project costs. Following within this section are individual capital improvement project detail sheets that have been L provided to give the reader a brief overview of each project, the budget for the next five years, and the budget for the total project. L Each project went through an extensive validation and prioritization process. Projects have been prioritized based on risk exposure If the project was deferred. Projects that would present a higher risk If they were delayed are given a higher priority. V The Treatment Process: The Treatment Process Diagram (Section 8-Page 3) y illustrates the stages of wastewater treatment in relation to the flow of wastewater through the treatment process. The icons in the legend are Section 8-Page 2 Overview Treatment Process Diagram Dutlall Blend end Pomp to Collections Roadworks Primary Seconds Plc Dan Duvall Treatment Treatment p in R . Smiling '6-7 n Basin F Reclamation Incoming wastewater ;ZP; , hum Homes and ® 1i GOi'°°s^°^°" Businesses ocxmamm esr,voo.>w IBIGUICKY ai Ishk •0 Heat Ity unoq Research& Law Systems Development Dewatedng Applicamon am Composting t Solids Handling&Digestion Budget Legend a Research & ® Development ® Collections Odor Control Secondary Treatment © Headworks ® Plant Automation ® Solids Handling Computerization & Digestion Misc. & Primary Treatment Utility Systems Support Projects a Outfail ® Process Related Water Management Special Projects Projects Section 8—Page 3 L 2008-09 8t 2009-10 Budget Project Summary FY 2008-09 V Replacement/ Improved Additional Total Item Rehabilitation Treatment Capacity Support Budget Vr Collections Facilities 61,768,900 1,281.800 23,D49,500 5,015.800 91,116,000 N Headaorks 21,435,650 6,437.750 9D9,600 - 28,783,000 Primary Treatment 16,466,000 - - 16,466,000 `+ Secondary Treatment 1,376,000 140,977,600 33,300,600 - 175,654,000 Solids Handling&Digestion 5,489,750 12,862,300 4,941,950 - 23,294,000 Ocean Outfall Systems 669,500 - 586,500 - 1,256,000 Utility Systems 7,722,750 3,567,250 2,675,500 3,018,500 16,884,000 v Odor Control Related Projects - - - - - Li Plant Automation&Computerization 2,063,700 - 457,500 2,1D4,800 4,626,000 V Process Related Special Projects 30,000 - 1,508,000 1,538,000 Miscellaneous&Support Projects 3,798,700 661,150 - 2,751,150 7,211,000 4 Water Management Projects 2,766,000 - - 2.766,000 it Strategic&Master Planning 75,000 205,000 75,000 75,000 430,000 — L: Research&Development 250,000 694,500 390,500 325,000 1,860,000 Equipment 493,250 493,250 493,250 493250 1,973,000 Total 121,609,200 169,976,600 66,779,800 15,291,600 373,657,000 V V Section 8-Page 4 Summary of Capital Requirements Equip Ml Planl4ulame0m615 yyelnP,.t.nvnp 0 w S% 6,WOPn cl�28783, ks 307% 13% 3B,7 ,LbO 0]% SIreb9K8 COII 91i 16FeelMlea Pnmery TroelmM Mesh Plwnin9 BI 44%W 16.485.WJ <01% N4% 44% 0.1% _ SOIbs Hendlinp 6019Mm 35,294.W0 fit% aaa Fesevch 50e.Nopnen 04 W 0.4x Mbcenwwu.6 Suppod Pmlwls W B% O..OW 6fall OW Sy4le�N 0 3% OS% Mile "MSYaar,a 5%S.B � 4. % Pmcess Relbd Plgw% 9B 6O 04% Sxmda,Tme1MM 175,B54,OW 47 o% Total FY 2008-09 Capital Improvement Expenditure by Process -$373,657,000 $1 TQSW ImprovedvW Tnelmem e� 45.5% /\\ 1 PddiWftn C.P,Oy � 99% $15AB1,WO SUPPOd 4.1% $41,W8,300 Replacemwl I RehablMMelion 33 5% Total FY 2008-09 Capital Improvement Expenditure by Type-$373,657,000 Section 8—Page 5 2008-09 & 2009-10 Budget Project Summary FY 2009-10 Replacement/ Improved Additional Total Item Rehabilitation Treatment Capacity Support Budget Collections Facilities 50,898,500 411,300 15,253,400 930,800 67,494,000 6+ Headworks 14,304,400 3,300,000 1,887,600 - 19,492,000 Primary Treatment 5,685,000 - - - 5,685,000 L' Secondary Treatment 1,973,000 71,259,580 7,086,420 - 80,319,000 V Solids Handling&Digestion 10,866,000 4,566,950 1,350,050 - 16,782,000 y Ocean Outfall Systems 932,000 - - - 932,000 Utility Systems 7,818,500 9,699,800 273,200 437,500 18,229,000 Odor Control Related Projects 188,000 752,000 - - 940,000 Lr Plant Automation B Computerization 3,132,000 - 125,000 3,562,000 6,819,000 V Process Related Special Projects - 30,000 - 1,487,000 1,517,000 Miscellaneous&Support Projects 3,775,600 656,200 - 3,121,200 7.553,000 w Water Management Projects - - - - - v Strategic&Master Planning 75,000 215,000 75,000 75,000 440,000 Research&Development 250,000 590,000 314,000 256,000 1,410,000 v Equipment 323,500 323,500 323,500 323,500 1,294,000 Total 100,220,500 91,804,330 26,688,170 10.193,000 228,906,000 � u u Section 8-Page 6 u Summary of Capital Requirements � f6],494,L00 Collacli Fea60ee 39.5% f1.391,ON _ f5,665,a00 EQmPmonl Pnme jT,.,marl U40,ON 0 6% 9ba1e0ic6 MCM.alumina, 0 z% $19,492,000 ft6]82,000 HegWyrfe Solipe HardlmaI D.,mamn ]3% f 1.410.000 1940.000 Feveam06 Oeslopned Odor Conlrvl N.Jech 0.6% a 41 819 000 $],553000 Plant Aummahan6 Mlscelleneoue6 Compu,eNaean supped Pmpcle 3.0% $932.000 33% Ocean omitum Sy W m OA% fte.:z9.9d9 unity Statemf 8 0% go 19.000 $1 517.000 Tre menl Proceee lammed PrgacY .0% 0]% Total FY 2009.10 Capital Improvement Expenditure by Process -$228,906,000 $91,804.330 Improved Treatment 40 0% Addulonal Capaclly 11]% $10,193,000 Support 4 5% $100 220.500 Replacement l Relubt abort 43.6%. Total FY 2009-10 Capital Improvement Expenditure by Type -$228,906,000 Section 8—Page 7 V 2008-09 & 2009-10 Budget Summary of Capital Requirements-Collection System Improvement Projects r Project Total Est Coal 100E-09 200010 Project Plead Project to Bea Cubism Caamoy Future Page Number MAN Budget 8130I00 Budge Budget Budget Number COIIUWne Rein and Bred small Sore Expenies 01401 Planning 3.748,000 252,DDO 639,000 016,000 2,041p00 14 SemaAa Trunk SawrReeb. 01-17 Penning 20.129.000 515,000 1,006,000 I,O56,000 17,552,000 15 V Carbon Coyn$man and Pump Sin MaMonoM 02.24.1 Design 9,952,DDO 1,649,000 2,891,000 4,518,000 BIMAD0 to Sue Are hype Ineroepel Realignmem end Purl. D241 Design 10,382,000 7,363M 822,000 555,000 1,642,000 17 i Sams Am Minor lmmmrer 20M Proacton Boost 02415 Planning 200.000 200,000 - 18 Lw Tag Branch lmprowmens 0249 Planning 1,121,000 13,000 1,10BA00 WA EutlM ROM of lmprorements-Reach W 02-52 Penning 22,050,000 14,00D 229,000 1,069,000 20,738,000 19 Nw1fiopeiemnia&CroessTmnk Replacement 0245 Plmuvig 8162310110 392,000 964,000 1,016,000 6231,0DO 20 Rehablram,Distitl Siphons By Adding Air Jumper G260 Deeps 7,556,000 4,897.000 2,206,000 453,000 - 21 FullenonBma ldaceMm Sham Relief 02-71 Plamtlmg M.DD0 946,000 WA Rehebililamm of the Wesed,Pump 8ta0an 0352 Dead 9,848,000 2,573.000 4,284,000 2.789,000 - 22 Weseide ROM Inen a?LosAerates MH Rehab 0355 Penning 13,038,000 13,038,000 NVA Remblie8on of Magness Trunk Sewer 0348 Planning 28,769,WO 1,469.000 1,550,000 6,216.000 19,534,000 23 y Miler-Hdder TPA Sawa Re8ef 0M9 Planning 12,169,000 12,169,000 NIA Butli Twkedurt temper Bane Rawl 0360 Penning 25,605,000 25,605,000 WA Below Trunk Sewer Reheblia8on 0547 Penning 8,514,000 214,000 378,ODD 540,000 7,382,CDO 24 60 Replacement of the Baer Penn Pump Won 0549 Dings 36,547,000 4,026,000 9,183,000 13,100,000 10238,0D0 25 Replaxamem of the Rocky Pend Petry Salim 05-60 Design 30,952,000 6,563,0DO 1,749,000 18,024,000 4,816,000 28 Bear Point From Men Reealism, 055E Design 24,947,000 2,552,000 22,395,000 27 Newport Forte Mee Condition Amendment 0560 Planning 2,112.000 72,0110 590,000 12,000 1,438.000 28 BariOnee Investment 0561 Planning 3,750.000 697,000 305,000 2,328,000 420.000 29 Doper Dine Trunk Sayer Reim 0563 Panning 6,351.000 293.01D0 1,077,000 1,575,01)D 3,406.000 30 BanerPtteu Impure.Big Canyon Named Park Au 0564 Planning 765,000 48,000 140,00D 577.000 31 DisMe6Tnmk Sewer Relief WIT Planning 2,050,000 4,000 2,046.000 WA FaiMay Rod Trunk Beyer Rene Will Panning 10,029,WD 10,029AO WA Souhwd Cots Mesa Trunk wig Pa-9 12,600,000 12,600,000 WA 4 Glde-RedhN Syaem lnrymromems,Reach B 0737 Design 9,437,000 1,038,000 91400 7,100,0D0 1208,000 32 RehebiHeBon of Chase An.Puns 5a8on 0747 Pumping 9,969,000 2,851,000 6,487,DDO 631.000 - 33 BroppringSubOudl Spew ROW 0760 Pammmg 3,920,000 3,920,000 WA Comy,WaedAmmution and CEOADommuetlon 0741 Panning 300,000 200.000 100,DDO - 34 Von Kemp Tmnk Seweraelld 0762 Planning 409,000 409,000 WA ErnganBdu ChicaTmnklnderaeemems 11.25 Planning 4.41 I,OW 4,411,ODO NIA v CoaeTmASupperRehaMlldrum 11-26 Design 10.830,000 2,230.000 7,890,D00 710,000 - 35 CoOnued Ld Section 8-Page 8 V r Summary of Capital Requirements r Summary of Capital Requirements—Collection System Improvement Projects Bee PuJul 1`01e1 Fit Cut 200B09 2009.10 PmJxl Ron PmJOeI wDaft Cuhfi" CBS"" Future Page Numgu TMJOB Budad 6=8 Budget Budgd Budget Number r CWN08mu lCoUnued.l NOM CW*WOMBS Yaw 1501 Plmkng i1,n31000 B.478A00 4,610.000 60B4O00 36 WOO ROdUdon and Aveen.1 Pmgum 1505 Plmdng 1y40,000 420.000 Was MOM 37 ry Fadkee Enoneehe Preade-Coliedou FE-Cotled PNn ng 71920,000 2.722,000 1,192,000 1,232,000 2,714,000 36 Reple e t of the Eft Ave.Pump SW 1.10 Oedgn T7,257.000 56,006,000 17,723,000 2,728.000 30 Buhud Tuneeerar RBluN7ddim 124 ConW pl. 68,757,000 01,118,000 1,038,000 40 r L.Ahnft Bhd.Seeen Cmdtlm Aueeemml SR126 PNnneg 350,000 3MM 41 TONICOINCgom PlolBOb r r r r r r Be. r r Section 8—Page 9 wel 2008-09 & 2009-10 Budget Summary of Capital Requirements—Treatment System Improvement Projects y Plafnet Tatet EdI.Cat 2WBJ)9 2=40 Protect Phew Prol.ct done C.". call Fuen Page Number TNAW Bodget 6Oa08 Budget sweet Budget Number Headed" y NOaeodS RNmb.and Eraanon at Plant No.1 P1.1U5 Planned 2O.202.e1g) 20,202,000 WA Hennaed.RNNbIISeaMeeNml.hmant P1-71 Dead. 11,D24,WU 1,)00,000 3,032,000 6,292ADD - 42 y Nounnds lmplonmBMB at Plan Ne.2 P24e CondAmpl. 251.409,000 1951134.O0O 25.761AW 13200.004) 19,413.01111 43 Neadwoft Total a14)21.as 197.O34,00O A7010W I9A92OW 38.516.000 V Primary TnMxnt PdmeryTleNment RehatReNlb P24e Planning 37,230,0OO 15,178,000 1O,3011,01D0 5,BW,0W a eN PdlreryEauea Pump Sietlona RelieNSry SbW 50.130 PlenanA 1W,WO 1W,0W 45 Primary TlaeSrmnt Total 37.33O.000 1S179A011 1SASAWO 6.68kon La Secondary Tna9nent Nee Swndary TNbIWIt Seoul N Ptaa No,1 P1-102 Darien M5.M W 1nA08,110O 1W,0WAW 21A74,O0O 30,831.000 a - Adbegad Slit.Pound RehMW n P142 CoatAmpl. a,133,W0 44.9W,W0 1.138,WO 47 V ReMN oNAWeeftda Planet PINO2 K-74 Dale. 16,401,W0 16,24O,00O 181,W0 a Td int F9tan NPIMM.2 P2W Deem II1,192,O00 51.979,000 73,W0AW 58,672,000 W,W1,W0 49 Ocryen Plea Rehebula en at PNrd No.2 SP-129 PlaxOnt 2,50O,e1O 627,000 1.a)B4OW - W Onyan Food Retub55NJa SP-724 PlanonA 1W,W0 agate I=." 51 W Sougooll sob Ma Total uZuS.Wo 226,7KNO i7savueo B 319W0 GO.Sizaaw SOMBHerldleg S Wgoal W Sludge 0lleNm RMabmtatla at Plead P1-1W OeNAn W,Wi,WO 51505100O 1,359,0110 6.5311.000 a,))S,OW 52 Sludge 0ovemnt and Oar Mellen at Ptaa l P1-101 DBNa 143.547.11111) 9,013.000 7.603,00) 2.077.001 124,1154,011O 53 Trok Weep eN Owabdle Betlsa Plea No.1 PI-10 PlanNnt 3.1/5,0W 2,11MAW Ido'dw a SOW.TNkmet ea Promeeee llWmtla P2419 Planning 73.020.00O 45).W0 1.741,000 1,9W.W0 W,62/,O00 W Plan N,2 Pdniy Sludge Fend Syman PmJW P2.91 C Jlopl. 25,7W,W0 9,51),WO 12,44I,000 3,118,00 55 lee, 0ieeely RBhebi0leanelPWI No,2 P2.91-1 Planned a8.0W,W0 731,00O 35.68)AW 57 _ Sludge Noutedng ma Odor Coaol 0 Plod 2 P2412 P4n.yp 51,698,00O 256A00 51,440,000 WA V ReNecencnl of Drying SM.and Truk Weep at Rua P2AT PlanrMg dvo'Wt 74,00O 4.WBA0g a gold.H.Mbg B DINNO.Total 318A13,O0O 28A 00 23.t94OW 16.76200O 326904110O V Ocean Outell sow. Food EMPat SBmder.rd Bending Pou Opdmdee }110 Planning 1,89O.0110 WAW 932.000 075,W0 W Hnuant Pumping SleanMena lT) ConNmpl. W,IB),WO 513,311,001) 1.173,000 W Oven Odden Sy.4mn Total 52.3"1000 69,314.0411 1.256.W0 Staged BTSWO u Section 8-Page 10 u r r Summary of Capital Requirements Summary of Capital Requirements—Treatment System Improvement Projects r Pmasct Test.JN at Cot ashA 20%-10 PmNel Phase Hope Mete Csette Edagem Faun Number Number 7NI08 Butleat N0J08 settees e tl e tl t N M 'r UII6tyspteres Inftedat Gaa Una RMaddid J-106 DwoI 3,752,001) 422,999 2.954.011D 366.100 - 61 r Cengm CaeSnB Weler Spam RepammeM J-109 Raising 9.094.0100 136A% 7%,0% s%,%0 7.254.00 62 Cergen&dvimm Cabal Relad J-111 Rome 31,0410,000 299.WD W.M1,0% WA Coble Tray Pans 182 N] Design 31,744,01a) 4,%7.00) 2,0001 2,00 27,183,000 63 r MOue9ryl�aopmeMs J-79 ( Add, 9.168.= 7,244,000 1%,0% 1.T88,%0 - Be Coital Gooses Audialdn J-791 Damp 20,3U.MD 2,905,00) 4,543,003 9,9I6,000 3,127,0% 65 r she Supptaaaon her Served and E4uisMP1bP2 d% Design %5,0% BB0,0% 75.0% % EaWisel Pawm OiedbuSon Spam lmplovemeMs J48 Rhadetg 819112.0% 2M.%0 8,748,0011 WA W Power Beattie 3A Backup Pmmr Relabfity Reset PI-111 ReseMg 502,%0 24,011) W,= 3B6,W0 67 Pant weler Spam 11e,05te0on at Rent Not P1-112 Rimming 3,539,000 160,00 3,378.0% WA r meet 1%kV Sutadded P1-97 Deign 14,780,000 %218,000 5.151.00) 411.000 - As Pad V/eler System Relabiodas 8l Not Ne.2 P2401 Raising 4,109,000 IN.ahe e69,%0 3,235.0110 69 Fan Sysam ExadMn AM Upgmtles P2-103 Pladog 1.500.0% 27,0% 1.473,000 WA r SoBtls Aree Cede TreylmRowmenael Renl Ne t P2.104 Road, 6,156,= 2,729,0% 2,09,0% M.M 70 Fuel CeO Feasibidy Sh* SMI32 Manning 100,0% 1m,0% ]t r Feel Call NYNegen Gas Cmmrefion ReseertA SP-134 MflnMy S%,0% 2611,00) 232,0% - 72 w1hysieams Total 148.231,000 25155.M0 18.BB40W 18.2290% 85ituAw r WorCmNmlftWo Pmjess ReMbtl6Mon01Ohm Control FNmd J-714 Dodge 38.]0),0% 6,4%,9% 940,030 31,312,0% 73 r TMMdg MOer Otlor Canbola Pbnt No.1 Pt-113 Randig 4,582.0% 4.582.0% WA PMnmy Svubbm RehMiNeOon al Mod N4.t Pt-114 Raddi, 42%,000 4,200,000 WA r Wes Sans.BU"We,Used PmjOd P2-102 Planing 10,1&3,0% 10,183,0011 WA PdneryTavabnad Wor DOmM Upgmtlea 11-118 Hearing 26,460.000 28,460J1% WA r W.C.1sel Releh6Rmless Taal 66.132.oW 8.4560% 940.%0 71I.W,000 Pmcesa RaatM Sposel Rbjesb r Cameron danegensM SP481 Davin 4,W,0% 1,150,0% 1,512,000 11/8],0% 522.000 74 Sp"WRolmtla.&odahg1` er(BTF) SP4D7 Comtfimpl. 1.02],0% %7,000 W.W 36%0 60,0% 75 r Pmcep Reatetl SPesal Ro)mb Toll 5.6%.0% 2.07,000 1.5m.030 1S17,000 %20% Section 8—Page 11 y 2008-09 8t 2009-10 Budget 6- Summary of Capital Requirements-Treatment System Improvement Projects "Octet Totel 6L Coat 30 m Owls Prgxt Phne Pmjoct mDMe Cnhow Cnhff. FuWm Pe9e Number THAN Budget 630% eudoet Nudge Budget Number V PWt Adamson ACompubtbatlon Powe MnMomg eM CooW SyAm J-3 P1nimi9 10A90W0 2,514,000 968.00) 5A89,WD 2.333,000 76 SUe"ic lnfnmwBoo A Ioc oe ISIAI SP4n ConstAno 1.995,000 6N,001) 270,000 2TO,WD 817,OW 77 y Iolemmobaoet Deo4opment SP49 C" mpl. 850,000 MAD 41,000 O'sm 21,000 78 - CMMS Symm Repleamem SP-10 COmlAmpl. 3.760000 705.000 1,B30.WD 500,00D 754,000 79 PDS2D Soft i Reparemml SP-IW Penning 250,000 25D,0W W - Eowee.W Compfee.Awamnea Rmmm SP-104 PMonmg W2.000 20,000 as= WAG - 81 y GeogmMdclob,eaOon Syeam SP-15 CmWAnw1. 4,157,0N 1,1W,OW 270,00D 310,000 2,417A00 82 Neew4k Enipre Upgmde SP49 CmaIA.V. 2,806,000 1'306,0011 782,000 4W,OOD 318,0N 83 V Plant AubmelbnACompuMdmtlen TONI 25.5280D 7,173.00 4.626,011 6,919,09D 6.910W0 NOecelleneoue85upPo0Pmleca y Fact.EgmeeMp".=-Joint FE-J Plumue 22,110,000 2389,W0 1,338,W0 1244,000 17,141,000 Be _ kafte Entree"Poop"-Plied 1 FE4f Pinning 18,11D,WD 6,470,WO 1,073,000 11110000 10,457,000 85 FM65n Etgheemg Pmjeds-Ram2 FE4t2 PW.V 19,110WO 4,370,W0 732,0W 75e,0W 13254,00D 06 Temporary Up9mdn To Rot Seamy Bemes J-108 PlenMg 1,4W,000 Sew 309,WD 1,10AW - 87 Lebmalory RmuNNhownt 9 PNm No.1 J47 Plenniig 417,000 2W,W0 127,000 88 R80o WFOGConbm CoOetflm Mfto!No.1 PI-toe Neoft 3,150,000 22,OW 106,0130 456,W0 2.%6,OW W Pent No.2 LeMrapmg Pfood P2-96 PlaeaN 410,0N SO= 190W0 190,W0 W � Oft Spey pwowog Study SP-127 Plae" SW,Wo 246,00 254,00 91 1 , WegeoW SeamyAosse Contra SyMm SP-128 Plmnmg 450,00 450,Wp 92 y ON NPDES PemB Rnewel SP-133 Planning 787,000 390W0 3W,000 - 83 Smell Ce,EQ*,RepNaeeol Ptolem SP-34 cou"Ml. 106W,W0 9W,W0 100000 11600,00 6,4W,00 94 y Analmmepamml Wov. W-Si Deeio 5,100,009 1,615,OW mom MAD 2,155,000 % Wmehone Fem,nn Pmwm SP-77 CmWroo. wsaw 3W,W0 50,000 W.000 110,DW 96 v Neel 2 Memlerenm BWdmg Modcatxv, SP-90 Deeen 276,000 208,000 68,0N 97 Mleeo Nnerue 68upport""Is Tote 84,OWW0 1T0/00W 7211AW ISSO.OW 5224O.OW 1-I WaNr Management Pmpcb Gmm"Ito ReplenYhmm6 System J36 C.IAmpl. 248.400,000 245,634.000 2,766,000 90 y Weer Menegemeet Ptojece7oNI M.400,W0 20AXM 3160000 L� Section 8-Page 12 v r Summary of Capital Requirements Summary of Capital Requirements—Treatment System Improvement Projects r P.fecl Total EPa Gael MOBA9 300A-10 P.iec1 PM1eee P.fec1 10 Bch Gaebgow coati aw FUN. P., Number TM M Butlaat eMOM BatlgM Outlook ButlM1 Number sbata8lcaMotor Planning r T.MreMPbni Sl.leplc WnUPOeh AIM FbnraA 4S0.00 3.6011.000 ]W,Wg 3W,000 ]W,AW W Omlgaoounb BbwOtle PmtluctlM SMW$N!y SP-10 Plonnmg 400,000 130,0M 130,W0 140,000 - IN r 8hrpk8 MamrPbnnhB Tabl 4900.000 &IMAM 43&OM 4,11 M 30%ow arartM1&Bewlopmenl r USER BOM Menepemenl Glmn Pop. SP-116 Planing 3W,W0 W,000 60.00 1W,0M W,OW 101 ReeomM SUehpb Pbn SP-120 PlenNng 3&S,Wo 3WAM 30,003 MAW WAW 103 r Simworygaretlw alMmery lMuml S0.Vl Plan.; SW,Wo IM,WO 270,000 OM.OW - 1M olgMlaoNadooWn SPAY! Fbnnbg W." M,OM IN DWoonor Pool Plant Bebry Nal GOMM Swtam UPI, SP-133 Mannang 3M,00 IW,gW 1W r OpenOonel RewamJt PmptlelenmW a0a.u4n1 BP-135 Ptammnp 10,040,000 M,000 1A00,000 1.OW,MD 8.000.000 IN RosurtM1b BowbpmeM Tahl 11A0&4M 6MA00 I.SKOM IA1&OM ILA10.00 r TOhl T.abMMantl BbpoeelPmleHe 1,84818&1,W0 8M.M9,W0 21111,8110.000 1M,1/&OM BT&TT&MO capital Equipment Pu.Meee 160110000 1.MOM0 1.8T3AM 1,3MAW 11.803AM r Tol GOlbptlon,T.e4reM aM MepaMl PmlacN &IBW M 1.Wglot 3Tiq"o MI.gM.WO OYLIriOM r r r r r r Section 8—Page 13 y 2008-09 & 2009-10 Budget Project Name&Number Reiff and Bristol Street Sewer Extension-01-101 Project Category Collections Facilities Project Status: Revised v Description This project _ This project will replace 2,380 lineal teat of 21-Inch City of Santa Ana sewer with a 24-Inch Sanitation District's sewer line and a parallel 8-inch City of Santa Ana sewer line to allow for redirecting all house lateral connections.The sewer line is located along Myrtle street, between Reltt and Bristol Streets in the City of Santa Ana. - Justification 6, The Sanitation Districts strategic plan update conducted in 2006 indicated that the Raitt 8 Bristol Streets Sewer will surcharge under the 2010 wet weather flow conditions,therefore,the existing sewer pipes need to be upsized to eliminate bottlenecks and avoid a potential spill.In addition to the capacity deficiency.this project will transfer ownership of the newly Collections constructed pipeline to the Sanitation District. The project budget has been decreased from$3,786.571 to$3.747,998 to reflect the Facilities revised project cost estimate. W The projects construction cost budget is$1,807.136. This project will Increase operational budgets by$6.000 annually. W V V Budget Projections Total Budget Pro1ed cost Phase Budnd ToZets 200040 WOO-10 2010.11 2011-12 2012-13 Tnemaner project ev 140.000 140,000 V Preliminary Design 224,000 112,000 112,000 Design 590,000 627.000 63,000 nst. nstele o 523, 000 753,000 1.570,000 r' Commission 77.000 77,000 _ Close,out 33,000 5,000 28.000 Contingency 361.000 361,0. v Total 1 3.748,000 1 252,000 1 639,000 1 816,000 1 1,652.000 1 389,000 Reimbursable Costs N/A y V Section 8- Page 14 u r CIP Project Detail Sheets Project Name&Number Santa Ana Trunk Sewer Rehab.-01.17 Project Category Collections Facilities Project Status: Revised r Description /( This project will rehabilitate the existing Santa Ana Trunk sewer from the Sanitation l())\(]) District's Reclamation Plant 1 to Bristol Street in the Cities of Fountain Valley and Santa Ana.The scope of the project includes rehabilitation of 33 concrete manholes, and approximately 17,000 feet of 42-inch and 48-inch unlined concrete pipe. It is likely that a liner will be installed in the pipe to protect the concrete from hydrogen sulfide corrosion. The manholes may be coated with a protective liner,or replaced. This project will increase the life expectancy of the trunk sewer by 26-30 years. By rehabilitating the sewer rather than replacing the sewer,community disruption will be kept to a minimum and capital savings will be realized. Justification Collections The sewer was originally constructed in 1955,and the estimated life of this type of pipe is 40 to 50 years.During routine cleaning of the sewer,it has been noted that the sewer and Facilities r, manholes are deteriorating due to corrosive sewer gases. These manholes were not originally constructed with protective linings, The project is timed to allow the sewer and access manholes to be repaired and minimize the risks from potential failures. An inspection of this sewer was performed in 2001. Staff has conducted that a protective r liner should be installed in this pipeline by 2010 in order to prevent the corrosion from reaching the reinforcing steel. If corrosion advances to this degree,the method of repair will be significantly more expensive. uo The project budget has been increased from$19,716,607 to$20,128,591 to reflect the revised project cost estimate. The projects construction cost budget is$13,651,875. r This project will not have an impact on operational budgets. r Budget Projections r Test Budget Project coat Phase Budget Tu nats 200M 200940 2010-11 W1142 2012-13 Thereafter ro ec Dev 180,000 180,000 Preliminary Design 1,641,000 295.000 1,006,000 340,000 Design 1,168.000 30,000 716,000 415.000 7,000 -EDr nal. Instal ago 14.866.000 7,000 5.184.000 9,339,000 336.000 Commission 158,000 3,000 56.000 99.000 Close-Out 88,000 68.000 r oMingency 2.048,000 2.048.000 Total 1 20,129.000 1 515.000 1 1,006.000 1 1,056,000 1 415,000 1 5.191.000 1 9,395,000 2,551,000 Reimbursable Costs WA Section 8-Page 15 y 2008-09 & 2009-10 Budget ;r Project Name&Number Carbon Cnyn Sewer and Pump Stn.Abandonment-02-24.1 Project Category Collections Facilities Project Status: Revised 6x Description ra &5z.— This project will construct a gvity trunk sewer to replace the existing Carbon Canyon DamPump Station and its associated force main near Carbon Canyon Dam in the City of Brea. The existing sewer Bow is currently pumped up over the crest of the dam The project willabandon the existing pump stagon,and install more than 7,000 feet of new 21-inch or24-inch gravity sewer line by micro-tunneling under the edge that surrounds the Carbon Canyon Basin.This project will also abandon the older pumping station and force main - V after the new gravity sewer is completed. Justification The existing pumping station does not comply with current electrical and safety codes and `+ is at capacity.The pumping station would need to be upgraded and expanded to serve new Collections and proposed developments in the City of Brea and the surrounding unincorporated areas of Norlhem Orange County within two to five years In lieu of a future pumping station and Facilities force main project,this project eliminates the existing pumping station,provides needed Ir capacity via a new sewer,and reduces operating costs. Abandoning this pump station eliminates annual costs of$50,000,and eliminates the need for pump station rehabilitation. Also,the gravity flow system will be more reliable than a pump station. cart The project budget has been increased from$9.611,791 to$9,951,607 to reflect the revised project cost estimate.The projects construction cost budget is$6,000,000. V This project will decrease operational budgets by$20.000 annually. u se Budget Projections y Total Budget Protect Coal Phase Budget To4)eto 3008L8 3008-10 3010-11 2011.13 2012-13 Thereafter Project Dev 13,000 13,000 Preliminary Design 360,000 360,000 Design 1,267,000 1.264,000 3.000 nst.8 Installation 7.480.000 2.888.000 4.467.000 125.000 I� ommission 74,000 12,000 51,000 11,000 Close-Out 31,000 31,000 nangency 727,000 727,000 v Total 9,952,000 1 1,649,000 1 2,891,000 1 4,518.000 1 894,000 '- Reimbursable Costs N/A IL V Section 8-Page 16 V r CIP Project Detail Sheets `+ Project Name&Number Santa Ana River Interceptor Realignment and Prot-02-41 Project Category Collections Facilities Project Status: Continuing r Description This project provides for the protection and relocation of the Santa Ana River Interceptor (l))l(\) (SARI),wmently located within the floodplam of the Santa Ana River between Weir Canyon Road and the County line.This project Is intended to protect approximately 4 miles of pipeline and manholes from failure due to high stonnwater releases from Prado Dam in major flood events. The most recent United States Army Corps of Engineers(USACE) r study of the project was completed in October 2005. An EIR/EIS is currently being prepared by the USACE. The current budget only reflects funds necessary for OCSD support of the project. Justification r The existing pipeline has been subjected to continued scour of overlying soil and Collections sediments since it was constructed in the mid 1979s.Hydraulic analyses of the river after the Prado Dam improvements are completed indicated that the pipeline could be washed Facilities .y away during dam releases above 5,000 cubic feet per second.The Prado Dam improvements will allow for releases of up to 30,000 cubic feat per second. If this pipeline reach from Weir Canyon Road to the Orange/San Bernardino County line is not relocated or protected prior to the completion of the Prado Dam improvements,then the line could r fall during a flood event. This project will not have an impact on operational budgets. r r Budget Projections r Tour Budget Project coot PM1eae Budget Tobeb Mve4e 2009.10 1010.11 2011-12 2012.13 Themefter Project Dev 184,000 184,000 re mnary Design 1.766,000 1,731,000 35.000 Design 6,206,000 5,122.000 787,000 297,000 r ons[. nsW1abo 1,200.000 90.000 258.000 771,000 81.000 Commission 500,000 234,000 194,000 72,000 MOso- ut 136,000 2.000 134,000 r Contingency 39Q000 390,000 Total 10.382,000 7,363.000 822.000 1 555,000 1 985,000 1 677,000 r Reimbursable Coats $4,799,000 r Section 8-Page 17 r 2008-09 & 2009-10 Budget W W Project Name 8 Number Santa Ana River Interceptor 2006 Protection Repair-02-41.5 Project Category Collections Facilities Project Status: Continuing W Description (( yr This project provides for emergency repairs to the existing Santa Ana River Interceptor ())()J (SARI),currently located Wthin the floudplain of the Santa Ana River between Weir Canyon Road and the County Line.This project is intended to conduct emergency repairs to the pipeline and manholes in the event of a failure or if the pipeline becomes exposed due to major storm water releases from Prado Dam, Justification The existing pipeline has been subjected to continued scour of overlying soil and - sediments and could be washed away during high storm releases from Prado Dam. If this pipeline reach from Weir Canyon Road to the Orange/San Bernardino County line is not Collections protected while efforts are being made to relocate SARI,then this line could fail duringa major flood event causing a wastewater spill of environmentally disastrous proportions. Facilities This project will not have an impact on operational budgets. W r W Budget Projections u Total Budget Protest Ooel Ph.. Paata eu0gat To-Dare 3008-09 2009-10 3010.11 MHd3 3012-13 TMrealbr mad ev 100,000 100,000 6. Preliminary Design 100.000 100.000 Design nst. Instatialhon M+ mm ss on Close-Out Contingency Total 1 200,000 1 1 200,000 - Reimbursable Costs N/A y W Section 8-Page 18 rl CIP Project Detail Sheets '+ Project Name&Number Euclid Relief Improvements-Reach"A"-0252 Project Category Collections Facilities Project Status: Continuing r Description This project will increase the size of this section of the Euclid Trunk system by diverting more flow to the improved west branch of the Euclid System to provide additional rapacity for future flows projected from the central and northern portion of Orange County for developments like the western portion of the proposed Platinum Triangle development. The project includes replacing approximately 13,700 feet of 36-inch to 42-inch pipe with 48-inch to 54-inch diameter pipe within Euclid Avenue in the City of Fountain Valley, wvv�i beginning at Reclamation Plant No.1 and ending at Edinger Avenue. Justification r This section of the Euclid Trunk system was originally built in 1966. Based on current flow projections and hydraulic modeling,this project needs to be completed by 2013. These Collections improvements will accommodate the projected increase in flow from planned developments and growth and be designed to convey potential wet weather surcharges Facilities The projects construction cost budget is$14,700,000. r Budget Projections Toed Budget Protect coat Phase Budget To-Dete 200"0 20040 2010-11 M1142 2012-13 Thereafter rotect ev 88,000 14,000 74,000 Preliminary Design 600.000 155.000 445.000 es9n 1,670,000 624.000 981.000 65.000 r ons. ns Moon 16,600,000 2,051,000 9,604.000 4.945,000 Commission 236.000 236.000 os out 5fi,000 56.000 r, onkngenq 2.800,000 2.800.000 Total 22,050,000 14.000 1 229,000 1 1,069,000 981,000 1 2.110.000 1 9,604,000 8.037.000 Reimbursable Costa NIA r Section 8-Page 19 W 2008-09 & 2009-10 Budget W , Project Name 8 Number Newhope-Placentia 8 Cypress Tnmk Replacements-02-65 Project Category Collections Facilities Project Status: Revised w Description This project will increase the size of a section of the N from th eP Platinum is Tmn l Sewer to provide and developments lopment for future flows projected from the Platinum Triangle of the City �y Anaheim and developments in the hills above the City of Brea. Justification This section of the Newhope-Piacentia Trunk Sewer was originally built in 1961. Based on _ wy current flow projections and hydraulic modeling,this project needs to be completed by 6. 2016. These improvements will accommodate the projected increase in flow from planned developments and growth and be designed to convey potential wet weather surcharges. The project budget has been increased from$6,622,705 to$8.622,705 to reflect project Collections ar scope changes and the revised project cost estimate. The project Facilitiess construction cost budget is$6,229,644. 6so ar V W W Budget Projections M ojeIt Project Corr e Budget To4late M849 U0940 2010-11 2011d2 2012L2 Thereafter 2.390,000 390,000 984.000 1,016,OWgn2.000 2,0Wtal a0on 6,231,000888,000 5.3430008,623.000 392.000 984,0001 1,018,000 L��888 5,343,000 -- Reimbursable Costs N/A V ✓r Section 8-Page 20 W CIP Project Detail Sheets Project Name&Number Rehabilitate District Siphons By Adding Air Jumper-02-68 Project Category Collections Facilities Project Status: Revised r Descriptionct (( Thisisproject installs air jumpers at various siphon locations to provide positive ventilation of r sewer gasses which cause odors and corrosion. Justification In January 2004,the District completed a siphon assessment study including field .e inspection that was conducted in late 2003, Based on the findings of this study and an ew understanding of associated air quality issues, decisions were made to rehabilitate eight Siphons that were most in need. This project will prevent odor complaints and reduce future corrosion potential at these eight siphons. r The project budget has been decreased from$7,556,343 to$7,555,343 to raced the Collections revised project cost estimate. Facilities The projects construction cod budget is S4,537,600. This project will not have an impact on operational budgets. r r r Budget Projections r Total BuOaet Prniect Coat Ph". Budget To fi` 2008d9 2009.10 2010.11 2011-12 2012-13 ThOreaker r Prgad ev 46,000 ZW Preiminary sgn 60500 RT,000 Design 933,000 933,000 r Cons.B nstal a0on 537$000 3.309,000 006,000 Commission 119,000 179,000 Close-Out I 94,000 I 1 1 84,000 ,r Contingency 250,000 250,000 Total 7,558,000 4,897,000 2,206.000 453,000 r Reimbursable Costs WA r Section B-Page 21 a. u 6w 2008-09 & 2009-10 Budget Project Name&Number Rehabilitation of the Westside Pump Station-0352 Project Category Collections Facilities Project Status: Revised r Description \2\ This project will rehabilitate the existing Westside Pump Station and increasea the station's capacity to meet current and projected peak wet-weather flows. The existingstation is located in Roosmoor. The work includes the addition of pumping capacity and bringing the pumping station into compliance with the latest applicable electrical and safety codes. - Compliance requires that the electrical facilities be effectively sealed from the lower sections of the pumping station. At the Westside Pumping Station,this requires the wv�.ry y construction of a separate access stairwell to the lower section of the pumping station, replacement of the pumps and controls,and modification of ventilation systems. Justification The Westside Pump Station was originally constructed in 1970. The existing pumping Collections station does not comply with current electrical and safety codes and is at capacity.The pumping station needs to be upgraded and expanded to serve redevelopment in the City of Facilities Seal Beach and the unincorporated area of Orange County known as Rossmoor. 6d The project budget has been increased from$8,840,315 to$9,646,188 to reflect the revised project cost estimate. The projects construction cost budget is$5.200,000. This project will not have an impact on operational budgets. W W Budget Projections V Tout Budget Projeot coat Phase Budget To-0ats =849 M0940 2010-11 2011-12 2012-13 Thoresflsr mtecl Dw 70.000 70,000 .y re urinary Design 814,000 814,000 _ Design 1,375,000 1.375,000 Cons.&Insfa abon 6,708.000 314,00D 4.284,000 2,110.000 ommsslon 184,000 184.000 Close-Out 131,000 131,000 nengenty 364,OOD 364,200 4 Total 1 9.646.000 1 2,573,000 1 4,284,000 1 2,789,000 - Reimbursable Costs N/A y V Section 8 -Page 22 u CIP Project Detail Sheets Project Name&Number Rehabilitation of Magnolia Trunk Sewer-03-58 Project Category Collections Facilities Project Status: Continuing r Description (( This project will perform condition assessment,design and construction to rehabilitate a portion of the existing Magnolia Trunk Sewer,along Bushard and Magnolia Streets and e. between Ellis Avenue and Westminster Avenue,in the Cities of Fountain Valley, Westminster and Garden Grove. Twelve miles of trunk sewer will be assessed and improvements will be prioritized for design and construction. Based on the District's current understanding of existing condPoons,g is anticipated that 2-3 miles of sewer Will require �^^� rehabilitation or replacement. Justification The sewer was originally constructed in 1961,and the estimated life of this type of pipe is Collection$ 4010 50 years.During routine Geantng of the sewer,it has been noted that the sewer liner had significant defects and the concrete pipe behind the liner was deteriorating due to Facilities conceive sewer gases. The Magnolia Trunk Sewer was to have been rehabilitated under a previous project,Contract No.03-35R. When repairs were started under that project,the damage to the liner and pipe was found to be more extensive than anticipated and the original project was cancelled and restarted under this project with a revised budget. r The project's construction cost budget is$19,500,000. This project will not have an Impact on operational budgets. r r r Budget Projections ,. Total au4g0t ➢rotest Cast Phase Budget TOO&* hi,4427,000 j5,995,000 2010.11 Mll-12 2012-13 Thmoaner r roles[ ev 1.033,000 1,033,000 Preiminary esign 557.000 434.000 esgn 1,850,000 2,000 r net. nets a 21,561,000 10,148,000 5,420,000 commission 325,000 325,000 Close-out 1 175.000 1 175,000 r Contingency 3,468,000 3,488.000 Total 28,769,000 1 1,489,000 1 1.550,000 1 6.216,000 10,146,000 5,920,000 3,468,000 Reimbursable Costs NIA r Section 8-Page 23 r L 2008-09 & 2009-10 Budget Project Name B Number Balboa trunk Sewer Rehabilitation-0547 Project Category Collections Facilities Project Status: Revised v Description This project will rehabilitate the existing Balboa Trunk Sewer along Newport and Balboa Boulevards between the"A"Street Pump Station and the Lido Pump Station in the City of v Newport Beach.The scoDS of the project includes approximately 12,600 feet of 15-inch and 24-inch pipe. 8 is likely that a liner will be installed in the pipe because sections of the pipe have already had joints sealed and manholes rehabilitated to reduce infiltration and inflow(1/1). The manholes may be coated with a protective liner, or replaced. This project will increase the life expectancy of the trunk sewer by 25-30 years. By rehabilitating the sewer rather than replacing the sewer,community disruption will be kept to a minimum and capital savings `r will be reamed. Collections Justification Facilities The sewer was originally constructed In 1044, and the estimated fife of this type of pipe is 40 to 50 years. Several efforts have been employed to limit the amount of 1/1 including joint repairs and manhole rehabilitations,but the sewer requires more extensive rehabilitation due to its age and current condition. Installing a liner in the pipes will restore the structural integrity of the pipe. y The project budget has been increased from$7,873.29010$8,514.289 to reflect the revised project cost estimate. The projects construction cost budget is$5,200,000, ~ This project will not have an impact on operational budgets. L V Budget Projections Torel y Budget Project Cps[ Phase Budget T"m 2004,09 200F10 2010.11 2011.12 M1243 Theredon mec v 120,000 120,000 Id Preliminary Design 330,000 94,000 238,000 a 782,000 142,000 5 00,000 10D,000 net. Installs on 5,888,000 1,147,000 4,792,000 47,000 Ir Commission179,000 close-Out 179.000 77.000 77,000 Contingency 1,040.000 1.040,OD0 u Total 8,514,0D0 214.000 3)8.000 5g0,000 1,2g7,000 4,971,000 1,184,000 Reimbursable Costs N/A V Iv Section 8-Page 24 6 CIP Project Detail Sheets y Project Name 8 Number Replacement of the Bitter Point Pump Station-05-49 Project Category Collections Facilities Project Status: Revised v Description This project will construct a new pump station to replace the existing Bitter Point Pump `(\) Station.The new pump station will meet all current national and state codes and District standards. The station will also have the rapacity required for the 1999 Strategic Plan projected flows. The station's design will incorporate a new"sound wall"barrier along PCH. The Scope of Work includes demolition of the existing pump station,acquisition of 1r property,construction of specialized excavation, shoring, and dewatering equipment,and coy the addition of a chemical injection system to combat hydrogen sulfide adors and related corrosion. The Bitter Point Pump Station discharge force mains are also being reconstructed as part of a larger effort to allow for systemwide maintenance of the r Newport force maln system. Justification Collections The Bitter Point Pump Station was originally built in 1937 for the City of Newport Beach. Facilities r The existing station does not comply with current electrical and safety codes, is at capacity, and is landlocked. The existing site cannot accommodate additional pumping capacity for wet weather peak flows and a separated above ground electrical building to comply with current electrical and safety codes for these facilities. Also,this is one of a series of r, projects along the Newport Beach coastline that will convert the two Independent parallel pumping systems into an interconnected pumping system that will allow the string of coastal pump stations to pump into either force main system during maintenance and repairs. r The project budget has been increased from$34,078,818 to$36,546,586 to reflect the revised project cost estimate. yr The project's construction cost budget is$26,900,000. This project will not have an Impact on operational budgets. r Budget Projections Total Budget Project cost Plv.. Budget T"- 3001-0a 2011-10 2010-11 2011-12 2012-13 Thcroeavr r ro act ev 42.000 42.000 re urinary a gn %3,000 593,000 Design 3.520.000 3.374.000 146,000 sr nst. nsta ati 29,004,000 15,000 9,037.000 13.100.000 6.852.000 commission 584,0gg 2,p50 582.000 ose u 114,000 114,000 o ngency 2,890,000 2,880,000 Total 1 36,547.000 4,026.000 9,183,000 1 13,100,000 1 10.238.000 Reimbursable Costs N/A Section 8-Page 25 v 2008-09 & 2009-10 Budget V Project Name&Number Replacement of the Rocky Point Pump Station-05.50 Project Category Collections Facilities Project Status: Continuing Description ((This project will construct a replacement pumping station to the existing Rocky Point Pump Station in Newport Beach.The existing pumping station is located within the Balboa Bay V Club on Pacific Coast Highway.The project includes the acquisition of a new site,the construction of a new and larger station,the reconstruction of a portion of the larger Newport force main system, and the demolition of the existing pump station. Also,the discharge force mains from the facility are being reconstructed as part of a larger effort to allow for systemwide maintenance of the Newport force main system. Justification The Rocky Point Pump Station was originally built in 1937 for the City of Newport Beach. /� ry The existing station does not comply with current electrical and safety codes,is at capacity. Collections and is landlocked. The station needs additional pumping capacity for existing wet weather peak flows and a separated above ground electrical building to comply with current Facilities electrical and safety codes. The existing site cannot accommodate these facilities. This is W one of a series of projects that will convert the two independent parallel pumping systems into an interconnected pumping system that allows the string of coastal pumping stations to pump into either force main system during maintenance and repairs. u The projects construction cost budget is$26,900,000. This project will not have an impact on operational budgets. W v Budget Projections V Total Butlse1 Project Coal PM1aae Butl9at To.pate TaeB49 2009A0 a)10.11 20t1d2 2012-13 Thereafter roject ev 12,000 12.000 V Preliminary Design 2,539.000 2,539,000 Design 4,323,000 3.998,000 325.000 onst. nsla abO 20.152,000 2,000 1,424,000 18,024,000 702,000 commission 529.000 529.000 Close-Out92,000 12.000-CF 80,000 n ngency 3,305.000 3,305,000 Total 30,952,000 6.563,000 1 1.749,000 1 18,024,000 1 4,616,000 Reimbursable Costs N/A u W Section 8-Page 26 u CIP Project Detail Sheets r Project Name 8 Number Bitter Point Force Main Rehabilitation-0556 Project Category Collections Facilities Project Status: Revised V Description The project will construct a new larger 6,500-toot force main for the proposed Bitter Point Pumping Station replacement project in the City of Newport Beach.This is to replace an existing force main that traverses across oilfields and under the Sema Ana River in the western portion of the City. The project will include approximately 1,400 feet of microtunneling under the Over with a 96-inch casing steel pipe to install to 36-inch carrier pipes. The project includes construction of the force main pipeline in the existing force main condor from the proposed replacement pumping station she to the Sanitation District's Treatment Plant No.2. r Justification The existing force main to be replaced is undersized and conflicts with the Headwoft Collections Replacement Project,Job No.P2-66,at the Sanitation District's Treatment Plant No.2 in Huntington Beach. As an alternative to rehabilitating the existing force mains,Sanitation Facilities s District staff evaluated complete replacement with new force mains in Pacific Coast Highway. The current project was found to be the most cost effective alternative. This is one of a series of projects that will convert the two independent parallel pumping systems into two interconnected pumping system that allow the string of coastal pumping stations to pump into either force main system during maintenance and repairs. The project budget has been increased from$24,392,019 to$24,946,619 to reflect the revised project cost estimate. r The projects construction cost budget is$19,000,000. This project will not have an impact on operational budgets. r r Budget Projections Torel Budget Project cast Phase Budget T"4 20011419 200 -10 2010-11 2011-12 201243 Themaner ,r roeU ev 163.000 163,000 Preliminary Design 605,000 805,000 Design 1.270.000 1,270,000 onsl. nsta aeon 20,668,000 314,000 20,354.000 mmisson 226.000 226.000 Close-Out 145.000 145,000 a. n ngenry 1.8io6m 1,676,000 Total 1 24.947,000 2,552.000 22.395,000 Reimbursable Costs N/A Section 8- Page 27 u W 2008-09 & 2009-10 Budget Project Name&Number Newport Force Main Condition Assessment-05-60 Project Category Collections Facilities Project Statue: Revised W Description - The project will consist of a 2-phase approach. Phase 1 will be to build inspectionfaccess ports. Phase 2 will include the following: perform condition assessment,evaluate capacity u requirements, develop an estimate of rehabilitation or replacement costs, and determine rehabilitation and/or replacement schedule. Ii Justification "�"r� V An asset management plan is needed for the whole Newport Beach Forcemain System. The work shall be done according to a rational and systematic plan.This requires a condition assessment of the existing foroemams with an estimate of expected remaining life,an evaluation of criticality,an estimate of asset value,and an estimate of rehabilitation Collections or replacement costs. This project will not have an impact on operational budgets. Facilities u u W W W Budget Projections V Tonal Ph. BudgetProject coat VM1eee autlBN To-Wfo SOOede 309d0 Sate-H 2O1143 3013-13 TM1araefror Project Dev 38,000 38,000 W Preliminary Design 622.000 32,000 590.000 Design 2.000 2,000 Z;onst. F—M a n 1,450,000 12,000 321,000 870.000 241.000 6.000 W Commission osa ul Contingency 60 Tate/ 1 2.112,000 1 72.000 1 590,000 1 12.000 1 321,000 1 870,D00 241,000 8,000 Reimbursable Coats N/A W V Section 8-Page 28 W CIP Project Detail Sheets Project Name B Number Bayside Drive Improvement-05.6f Project Category Collections Facilities Project Status: Revised r Des This project { This rioted will rehabilitate the existing Bayside Drive Trunk sewer along Bayside Drive 2J between Jamboree Road and El Passe Dr.in the City of Newport Beach. The scope of the project includes the rehabi0tation of approximately 3,600 feet of 24-inch pipe and 5 manholes. It is likely that a liner will be Installed in the pipe to prated the ductile iron from internal and external corrosion from hydrogen sulfide corrosion and salinity in me groundwater. This project will increase the life expectancy of the trunk sewer by25-30 years. By rehabilitating the sewer rather than replacing the sewer,community disruption will be kept to a minimum and capital savings will be realized. r These Justification Collections The sewer was originally consfnrded in 1979,and the estimated life of this type of pipe is 20 to 50 years. During CCTV monitoring of this pipe,it has been noted that the sewer is Facilities deteriorating due to corrosive sewer gases. Also,a recent evaluation found the soils near r the pipeline to be corrosive to ductile iron pipe and that there is evidence of external corrosion. Because the Sanitation District has recently been experiencing failures of this type in Newport Beach,the project was initialed immediately after the external corrosion was found on the pipe. Delaying this project increases the potential for corrosion damage. r Deteriorated sewers and manholes risk potential collapse and expensive emergency repairs on the sewer and adjacent roadways. The project budget has been increased from$3,317.869 to$3,750,274 to reflect the revised project cost estimate. The projects construction cost budget is$1,868,400. This project will not have an impact on operational budgets. r r Budget Projections r Telal =15-5=> Budget project cost Phase Budget To Ilste M949 2009-10 3010-11 2011-12 2012-13 Thereafter ,r rued Deg 232,000 332.000 reminary Des 424,000 424,000 Design 383,000 41,000 305,000 37,000 r anst. nstn a o 2.227,000 2.227,000 mmisaon 54,000 54,000 os ut 1 55,000 1 1 10.000 46.000 os. Contingency 374,000 �4•� Total 3,750.000 687,000 305.000 2.328.000 420.000 Reimbursable Costs NIA r Section 8- Page 29 r V ' V 2008-09 & 2009-10 Budget y Project Name S Number Dover Drive Trunk Sewer Relief-05-63 Project Category Collections Facilities Project Status: Revised r Description \\ This project consists of conducting a feasibility study to increase the hydraulic capacity for 10,200 lineal feet of existing 15-inch through 21-inch sewer line located along Dover Drive y between Irvine Avenue and Pacific Coast Highway in the City of Newport Beach This project allows for the design and construction of a major trunk sewer within a heavily used city street located in a highly residentiagcommercial area of the city. Justification The Sanitation Districts strategic plan update conducted in 2006 indicated that the Dover Drive Trunk Sewer will surcharge under the 2010 wet weather flow conditions,therefore, the existing sewer pipes need to be upsized to avoid a potential spill. In addition to the `+ capacity deficiency,Sanitation District staff conducted a CCTV Inspection and determined Collections that portions of the existing sewer line have deteriorated and may need to be rehabilitated or replaced. Facilities v The project budget has been decreased from$6,378,000 to$6,351,040 to reflect the revised project cost estimate. The projects construction cost budget is$3,242,241. This project will not have an impact on operational budgets. W y Budget Projections v Todl Budget Pmtael Coat PM1aee Butlgat To-0eb 2008M 3009-10 300.11 M1142 201243 Tlransitar Project Dev 190.000 190,000 Preliminary Design 228,000 103.000 125,000 Design 1,056.000 952.000 104.000 ons.&Insiallatior 4,043,000 1,471,000 2,246.000 326,000 Commission 131,000 131,000 Close-Out 55,000 27,000 26,000 n ngency 649,000 646,e00 V Total 6.351,000 293,000 1 1.077.000 1 1.575.000 1 2,404,000 1.002,000 Reimbursable Costs N/A y W Section 8 -Page 30 V CIP Project Detail Sheets r Project Name&Number Sewer Access Improv.Big Canyon Nature Park Area-05-64 Project Category Collections Facilities Project Status: Continuing r Description Th (( The project consists of providing access improvements for the Big Canyon sewer. The r project includes an access road and the extension of a retaining wall near the Big Canyon Creek. The improvements are in the City of Newport Beach and the proposed Big Canyon Creek Restoration area. Ju r calflon The City of Newport Beach(City)is currently implementing"The Big Canyon Creek r Restoration Pmjad'in the area as well. The City staff supports incorporating OCSD's needed access Improvements Into their project via a reimbursement agreement to ensure r that OCSD improvements complement their proposed restoration efforts. Construction will Collections be performed via the City's contract C The project's construction cost budget Is$442,517. Facilities r r r r r Budget Projections rA TotelProject CostBudget To OaW 2008Jf9 2009.10 2010-It 201142 2012.13 Themlrar 26.000 26.000 22,000 22,000140,000 140000 0 535,000 535,000 33,000 33,000 9,000 9.000 r contingency Totes 785,000 46,000 140,000t�57�7,000 r Reimbursable Costs N/A O Section 8-Page 31 yr 2008-09 & 2009-10 Budget Project Name&Number Gisler-Redhill System Improvements,Reach B-0737 Project Category Collections Facilities Project Status: Revised v Description This project will rehabilitate sewers in the Gisler-Redhill System. This will include providing intedies,new diversion settings, and sliplining.The project includes repairs of up to 13,200 feet along Redhill Avenue in the Cities of Tustin and Irvine. Justification This section of the Gisler-Redhill System was originally built in the 1960's. Based on condition assessments of the pipes, rehabilitation is needed.To accommodate near-tem+ future flows the project will also reset several diversions to accommodate new flows. The project budget has been decreased from$16.120.085 to$9,437.427 to reflect the f� �+ revised project cost estimate. Collections The projects construction cost budget is$6.000.000. Facilities L+ This project will not have an impact on operational budgets. W W V VM Budget Projections u Total ph. Pm1ee+ ca.e Psesa code.+ ro-o.m zooeas zoos-w m+o-++ za+-u zo12n3 Tn.re.tmr Project Dev 14,000 14.000 reimmary Design 292.000 292.000 esgn 827,000 709.000 91.000 27,000 Corsi.8 nstallabo 7,376,ODO 23,000 7,013,000 340.000 Commission 74,000 60.000 14,000 Close-out 24.OD0 24,000 n rgency 830,000 830,000 Total 9,437.OW 1,038,000 91,000 1 7,100,D00 1.208,000 Reimbursable Casts N/A W W Section 8 -Page 32 V CIP Project Detail Sheets Project Name&Number Rehabilitation of College Ave. Pump Station-0747 Project Category Collections Facilities Project Status: Revised r Description ( This Project will rehabilitate the existing College Avenue Pump Station and increase the (`) station's capacity to meet current and projected peak wet-weather flows. The existing station is located in the City of Costa Mesa. The work includes the addition of pumping capacity and bringing the pumping station into compliance with the latest applicable electrical and safety codes. Compliance requires that the electrical facilities be effectively sealed from the lower sections of the pumping station. At the College Avenue Pump Station,this requires the construction of a separate access stairwell to the lower section of the pumping station,replacement of the pumps and controls,and modification of ventilation systems. Justification Collections The College Ave.Pump Station was originally constructed in the 1960's. The existing Facilities pumping station does not comply with current electrical and safety codes and is at r capacity.The pumping station needs to be upgraded and expanded to serve redevelopment in the Cites of Costa Mesa and Santa Ana. The project budget has been decreased from$11,403,533 to$9,968,698 to reflect the r revised project cost estimate. The projects construction cost budget is$5,800,000. a, This project will not have an impact on operational budgets, r w Budget Projections r Total Budget Project"6.487,000 Phae Bodget 2009-09 2D09-t0 M10-01 2011-12 20124] Taenaibr r road ev 56,000D r m nary as tin 678.0000as n 1,04Q0000nst oats aUo 7,389,0000 8.189.000 140,000mmisman3 550000 998,000 26,000Dse- ut 140,' 140.000 gency 325p325,000Trial 9,gag,000 6,487,000 631.000 r Reimbursable Costs NIA Section 8-Page 33 V 2008-09 8t 2009-10 Budget " Project Name 8 Number County Island Annexation and CEQA Documentation-07-61 Project Category Collections Facilities Project Status: Revised r Description This project is to prepare environmental documentation necessary to evaluate and analyze the environmental effects associated with the annexation of 5501and parcels to the Orange County Sanitation District. The parcels are located in unincorporatetl portions of the County of Orange known as Cowan Heights,Lemon Heights,and Orange Park Acres.The project will address the remaining developed properties on parcels that have not been annexed to the Sanitation District and are presently on septic tanks.These properties are anticipated to connect directly to a public sewer by the year 2015. Justification This project reduces the potential for groundwater contamination in accordance with iy Sanitation District Resolution W05,which supports abandonment of septic tanks and Collections connection to sanitary sewers to protect the public health and the environment.The annexation of 550 parcels to the Sanitation District service area requires preparation of an Facilities environmental document to determine if there are any significant impacts from the y proposed action in compliance with the California Environmental Quality Act(CEQA). This document will also include the various jurisdictions)boundary changes and discretionary approvals(e.g. LAFCO and others)that are required before these properties can be annexed or sewer connections made within the Sanitation Districts service area.The W completion of the environmental documentation will allow sewer service to extend into these unincorporated areas outside the Sanitation Districts current boundary. I I �I Budget ProjeWons k otal W Protect Coat Budget To42ak 200 AS 2009-10 2010-11 2011-12 2012-il TMreaher 17e,00012e000 SO,OOD n 5,000500014,000 1g000on 103,000 53.000 50.000 on ngency v Total 300.000 200,000 100,000 Reimbursable Costs N/A Yd V Section 8-Page 34 V ass CIP Project Detail Sheets .. Project Name 8 Number Coast Trunk Sewer Rehabilitation-11-28 Project Category Collections Facilities Project Status: Revised r Description This project will rehabilitate the existing Coast Trunk Sewer along Pacific Coast Highway r between Beach Boulevard and Brookhurst Street,in the City of Huntington Beach. The scope of the project includes rehabilitation of approximately 7,000 feet of 54-inch, 300 feet of 72-inch,and 900 feet of 84-inch pipe. The rehabilitation is needed to protect the concrete from hydrogen sulfide corrosion. This project will increase the life expectancy of ar the trunk sewer by 25-30 years. By rehabilitating the sewer rather than replacing the sewer,community disruption will be kept to a minimum and capital savings will be realized. Justification ,r The sewer was originally constructed in 1981,and the estimated life of this type of pipe is 40 to 50 years. During routine cleaning of the sewer,however,it was noted that the sewer Collections was deteriorating at the waterline due to corrosive sewer gases. Video Inspection has revealed corrosion of the concrete pipe In the lower portions that are unlined. Video Facilities r inspection also has limited the scope of work to the lengths of pipe that are being subjected to this corrosive condition. The project budget has been increased from$10,460,172 to$10,830,315 to reflect the ass revised project cost estimate. The projects construction cost budget is$6,820.000. ass This project will not have an Impact on opere8onal budgets, ass Budget Projections us Tout Budget P.Ject Cost Phase Budget To40ate 2110111.419 "09-10 291e-01 2011-12 2012-13 Thomaftar her men ev 92,000 92,000 Preliminary Design 1,428,000 1,428.000 eagn 770.000 707.000 63,000 ass ons. nits 9 n 7.638.000 3,000 7,635,000 Commission 144.000 144,000 Closerout 78,000 48,000 30.000 ,� n ngency 680.000 680,000 Total 10,830.000 2,230,000 1 7,890,000 1 710,000 ass Reimbursable Coats WA Section 8-Page 35 V L 2008-09 & 2009-10 Budget L Project Name&Number North County Collections Yard-1"4 Project Category Collectlona Facilities Project Status: Continuing r Description This project will relocate most of the Collection Facilities O8M Division and some other ()) agency support staff to a new location near the geographic center of the Orange County y Sanitation District(Sanitation District). The project includes the purchase of land with an industrial type building,tenant improvements as needed for the structure and its systems, and relocation of all equipment. vw r Justification Staff are being relocated to the geographic center of the Sanitation District to improve business efficiencies and decrease response times to incidents in the regional and local Ike— 0 collection systems. This project will also free up shop and office space for Maintenance r Division staff at Treatment Plant No.2(Plant No.2)and the Source Control Division Collections meeting room and office spaces at Reclamation Plant No. 1. Facilities This project will not have an impact on operational budgets. W r it Budget Projections r Total Budget ets cost Budget PM1eea Butlgal To-0ab 30094K 20011-110 2910-11 3011-13 3013-13 Tharxher Project D. 6.274.000 6,274,000 W Preliminary Dineen 583.000 148,000 435,000 Design 510,000 48.000 462,000 ns.&InstellatiOl 4.066,000 8,000 3,792,000 266.000 We Commission 40,000 40,000 Close-Out Contingency 300.000 300.000 W Total 11.773,000 1 6,478,000 1 4.689.000 1 606.000 Reimbursable Costs N/A y W Section 8 -Page 36 V CIP Project Detail Sheets Project Name&Number Manhole Rehabilitation and Assessment Program-1M5 Project Category Collections Facilities Project Status: Continuing r Description This project will develop a manhole rehabilitation program for the Orange County Sanitation District. The program will include conducting a preliminary assessment of the condition of manholes throughout the collection system and recommending a programmatic approach to maintaining and repairing manholes. Justification vw This project will optimize the approximately$60 million in repairs that has been estimated wv In past Capital Improvement Programs and in the Asset Management Plan. Collections ti Facilities r r Budget Projections Total Budget Project Coat Pheae Budget TP to 201 2000d0 2010-11 Nil-12 2012.13 Tboma9er roject ev 1.400,000 280.000 280,000 280.000 280,000 280,000 Preliminary Design Design .. nst.8 nsta aso Commission Closei r Contingency 140,000 140,000 Total 1,540,000 420,000 1 280.000 1 280,000 1 280.000 1 280.000 Reimbursable Costs NIA Section 8-Page 37 W 2008-09 & 2009-10 Budget W Project Name 8 Number Facilities Engineering Projects-Collections-FE-Collect Project Category Collections Facilities Project Status: Revised Description This budget provides funds for miscellaneous olllection facilities small capital projects. A \/`) small capital project is defined as a miscellaneous capital improvement related to plant W safety, reliability,or improvements where the professional design consulting services are less than$100,000. This project acts as an annual budget placeholder for numerous small collection facilities projects. This system results in a fast-track process for the procurement and execution of engineering and contractor services for smaller,but vital projects. Justification The Collection Facilities Engineering project allows smaller capital projects to extend the life of the existing treatment works and extend the time between major rehabilitations. W These smaller, high priority projects are individually tracked within the larger budget for Collections procurement of engineering and contractor services as needed to maintain reliable operations. Facilities W The project budget has been increased from$7.650.000 to$7.920,000 to reflect the revised project cost estimate. The projects construction cost budget is$4.363,923. This project will not have an Impact on operational budgets. W W W Budget Projections W Topl Budget Project Coat Phas Phue Budget To-0ala 200848 2009-10 201041 2011d2 2012-13 Thanaeer matt Den, 264,000 264,000 W re mnary Design 30,000 30.000 Design 2,087.000 948,000 232.000 241.000 110,000 57,000 54,000 445.000 nst.&Instatilailor 5.495,000 1,436,000 960,000 991,000 426,000 204.000 200,000 1.278.000 W Commission 24,000 24,000 osaom 20.000 20,000 n ngOnq � Total 1 7,92000 1 2.722,000 1 1,192,000 1 1.232.000 1 536,000 1 261,000 1 254.000 1.723.000 Reimbursable Costs WA W W Section 8-Page 38 W CIP Project Detail Sheets r Project Name 8 Number Replacement of the Ellis Ave.Pump But-I-10 Project Category Collections Facilities Project Status: Revised Y,I Description This project will construct a new pump station.88°gravity sewer,and 48"forcemain to r replace the existing Ellis Avenue Pump Station and forcemsm. The existing station, used to divert flow from upstream of Plant No.2 to Plant No.1,is rated for only 10 mgd, receiving flow only from the Magnolia Trunk. The new pump station is to be rated for 50 mild and will receive flows from the Magnolia and Knott trunk sewers and discharge to the Pl Headworks. v. Justification The increase in diversion flows is necessary to balance flows between Plant NO and r Plant No.2.The additional flow will compensate for the diversion of the Santa Ana River Collections Interceptor(SARI)flow from Plant No.t to Plant No.2. Diversion of the SARI flow is required due to ongoing reclamation at Orange County Water District's Water Factory 21 to Facilities minimize future treatment capital improvements at both plants. Flows from the Magnolia r and Knott trunk sewers are required to make up the shortfall from the diversion of the SARI.Thus,a new station and forcemain are required.The pump station will also be used to divert flows during the commissioning of the Headworks Replacement Project at Plant No.2,Job No. P2.66. r The project budget has been decreased from$78,507,72010$77,256,57710 reflect the revised project cost estimate. r The projects construction cost budget is$59,930,922. This project will increase operational budgets by$280,000 annually. r r Budget Projections r Total Ovation Project curt Phase Budget TOArte 200B-0 2009d0 201041 2011-12 M124] TMreaarr r -ffrctrct ev 152.000 552,000 re minery sign 3A90,000 3.490,000 es tie 371,000 3,151,000 r onst. nsla a ion 87,OBe000 4ti,985,000 17,083,000 mmisslon 470.000 14,000 456,000 o—E u 252,000 14.000 184,000 54,000 r on regency 2.674,000 2.674.000 Total 77257,000 58,808.000 17,723,000 2.728.000 r Reimbursable Costa NIA r Section 8-Page 39 r L 2008-09 & 2009-10 Budget Project Name 8 Number Bushard Trunk Sewer Rehabilitation -1-24 Project Category Collections Facilities Project Status: Revised V Description This project will replace approximately 21,500 feet of existing 54-inch reinforced concrete pipe(RCP) sewer with 21,500 feet of 108-inch RCP sewer in Bushard Avenue from Ellis Ld Avenue to Plant No.2. The project will address both structural deficiencies and future capacity requirements. Justification iy This project was identified in the 1999 Strategic Plan to replace andlor rehabilitate the existing 54-inch diameter sewer in Bushard Avenue from Ellis Avenue to Plant No.2. The existing 54-inch Bushard Trunk has severe deterioration on the interior walls of the previously unlined reinforced concrete sewer pipeline.This pipeline is a main trunk sewer W line that flows directly into Treatment Plant No.2 and an receive flow redirected from other Collections trunk lines. It also receives flow directly from the Magnolia Trunk Sewer,making it a critical facility. The 1999 Strategic Plan also recommends diverting Knott Interceptor flows Into Facilities this line, These diversions will relieve overloading on the Interplant Trunk Sewer. �+ The project budget has been increased from$68.395,885 to$68,757,000 to reflect the revised project cost estimate. u The project's construction cost budget is$50,934,495. This project will not have a net impact on operational budgets. W W W Budget Projections Total W Budget Project cent Phase Budget Thus M040 2000-10 2010d1 2011-12 2012-13 Thereeeer rojed v 74,000 74,000 W relim nary estgn 9,000 9,000 Design 2,178,000 2,178,000 nsl.&Installation 64.418,000 84,416,000 W Commission 308,000 308.000 _ close-out198,000 134,000 89,000 onungency 1,574,000 1,574.000 Total 1 68,757.000 67.119.000 1,638,000 Reimbursable Costs $475,000 W L Section 8-Page 40 WI CIP Project Detail Sheets .� Project Name 8 Number Loa Alamitos Blvd.Sewer Condition Assessment-8P-128 Project Category Collections Facilities Project Status: Continuing Description This project will conduct an extensive condition assessment of the three sewers in Los Alamitos Boulevard to determine the extent of the existing damage to the sewers,better estimate the timing for needed repairs,and recommend the most cost effective method of rehabilitation. Justification vMi In 2008,closed-circuit television(CCTV)work was conducted on these lines in response to sinkholes farming in Los Alamitos Boulevard. The tapes indicate that groundwater and soil are infiltrating into these pipes. Collections Facilities r Budget Projections Tool Budget Project Cost Pace Sudgal To to asset ] -Io 2e10.11 2011-12 W12.13 Thereafter roec ev 350.000 350,000 Preliminary Design C"llin � ns. risla ato omm as on oee- ut Contingency Total 350,000 350.000 Reimbursable Costs N/A Section 8 -Page 41 r V V 2008-09 & 2009-10 Budget Project Name&Number Headworks Rehabilitation/Refurbishment-P1.71 Project Category Headworks Project Status: Continuing u Description This project replaces the variable frequency drive(VFD)units for the Reclamation Plant No. 1 (Plant No. 1)headworks pumps,which have reached the end of their service life. W These unite control the speed of the pump motors to accommodate various flow conditions. The items of work include the VFD units,cable tray clean up,new conduit and wiring from the VFDs to the pumps and modifications to Power Building 3A. 4 Justification The headworks pumps are critical pieces of equipment. They move wastewater into the plant and prevent flooding in the collection system. The VFD drive units have reached the end of their service life and must be replaced. The vendor has discontinued the Ita manufacture of replacement pads jeopardizing the Sanitation District's ability to keep them operational. Each pump will be out of service at some point during construction, H PiaUWOrks temporarily reducing the plant reliability. 4 The project budget has been increased from$9.156.399 to$11,024,341 to reflect the revised project cost estimate. The project's construction cost budget is$6,600,000. L This project will not have an impact on operational budgets. _ w I r Budget Projections Total BudgePhn, BuddPt* l Cant _ PBNB autlBat Te-Cale 1BBB-0B 2000-10 2010-11 3011-13 2012-13 Thareakel Project Dev 112,000 112.000 L Preliminary Design 481,000 481,000 Design 1,107,000 1.095.000 12,000 ons.&Installation8.386,000 12,000 3,020,000 5.354.000 Commission 212.000 212.000 _ close-out 125.000 125.000 contingency 601,000 601.000 Total 1 11.024.000 1,700,000 1 3.032,000 1 6,292,000 Reimbursable Costs N/A rl U Section 8-Page 42 r CIP Project Detail Sheets Project Name 8 Number Headworks Improvements at Plant No.2-P2-66 Project Category Headworks Project Status: Revised r Description This project will replace the existing headworks at Plant No.2 and will include the following components: influent diversion and metering structure,bar screens,influent pump station, vortex gm chambers,primary influent splilter and metering structure,ferric chloritle feed \(J) facilities,headworks and trunk line odor control facilities,screenings handling building including Hycor washer/compactors,grit handling building including cyclone classifiers, r electrical building and standby power. Justification Many key components of the headworks facilities at Plant No.2 are old and are in need of replacement. Most of the gates are in need of replacement and several have already failed. A metering and diversion structure is necessary to allow calibration and maintenance of the meters. The bar screens and grit chambers are also inefficient and grit Headworks screenings are passing into the downstream processes causing increased O&M costs. r, Space within the existing headworks facility is very limited and modifications for rehabilitation would have been difficult or infeasible to implement. The project budget has been decreased from$257,761,600 to$254,497,702 to reflect the revised project cost estimate. The projects construction cost budget is$193.141,700. ,r This project will not have an impact on operational budgets. r +r Budget Projections d Tur.l Budges Protect coat Phase BudBat TaDate =849 2009.10 2010-11 011.12 2012-13 Themsfter e+ mlecl �' 64.000 64,000 reliminary esign 3,909,000 3,909,000 Design 14,992.000 14.992.000 Cont.&Installahm 219,014,000 177,156,000 25.751,000 9,809,000 5,964,000 334.000 Commission 8,680,000 16,000 3,391.000 5,173.000 Close-Out 218,000 2,000 8,000 208.000 .� nbrgeney 7,75060 7,726.000 Total 254.498.000 96.134,000 1 25,751.000 i 13,200.000 11,145,000 1 8,268,000 Reimbursable Costs N/A Section 8-Page 43 V 1r 2008-09 & 2009-10 Budget _ Project Name 8 Number Primary Treatment RehalsRefurb-P2-60 Project Category Primary Treatment Project Status: Continuing u Description O 0 This project replaces the existing sludge pumps with new sludge pumps and grinders in 0000 O 0 order to provide a more uniform sludge to the digesters. In addition,this project upgrades 00000 O 0 I.+ the scum system and provides for rehabilitation and refurbishment of the concrete and 000000000 steel in the primary clarifiers. �� 000000000 j Justification 00000000 i" The replacement of the sludge pumps with new sludge pumps and grinders is required in0000 0 order to support the new sludge feed system being installed as pan of project P2-91. The O O Installation of this new system will increase reliability of the sludge system. In addition,the upgrade to the scum system and the concrete and steel repairs will provide better iW operability and reliability of the primary clarifiers. Primary Treatment The projects construction cost budget is$20.712,500. I reia tm Pin t W This project will not have an impact on operational budgets. ty 4 1r1�� Lc Budget Projections 6 TOtel BudgeProles Cat Ph.. _ PM1 Budget To-061e ZIIO849 300940 2010-11 301 t-13 3013d0 TM1enefter r Project Dev 148,000 148.000 Preliminary Design 2.937,000 2,937.000 Design 5,800.000 51800,000 ons. nste a o 25,324.000 6,045,000 15,789,000 3,490.000 Commission 1.135,000 249.000 577,000 309,000 _ ose- ut t04,000 104,000 ntlngency 1,782,000 1.551000 V Total 37230,000 15,179,000 1 16,366,000 1 5,685,000 Reimbursable Costs N/A 4J V Section 8- Page 44 u CIP Project Detail Sheets r Project Name&Number Primary Effluent Pump Stations Reliability Study-SP-130 Project Category Primary Treatment Project Status: New r Description O O This project will evaluate each primary effluent pumping station to determine the most cost O�0 O O effective method to ensure compliance with secondary treatment standards after 2012. O O O O O O O Justification 00 0 000000 The existing treatment plants were designed to allow primary effluent discharges to the O O O O O O O O O r ocean. After 2012, under secondary treatment standards,these pumping stations must 00000000 operate constantly and reliably. Specifically,the study will need to address power and 0 O electrical systems that can trip offline during power spikes and dips. O O r Primary Treatment r r nr s Budget Projections r Tote) Budget Project Coat Budge Phase Budget To-pate 200e49 3009-10 2010.11 ZON-13 3012-13 Thereafter 'ec mlect 6v 100,000 100.000 Preliminary Design Design r onsL nsta aeon Commission Close-Out Contingency Total 100,000 100.000 Reimbursable Costs WA Section 8-Page 45 2008-09 & 2009-10 Budget Project Name 8 Number New Secondary Treatment System at Plant No. 1 -Pi-102 W Project Category Se condary Treatment Project Status: Revised Description This project expands secondary treatment facilities at Reclamation Plant No. 1 (Plant No. 000 000 000 1)to meet secondary treatment standards. This project includes construction of aeration W basins,clarifiers,a blower building,and retumAvaste sludge pumping stations for additional secondary treatment capacity of 60 MGD at Plant No. 1. This project Is pad of the 000 000 000 Secondary Treatment Standards Program. The activated sludge process was chosen as the most cost effective process to achieve secondary standards and allow future L reclamation activities at Plant No. 1. 000 000 000 Justification This project is necessary to support the Sanitation Districrs July 17,2002 decision to meet secondary treatment standards. This project will enable Plant No. 1 to meat secondary Secondary standards by increasing secondary treatment capacity by 60 MGD. Two Secondary Expansion Consent Decree dales for the project have been established In 2006 and 2012 Treatment with penalties of up to$27,000 per day,if the deadlines are not met. W The project budget has been decreased from$266,789,131 to$265,862,859 to reflect the revised project cost estimate. The praject's construction cost budget is$201,904,000. This project will increase operational budgets by$4,000,000 annually. ti Budget Projections To auo. Coal Piro... Project autlgN To•Date 2000411 2009.10 2010-11 2011-12 2012.13 TIrBMfx I— ro act ev 140.000 140.000 V Preliminary Design 5.257,000 5.257,000 Design 13,I347,000 13.047,000 nst.&Installatton 230,605,000 95,064,000 100,050,000 21,474,000 13,027,000 990,000 V ommisson 3,235.000 3.039,000 198,000 oss- u 430,000 430,000 1 n nganoY 13.14g,000 13,11g,000 Total 265,883,000 13,508,000 100.050.000 1 21,474,000 1 16,006,000 1 14,765,000 Reimbursable Costs N/A V Section 8-Page 46 L CIP Project Detail Sheets r Project Name&Number Activated Sludge Plant Rehabilitation-Pl-82 Project Category Secondary Treatment Project Status: Continuing r Description This project will rehabilitate activated sludge secondary treatment facilities at Plant No. 1, 000 000 000 including the following: 1) Rehabilitate Aera0on Basin Influent Splitter Box,Step 8 Plug Flow Feed Gates; 2)Replace aeration piping and diffusers within the Step Feed Channels; 000 000 000 3)Replace RAS piping and improve RAS distribution; 4) Rehabilitate mixed liquor channel aeration piping and valves; 5)Rehabilitate Secondary Clarifiers 1-14 including replacement of chain and flight,cross 000 000 000 collectors,drives,and stub shafts; 6)Provide standby power and rehabilitate/upgrade existing power supply to increase reliability/serviceability and to meet new codes and standards; 7)Add two new secondary clarifiers for improved reliability, Secondary 8)Incorporate J-42 reinvention ideas applicable to activated sludge;and 9) Incorporate J-25-4 electrical system improvements within process area. Treatment r Justification The purpose of this project is to ensure that the existing activated sludge plant can operate at its design capacity with a high degree of reliability. By replacing equipment that has reached the end of its useful life and by restoring the entire process facility,the District will r be able to reliably treat the amount of wastewater required by its permittees and those relying on the supply of secondary treated water. The projects construction cost budget is$33,623,168. r This project will not have an impact on operational budgets. r' Budget Projections Total — Budget Prate" Coat Phan BOEget To zne 200999 2009.10 2010-11 2011-12 201243 Thereafter Project Dev 82.000 82,000 - reimmary satin 126,000 126,000 Design 4,356.000 4,356,000 onsl.&Installation 39,468,000 39,468,000 Commission 804000 804,000 asa ut 791,000 161,000 30,000 Conhngancy 1,106,000 1,108.000 r Total 1 46,133,000 44,997.000 1,136,000 Reimbursable Costs NIA r r Section 8-Page 47 V 2008-09 & 2009-10 Budget ` Project Name 8 Number Reitation of Activated Sludge Plant at Plant 2-P2-74 u Project Category Seconhabildary Treatment Project Status: Revised u Description This project rehabilitates secondary treatment facilities at Plant No.2 to provide reliable 000 000 000 secondary treatment. This project includes replacement of major mechanical equipment 1.1 items(gates,valves,operators,impeller blades,piping,etc.)that have begun to fail or are - at the end of their useful life.relines the large diameter pipes that convey wastewater to the 000 000 000 activated sludge plant,adds odor control to the aeration basin splhter box, installs bleach pipelines and injection points,and replaces and upgrades instrumentation and controls. 000 000 000 4 Justification This secondary plant was constructed in 1982. Much of the mechanical equipment has exceeded its useful fife and is in need of rehabilitation. The required modifications will �yv increase reliability during operations at secondary treatment standards. This project is also Secondary necessary to support the Orange County Sanitation Districts July 17,2002 decision to meet secondary treatment standards. This project will enable Plant No.2 to meet Treatment secondary standards by increasing reliability ofthe existing activated sludge plant This 'I.J project has one Secondary Expansion Consent Decree date for construction completion in 2009 with penalties of up to$27,000 per day if the deadline is not met. The project budget has been decreased from$17,305.626 to$16.400,525 to reflect the revised project cost estimate. The projects construction cost budget is$10.300,000. This project will not have an impact on operational budgets. he.l Budget Projections Total W Budget Project Cost Ph. Budget To-eeb 2000-0e 2000.10 2010-I1 U1142 W12.13 Thereafter — Project Dev 310,000 310,000 `r Preliminary DeaIgn 208,000 208,000 Design 2.435,000 2,435,000 Coral. 7stala0on 72.750 0000 12,750.000 6. Commission 615,000 615,000 Close-Out 60.000 22,000 38,W0 Contingency 123,000 123,000 L Total 78A01,000 1 16,240,000 1 181,000 Reimbursable Costs N/A V 64 W Section 8-Page 48 - V r CIP Project Detail Sheets r Project Name S Number 7rlckling Filters at Plant No.2-P2-90 Project Category Secondary Treatment Project Status: Continuing r Description This project expands secondary treatment facilities at Treatment Plant No.2 to meet 000 000 000 secondary treatment standards. This project includes construction of three trickling filters, r a solids contact basin, and six clarifiers for additional secondary treatment capacity of 60 MGD at Plant No.2. This project is part of the Secondary Standards Program. The 000 000 000 trickling filter/solids contact process was chosen after preliminary design as the most cost effective process to achieve secondary standards at Plant No.2. r 000 000 000 Jusfificatlon This project is necessary to support the Sanitation Districts July 17,2002 decision to meet secondary treatment standards. This project will enable Plant No.2 to meet secondary .. standards by increasing secondary treatment capacity by 60 MGD. Two Secondary Secondary Expansion Consent Decree dates have been established for this project.in 2007 and 2011. with penalties of up to$27,000 per day,if the deadlines are not met. Treatment r The projects construction cost budget is$181.000,000. This project will increase operational budgets by$3,290,000 annually. r' r r Budget Projections Tohl r Budget Protect Cost Phan, Budget To Daia 204113.09 2003-10 2010.11 Mlld3 2012-13 Themaber Project Dev 294,000 294,000 ~ re0minery n 3,474,000 3,474,000 Design 8,831,000 8,831,000 ons.&Installation198,109,000 39,380,000 73.660.000 56.872.000 28.197.000 r emm¢si0n 2.530,000 2,530,000 Close-Out 732,0" 281,000 431,000 20,000 0ngency ],222.000 7,222,000 r Total 221.192.000 1 51.979,000 1 73,660.000 1 56,872,000 1 31.008,000 431.000 1 7,242,000 Reimbursable Costs NIA r r Section 8-Page 49 W 2008-09 & 2009-10 Budget Project Name&Number Oxygen Plant Rehabilitation at Plant No.2-SP-129 W Project Category Se condary Treatment Project Status: New W Description This project will rehabilitate the deteriorating oxygen plant at Plant No.2. This includes 000 000 000 general repairs and upgrades to the instrumentation and controls and the oxygen plant generating equipment. t" 000 000 000 Justification O&M recently prepared an evaluation of the oxygen plant in response to repairs needed at the plant.The resulting report identified the scope and magnitude of the needed repairs. 000 000 000 Also,these repairs are needed to allow for the next solicitation for services to operate the _ facility after the existing contract expires. Secondary Treatment w lu 1, w W Budget Projections I Tool r Budget Project Cott Phase autlatl T04)eb 2008-0e 300F10 3010-11 301143 304-13 Theree/4r Project Dev Preliminary Design 94,000 94.000 Design 433,000 433.000 Const.&Installabori 1.639,000 1.639,000 y Commission 41.000 41,OW ut 16,000 16,000 ngancy 2n.9og 277,00g Total 2.500.000 527.000 1 1,973,000 Reimbursable Costs N/A 1 11 U Section 8 -Page 50 L r CIP Project Detail Sheets �+ Project Name&Number Oxygen Plant Rehabilitation-SP-72.1 Project Category Secondary Treatment Project Status: Continuing r Description Under this project,an assessment will be conducted to Identify the rehabilitatlon/upgrade 000 000 000 needs of the various elements of the cryogenic oxygen plant Including the cold box,the r main air compressor and the cooling water systems. All necessary upgrades and repairs to the cryogenic plant as identified from this project,will be done as pan of CIP project- 000 000 000 SP-129. Justification 000 000 000 In fiscal year 2009-10 when the District's private Operations and Maintenance Agreement with Air Products and Chemicals Inc. expires,the Oxygen Generation Facility will be over 25 years old and many of the major pieces of equipment will have reached the end of their r useful life. Secondary Treatment r r r r Budget Projections r Tout Budget Protect Coat Phro Budget To-0ab 2001d9 "DO-18 2010-11 2011-12 W11d2 Themeaer Project Dev v re m nary s tin Design ons nsta a o 130.000 30,000 120,000 To—mffirsisron— Contingency r Total 1 150,000 1 30,000 1 120,000 Reimbursable Costs N/A r Section 8-Page 51 2008-09 & 2009-10 Budget Project Name 8 Number Sludge Digester Rehabilitation at Plant -P1-100 Project Category Solids Handling a Digestion Project Status: Revised W Description The project rehabilitates Digesters No.5 through No. 16 at Plant No.1 to replace aging equipment and improve solids handling capacity. The equipment rehabilitation includes sludge pumping,healing,structural systems,mechanical systems,and electrical and control systems. Justification L This project is needed in order to handle the additional solids produced by the New Secondary Treatment System at Plant No. 1,Job No. P1-102,which is necessary to support the Orange County Sanitation District's July 17,2002 decision to meet secondary 91 treatment standards. Job No.P7-102 has two Secondary Expansion Consent Decree Solids Handling iv dates established that could result in penalties and fines of up to$27,000 per day. Thus, g this project is considered a vital component of the Sanitation District's Capital Improvement & Digestion Program. Additional solids handling capacity will be needed at Plant No. 1 to g j accommodate the increased sludge volumes from expanded secondary treatment operations. The project budget has been increased from$56,410,258 to$60,397,763 to reflect project scope changes and the revised project cost estimate. j The projecrs construction cost budget is$42.500,000. This project will increase operational budgets by$400,000 annually. 1 IV M Budget Projections Total Budget Project Coat obese Budget TaDM 2008-0a 2009-10 2010-11 ZOft42 201243 Thanafbr Project Dev 218,000 218.000 Preliminary Design 3,062,000 3,062,000 Uesign 3.605,000 2.315.000 1,290,000 1 nst.&lnstall8fi0P48.415,000 89,000 8,888,000 29,880,000 9,877,000 147,000 iN Commission 717,000 373,000 344,000 ose- ut 130,000 43.000 87,000 on ngency 2 50.4, 000 4.250,000 Yrr Total 60.397,000 1 5595,000 1 1,359,000 1 8,868,000 1 30,033,000 1 10.264.000 4,478.000 Reimbursable Coat N/A lu it W Section 8-Page 52 — r CIP Project Detail Sheets .+ Project Name&Number Sludge Dewatering and Odor control at Plant 1 -P7-101 Project Category Solids Handling B Digestion Project Status: Continuing r Description This project constructs primary sludge thickening facilities to improve solids handling capacity, replaces sludge dewatering facilities to replace aging equipment and reduce r bicsolids handling and disposal,rehabilitates solids handling odor control equipment to replace aging equipment,and temporarily expands sludge dewatering facilities to accommodate temporary construction needs. Justification This project is needed in order to handle the additional solids produced by the New Secondary Treatment System at Plant No. 1,Job No. P7-102,which is necessary to support the Orange County Sanitation District's July 17.2002 decision to meet secondary Solids Handling 99I treatment standards. Job No.P7-102 has two Secondary Expansion Consent Decree dates established that could result in penalties and fines of up to$27,000 per day. Thus, & Digestion this project is considered a vital component of the Sanitation District's Capital Improvement Program. r✓ The project's construction cost budget Is$101,903,000. This project will increase operational budgets by$1,600,000 annually. r r r 4 Budget Projections r Total Budget Pmjast cost Phase Budget To cste 200849 2009�10 2010-11 2011.12 M12-13 Thereafter Project ev 389,000 399.000 Preimmary es tin 8.831,000 8.831,000 Design 11,503,000 1,981.000 7,603,000 1,919,000 Contt.6 Installation 113,043.000 2.000 158.000 14,934.000 62.843,000 32.177.000 2,929.000 r omm ss an 1,412,000 898,000 444.000 close-Out 163,000 163.000 n ngency 10,368.000 10.366.000 Total 1143.547,000 1 9,013.000 1 7,603,000 1 2,077,OOD I 14,934,OD0 1 62.843.000 1 33,175.000 13,902,000 Reimbursable Costs WA r r Section 8-Page 53 I� 2008-09 & 2009-10 Budget Project Name a Number Truck Wash and Dewatering Beds at Plant No.1 -P1-106 Project Category Solids Handling 8 Digestion Project Status: Continuing L Description This project will relocate the several sludge drying beds that are scheduled to be demolished as the Orange County Sanitation District expands its secondary treatment capacity. The new drying beds will be located south of the existing drying beds. The 60 project will also install a truck washing station to allow the Sanitation District and local sewering agencies to clean their trucks after dumping grit and sand collected from the regional and local sewer systems into the drying beds. L Justification These facilities are being demolished to make roam for the expanded secondary treatment works. They are vital parts of the treatment system,and must be replaced to maintain Solids Handling plant operations. The drying beds are also used by the Sanitation District and local sewering agencies to dewater sand and grit removed from the collection system during & Digestion cleaning operations. After the material is dewatered,it is transported to a landfill. These g beds also store sludge removed from Biosolids hauling trucks that were overloaded or begin leaking during the truck loading process. The truck washing station allows for the cleaning of trucks which have dumped into the drying beds to ensure cleanliness and to reduce odors. y The projects construction cost budget is$1,950,000. This project will not have an impact on operational budgets. W i • u �i v Budget Projections i Tote) Budget Project Curt Phase Budget To-Date 200849 2009-10 2010.11 201142 2012-10 Themaher Project Dev 76,000 78.000 12o reliminary esign 18B4O00 188.000 Design 280.000 280,000 nst.3lnsta a on 2,405,000 2,395,000 10,000 ly omm s On 51.Oo0 51.000 os ut 30,000 B4OW 24,"0 Condngerwy 116,000 116,000 y Total 1 3,146,000 2.998.000 150.000 _ Reimbursable Costs N/A 6.1 Section 8-Page 54 v CIP Project Detail Sheets �+ Project Name&Number Solids Thickening and Processing Upgrades-P2-89 Project Category Solids Handling&Digestion Project Status: Revised r Description This project will provide sludge thickening treatment to treat the current Activated Sludge Plant solids as well as the additional solids that will be generated from the new secondary ..+ TF/SC process. This project is still in the Project Development phase,and the sludge thickening treatment is yet to be decided. Options include upgrades to the existing Dissolved Air Floatation Thickeners(DAFTs)or construction of new centrifuges. This project will also convert"holding"digesters Into"working"digesters to also accommodate ..� the increased production of sludge coming from the new secondary TF/SC process. Justification ti This project is required to accommodate the additional sludge handling that will be Solids Handling generated from the Trickling Filters at Plant No.2,Job No. P2-90,which is necessary to 9 support the Sanitation District's July 17,2002 decision to meet secondary treatment & Digestion standards. This additional sludge volume will exceed the available capacity of the existing operational Dissolved Air Floatation Thickeners(DAFTs)and digesters. Thus,this project r is considered a vital component of the Sanitation District's Capital Improvement Program. The project budget has been increased from$23,143,364 to$73,020,000 to reflect project scope changes and the revised project cost estimate. The project's construction cost budget is$46,000,000. The impacts to operational budgets have not yet been determined. r r M Budget Projections e e Tetel Budget Protect Cost Pheeo Budget To-Bozo 208459 2101-10 2010-11 mt1.12 ta12-13 merxMr rolecl ev 164,000 164.000 Preliminary Design 810,000 303,000 807,000 Design 3.108,000 1,134.000 1,983,000 51,000 r ns.&Installatior58,835,000 1.000,000 1,000.000 10,369.000 46.466.000 mm ssion 818,000 333,000 268.000 os ut 124,000 18,000 10s.000 nhngency 9,200,000 9,200.000 r Total 1 73,020,000 467,000 1 1,741,000 1 1,983,000 1 1,051.000 1 1,000,000 1 10.720.000 56058,000 Reimbursable Costs N/A Section 8-Page 55 L 2008-09 & 2009-10 Budget i , Project Name&Number Plant No. 2 Primary Sludge Feed System Project-P2-91 Lr Project Category Solids Handling B Digestion Project Status: Continuing ' V Description This project provides piping at Plant No.2 to interconnect the primary sludge systems and - digesters feed system. Also a new sludge blending facility is being constructed to provide more consistent sludge to the digesters. Justification At Plant No.2,there are three groups of clarifiers. Each group,called a'bank"is directly connected to a small group of digesters. Currently,there are no provisions to feed sludge from one bank of clarifiers to the other banks of digesters. Moreover,during maintenance, repairs,and plant upsets the banks limit the amount of treatment plant rapacity because the digester banks can become overloaded. This project will install piping to route primary Solids Handling L sludge from any clarifier bank to another digester bank.The projects construction cost budget is$16,314,500. & Digestion This project will increase operational budgets by$110,000 annually. L L W L Budget Projections lit Total Budget Project cost Phase audgst TO-0810 M849 =11-10 2010.11 toil-12 2012-13 Thereafter - reject Dev 619.000 619.000 L Preliminary Design 1,808,000 1.606,000 eslgn 2,312,000 2.312,000 onst.&Installation 19,364,000 4,990,000 12,441,000 1,923,000 60 Commission 445.000 445.000 Cos ut 58.000 58,000 ontngency 1.372.000 1,372.000 Total 25.766.000 9,527,000 12,441,000 3.798.000 _ Reimbursable Costs N/A Id L Section 8- Page 56 V r CIP Project Detail Sheets r Project Name&Number Digester Rehabilitation at Plant No. 2 -P2-91-1 Project Category Solids Handling B Digestion Project Status: Revised r Description This project rehabilitates digester facilities at Plant No.2 to replace aging equipment, increase operational flexibility, and restore solids handling capacity. This includes r Digesters C,D,E, F,G, H,P,O, R, S and T. The scope includes the following:digester cleaning; lining of the digester walls;replacement of ferric chloride lines,steam system, hot water system,view ports,access covers,and flame arresters;and addition of digester feed flow meters,digester feed piping,in-line grinder pumps,and automated controls. The extent of the components to be rehabilitated,however,will be based on the results of the condition assessment and asset management evaluation completed as part of the P2-91 project. ti .a Justification Solids Handling This project is needed in order to handle the additional solids produced by the Trickling & Digestion Filters at Plant No.2,Job No. P2-90,which is necessary to support the Orange County Sanitation District's July 17,2002 decision to meet secondary treatment standards. Job eW No.P2-90 has two Secondary Expansion Consent Decree dates established that could result In penalties and fines of up to$27,000 per day. Thus,this project is considered a vital component of the Sanitation District's Capital Improvement Program. Additional solids handling capacity will be needed at Plant No.2 to accommodate the increased sludge volumes from expanded secondary treatment operations. The project budget has been increased from$33.145,995 to$36,398,272 to reflect inflation due to postponement. y The project's construction cost budget is$23,885,277, This project will not have an impact on operational budgets. r r Budget Projections • Tmal Budget Protect cost Phase Budget To4Ate 2009-09 200 -10 2010-11 2011-12 2012-13 Thereafter rolect Dev 729.000 729,000 Im nary e9 n 768.000 52.000 295,000 421,000 Design 2,555,000 2.000 2.553.000 onst.&installation27,179,000 27,179,000 r Comm ss on 844,000 844.000 lost ut 198,000 196.000 n n9ency 4,727,000 4.127.000 r Total 1 36.388.000 1 731,000 1 1 52,000 295,000 421,000 34.899.000 Reimbursable Costs N/A r Section 8 -Page 57 LW 2008-09 & 2009-10 Budget Project Name 8 Number Replacement of Drying Beds and Truck Wash at Plant-P2-97 Project Category Solids Handling&Digestion Project Status: Revised Description This project is to construct two sludge drying beds and a truck washing facility at Plant No. 2. The area will be fenced and any drainage from the drying beds and truck wash will be directed to a nearby plant sewer.The new drying beds will be located near existing Vr Digesters R and S. The project will also install a truck washing station to allow Sanitation District and local agency sewer cleaning crews to clean their trucks after disposing into the drying beds. Justification In 2005,the drying beds and truck wash facilities at Plant No.2 were demolished to make room for the new headworks facility. Since that time,disposal, drying,and cleaning Solids Handling operations at Plant No.2 have been supported by temporary facilities until new permanent g facilities can be built.The drying beds and truck washing facilities are vital parts of the & Digestion treatment system that must be replaced with permanent facilities to maintain regulatory 9 I compliance and plant operations.The drying beds will allow Sanitation District and local agency sewer cleaning dews to dispose of materials collected in the sewer system during cleaning operations. The project budget has been decreased from$4,651,000 to$4,442,964 to reflect the LI revised project cost estimate. The projects construction cost budget is$2,546,775. This project will not have an impact on operational budgets. i.1 M Budget Projections 11 TOMI .d Budget Project coat Ph... Budget Ti.Date Well 2009d0 M10-11 2011-12 M12-13 Thereafter roect Dev 74.000 74,000 preliminary Design 261,000 58,000 203,000 Design 389,000 158,000 231,000 onsl.&Installation 3.145.000 86,ODO 3.059.000 y Commissmn 7g,000 79.000 close-Out 45,000 45.000 on regency g50,OW 4"000 Total 4.443.000 74,000 58,000 361,000 317,OOD 3,633.000 _ Reimbursable Costs WA W W Section 8 - Page 58 a CIP Project Detail Sheets r Project Name 8.Number Final Effluent Sampler and Building Area Upgrades-J-110 Project Category Oman Ouffall Systems Project Status: New r Description This project will renovate, replace,or demolish facilities surrounding the final effluent sample trailer.These facilities need significant renovations due to age and exposure to .,, ocean air. This includes replacement of the final effluent sampler pumping and sampling systems, sampling trailer,adjacent unused buildings,and the ocean sample storage building,and landscaping. a Justification Several repairs and upgrades have been attempted to correct deficient sampling equipment. Similarly,a number of repairs have been made to existing structures. Those past projects have extended the life of the equipment and structures,however,those past repairs are now at the end of their useful lives too. Thus,the buildings and equipment Ocean Outfall need large-scate renovations and replacement. Also,other structures are not used anymore and have fallen into disrepair,or are unsightly. Systems a This project will not have an impact on operational budgets. The construction budget for the project Is$1,000,000. a a a Budget Projections Total Budget Pmlaat Cost Phase aW9et To-Dats 200049 2009-10 2010-11 W1142 201243 Thereafter Project Dev 16.000 16.000 Vis re m nary ea IFF 87,000 67.000 Design 313.000 313.000 onst.&InstallafiR 1,238,000 619,000 619,000 a mm ss on 38.000 39,000 0 17.0D0 , DDCDOn gnc 000 r Total 1,890,000 83,000 1 932.000 1 619,000 256,000 Reimbursable Costs NIA sss r Section 8 -Page 59 2008-09 & 2009-10 Budget i Project Name 8 Number Effluent Pumping Station Annex-J-77 L.I Project Category Ocean Outfall Systems Project Status: Continuing - Description This project will construct a new Effluent Pumping Station at Plant No.2 to replace the - existing Foster Pump Station.The project addresses deficiencies in the existing Foster Pump Station and will be designed to meet pumping requirements for peak flow events. M The new pump station will be capable of providing back-up to the Ocean Ouffall Booster Station(OOBS)and of pumping secondary effluent exclusively through the existing 78-inch outfall during peak flow emergencies. The project is in the construction phase and is expected to be completed by August 2008. Justification The existing Foster Pump Station is not capable of serving as standby to the Ocean Outfall Booster Station(OOBS). An analysis was prepared comparing pump station upgrade with Ocean O utf a I I replacement. The cost to completely replace the Foster Pump Station was estimated to be Systems within 3%of upgrade costs for this facility. Therefore,a new Effluent Pump Station Annex . (EPSA)was designed to replace Foster Pump Station. u The projects construction cost budget is$44,597,334. This project will increase operational budgets by$55,000 annually. JL.I y V Budget Projections II Total V Budget Project cast Phase Budget T"sia 200M WM-10 2010-11 2011-12 2012,13 Thersefter roeot ev 4,000 4,000 Preliminary Design 0,000 62,000 esign 4.688,000 4,588,000 Const.&InstallatioF 53,871,000 53,871,000 y ammssan 885,000 685.000 Case- ut 208.000 704,000 104.000 ConOngenaY 7.089,000 1 1 7,089,000 Total 60,487,000 1 59,314,000 1 1,173,000 Reimbursable Costs NIA j W Section 8-Page 60 — V CIP Project Detail Sheets .+ Project Name S Number Interplant Gas Line Rehabilitation-J-106 Project Category Utility Systems Project Status: Continuing Description This project rehabilitates the Interplant Gas Line. The line transports digester gas between Reclamation Plant No. 1 (Plant No. 1)and Treatment Plant No.2(Plant No.2). A liner will .� be installed within the existing pipe to protect the pipeline from corrosion,and to prevent future pipe failures. Justification s The interplant gas line has suffered several corrosion related failures,and rapeirs were made in 2003. This pipeline falls under the requirements of the Department of Transportation(DOT)Office of Pipeline Safety. DOT is requiring that the Sanitation District demonstrate that the pipeline is sound. At this time, a complete Inspection or sliplining is r necessary to allow Sanitation District to demonstrate the status of the pipe to the DOT. The inspection requires costly mediations to the pipeline in order to determine the wall Utility Systems thickness of the pipe. This pipeline is regularly used to transport gas from Reclamation y Y Plant No. 1 to avoid flaring gas. This is because Treatment Plant No.2 has a larger r electrical load and has more generating capacity than Plant No. 1. The project's construction cost budget is$2,680,191, r r r M Budget Projections r Total Bu40et Project cost Phase Budget TO41ab 2000-08 2000.10 2010.11 2011.12 2012-13 Thereafter Protect D. 64,000 64.000 rem nary gn 192,000 192,000 esgn 251,000 165,000 86,000 0nst.&Installation2,913,000 1,000 2,860.000 52.000 r amm ss on 28,000 18,000 8.000 os� ut 6.000 8,000 -71 ont ngenry 298,000 298,000 r Total 1 3.752,000 1 42.2,000 1 2.964.000 1 366.000 Reimbursable Costs WA r Section 8-Page 61 r L 2008-09 & 2009-10 Budget Project Name&Number I Carrigan Cooling Water System Replacement-J-109 L Project Category I Utility Systems Project Status: Continuing i Description This project will improve the efficiency of existing cooling system equipment at both plants. It will improve heat recovery from the Central Generation Engines and reduce water consumption by replacing the existing once-through cooling systems with a more efficient 61 system. Justification This project will substantially reduce the amount of water consumed by process equlpmenVsystems,resulting in an estimated savings of$500,000 annually. The district currently buys OCWD reclaimed water to cool mechanical equipment. This water is expensive and contains chemicals that damage equipment. The contract is set to expire in A I 2012.This project will eliminate the need to purchase reclaimed water due to use of a led dosed loop system with cooling towers. Utility Systems The projects construction cost budget is$4,735,000. Utility ll s7 W This Project will decrease operational budgets by$500.000 annually. � I V IL L L Budget Projections 1 : Tool v Budget Proje cost Peace Budget To.Date 300909 N09.10 2010-11 2011-12 M12-13 Thereafter Project Oft 77,000 77,000 reliminary Design 320.000 61.000 259.000 Design 1,480,000 449,000 994.000 37.000 nst.&Installation6,009,000 4,891,0D0 1,318,000 V Commission 184.000 8,000 178,000 os ut 77,000 77,000 L n ngency 9/7,000 847,000 Total 1 9.094.000 1 138.000 1 708,000 1 994,000 1 4.734,000 1 2,52D,000 _ Reimbumable Costs N/A L IrI Section 8-Page 62 it V r CIP Project Detail Sheets r Project Name&Number Cable Tray Improvements at Plants 1 &2-J-47 Project Category Utility Systems Project Statue: Revised Description This project will rehabilitate electrical cable and cable tray systems at Plant Nos. 1 and 2, Cable trays are used to route power and control signal electrical cables between process .. areas,power buildings,and control centers.This project will bring cable tray systems, which are in urgent need of upgrade,into compliance with code requirements and will improve the operational safety and reliability of these systems. The project will also document power and control cables in the cable treys. se Justification Treatment Plant Nos. 1 and 2 cable trays installed prior to 1987 do not comply with the current National Electrical Code(NEC). The Sanitation District did not require compliance .+ with the NEC prior to 1987. This project will upgrade the older cable tray systems to comply with both current NEC and OSHA codes. These older cable trays are overloaded Utility Systems and contain wiring that is not designed for cable tray use and,as a result,are at risk for overheating and deteriorating due to environmental conditions. Overloaded trays do not allow heat to property dissipate representing a ere hazard. The project budget has been increased from$29,898.693 to$31.744,000 to reflect the revised project cost estimate. r The project's construction cost budget is$22,600,000. This project will not have an impact on operational budgets. r r r Budget Projections r Total Budget Protect Cost Ph. Budget Toeate 2000419 200 -10 2010./1 2011-12 W12.13 ThereeMr Project Dev 32,000 32,000 vri remnary a tin 3.416,000 3,416.000 Design 285,000 285,000 nst.&Installation24,617.000 816.000 2.000 2,000 3,752,000 2.663.000 1.705,000 15.677.000 r mmias on 353,000 4,000 349.000 Clasemout 97,000 4,000 93.000 on6nganry 2.944,000 2.944.000 r Total 1 31.744,000 1 4,557,000 1 2,000 1 2.000 1 3,752,000 1 2,663,000 1 1,705.000 19,063,000 Reimbursable Costs N/A r r Section 8-Page 63 r 2008-09 & 2009-10 Budget L Project Name&Number Air Quality Improvements-J-79 L Project Category Utility Systems Project Status: Continuing i W Description This project evaluated options for modification of Central Generation Facilities,at Plants 1 &2, to meet air emission standards. The project scope includes a study to determine the impacts that new air quality regulations have on existing power generation systems and W evaluates the cost of upgrades necessary to meet the regulations. The project Includes health risk assessments for Plants 1 &2 for years 2006 and 2012,and eight outlying pump stations for the year 2006.The Consultant will also be conducting combustion and post I combustion pilot testing for VOC reduction.The current scope of work includes a post W combustion pilot study to evaluate technologies for reducing NOX,CO and VOC. Justification L This project is necessary to maintain compliance with South Coast Air Quality Management District(SCAQMD)for continued operation of the central generation plants and renewal of Utility Systems the air quality permits for wastewater treatment Plant Nos. 1 &2. The projects construction cost budget is$2,338,431. IW. This project will increase operational budgets by$100,000 annually. I� L L L Budget Projections - Total V Budget Project coat Ph... Butlget T0.111de 2001-0B 2000-10 "1O11 2011-12 201243 Thereafter Project Dft 80,000 80,000 L Preliminary Design 417,000 417.000 Design 5.521.000 3,794,000 128,000 1,599.000 1 rel.&Installation 2,945,000 2,948,000 V Commission 2,000 2,000 Close-Out 28,000 6,000 8,000 12,000 - n ngency 177,000 177,000 Lj Total 9,108.000 7,244,000 138.000 1,788,000 Reimbursable Costs N/A W LI Section 8 -Page 64 V CIP Project Detail Sheets r Project Name&Number Central Generation Automation-J-79.1 Project Category U"fity Systems Project Status: Revised r Description IF The Project will replace the engine control systems(PT-100, FT-210)for the Central Generation Systems at Plant 1 8 2. The project will also provide improved electrical load r management,operating communications between Plants 1 8 2, and improved control of exhaust emissions.A sub-project J-79-1A,will provide new CEMS units on each engine at both Plant No.1 and Plant No.2 r Justification The existing engine control systems are no longer manufactured or supported by the original equipment manufacturer and timely replacement of parts is not reliable.The existing controls do not provide emissions monitoring feedback signals to the engines for AP the control of exhaust emissions. The existing control system does not effectively manage electrical loads. The engines do not start or stop or vary loads automatically and can fail Utility Systems when utility power is lost. The new system will provide automatic load management capability,as well as emissions monitoring feedback signals for exhaust emissions control. r The project budget has been increased from$18.755,180 to$20.331,643 to reflect the revised project cost estimate. The projects construction coat budget is$12,000,000. This project will not have an impact on operational budgets. r r r Budget Projections r Total Budget Protect cost Phew Budgst To.Date 2009-09 2009-10 201041 Nil-12 W1243 T miter ro ec[ ew 24.000 24,0D0 rem nary a gn 815.000 815.0o0 Design 1,589.000 1,589,000 ons.a Installation 15,630,000 258.000 4,543.000 9.257,000 1.572,000 omm ss On 1,0/2,000 779,000 323,000 Close-Out 32,000 32,000 nkngency 1,200,000 1,200.000 r Total 1 20,332.000 1 2,686,000 1 4,543,000 1 9,976,000 1 3.127,000 Reimbursable Costs NIA r r Section 8 -Page 65 r L 2008-09 & 2009-10 Budget L Project Name 8 Number Fire Suppression for Servers and Equip at P1 &P2-J-96 Ld Project Category I Utility Systems Project Status: Continuing Description This project replaces several wet fire suppression systems with an inert gas fire suppression system in IT critical areas at both Plants i 8 2. Justification In the event of a fire,the currently installed wet-type fire suppression systems may cause significant damage to electronics equipment currently installed in the server, PBX and UPS I60 rooms. If the fire suppression system is activated,damage to hardware and software may result in shutdown of the Sanitation Districts electronic communications system with immediate impact to plant monitoring and crontrol systems. The projects construction coal budget is$609,933. 1 This project will not have an impact on operational budgets. Utility Systems �.J 6W L L V Budget Projections .- Totet L Budge wolact Cost Phew Budget To e e Magi 20011d0 2010-11 2011-12 W1242 Tbereanor Project ev reminary Design Design 265.000 265.000 anal. ns a on eTe,0oo 625.000 51.000 L mmisson close-Out Contingency 24,000 1 1 24,0001 i L Total1 965,000 1 890.000 1 75.000 1 1 - RelmbursableCosts N/A V L Section 8-Page 66 - V r CIP Project Detail Sheets r Project Name&Number Power Building 3A Backup Power Reliability Project-P1-111 Project Category Utility Systems Project Status: New r Description This project will ensure adequate standby generator capacity at the Plant No. 1,Power Building 3A(PB-3A). This may consist of installing additional generators,replacing the r existing generators with larger generators, bringing in additional generation capacity from another power building,or moving some electrical loads off the existing generators. An initial study effort needs to be conducted to determine the best option,considering war and reliability. r Jus6Bcation This project is needed to provide adequate power supply for a possible SCE power outage. Diesel generators are needed at PB-3A when SCE power is lost,because restoring power r from Cengen may not occur quickly enough for the needs at PB-3A. Power from diesel generators can be provided within seconds. The Energy Master Plan has determined that Utility Systems recent increases in the loads connected to PB-3A result in a situation where the generators could be overloaded. Depending on the flow condition,a sewage spill in the collection .: system could occur within minutes if PB-3A is without power. This project will not have an impact on operational budgets. �+ The construction budget for the project is$264,000. r r r Budget Projections r Tmal Budget Project Cost Phew Budget To-Date 2008-09 2WO40 2010.11 2011-12 2012-10 Thereafter Project Dev 5,000 5.000 -POr mnary Desgn f9,000 19.000 Design 82,000 82,000 r1s1.&installation 327,000 327.000 r 5mmissi0n 11.000 71,000 Close-Out 5.000 5,000 on0ngenry 53,000 53,O00 r Total 502.000 24,000 1 82.000 1 327,000 1 69,000 Reimbursable Costs N/A Section 8-Page 67 r L 2008-09 & 2009-10 Budget L Project Name 8 Number Plant 1 66kV Substation-P1-97 L Project Category Utility Systems Project Status: Revlsed jad Description This project will replace the Reclamaiion Plant No. i (Plant No. 1)electrical service main from the Southern California Edison Company(Edison),to increase the capacity and j reliability,and minimize costs.The voltage will increase from 12,470 Volts to 66,000 Volts. Lr Edison will be supplying the service lines,metering and connection switches at the Sanitation District's expense. Justification This project is required for the New Secondary Treatment System at Plant No. 1,Job No. P1402,which is necessary to support the Orange County Sanitation Disatcl's July 17, 2002 decision to meet secondary treatment standards. Job No.P1-102 has two Secondary Expansion Consent Decree dates established that could result in penalties and Bnes of up A L to$27,ODD per day. Thus,this project is considered a vital component of the Sanitation Utility Systems District's Capital Improvement Program. The project budget has been decreased from$15,892,540 to$14.779,987 to reflect the revised project coat estimate. The Project's construction cost budget is$11.945,440. This project will decrease operational budgets by$750,000 annually. L V L V Budget Projections Tool V Budgot Project cost Phaao Bedgal T"ats &4.893.00OT— aumnson2010.11 201142 2012-13 Thereafter rolect Dev 116,0W 1161000 �;' re an nary es on 24,000 24,000 esign 253,W0 553,000 ona. rate a o 13,018.000 8,125,000 mmisson 241,W0ose- ut 103.OW n ngency 325.000Total14.780,000 9.218.000 Reimbursable Costs N/A y W Section 8-Page 68 l ly CIP Project Detail Sheets �r Project Name&Number Plant Water System Rehabilitation at Plant No.2-P2-101 Project Category Utility Systems Project Status: New r Description This project will rehabilitate or replace deteriorating plant water pipe that is in need of replacement due to corrosion. This includes the valves that have become unserviceable or r have exceeded their useful lives. The project will need to install temporary measures to ensure that the treatment plant maintains continuous operations during the repairs. Justification +� O&M recently prepared an evaluation of the plant water systems for each plant in response to an increasing number of emergency repairs to the plant water systems. The resulting report identified the scope and magnitude of the needed repairs. These repairs were packaged into the projects for each plant. r This project will not have an impact on operational budgets. Utility I Unity Systems The construction budget for the project is$2,200,000. ! 1 4 r r r Budget Projections r Total Budget Project Cost Pbaee Bodes To-0at9 30" 2009.10 2010.11 301142 3013-13 Tbereaher Project ev 36,000 36,000 Preummary es 9n 198.000 198.000 Design 689,000 689,000 Contt nsta abo 2,685. 000 2,6a5,000 r Commies on 75,000 75,000 Close-Out 35,000 35,000 ntin9enry 440,000 440,000 r Total 1 4,108,000 184.000 1 689,000 1 2,685,000 1 550.000 Reimbursable Costs WA r Section 8-Page 69 r L 2008-09 & 2009-10 Budget L Project Name&Number 101lds Area Cable Tray Improvements at Plant Na 2-P2-104 L Project Category Utility Systems Project Status: Continuing V Description This project will rehabilitate electrical cable and cable tray systems in the solids area of Plant No. 1. This includes bringing the cable trey systems,which are in urgent need of upgrade,into compliance with code requirements and will Improve the operational safety and reliability of these systems. The project will also document power and control cables in the cable trays. Justification Treatment Plant Nos. 1 and 2 cable trays installed poor to 1987 do not comply with the current National Electrical Code(NEC). The Sanitation District did not require compliance with the NEC prior to 1987. This project will upgrade the older cable tray systems to comply with both current NEC and OSHA codes. These older cable trays are overloaded and contain wiring that is not designed for cable tray use and,as a result,are at risk for Utility Systems overheating and deteriorating due to environmental conditions. Overloaded trays do not allow heat to properly dissipate representing a fire hazard. The construction budget is$4,500,000. L i U V Id Budget Projections Taal V Budget Project test Ph.. Budget To is QeegOs 2000.10 2010.11 201142 291Y10 The rselYr rojeel Dev L Preliminary Design esgn nst.&InstallatiR 5,45Qg00 2.729,000 2.729.000 led Commsson 175.000 175,000 ose- ut 78,000 55,000 18.000 j Con ngency 450.000 450,g00 L Total 6,156,000 1 1 2.729,000 1 2.950.000 1 488,000 Reimbursable Costs N/A L Section 8 - Page 70 u ,. CIP Project Detail Sheets r Project Name&Number Fuel Cell Feasibility Study-SP-132 Project Category Utility Systems Project Status; New r Description This project will further develop costing information and layouts for large fuel cell facilities. This will include researching grant funding opportunities,developing lifecycle costs and r layouts,defining utility requirements,and evaluating increased efficiency impacts to OCSD facilities. Several options should be developed to look at phased replacements and options that may also comply with existing and proposed air quality regulations affecting the existing Central Generation internal combustions engines. r Justification Recent grants for mufti-megawatt facilities have become available;also several improvements have been made in the technology. Both of these items may allow a future r alternative to costly air quality upgrades to the existing internal combustion engines. Utility Systems r ti r Budget Projections s Tual Budget Project Cut Phase Budget To-0e4 2000.09 2009-10 2010-11 M1142 2012-13 Themeaer Project Dev 100,000 100,000 r relmnary es tin Design OnsL&Installation r ommiss on Close,oul Contingency r Total 100,000 100.000 Reimbursable Costs N/A Section S-Page 71 r u 2008-09 83 2009-10 Budget Project Name 8 Number Fuel Cell Hydrogen Gas Generation Research-SP-134 v Project Category Uti llty systems Project Status: New OF Description This project is a collaborative project between UCI,California Department of Transportation,Air Products, and Fuel Cell Technologies to create hydrogen gas from OCSD's digester gas and provide a mobil hydrogen auto fueling station at Plant No.1. OCSD's portion of the larger project is for the installation of utilities and site preparation for the equipment at Plant No. 1. Justification Al OCSD Staff has indicated to UCI and several parmering technology vendors that a test could be conducted using digester gas at Plant No.1. There is an increased power generation efficiency associated with Fuel Cell technology that is estimated to offset the diversion of digester gas from the Central Generation station. Thus,the scope of this effort is to operate a Fuel Cell to create power and heat for OCSD,but hydrogen gas wit be Utility Systems - extracted from the unit and used at an onsite hydrogen car fueling station. V u V Budget Projections - To al V Budget Project cost Phase Budget To-Dsa M0049 2009d0 2010-11 201142 2e1243 Thereafter Project Dev 4,000 4,000 L Preliminary Design 18,000 18,000 Design 82,000 82,000 rtt.&Installation 328,000 164.000 164,000 V Commission 11,000 11,000 Close-Out 4,000 4,000 53,000 53,000 V,1 500,000 268,000 1 232,000 _ Reimbursable Costs N/A W W Section 8-Page 72 V CIP Project Detail Sheets r Project Name 8 Number Rehabilitation of Odor Control Facilities-J-71-8 Project Category Odor Control Related Projects Project Status: Revised Description This project rehabilitates and upgrades the foul air collection and treatment facilities for the Headworks and Primary treatment areas at Plant No. 1. This includes rehabilitation of existing single-stage scrubbers,systems and appurtenant equipment which serve the t` primary treatment systems,and replacement of existing scrubbers which serve the 2( headworks facilities. r Justification This project will rehabilitate existing odor control facilities and will make proce Improvements to reduce the number of off-site odor impacts. This project is basss ed on the recommendations from the 2002 Odor Control Master Plan and the Orange County �+ Sanitation District's Plant Automation and Reinvention Project. The project budget has been decreased from$42.807.048 to$38.706,566 to reflect the Odor Control revised project cost estimate. r The projects construction cost budget is$27.194,172. r r it Budget Projections Teel Budget Project cart PM1aee Budget To-crab 2000. 0 2009610 2010.11 201142 2012-13 TM1omeker Project ev 46,000 46.000 re m nary MW 1,365,000 1,365,000 Design 5,844,000 4,900.000 940,000 4,000 ens.&Inst8l1ab" 28,336,000 164,000 %324,000 19,572,000 276.000 r omm ss on 309,000 -20,000 329,000 close-Out 87000 87,000 on nganry 2,720,050 2,720,000 r Total 1 38,707,000 1 6,455.000 1 1 940,000 1 8,328,000 1 19,572,000 1 3.412,000 Reimbursable Costs N/A r Section 8-Page 73 r iu 2008-09 & 2009-10 Budget L' Project Name&Number Corrosion Management-SP-68-1 Project Category Process Related Special Projects Project Status: Continuing u Description The Corrosion Management project consists of a corrosion assessment study of the Districts two treatment plants,interplant pipelines,and collections systems,and the establishment of the requirements for implementation of a comprehensive Corrosion ie'1 Management Program. Justification The proposed work is being conducted in order to determine the most cost effective approach for managing the life cycle of the Districts facilities while minimizing failures due to corrosion and to develop a plan to implement this new program. Process Related Special Project W W y Budget Projections TOW W Budget Project Cast Pbase Budget T040ste 200040 2009.10 "10.11 2011.12 2012-13 TBereaaer Project Dev 231,000 56,000 75,000 74,000 26.000 L Preliminary Design 463,000 111,000 150,000 148,000 54.000 Design 1,651,000 417,000 529.000 521.000 184,000 nst.&Installation 2,322,000 566.000 754,000 744.000 258,000 y Commission os ut Contingency u Total1 4,667,000 1 1,150,000 1 1.508,000 1 1,487,000 1 522,000 Reimbursable Costs N/A W V Section 8-Page 74 W CIP Project Detail Sheets Project Name S Number Special Projects:Biotrickling Filter(BTF)-SP-90-7 Project Category Process Related Special Projects Project Status: Revised r Description This project investigates converting chemical scrubbers for foul air into biological scrubbers (biotrickling filters).The requirements for successful conversions are determined,and the process conditions for converted scrubbers are optimized to provide effective removal of various odorous substances before the air is discharged from the scrubbing system. Justification r Biological scrubbers reduce operating costs by eliminating chemical usage for air cleaning and by reducing energy costs for pumping water and chemicals.They also increase safety by eliminating workers'contact with the toxic and corrosive chemicals used in wet chemical r scrubbers Process Related Special Project .. Budget Projections r Total Hudak Project Cost Phu. Budget To xw 2008d9 ""-10 201041 2011-12 U12-13 Thereafter ruled Dev 1.027,000 907.000 30.000 30,000 30,000 30,000 .. rehmmary eslgn Design onst.&Installabon r Commission Close-Out n9ngency r Total 1 1.027.000 1 907,000 1 30.000 1 30,000 1 30.000 1 30,000 Reimbursable Costs NIA r Section 8-Page 75 r L 2008-09 & 2009-10 Budget L Project Name 8 Number Power Monitoring and Control Systems-J-33-3 L Project Category Plant Automation 8 Computerization Project Status: Revised I V Description This project installs electrical power monitoring and control equipment at Plant 1,which will protect the plants from power outage problems,and will reduce the recovery time when problems do occur. These systems will continuously evaluate the power supply,and adjust the plant electrical systems to prevent power variations and outages from causing process failures. The new system will allow the operation of critical electrical equipment from a _ — single location at Plant 1. W Justification The Southern California Edison Company(SCE)supplies electricity to Plant No. 1 at 12,000 volts and Plant No.2 at 66,000 volts. The plant distribution systems have L sophisticated controls to protect workers and equipment from the serious problems that Plant Automation can occur with these high voltages. In the past,Central Generation(Cengen)facilities in & Computerization the plants typically produced all the plant power,using SCE to cushion demand p fluctuations. Due to recent air emissions limitations,however,the Cengen facilities have L limited production and the plants now rely on SCE as a primary power source.With future expansion,the plants will be more dependent on SCE and more vulnerable to power variations and outages than previously. I The project budget has been increased from$8,034,790 to$10,899,435 to reflect project L scope changes and the revised project cost estimate. The projects construction cost budget is$5,400,000, This project will decrease operational L budgets by$170,000 annually. V W Budget Projections k2,128,000 V Budget cost Phu. To4lalc a0" 200840 2010.11 M1142 M/2-13 Thameaer Project ev 192.000 W Preliminary Design 480.000 Design 1,862,000 266,000 ons. mM a w 702.000 5,084.000 1,432,000omm se on 160,000 ose- u 28.000 onl ngency 713,000 1 1 i 713,000 Total 1 10.899,000 1 2,514,000 1 988.000 1 5,084,000 1 2.333,000 Reimbursable Costs N/A L Section 8-Page 76 V r CIP Project Detail Sheets r Project Name&Number Strategic Information Architecture(SIA)-SP-03 Project Category Plant Automation B Computerization Project Status: Continuing r Description The Strategic Information Architecture(SIA)is the bridge between the Distriors strategic goals,the Strategic Information Plan(SIP)and the implementation of Information Technology projects. The SIA supports the data, process and application architecture changes needed to support the business plan and the needs of the business units. Justification r Each Department leverages information technology to accomplish its mission. This project supports the alignment of information technology resources with the business. Plant Automation & Computerization r r r Budget Projections r Total Budget Project Cost Phase Budget To.pato 200E-0B 2009.10 2010-11 2011-12 201243 Tberea8er roecl Oft 338,000 138.000 40.000 40.000 40,000 40,000 40,000 r rel m nary pn esign 550,000 200,000 70.000 70,000 70,000 70,000 70,000 nst.&Installation1,007.000 300.000 140,000 140.000 140.000 140,000 147,000 r mmsaon 100,000 20,000 20.000 20.000 20,000 20,000 lose- ut oningency r Total 1 1.995.000 1 638.000 1 270,000 1 270.000 1 270.030 1 270.000 1 277,000 Reimbursable Costs WA r Section 8- Page 77 r L 2008-09 & 2009-10 Budget L i ' Project Name 8 Number InterneVintranet Development-SP-09 V Project Category Plant Automation 8 Computerization Project Status: Continuing L Description This project makes improvements to both the District's public-facing Internet site and the internally used Intranet site. L Justification The Internet continues to grow in imponance as a preferred communications tool. In 2006, the Pew Institute found that 73%of American adults use the Internet and 34%of users now regularly use wireless intemet connections.These numbers are expected to keep growing in the coming months and years.As such,it is essential that DOW continue to reexamine our existing efforts,design,and content. It is essential that our sites be available in the most user-friendly alignment with the needs of our audiences. L Plant Automation The District webske is used to provide information to a variety of people and organb at.ons & Computerization These include Orange County residents,Board Members,companies seeking to do p business with the District,students and other agencies. Furthermore,our waiver requires V that certain information be made available and periodically updated through this medium. Additionally,via the intranet,staff will access information on employee benefits,and intemal job announcements. L I L L i at Budget Projections Total V Budget Protect cast Phase Budget Tate 299ae9 gaga-10 2010-11 m11.12 M12.13 Thereafter Project " 42,000 28.000 6.000 4,000 4,000 L Preliminary Design Design 143,000 112,000 15,000 9.000 7,000 i nst. nsta a on 381,000 336,000 20.000 15,000 10.000 L Commission 56.000 56,000 Clos ut 28,000 28,000 L ConFgency Total 650,000 1 560,000 1 41,000 1 28.000 1 21.000 Reimbursable Casts N/A L Section 8-Page 78 L CIP Project Detail Sheets .. Project Name S Number CMMS System Replacement-SP-100 Project Category Plant Automation&Computerization Project Status: Continuing r Description This project is designed to assist with the needs assessment and requirements definition phase along with the other project needs which include: system purchase,migration Of r existing data,system configuration and customization,business process re-engineering, technical training,and integration with other District systems(i.e.SCADA, FIS, GIS,and Data Warehouse). r Justification The Districts Asset Management Strategic Plan and Framework Analysis report identified the need to replace the District's existing CMMS. The Asset Management project does not rr fund the cost of the replacement software or the implementation and training activities. Plant Automation & Computerization Budget Projections Tutal r Butlget Protect Cost Phase Budget TO-0Ma 200849 2009d0 2010.11 2011-12 201Z-13 Thereafter Project Dev 683,000 683,000 rem nary gn i i,000 11.000 Design 371.003 5.000 388.000 nst. rem a ox 7448,000 6,000 1.188.000 500.000 377.000 377,000 r -55F-m—is-s7on 184,000 184,000 Close-Out 92.000 1 92.000 n ngency Total 1 3.789,000 705.000 1 1.830.000 1 500,000 1 377,000 1 377,000 Reimbursable Costs N/A Section 8-Page 79 V 2008-09 & 2009-10 Budget Project Name&Number PDSYD Software Replacement-SP-103 Project Category Plant Automation&Computerization Project Status: Continuing W Description This project provides a replacement to the Process and Instrumentation Diagram(P81D) ■Y' software used at the Sanitation District,which will not be supported by the vendor, and will eventually become inoperable. The software provides for the electronic storage and Id updating of diagrams which document the configuration of critical processes and equipment at the Sanitation District. The scope includes finding the replacement software, and implementing the new software, including converting data to the new software. L Justification ' This software maintains the drawings which document the configuration of critical treatment processes and equipment. These drawings are needed for plant expansion, and are plant Automation required by the EPA for plant maintenance. An electronic system of this nature is the only feasible system for this purpose. The software will eventually become obsolete and Op f� inoperable.A replacement is needed bemuse no update to this software will be provided. at Computerization The data must be converted to the new software format before the software becomes V inoperable. L I W �.I Budget Projections Torts W Budget Project Cost Pteae Budget TO-DeIO 2110848 2008.10 I010-11 2011.12 2012-13 Thereafter Project Dev 250,000 250A00 �L Preliminary Design Design Cowl.8 Installation V Commission Close-Out n ngency W Total 1 250,000 250,000 Reimbursable Costs N/A I ' W Section 8 -Page 80 V CIP Project Detail Sheets Project Name&Number Environmental Compliance Awareness Program -SP-104 Project Category Plant Automation&Computerization Project Status: Continuing r Description The project is an Environmental Compliance Awareness Program (ECAP). This program will enable staff to determine the status of environmental compliance in an up-to-date, r effective,and efficient manner. It is anticipated that the ECAP will Consist of using the District's existing Information Systems software(SharePoint)in order to obtain this ability. Justification An ECAP An ECAP needs assessment(Phase q was completed in June,2006. The ECAP team (comprised of several staff members from different divisions)recommended an Air Quality pilot test(Phase 11)be performed before full implementation. The Air Quality Pilot test was completed March,2008 and resulted in the decision to move forward to Phase III of ECAP plant Automation using SharePoint as the software. ECRA and IT will be working closely together to assure the success of ECAP. The ECAP budget has been revised to include ECAP continuation and possible professional services. Phase 111 will incorporate Biosolids and Underground & Computerization Storage Tanks. It is anticipated that this will be completed by July this year. We will continue with this tiered approach and incorporate other compliance areas. r r Budget Projections r Total Budget "act Cest Phase Budget T&bste 2=e 2We-to 2M11 2011-12 M12-12 Thereafter r rolecl av 286.000 286,000 Preliminary Design 694,000 2,000 465.000 227,000 Design r onst.&Installation2,000 2.000 Commission Close-Out r Contingency Total 1 982,000 1 290.000 1 465,000 1 2.27,000 Reimbursable Costs N/A Section 8-Page 81 V 2008-09 & 2009-10 Budget Project Name S Number Gecgraphlc Information System-SP-15 V Project Category Plant Automation&Computerization Project Status: Continuing V Description Geographic Information Systems(GIS)can be utilized at the District for any works project such as collections,ocean monitoring,flow studies,rate structure studies or construction. The GIS can be a planning tool for Asset Management,a reporting tool for Permits and Sewer Shed Modeling. Other regional programs that would utilize the GIS are Bacteria Investigations,Air Quality, Special Purpose Discharge Permits,Connection Permits and Source Control Permits. A goal of the project would be to enable Internet access to the District's GIS and Electronic Data Management System(EDMS)by consultants to collect data for pojects and to check out and check in drawings, The public would also benefit through Internet access to reports and news about District projects. Justification Plant Automation There is a need and an opportunity for cost savings, spatial data control,and a reporting & Computerization tool that can graphically display the District's data on maps via the Internet to reporting p agencies,the public and across the organization. We V V I, u Budget Projections Tool 6. Budget Protect coat Phase Budget TOAata 2003418 Woo-10 2010-11 2011-12 201243 Thanaaer ro ecl DW 3,O62,000 200,000 135,000 310,000 360,000 400,000 430,000 1.227.000 y rem nary Design 10.000 10.000 Design 320.000 300,000 20,000 onst.&Instaliallm- 755,000 860,000 W000 y Coannnission 10.000 10,000 close-Out contingency V Total 4.157,000 1 1,160.000 1 270,000 1 310,000 360,000 1 400,000 1 430,000 1,227,000 Reimbursable Costs N/A Section 8 -Page 82 W CIP Project Detail Sheets r Project Name 8 Number Network Equipment Upgrade-SP-89 Project Category Plant Automation&Computerization Project Status: Continuing r Deacdp0on This project Involves implementing the Sanitation Districts Ethernet standards for computer network backbone equipment. This includes the plan,design and upgrade of the computer rr network equipment. This will ensure that the network equipment is compatible with industry standard networking devices. Juston To ex —�— r To further expand and automate the OCSD network,a new strategy has to be adopted. The proposed strategy is to incorporate OCSD's Ethernet standard and the ability to proactively manage all devices. This project seeks to produce and document a Network .. Infrastructure Design that best meets these requirements. Computerization Automation Proposed design goals include: p utP.r�Zat�On -A fully redundant and fault tolerant system that can guarantee 100%uptime. R p -The ability to expand to meet future size and feature requirements. rr -Utilization of technologies based on a stable industry-leading manufacturer with a proven record of accomplishment. -Utilization of technologies requiring skill sets readily available in the marketplace. -Maintenance and upgrades able to be performed without downtime. Y� More specific design goals proposed include: -More efficient flow of data for the CRISP system. -Re-architecture of the SCADA system to allow for remote management through existing r skill sets in IT. r Budget Projections r Total Budget project coat pMea Budget T"s, 2008-09 2009.10 2010.11 DII-12 2012-13 TMoefler Project Dav r reliminary a gn asgn 107,000 50.000 57,000 ons.It InSlIkellOn2,687.000 1,244,000 725.000 400,000 318,000 mmission 2.000 2,000 ose05 10,000 10,000 ontingency r Total 2,806,000 1.306,000 782,000 1 400.000 1 318,000 Reimbursable Costs WA Section 8-Page 83 v 2008-09 & 2009-10 Budget L Project Name&Number Facilities Engineering Projects-Joint-FE-J Project Category Miscellaneous&Support Projects Project Status: Revised Description V This budget provides funds for miscellaneous joint facilities small capital projects. A email capital project is defined as a miscellaneous capital improvemem related to plant safey, reliability,or improvements where the professional design consulting services are less than $100,000. This project acts as an annual budget placeholder for numerous small joint facilities projects. This system results in a fast-track process for the procurement and execution of engineering and contractor services for smaller,but vital projects. L Justification (I The Joint Facilities Engineering project allows smaller capital projects to extend the life of the existing treatment works and extend the time between major rehabilitations. These �I1 smaller,high priority projects are individually tracked within the larger budget for M isc. & k" procurement of engineering and contractor services as needed to maintain reliable operations. Support Projects The project budget has been increased from$21,200,000 to$22,110,000 to reflect the ►+ revised project cost estimate. The projects construction cost budget is$12,361,590. L. This project will not have an impact on operational budgets. W v Budget Projections C=�=020.0010 gut C tt 1.0 To no* 2008-09 2009-10 2010.11 2011-12 2012-13 Thereaner 0 10,000 ago 170,000 V 878,000 2]9,000 287,000 289,000 275.000 193.000 4.324. 000 WtlOn 7,256,000 7.057,000 957,000 819.000 810,000 845.000 g,586.000 55,000 V 20,000 annngency - Total 22,110.080 2.389.000 1,336.000 1,244,000 1.108.000 1,085.000 1,038,000 13.910,000 Reimbursable Costs fl/A I.n Section 8-Page 84 L .. CIP Project Detail Sheets .+ Project Name S Number Facilities Engineering Projects-Plant 1 -FE-P1 Project Category Miscellaneous S Support Projects Project Status: Revised s Description This budget provides funds for miscellaneous Reclamation Plant No. 1 facilities small capital projects. A small capital project is defined as a miscellaneous capital improvement .. related to plant safety,reliability,or improvements where the professional design consulting services are less than$100,000. This project acts as an annual budget placeholder for numerous small joint facilities projects. This system results in a fast-track process for the procurement and execution of engineering and contractor services for smaller, but vital r projects. Justification The Reclamation Plant No. 1 Facilities Engineering project allows smaller capital projects M1+ to extend the life of the existing treatment works and extend the time between major Support rehabilitations. These smaller,high priority projects are individually tracked within the a7 larger budget for procurement of engineering and contractor services as needed to p pOrt Projects maintain reliable operations. ar The project budget has been increased from$18,200,000 to$19,110,000 to reflect the revised project cost estimate. �+ The project's construction cost budget is$8,799.612. This project will not have an impact on operational budgets. m r Budget Projections Total Budged Proiedt coat Phase Budget To-Dada 200849 200940 2010-11 2011-12 2012-13 ThereaMr Project bev 15.000 15,000 r rel FEZ ry es fin 34,000 34,000 sgn 6.670.000 1.787.000 301.000 311,000 313,000 302,000 247.000 3,409,000 nst.&Installation12.307,000 4,550.000 772.000 799.000 798,000 794,000 780,000 3.814.000 r Commis$an 40,000 40.000 os ut 44,000 44,000 Contingency r Total 1 19,110.000 6,470.000 1 1,073,000 1 1,110,000 1 1.111,000 1 1,096,000 1 1,027p00 7,223,000 Reimbursable Costs N/A Section 8 -Page 85 I 2008-09 & 2009-10 Budget W Project Name&Number Facilities Engineering Projects-Plant 2-FE-P2 Project Category Miscellaneous 8 Support Projects Project Status: Revised W Description This budget provides funds for miscellaneous Treatment Plant No.2 facilities small capital xese projects. A small capital project is defined as a miscellaneous capital improvement related V to plant safety,reliability, or improvements where the professional design consulting services are less than$100,000. This project acts as an annual budget placeholder for numerous small joint facilities projects. This system results in a fast-track process for the procurement and execution of engineering and contractor services for smaller,but vital projects. Justification The Treatment Plant No.2 Facilities Engineering project allows smaller capital projects to M y_ w extend the life of the existing treatment works and extend the time between major m jsc. & rehabilitations. These smaller,high priority projects are individually tracked within the Support Projects larger budget for procurement of engineering and contractor services as needed to p p 1 maintain reliable operations. L The project budget has been increased from$18,200,000 to$19,110,000 to reflect the revised project cost estimate. The projects construction cost budget is$8,449,786. r This project will not have an impact on operational budgets. u L Budget Projections Total V Budget P"d Coat Phase audgn To4hro 20094e 2009-10 2010-14 201142 M12.13 ThereaNOr m ecl Dev 10.00D 10,000 Preliminary Design 24.000 24,000 esign 6.509.000 905,000 279.000 287,ODO 287,000 275,000 193,000 4.283.000 nst.&Installatior 12,408,000 3,272.000 453.000 467,000 467,000 445,000 309.000 Q995.000 L omm ss,on 137.000 137.000 Close-Out 22,000 22,000 Coni r, enry I i i i i i iV Total 1 19,110,000 1 4,370,000 1 732,000 1 754,000 1 754,000 1 720,000 502.000 11,278,000 Reimbursable Casts N/A .1 V Section 8-Page 86 +r r CIP Project Detail Sheets Project Name S Number Temporary Upgrades To Plant Security Barriers-J-108 Project Category Miscellaneous&Support Projects Project Status: Revised r Description This project provides approximately 13,000 feel of perimeter security fencing around each of the treatment plants. The fencing will replace or enhance deficient areas to Improve site r security at the each of the treatment works. At Reclamation Plant No.1,fencing will be provided on the front and backsides of the plant along Ellis,Ward and Garfield Avenues. Perimeter fencing will also be installed along the Santa Ana River Channel and portions of the Talbert Marsh of Treatment Plant No.2. Justification In 2005, OCSD conducted a security assessment survey to determine the Dialricrs security vulnerabilities. One of the major recommended security improvements for the District's r facilities was a perimeter bander design at Plant Nos. 1 &2. An improved barrier will some Misc. & as a structural barrier against intruders and protect vital plant infrastructure and District Support Projects personnel. These temporary measures will allow OCSD to immediately be in compliance p p with a number of proposed regulations and will be in place until permanent structures can •+ be designed and funded. The project budget has been increased from$1,350,378 to$1,450,378 to reflect the revised project cost estimate. rt The project's construction cost budget is$715,000. This project will not have an impact on operational budgets, r y1 r Budget Projections r Total BudBot Project Cost Pease Budget To-0ote 20049 2009d0 2010-11 2011-12 W12-13 Thereeflor rol8G ev 22,000 12,000 r rel m nary esign 48,000 24,000 24,000 esign 323,000 285.000 38.000 onsl.&Installation 884,000 854,000 r ommiss on 28,000 28,000 closes Out 12,000 12.000 n8ngenry Mq 550 143,000 r Total 1 1,450,000 1 36.000 1 309,000 1 1,105.000 Raimb.mable Costs N/A Section 8 - Page 87 I� 2008-09 & 2009-10 Budget W Project Name&Number Laboratory Refurbishment at Plant No. 1 -J-97 Project Category Miscellaneous&Support Projects Project Status: Continuing W Description The current project for the laboratory building at Plant No. 1 consists of a feasibility study to determine what modifications and upgrades need to be done in order to bring the building up to current building codes. The City of Fountain Valley requires that the building obtain a W permit. Some of the systems that need to evaluated to be In compliance are the HVAC system;Water System&Plumbing;Fire Protection; Electrical;Seismic requirements of C Zone 4 earthquake and soils loading for liquefaction requirements. In addition,the feasibility study will determine the cost and feasibility of modifying several rooms within the laboratory,the addition of an odor panel room for evaluating plant nuisance odors;a remodeled lunch room; increased office spaces for new employees;and safe bench space for handling acids. Misc. & u Justification Support Projects These upgrades and renovations will increase the office spaces for new employees being pp j added to support the compliance efforts anticipated for secondary treatment operations and increased reclamation. Modifications are also necessary to secure state certifications to allow in-house compliance testing of newly anticipated compounds related to reclamation and secondary treatment standards.The existing safety ventilation systems must also be expanded to support the new and expanded lab facilities. The cost to bring the laboratory building up to current building codes will be determined and this cost figure will then provide input to a decision as to whether a new laboratory is required l� L. Budget Projections Total V Budget Project Cost Phae¢ Budget To-Date 20D849 2009-10 2010.11 2011.12 2012-13 Thereafter _ mlect D. 333,000 256,000 77,000 Lj Prelvnln_ary es gn 34,000 34,000 Design Cunst.&lestallalkin L Commission Close-Out ` Con ngency 60.000 50.000 y Total 417,000 1 290,000 1 127,000 Reimbursable Cosh WA L Section 8-Page 88 l CIP Project Detail Sheets Project Name&Number Regional FOG Control Collection at Plant No. 1 -Pt-104 Project Category Miscellaneous&Support Projects Project Status: Continuing r Description This project constructs a collection station at Plant No. 1 to accept fat,oil and grease (FOG)wastes collected from restaurants and other industries. The FOG Collection Station e• would be adjacent to the existing waste hauler collection facility near the main gate,and would convey these high fuel grade wastes directly to the existing digester systems for additional methane gas generation. Justification In Apnl 2002 the California Regional Water Quality Control Board issued Order No. cl R8-2002-0014,General Waste Discharge Requirements,requiring Orange County cities and wastewater treatment agencies to monitor and control sanitary sewer overflows(SSO). This was in response to a Grand Jury Report of April 2002 that stated that fats,oils and M isc. & grease(FOG)were a major contributors to SSO's.The Order named the Sanitation District as the lead to"facilitate regional compliance"with the order. In 2003,the Sanitation Disfnct Support Projects conducted an evaluation of multiple options for the Sanitation District and the local member agencies. The reports findings recommend that a dedicated collection depot be constructed at Plant No. 1 to the serve the Sanitation Districts member agencies. The projects construction cost budget is$1,650,000. r The impacts to operational budgets have not yet been determined. r r r Budget Projections r Total Budget Project coat Place Budget Ta ate IDa9e9 2009.10 2010-11 2011-12 201243 Thereafter -ffr rolecl av 28,000 22,000 6.000 Preliminary Design 117.000 100,0D0 17.000 Design 543.000 439.000 104.000 nst. nsla a0a 2,044,000 194,000 1,502,000 348,000 Commission 67,000 67,000 close-Out 29,000 29,000 r Contingency322,000 322,000 Total 1 3,150,000 1 22,000 1 106,000 1 456,000 1 298,000 1 1,502,000 1 766,000 Reimbursable Costs N/A Section 8-Page 89 L 2008-09 & 2009-10 Budget W Project Name S Number Plant No.2 Landscaping Project-P2.96 Project Category Miscellaneous S Support Projects Project Status: Revised u Description This project will develop conceptual plans for the beautification and visual screening of Plant No.2 from areas east of the Santa Ana River in Newport Beach and Costa Mesa. u Justification The visual screening provided by this project is needed in order to mitigate the visual impacts of existing and future expansion at Plant No.2. u Misc. & W Support Projects L W Budget Projecdons _ Total Budget Prolect Cost POme Budget To-Date W0049 200940 "10.11 2011d2 2012-10 Thereriter Prujoct Dev 440.000 60.000 190.000 190.000 L e mnary sgn Design ona.&Installation h Commission os ul Contingency L Tobl1 440.000 1 60,000 1 190,000 1 190,000 Reimbursable Costs N/A u V Section 8-Page 90 64 CIP Project Detail Sheets a' Project Name S Number Office Space Planning Study-SP-127 Project Category Miscellaneous S Support Projects Project Status: Continuing r Description This project is necessary to fulfill the following objectives:Solve long-term space needs and inconsistencies in space usage; provide more efficient work environment for r employees offering work group functionality and better circulation;provide permanent offices and adequate training facilities for IT Department,HR and Finance;and provide safe and sufficient parking for staff and visitors. 'y Justification Upgrades and renovations are needed to balance the need for new employees to support the Districrs future operations and the ramping down of the secondary treatment upgrades in the Capital Improvement Program. The project will also allow appropriate work groups to 1tr1 e' be co-lowted for more efficient use of existing spaces. It is anticipated that additional III isc. & space needs will be determined, but several alternatives will be developed for future Support Projects consideration and improvements. pp We This project will not have an impact on operational budgets r r see Budget Projections r Total Budget Prolool Coat Ph.. Budget To-0 to 200848 2008-10 "10-11 2011-12 2012d2 Thereenm ro ect ev 138.000 104,000 34,000 se re iminary eagn Design nst. nsla abo 362,000 142.000 220.000 Commission Close-Out _ onlingsncy Total 1 500.000 1 246.000 1 254,000 Reimbursable Costs N/A Section 8-Page 91 r WI 2008-09 & 2009-10 Budget Project Name&Number Integrated Security Access Control System-SP-128 Project Category Miscellaneous&Support Projects Project Status: Continuing v Description This project will replace the existing access control system The first phase of this project will be to lay out and design a new system to provide needed security for the treatment works. The design consultant will incorporate new technologies for card reader systems, 1i badge systems,and camera surveillance to ensure that the overall security system is integrated. Also,the existing control center should have access to all security systems for monitoring and security maintenance. Justification In 2005,the District conducted a security,assessment survey to determine the Dislncrs security vulnerabilities. The focus of the study was to ensure that the District could comply n& p y with proposed regulafions for critical infrastructure. One of the major recomm endation MIS C.s Q was to replace the existing security systems to minimize intrusions due to antiquated Support Projects security technologies. The other recommendation was to provide for a central location where security could be effectively monitored and maintained. it V La Budget Projections Torsi V Butlget Project cost Ph.. BudgM TO to 0000.00 200040 2010.11 al11-12 2012.10 Themeger roW Dev 450,000 450.000 L PmlmlnaFy esgn Design nsl.&Ins la on Commission os 'Out Contingency Total 1 450.000 1 1 450,000 Reimbursable Costs N/A V Section 8-Page 92 W r. CIP Project Detail Sheets r Project Name&Number 2009 NPDES Permit Renewal-SP433 Project Category Miscellaneous&Support Projects Project Status: Now r Description This project is to prepare the National Pollutant Discharge Elimination System(NPDES) Permit renewal application due in 2009, Justification _ A renewal application is required every five years in order to maintain a NPDES Permit. — The NPDES Permit allows the District to discharge effluent through as ocean outfall(s).The r NPDES Permit is a regulatory requirement under the Federal Clean Water Act and complies with the requirements of the California Ocean Plan. r Misc. & Support Projects r r r r Budget Projections r Total Budget Protect co Ph... Budget To-Dale brakes M0910 2DIO-11 IDHd2 2012-133 Thereafter Project Dev 787,000 393.000 394,000 r re m nary eslgn Design rns.&InSt011abDr mmsson ose ul Contingency r Total 1 787,000 1 1 393,000 1 394,000 Reimbursable Costs N/A Section 8 -Page 93 2008-09 8, 2009-10 Budget I.) Project Name S Number Small Cap.Equip. Replacement Project-SP-U Project Category Miscellaneous 8 Support Projects Project Status: Revised W Description This project will provide for the replacement of various plant process equipment that meets the criteria for capital replacement. The criteria for an equipment replacement to be eligible for capitalization are a value in excess of 55,000 and a useful life of five(5)or more years. L Justification These funds are needed to replace broken equipment that is replaced when 4 is beyond r economical repair or is at the end of Its useful life and is not included or has been cut from an existing capital Improvement project. It is also used to replace equipment when parts or services needed for repair can no longer be purchased. Misc. & jet Support Projects W li 6a isw it but Budget Projections Total L Bud9at Protect cost Phase Budget To.Oato 300E49 200949 2070-[7 2011.12 2012-13 Thereafter Project Dev W m nary es gn Design W nsl, Installation 70,550,000 950,000 1,800,000 7,800,000 71800,000 1,60Q000 1,600,000 1,600.000 Commission Close-OW Contingency L Total 10,550,000 950,000 1.600,000 1 1.600.000 1 1,600.000 1,600.000 1.600,000 1600,000 Reimbursable Costs NIA �rrl V Section 8-Page 94 CIP Project Detail Sheets �+ Project Name& Number Asset Management Program -SP-68-2 Project Category Miseellaneous&Support Projects Project Status: Continuing Description This project develops and implements the asset management program for the Sanitation District. This project has developed the goals and objectives of the program,identified r major components,charted existing practices,developed proposed processes for each major component of the program and developed a strategic plan. The current phase of _ the project consists of implementing tools and better decision making processes for each affected Department at the Sanitation District. To date,over$30 million in documented r savings have been realized over the past two years. Justification The Asset Management Program will provide the District with a process to more effectively .� plan, create, operate.maintain,rehabilitate and/or replace and eventually dispose of capital Misc. & assets. The program will also provide the policies and procedures for establishing required Support Projects level of service,performing asset life cycle cost analysis,assessing asset condition u, P P assessing asset performance and analyzing risk-cost tradeoffs. Staff will continue the `+ asset management effort to move the program forward with minimal if any consultant support. r r Budget Projections ti Total Budget Projoct Coat Phase Budget To-Date 200849 2009-10 2010-11 2011.12 2012.13 Thareefter Project Dev 165.000 166,000 r re m rery es gn 67,000 67,000 Design 4.703,000 1,218,000 650,000 650,000 650,000 535.000 500,000 500.000 onst.&Installation162,000 162,000 r omm ss on 3,000 3,000 os ut Contingency r Total 5.100,000 1,615,000 650.000 1 650.000 1 650,000 535.000 1 500,000 500,000 Reimbursable Costs N/A Section 8- Page 95 L 2008-09 & 2009-10 Budget W Project Name&Number Warehouse Reinvention Project-SP-77 Project Category Miscellaneous&Support Projects Project Status: Continuing Description As part of this project,all stock in satellite warehouses will be gathered and placed into the ,- warehouse inventory and all dormant and some excess stock will be removed from inventory. Once these changes have been made,the Operations and Maintenance field divisions and the Warehouse and Purchasing Division will implement the picking and staging of equipment and parts for the O&M planning and scheduling program. At the - completion of the warehousing modifications,the consolidated purchasing practices will be Lo reviewed and,finally,policies and procedures will be developed to memorialize the changes that have been implemented and to ensure that personnel responsible for the _ process will have the proper documentation to review as needed. .00 Justification Misc. & L, The warehouse and purchasing reinvention project will reorganize and improve the way Support Projects -- Operations and Maintenance field divisions and the Warehouse and Purchasing interface pp 1 to accomplish tasks. The picking and staging process will improve the labor efficiency of 4 all personnel responsible for completing scheduled maintenance activities. W V Budget Projections Total V Budget Proleet Coat Phase Budget To-Oats 200849 200 -10 2010-11 2011-12 2912.13 Therearter Project ev Is, -Preliminary Design Design nst.&Installawn 600,000 390.000 50,000 50,000 50,000 50,000 10,000 mmission close-Out bngen0y Total 1 600.000 1 390,000 1 50,000 1 50,000 1 50,000 50,000 10.000 Reimbursable Costs NIA u W Section 8-Page 96 CIP Project Detail Sheets �+ Project Name S Number Plant 2 Maintenance Building Modifications -SP-98 Project Category Miscellaneous S Support Projects Project Status: Revised Description This project will provide site improvements necessary to correct drainage issues around the Plant No.2 Maintenance Building. Justification This building space is subject to flooding during rain events. This presents a safety hazard with regard to water intrusion into electronic devices such as computers and electrical r outlets. The project budget has been decreased from$339.462 to$276.392 to reflect the revised project cost estimate. Misc. & The project's construction cost budget is$75,000. Support Protects This project will not have an impact on operational budgets. 1�Y y �r r d Budget Projections Total Budget Protect coat Phew Budget To.Dete ="a 2009.10 201e41 Wit-12 2012-13 Thereafter Project Dev 6,000 6,000 eft -Fre7mirnii 8.000 6,000 Design 141.000 141,000 onst.&Installatior98.000 55,000 43,00D r omm scion ose- ut Contingency I 25,000 1 1 25,000 �Y Total 1 276.000 1 208.000 1 68.000 Reimbursable Costs N/A r Section 8-Page 97 2008-09 & 2009-10 Budget L Project Name B Number Groundwater Replenishment System-J-36 L Project Category Water Management Projects Project Status: Revised L Description The Groundwater Replenishment(GWR)System is a joint effort of the Orange County 1~ Water District and the Orange County Sanitation District to provide reclaimed water for L replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion banner. The GWR System is planned for three phases: Phase 1 is operational since January 2008 with the capacity to produce an annual average of 72,000 acre-feet per - year of recycled water,Phase 2 will increase the total capacity to an estimated 112,000 L acre-feet per year,and Phase 3 will increase the total capacity to an estimated 145,600 acre-feet per year. The actual capacity and year of implementation of the future phases depends on water availability.This project budget represents the Sanitation District's 50% 13 share of the total cost of Phase 1. Funding sources for Phases 2 and 3 have not been Lr identified. Water Management Justification Projects By diverting up to 100 million gallons per day of flow from the Sanitation District's effluent W during peak winter stones,Phase 1 of the GWR System can help the Sanitation District defer construction of a new ocean oudall,estimated at$170 million (in year 2000 Dollars). _ The GWR System is pan of the Strategic Plan preferred alternative. OCSD anticipates $45,000,000 in grants from the EPA,Bureau of Reclamation and the State Water Bond to W offset project costs. The project budget has been increased from$246,094,037 to$248 400.229 to reflect the revised project cost estimate. Lai The projecrs construction cost budget is$206.489,039. _ This project will increase operational budgets by$1.000,000 annually. IV Yv Budget Projections Iy Total as Budget Project Cost Phece BudW To.Date 200849 2009-10 2010-11 2011-12 2012-13 Thereafter Project OV 10,000 10,000 M relmnery esign 3,320.000 3,320,000 Design 15,816.000 15,616,000 - ost.&InstalIM01 224.907,000 224.907.000 L Commission 1,571,000 1.571,000 _ lon u 210,000 48.000 nga! ,268,00 I 1 i 2,720.0001== YM Total 1248,40D.000 45.634,000 1 2,760,000 - Reimbursable Costs $44,328,165 L 66 Section 8-Page 98 I- Yw CIP Project Detail Sheets r Project Name&Number Treaanent Plant Strategic Plan Update-J-102 Project Category Strategic&Master Planning Project Status: Revised r Description This project will update the rateg two recent master planning efforts,the 1999 Strategic Plan and the 20021nterim Strategic Plan Update. This update will incorporate all the r follow-up site planning and special studies resulting from the level of treatment decision I I made by the Board of Directors in 2002. The result will be a completely updated Strategic Plan which determines future treatment facilities,for cons management options,water �I reclamation options,and an implementation plan for constructing these facilities. Two r reports will be created under this effort:an Electrical Master Plan and a fully updated Strategic Plan. Justification .K The new Waste Discharger Requirements WDR)regulations require that the Sanitation Strategic & District maintain and update its capacity plan for the treatment system. Also,this update Master Planning will address recent changes in regulations,potential application of new technologies for g future secondary treatment needs,odor control,disinfection and solids management to minimize future lifecyde costs for the Sanitation District. The project budget has been increased from$3,620,000 to$4,520,000 to reflect the revised project cost estimate. r .r r Budget Projections y Total Budget Project Cost Phase Budget To eta 100049 2009-10 =10-11 2011-12 2012-13 Thereaacr mied Dev 4.500.000 3.600.000 300,000 300,000 300.000 r reliminary esign es gn Onst.&Installation r mmissicn Close-Out pungency r Total 1 4,500,000 1 3,600,000 1 300,000 1 300.000 1 300,000 Reimbursable Costs N/A as Section 8-Page 99 I v 2008-09 & 2009-10 Budget Project Name&Number Orange County Biosolids Production Siting Study-SP-105 u Project Category Strategic&Master Planning Project Status: Continuing N Description This study will tows on further identifying and developing in-county reuse sees and backup land filling proposals d under the Long Range Biosolids Management Plan.This I� I effort will seek out and develop support from participants and potential partners within the County. The ultimate goal would be an economical biosolids production facility within the service area,possibly in the nexta few years,and definitely i within the next 10 toe years. Anticipated activities under this effort will include developing business plans,see renderings,presentations to stakeholders,further developing marketing plans,and delivery of sample products to potential end users. Justification Strategic & 6W As costs and land application bans limit the District's ability to maintain existing biosolids g management options,the District needs to develop other options for managing biosolids. Master P�aoom99 The Board's policy for biosolids encourages local agencies to utilize biosolids based g products.To make the products available to the local agencies at a reasonable price,a production facility must be located within the County. In addition,the potential move to an in-county processing facility is an attempt to reduce the overall cost of biosolids management by reducing the hauling costs. Hauling costs currently account for about 70-80%of the management fees for existing Class B options. 6w V l.� Budget Projections -. Tout V Budget Protect Coat Phne Budget To to 1a99'a9 2409-10 2010-11 2011-12 2012-13 Thereafter rojecl Dev 400,0OD 730,000 130,000 140,000 relimmary Design asign onst.&Installation Commission close-out -' Contingency Total 1 400,000 1 130,000 1 130,000 1 140.000 Reimbumable Costs N/A W I� Section 8-Page 100 CIP Project Detail Sheets `+ Project Name&Number 213R Brine Management Grant Project-SP-116 Project Category Research&Development Project Status: Revised r Description This project is part of a regional effort to locate additional sources of water including brackish hash water requiring Treatment,wastewater,and potentiallyvwater.The project in r is being supported by the United States Bureau of Reclamation and is investigating the construction of additional brine-only sewers. Justification r This project may eventually lead to OCSD's managing and/or constructing brine-only sewers in Orange County.At this time,the project budget only includes funds to allow OCSD staff to participate in the on-going regional efforts to ensure OCSD's needs and expectations are incorporated. Research & r The project budget has been increased from$100,000 to$230,000 to reflect the revised Development project cost estimate. r ti ti Budget Projections r mm Budget Project Cost Phase Budget T.D&W 2008.01) 2009.10 2010�11 2011.12 201243 Thereafter Project Dw 230.000 30,000 50.000 100.000 50.000 w re m nary es tin Design nst.&Installation r ommiss on ose ul Contingency r Total 1 230.000 1 30,000 1 50,000 1 100,000 1 50.000 Reimbursable Costs N/A r Section$- Page 101 r 2008-09 & 2009-10 Budget Project Name&Number Research Strategic Plan-SP-120 u Project Category Research&Development Project Status: Continuing 61 Description This project will produce a Research Strategic Plan to define OCSD'8 overall research preparation Land serve lv a guide for the research projects that will be undertaken. Its preparation will involve both OCSD staff and an experienced outside consultant to ensure that the planning is comprehensive and not limited to specific topics that might be most familiar to OCSD staff,yet is grounded in the realities of OCSD's operations and future activities.The consultant will be familiar with developments and trends in the wastewater 6 industry domestically and internationally and will understand the nature of research, tether than being strictly a traditional engineering&construction fine that just executes established designs for treatment plants.The Plan will identify knowledge gaps in planned capital projects, regulatory directions that might require research input to address, opportunities for improved treatment approaches,and areas for valuable short-range and Research & Lei long-range investigation. Development Justification The research efforts at OCSD historically have not been parts of a coordinated program. That is,there has not been an agreed-upon vision about the needs,goals,and direction for _ the various projects that are researoh-odented.With the realignment of the research efforts to provide a coherent program,a targeted Strategic Plan is needed to define and guide the Ld research program for the upcoming years.This will require contributions from both inside and outside OCSD to ensure the resulting plan is visionary and forward-looking while still being reasonable and specific for OCSD. YY L Budget Projections Tool L Budget Project Coat Phase Budget 7"ate 200&09 20ae-10 2010-11 2011-12 2012.10 "*,WNW roec v 3 55,000 265,000 20,000 20,000 20,000 20,000 20.000 Preliminary Design Design enst&Installation L Commission Close-out I Contingency Total 365,000 1 265,000 20,0p0 1 20,000 20.000 1 20,000 1 20,000 Reimbursable Costs N/A iiel W Section 8- Page 102 L CIP Project Detail Sheets Project Name&Number Superoxygenation of Primary Influent-SP-121 Project Category Research &Development Project Status: Continuing Description An innovative technology was tested at the Seal Beach pump station,to force oxygen into wastewater.This project used s of pur oxygen pumping system and an advanced retention tank to dissolve large quantities of pure oxygen into the wastewater flow,which was then released into the force main. The same technology could be applied to the primary influent in a treatment plant. By r placing the system at the grit chamber discharge,oxygen could be forced Into the wastewater either to oxidize the odorous compounds that are present or meet the total oxygen demand throughout primary treatment.The best approach would depend on the relative costs of oxygenation and odor scrubbing and could be affected by limitations on the amount of oxygen that could be forced into the water.An engineering feasibility study Research & was started In FY 07-08 to evaluate the technical feasibility and associated costs of applying this technology to either treatment plant. Development r' Justification Odors produced in the primary clarifiers must be treated before the air is released.This requires electricity for fans and(usually)chemicals for wet scrubbers. If the odor production could be prevented,then operating costs could be reduced and perhaps some capital construction could be avoided.The potential life cycle cost savings from reduced operating costs and avoided capital costs could be millions of dollars annually based on the expenditures that occur now, but quantifying the actual savings will require operating data from a process test. Budget Projections r Total Budget Proleet Cost Pbsse Budget To-Date 1008-09 2009.10 2010-11 2011-12 2012-13 Tryereaftnr Project Bee 850,000 290,000 270,000 290,000 -Fmiminary esi9n Design _ onst.&Installation -!R—Mron— Contingency Total 1 850,000 1 290,000 1 270,000 1 290,000 Reimbursable Costs NIA r Section 8-Page 103 r l W 2008-09 & 2009-10 Budget Project Name&Number Digester Optimization-SPA 22 Project Category Research B Development Project Status: Contrntjay ti Description Optimizing the operation of OCSD's digesters to improve volatile solids destruction and increase gas production could provide cost savings through reducednatural gas purchases and reduced 6iosolitls disposal costs.Various investigations intoto the the effects of digester operating conditions(such as residence time and feed composition)on gas production have been reported in the literature, but it is not necessarily clear how to apply the resutis directly to OCSD's operations. This project would use two digesters as experimental and control units.Lithium tracer tests would be performed to investigate the mixing comparability of the digesters. Flow meters would be installed on the gas lines,and the operating conditions would be varied.The Research & amount of gas produced and various analytical tests would be used to determine whether W the digesters'efficiency could be improved by changing the operating conditions in ways Development n that would be consistent with OCSD's operating needs and capabilities. Justification V Offsetting natural gas purchases and reducing the amount of residual solids that must be treated and managed could save millions of dollars annually.The cost for achieving this 1 could be negligible fit it only involves changes in operating practices. L L W Budget Projections Toel 6., Budget Project PMea Budget To-Date 200849 MBB-00 3010-11 2011-13 ]at]-U Tberoeecr roect ev 90,D00 90.000 L Preliminary Design Design onst.&Installa®r L ommission Close- ut Contingency L Total 90.000 90,000 Reimbursable Costs NIA i.d W Section 8- Page 104 _. W CIP Project Detail Sheets ar Project Name&Number Digester Pilot Plant Safety and Control System Upg-SP-123 Project Category Research &Development Project Status: Continuing Description A general purpose digester pilot plant was constructed at Plant 1 several years ago.After this was designed and substantially m constructed,andd,OCSD determined that s for W be e r upgraded to meal NFPA 820 requirements and OCSD's design standards for wastewater treatment facilities.Safety-related modifications were done immediately,and other modifications were postponed until an ongoing test project was completed. r This CIP project to complete the modifications that were postponed Includes items such as upgrading the electrical system,updating the equipment documentation and asset management information to meet the requirements for maintenance activities,and changing the control system to a PLC-based(or similarly robust)system to eliminate reliability problems that have been experienced with the current equipment and to make the Research & control system more maintainable for the District's maintenance staff. Development Justification es This pilot test facility is the only one of its kind at OCSD and provides process evaluation capabilities that cannot be duplicated in the laboratory or with full-scale equipment. (Laboratory-scale tests use batch systems that cannot duplicate actual digester feeding and mixing systems,and full-scale production digesters cannot be removed from service to allow testing that could adversary affect the overall treatment plants perfannance.) Potential projects for this facility include tests of digester additives and modified operating practices to Improve biosolids dewatering. The pilot facility was designed to operate for up to 15 years,so Operations agreed with Engineering's request to bring it into compliance with OCSD's design standards.These tests also revealed deficiencies with the control system that made the facility difficult to operate and maintain,which can be corrected by installing controls that are more similar to the ones used in OCSD's treatment plants. Budget Projections Total Budgot Project Coat Phase Budget To-Date 20N49 2009.10 2010-11 2011-12 2012-13 Thereatror Project Dev 230,000 230.000 as relmnery es tin Design Const. nsta a a r ommission C oscOul Contingency url Total 1 230,000 1 1 230,000 Reimbursable Costs N/A r Section 8-Page 105 I 2008-09 & 2009-10 Budget Project Name&Number Operational Research Projects(annual allocation)-SPA 25 W Project Category Research&Development Project Status: Continuing u Description This is a fund for operational research projects that have not yet been identified.As - directed by management,an annual allocation will be made to fund research T projects. Thee Research Strategic Plan developed during 2007-08 will identify projects and i-' topics for research. Specific projects then will be identified and developed to be landed from this budget. Justification These funds will be used for various research projects designed to improve operational efficiency,reduce costs,improve safety,or fill important information gaps.The results will support O&M and provide information needed by Engineering for future planning and q- design work.The projects will be individually budgeted and tracked within the overall line Research & item allocation. Development W W l.r 6d W Budget Projections Total W Budget Protect Cast Phase Budget lr 4.te 2000-09 2009-10 2010.11 201142 201242 Thameher Proect av iQ040,000 40,000 1.000,000 1,000,000 1,000.000 1.000,000 1,000,000 5.000.000 V Preliminary Design Design nst.&Instaflatio, L mms on os ul Contingency Total 1 10,040,000 1 40.000 1 1,000,000 1 1,000.000 1.000.000 1,000,000 1,000,000 5.000,000 Reimbursable Costs NIA W I W Section 8-Page 106 — W Summary by Revenue Program Category r Collection System Improvement Projects r ToW ftrcsoolsos AM oo Tobs!Poolo,tGMM PmIM Real ImP AW00xMl Support Repo Imp A0016xu1 Support MNeme B t RsW Tmalnusd C Rehab Tl9dmeM CtlleNme FMIMea °r'I RBAImtlBnMDI SbM Sew Ealeneion ].]440W 1W - - 3745,000 Soma AreT YSBxx RxuY. 20,129,M0 1W ",ino0 - - J Cmbm Cnyn$>LBrxIM Pw,p Str,.AbmEavnenl 8.952.OM W W 49]B.OW - 4.9]40M Sxm AnB Rrvx lMxoMxReelgmmem xtl Pnd 14392.OW 1M 10.392.AD - - Sable Are Rirx Nlemlmr20W proledan Repay 200.000 10D N4W0 - - r TM1Brem2,Impm Ls 1,121,M0 W W WSW - 5M.S0 EImiJRdMllmpwemxes-R,soIIW 220M.OM W W 11,025.000 - 11.025,Ooo iy NswMP Msen6e4Cypw Tnmk Regxemems fl62 = 25 75 2.153750 - a, 250 RelaMliso,DaDid Sows By AWhg As JMW 7 556W0 M W 3.M.000 S.M..= - - FUDenMSrm lMxmpW SPnrReMd 946.0W IM - - 946,WD r Re1mM19MIm x0laWdeMe Pimp$mDnn 8&S.oW 1W 9,E460W - - WalMtle Relbl lmemepbrl Los AlmnAw MH FWW 13038.000 25 75 3.M.500 - 9.n45W r Re1M004e5mxMepnda TmNSexer 2476SOM 1M 29m= - - - Mifer410MNTs Sew Rehof 12199.00D 1M - - 12,169.000 B�,TrvmYMnDX Inlx�lx Sx2r ReAel 25,605A00 1SO - - 25,61SWO s BeOme TNM Seex RxutiOdlon 9.514.OW ISO 9.514.W0 ReNaumMdMe BNx Po'vtl PMnDSwmn 36.54>,WO 90 10 M.M.300 - 3.654TW - r RephDemmidga Rodky PdMPump SWksn M..952AM W 10 27,554000 - 3,0952W SNx Pokn Fain MMRekaMl0a5on 24.947.000 ISO 24,"TWO r Nx Face Mosn ColdNm Aswssmml 2,112.000 1W Z112.Mo - - BPPMeD*slmDror4mml 3]W,000 1M 3,750,MO - - Oems TrwkSosys Rekd 6w"M 1M - - 6.351.M - r SewAeaee lmpw.Bq Cenym Ndum Pxk Nee 763W0 1W - - - 76516C4 Disuid6TVAS.rRdff ?OSo.OW 1M - - 2, M.Wo r Fahq.RWTVN Rdiel 140]9A00 1W - - 14W9.W0 Sommr Kcom MesBTned 12,BOD.OW 1M - - 12.AMOM - GMRrAe0lrL Sysoo,lm SusOs,Reed,B 9437,0W M W 4.71S W - 4,714500 - ReMdIAeSondCoOpe Are.PIvnPSwun 9,969.W0 M M 8.9143M - 2.99E.7W Blomilq SutnM Sean R.W 3.9M,M0 1W - - 3,92DOW r CowMIMBM Nuvdion xE CEDA DmmBMeVon 300,Wo 1M - - MOM vonitxmm TnodS RdM LW,Wo 1SO - - 409.000 Ede9xRdsBCMrs TN fts va 4,411 NO 25 75 1?02.75) - 3303250 r COMTnvi Sxrer RelmNNaSm 1493D.OW 1W 10.BW,[4p - - Cont.. r Section 8—Page 107 L 2008-09 & 2009-10 Budget Collection System Improvement Projects TOW P...M...amo.Bpn TOYI Pm.dC t ftdol V Pm)M Repll Imp PdtlMlmml Su Ip Repo Wp Mdtlmul support Pm.0 N.me Bud M ReMb TnmmeM Ce e[ Reb.b T..... G rt Cc1WU.F.c11XNs(CON.") NcMCcwn CdlMOm)`M 11.13A00 IN - 11,716Ac0 IM M.nbde R.b&MOml andpWemanl Pmmem 1,5N0.000 IN 1.5W,000 - - - FaolMes Fn0lneefinA Pmnd.-CeOMene 1,020.00D 10 t5 15 6,SN.000 1.188.000 - 1,1BS,OW L Replwmemdme BRe Pre.NMPSM 11,2ST.W0 10 e0 1,125,100 - 60,53i.000 BuebeM TmM Sewer ROMWM6c. 66.151.000 IN 68.161A00 - - LMAMmdp.BW Sewers C.MIOOn Fveewmnl 050,000 IN 050.M - - GMMMm R.M.,WpmeemeM Pm)e[M TOMI fits 000 O03 M100 OA W0 1e6B2 00 1 ON 00 u 1 V V I V L L iW I ' U tJ L L Secllon 8-Page 108 L Summary by Revenue Program Category r Treatment&Disposal Improvement Projects r TWO Pdomb Albcedl Tall Cat Bp al Padget Reha Imp Adeltlenel 6uppmt rteW Imp Atltlleft SuppoX P em Name Budget Repea Tme6mnt 0 ReaeO TnaNdnt De MeeOwdes r HUMa0e Re5eb.aM EimmelOnY PRMN0.1 20.t02.000 65 5 b 13.131.300 1.010,100 6,060,600 HeapeMeRYIdtIN0lioNRe6pBNonenl 116N.000 70 30 7,716,800 - 3.307200 Nee0e4MS lmproremeMeY P4M No.2 254,496.000 75 25 IWS73.500 63.824.500 - Hee6NeN.s PmjMe Toe 2e1 000 Ni.7216pp 60D 367 r PXnary TlaeVnent Pmnuy TmarrI.RiOubem 37,230.00D IN 37210000 - - Pinery Effluent Pump Slmmm Rewbilmy Study 10,000 IN 100000 - r Pinery Tneddnl Prajeed Toe 31 000 3i 000 8eednpdy TeeehlleM r New SemmdY Tree0nem 3yedmmPhml No.1 Men god 67 33 - 176,128.210 67,734.720 Ar3Mlea Sluage PWM Reaebtildtln 46.133,000 50 25 25 M.M.500 11,533250 11.633,250 ReNbi1Ww of eded Sludge Pled!ill Pe42 16,401,000 IN 16.401A00 - - r TddGhig Fm>sMPbnl No.2 221,182600 IN - 221.192600 - - Oaypen Plug ReMGMebwill Red No.2 2.500.000 IN 2,500.000 - - r Deygell Plane Retue0lRYtln IN= IN 1501000 - - Be4anedyTrea011en1PnjedeTeed) 6 8000 111 410,853,411,11 96 040 BdNe MendNp5 Dl9estlon r SEdpa D'geel4rRYY01Ne5onY PWI1 60.397.0W IN 60.397.000 - - Slu4pe peweddd enS Dam tuned YPlenll 143.547,000 35 65 - W241.4W 93,305,550 r, TNd Wu6entl Dexe195npGW YPIad No.t 3.146.000 100 3,146600 - - Settle? a.hg and Pn®eing Ugpe4es 73.020.000 50 SD 3651e,0N7 36.610.000 - Plent W.2 Prlmery Shdge Fees Syedm I'Med 25.166.000 25 75 6,441.500 19IIAM - r Deoed/Re11W34e6mYPleM No.t 96.SBp000 W 10 10 29,116,400 3,639.80) 3.638,800 Slepa Dewedmq eM lltlar DanboIY PYM2 51.896.003 100 51696.000 - - r ReplenmenldD"Bem Tw W MPIde 4.N].000 1W 801NN Mm611rp5 DIllntlml Pnfecb Tae 1 000 191161800 10971 760 B6 360 Osedl O0tlell syehme r FYeI EBIuml9ampkrdd BuSdnp Nee Uppe4ee I.�O.Oop 1W 1.083.000 - - EelnmPumWgSeion NYn E0,467,000 50 Sid - 30.2U.SW r aa.de almdl33Men.PropaM1 Tolel map9 133 - wep9 r Section 8—Page 109 2008-09 & 2009-10 Budget L Treatment & Disposal Improvement Projects Tmtl Pert AMadon TbWfto aCWNd M 1-I ". Re I.P MCIBontl 9uppwl RMP Imp hfNJS.I support pm.W. Bu M Re Tneemnt L RaNE Ta m Ce W14 system NIwp4MG Una NAI I@ 3,]S2W0 1W 3.752M - W tangs,,Coding W.SNM.Rrywp , 9.094.00 IN 9.094AW C,O Embai Cmlld RqM 31.000.00 IN 31MM - Celle Try Mpmrem¢meal%ems I&2 31.7".00 IN 31.744.000 - L Pn Oumuy BnRovemen6 9.168.ON 100 9.168.9v0 - LunVol GanenSen/WmmNian 20.332.W0 25 75 5.083.W3 15.249.W3 W Poe SVpp...lw Sm ell Egup e1 P18 P2 964,W0 1W 985,0[U ElxMral Pw.w Duvbutim SHbm lmprwemenb 8.9 .M 9v 20 20 5.M.= 1.799.4W 1.M.Q0 Panx BUWinB 14Be[Fup Powl RtlaElGy RqM 502000 IN W2.000 u Rani WSW SNIemR fttwmM.,W.t 3.53GADv 100 3.5WM - - PNM 1 WkV SuInWWn 14,780M 50 So - 7.3N.0W ?... W Rent welerSNlem We0N5Mr MRSm Ws 4.198m0 IN 4.108A80 - W Fl SWSI"Fapw "Upw. I.SWA00 30 70 4SOM - I.M.vW solffi Nee CelNe rmrimploremen6 el Rem W.z s.i58Avv IN 5,1WM - Fud CVII F®sOofty fto 1WAO 1W - - - 1W.0W y FU CtlI RNlvgai Gaz Coned RefuN1 SW.W2 1W 50.000 - YUIIIy ByelmmPlgacb Tolel 1 ]1 W0 "320.200 WJV 0 IOASS,400 B y CBw Ce IftM Pmjed ReNEiMetlmlNCJw CUMM FetlMSn 38.] = 20 40 ].]41.4W W.9W.W0 - .. Ti ,FW 00w Com dtMW.1 4.592AW 1W 4,W;W0 iu R o,Suu50a RaNbftVvn el Wnl W.1 4.2W,CPo 100 4.200M Seli0e5Wpv&1WM90tlm COMml Plgetl 1RIN.W0 IN 10.163.W0 - R'vneryh¢eMen100a Cmbol Up9mOm 2440.W0 W W 14=.M 14.233,0W - w OCa CCN IRGHIN"e[b Pm TCW SE.Iu.M 3171 Pm RWlad Spx4l"eft V Cmrmbn Mene9Rnen1 4,667AW 1W - - 4.07,00 SpWWPv :BiooG gFJIm IBTF1 ',MM IN 1.0"M - PmmeReleMGspecW RejeM Pmlech Total 5 WO 102]WO W V PpMPWamatlenB CpnmuMNulMn Pvx¢rMwmag SnE(v'nbd sNlerts f0.859.W0 W W 5.49.5W - g.9.5W SV&ege lmwmeoenNmEeawe lswl "WaI W 1W - - 1.995,000 V IMemeVlMmnM CeumvpmaN NO= 1W • SWIM -_ CMMS SHtWI Replemnenl 3,789.W0 W 25 25 1.B94,SW W72W 947250 P052DsaMem ReNemneM 250.00 ISO - 2WAW L EmvvunvAel GmplarcSgwrnmaP�ram W2.9W 1W U2.000 Geo9zploc In/gmelbn S}clem 4.157.WO 1W 4.151.000 y Ne1uwM1 Egdpinenl MtWe 2.808.E W 15 2,3&S.IW - - 420.90 PImINMmegen&CaWtft albn RajxbToW9722100BB] 1 N W Section 8-Page 110 v Summary by Revenue Program Category Treatment & Disposal Improvement Projects TOY, Perten alavwan I"he YCPe1 BW Pmlw, RepV Imp AM.—1 SOPpM1 RepV Imp MRtloM SOW INema BW RMsb Tmewenl Cv N W, Tnebmnl C Md WweliNeOW S BMW Prvleod Roll—En0 MM,Pro"-Jbml UIIR0.O TO 15 16 1507,01a 3.310,5W - 3,3155D3 FMNR EMINMIp Pr -PMM1 18.110,WO ]0 15 15 13,3]]ON 2.MQaX - 2.BWSW Fetllllies Ery MwIpNOMe Pdn12 19 110CW 70 15 15 13,317,UV 2,&E,50] 2,WO= TMWry UMIAW TOPImawB Bmtn 1.0. = IN - - 1i500W I R,ROM WdMl It AM No.1 41TWO x5 25 25 ]D IN.250 IN 2W 10C250 IN 250 r RpbreIFOG COFNd C00wLwe1PMM No.1 3,150.000 1W Awl W.2 LandOCOq RNM "OrWO 1D3 - mo,OYJ - r Gmu spew RMN,y 6MMy UN(IN 1w 5m.Da ImepWW5mr8y AFmeDMMByMM Cm,OW 1w CW,Da M NPMS PNOII1 R.1 707IN IN - - 78I,= SM11 Cw W,R"Y RRgw 10,50OW 1W fOABBDW A wMadgM.RO'Mm 5.1w WO Iw - 51N,OD3 r WUMoue Re'MeMd,ndw 000D30 IN M..0W PM ,2 MM.Bold,Modfi,.am PQOW 1W - - - 2M,= Mlwellwwu R Somd AWddd PFPIwb Towl a U&M U0,70 1 0 "WIN WM,M., ., Roped _ WNm M..Oemenl Ad.Frolw Tob1 ]NCO 000 ]eB 000 SbeYBlc6MWMPYMn6 Tro#.m.PMM arm,,AM UpOMe 4.WM 25 25 25 25 1.125030 1,125.W0 1,125.W3 1.125.WJ 'r Omdw Com BmWd,R udw SIMIO SYOy 4WW3 I - MQWC 5".91c S Medm Awning Rapv4 TeYl CPo wo I,Ia.wQ 162e WO 113e W0 112 ON Rpebnn a OwelopMaI USBR8f MMI,dM1GrMI1P4IM MQX Im 23D.W3 AdwM OMW2Pdn m5m0 N W w - 14S.OW 1W.SW 1W.5w r 6uproegaMbn oIRMMYI1tlNMA B50.WC w 20 BBO.WO 170,mO D¢n1a 0NmhmM W,D30 Im W,WD DpMBr Rd Pdl SaWy r Cm Sy UW 230W0 as 35 w 80.SW W.SW 88.W0 r GwrmkMl peNercn Reptle leMWleWeNen) 10,DCD.CW 35 25 25 25 2.510,m0 25101m0 I510,W0 2.5I0,W3 RwdvhB Dry WM,t WC;Md Te 117MM e10W0 ]] WO S2 OW BBBeW TmMmenl mtl D1SPwW imp MMtR ]M.T., 1,By 818,186.N0 W],1Be,ON U1.1W,WD 61, IIANG CePIYI EOuIPmenl 10 25 25 25 25 1MO.MO CWOWO CWOWO 0 OW r To ,Co.lmpmve—d PmBnm CH .,..No B 1]O WO N W w r Section 8-Page 111 V 2008-09 & 2009-10 Budget Collections System Improvement Projects- Budget By Project Status Total - Pml.9 Two Book Now Continuing Roolow Fulun Collecllau position MAI Snide Me Rima lMadow Realignment and Prod 10,382,000 M302.0DO lest 0241.5 Santa Me RNer lnbrtmpla 2006 senimMbn Repay 200,000 200,000 02-U Eutlb Relief lmpmammdM-pence W M.M.0W 22,0.50,000 03.50 RehabSiMan M Minimum Trunk Sean 26,768.000 28.769.000 W50 RepleoomeM of Me Rocky Point Pump Begun 30,852,000 3 'sMo00 OS44 Seem Aaeaa lmproy.Big Canyon Nstwe Pak Ares 785,000 765,000 �y 1504 NmR County Cassava Yard 11.773,000 11,T23.000 1565 ManMb Reenoidal and Aeaeumem Pmpem 1,540000 1,540000 L SP-126 Lae AlemBaa BNd.Sawero CaMhbn AeaeumeM 350,000 350.000 01.101 Peru and MnMol Sbeel Sower Estenebn 3.748,000 3,749,003 01-17 Santa Me Trunk Serer Rehab. 30,ln.000 20,129.OW 64 M-24-1 Cadwn CW Sexerand Pump SM.Ahomflumml B,m.= 8.932.= - 0265 Nmymope-PlmmyJa B Co.Tnml RepbremaMa 8,823.o00 8,623.000 V M48 Rehabilitates DWest Slphone By Add'my Au Jumper 7,556.000 7,556,000 M-52 RehabNWled st tied Wee Pump Sletlon B,6d.= al". 00 0547 Stepped Trunk Sean RehettMent 8.514,000 8.514,000 y 115411 Replewnwd Ntlre Milan PolM Pump Statlpn 36,64i,000 3841].00D --- 0558 BBe Point Fame Main RMMIIN40en 24.847,000 24,841,000 u 0530 Newport Fan Main Coast Aaeeeemeni 2,112.000 2,112,000 0541 Meal Ceve lmpnwemeg 3,750.001) 3.750.000 0463 O rOMe Trunk SeeerRelef 8,351,OW 8,381.000 V 07-N Glasse-Reolill System Immenseness,Remb S 9.437.000 e,y7,000 I 07.47 Rehnbmisom N College Are.Pump Stem 9.Mg." 9.883,000 W 041 County island Ansessam and CEOA D umeneallon 300.000 30l 11-26 CaaR Trunk Sewer ReahOOMbn 10,00,000 lo.supo00 V FECoOaG Feelides Engineering Reeds-Colbstben 7,620,Oo0 7,B20A00 p10 RepbnmeM of Me Ellie Ave.Pump Be 77,257,OOD T/,25].0M) 424 Bustled Trunk Sewn RNlabMebon 68,757,000 88,757.000 W U49 Top Branch lmpmeemenle 1.121.000 1,121,000 02.71 Fuperbn-Brea lnlemepla Sawa Rayef Me= 94SODD V 0355 W W.RstiMita piWL.Memilee MNRMBb 13,038.000 MWOOD 0359 Mllbr-XOMn Trunk Sewn Retlel i2,18B4O00 . 12,18g.O0D M66D Beall Truduteati lntamts.Serer Repay 25.605.000 25,605.000 kr confined W Section 8-Page 112 W Summary by Project Status Collections System Improvement Projects—Budget By Project Status Teter r Pre10 red Budget Raw Contlnuino Retested! Future CMIMbne Facilities(Conthru.") 06-17 Mai l 6 Trunk Bawer Relief 2,050,000 2.050.000 r 0618 Fslm Rwd Trunk Sewer Relief 10,029.000 10,029.M 06-19 Sautesest Cous Mesa Tank 12.600,000 12,600,000 076 B.N,Suauunk Sewer Relial 2,920,000 3520.000 07-62 Von Rammn Turk Sewer Relief 409,000 409.000 11-25 Mingarl9alw C0lce Tmnk Improvements 4.411,000 OIL= r Ce11ecRW Facilities Improvement ProNcts retail Budget 519,424,e00 108.T81,000 328,348,000 "me,= r as r se r r r r r r r Section 8—Page 113 r Lai 2008-09 & 2009-10 Budget u Treatment& Disposal Projects—Budget By Project Status Total P.J. nil. Budget New continuing Redead Future LI Headworks Pb71 HeatlwoNS RenaOililaroNRetuNishmanl 11,024,0W 11,024,000 V PM Headawss lmOrmem¢ntl at Plant No.2 254,499,00 254p98,O0D Pl-105 Headwods Rehab.and Expansion at Ram No.1 20202,OW 20,202,O0 u Headworks Total Budget 285.724.00 11,024,000 254,498,000 20,202,000 Primary Treeunent SPAW Primary Mutant Pump Slabons RellaMlity Sltly Mom 100.Om P241O Primary Treatment RahaGReNN 37,230,OW 37230,000 Primary Treatment Total Budget 37.330.00 100,000 37,230,000 `al Secondary Treatment SP-129 Oxygen Plant RehaGlilabon at Plant No.2 2.500,O00 2,500,000 W P14Q Aduatehl Sludge Plant Releetiliation 46,133AW 48,133,000 P1-90 Trickling Fdla at Plant Na.2 221,792.000 221,192,m0 y SP-]81 Oxygen Pahl RehattTlalian 150,11110 150.000 P1402 New Secondary Treaamnt System at Plant No.1 265,863,OW 265,863,OW law P2-74 ReMbiliation of Activated Sludge Plant at Plant 2 16,401,000 16,401,OW Secondary Treatment Total Budget 552,239,000 1,500,000 287,075,000 202,264,0111) V Solids Handling 8 Dlgea0on P1-101 Sludge Dewatedng and Odor control at Plant l 143,547,000 143,547,O00 PI-106 Truck Wash and Dewaamtg Bads at Pant No l 3,146,01DO 3,146AM wal P2-91 Plant No.2 Pinery Sludge Feed System Project 25,766,O00 25,766pW P1-iW Sludge D'g¢star Rehabilitation at Plant 60,397,O0 610.397,O30 V P2-99 Solids Thkkening and Pracaesing Upgrades 73,020,000 73.020,1300 PI-91-1 Digester Rehabifiabon al Plant No,2 36,398,0110 36,398,O0) P2-97 Resawareat of Drying Beds and Tmck Wash al Plant 4,M3,OW 4,443.OW P2-92 Sludge Dewatering am Odor Cut"at Pant 2 51,896,000 51,696,0110 V Bases Handling B Digeation Toll Budget 398,413,00 172,158,000 174,25B4O00 51,M.00 Ocean Oulfall Syclams 1110 Final FJBuenl sampler and Buil0ing Area Upgrades 1490,O010 100,O3) J." Effluent Pumping Salion Annex 80,487,01)) 60,487,O0 1 Ocean Oueall Systams Tall Budget 62,377,OW 1,880.W0 80,48],WO Section 8-Page 114 r Summary by Project Status Treatment 8 Disposal Projects—Budget By Project Status Too' r Prol.N This, Budget New Con9nutna Revised Future Ullllty systsms PI.111 Power Building 3A Backup Power Ramitai Project 502,000 502.000 r P2.101 Plant Welw System Rebabil4allon at Plant No.2 4,100,000 4.108,001) SP-132 FW Cad Feasibility Study 100,000 100.001) r SP-134 Fuel Cell Nydrogrn Gas Generation Research 500,000 500,000 J-106 Interplant Gas Lino ReMbM4atlon 3,752.000 3,752.000 ma J-109 Cargen Cooling Water System Replaoemenl 9,094,000 9,094,000 J-79 Air Quality monesurnls 9,168,000 91 r J-96 Fire Suppression for Seaea and Equip at P18 P2 965,000 985,000 Pi Solids Area Cable Tay lmprowmems at Plant No.2 6,156,000 6,156,000 r J47 Cable Tory lmpmvemens at Plane 182 31,744,000 31,TM,t100 1.79.1 Genial Generation Automation 20.332.000 20,332,000 r Pl-97 Plan1168kVSubslation 14,780,000 14,780,000 J-111 Cengen Emissions;Control Project 31,000,000 31,000000 r J-90 Electrical Power Disldbuson System lmpmvemane 6,992,000 8.992.000 PI-112 Pam Water System Re6ebllllation at Plant No.1 3,528,000 3,63B,DM P2.103 Flare Systems Expansion and Upgrades 1,500,030 1500,000 r UtIy Syseme Taal Budget id8.231.000 5,210,000 20,175,000 66ASBA00 45,030,0011 Odor Control Related Projects r }7I41 Rebebililetlan o/Odar Control Fedlftlea 38,T0IAIq 38,70I,a10 PI-113 TrkNing Fier Ode,Calaml at Plant No.1 4.582.000 4,582,000 r P4114 Pdmery Scrubber Rehebil6atian at Plant No.1 4,200.000 4200,000 P2.102 Sollds Storage Building Odw Control Praged 10.183.000 10,183,000 r P298 Primary Trimmed Odwtonbd Upgrades 28,460.000 28,480,O00 Odar Control Reeled Projects Tout Budget 65,132,000 38,707,000 47,425,00D r Process Related Special Projects 8P4i6.1 CorosenlAero9emenl 4,667,000 4.667.000 r SP-907 Specal Projects:Bloldckling FlllerlBTF) 1,027,000 1,027.000 Process Ralabd Special Projects Tots)Budget 5,694,000 71,887.000 1,02TA00 r Section 8—Page 115 r V 2008-09 & 2009-10 Budget L Treatment&Disposal Projects—Budget By Project Status V Talal Ru T1110 Butlaet New Continuing Revised Future Plant Automation 8 Compuleriulian SP-03 SOalegic planation Amhitocture ISIA) 1,995,000 1,995,001) rr SP-09 IntemeMMmn¢1 Dowopment 6W000 650,000 SP-100 CMMS System Replacement 3.789,900 3,789,000 4.d SP-103 PDS2D Sa8wam Replacement 250,1)g0 250,000 SP-IN EnWrenmenMl Compliance Awareness Program 982.O00 982,OW la,i SP-15 Geognphu lnummtlon System 4.157,000 4,157.000 SP419 Nmwm Equipment Upgrade 2,BW.0M 2AW.OW J-n3 Pawm Mandating and Canal Stan. 10.899.01) 10,899.OW Plant Automation 3 Compularbation Total Budget 26,628,080 ig62A000 10.090,W0 W Mlsceliarmous B Support Prebcts SP-133 20D9 NPDES Penh Renewal 787,00D 787,000 V J-97 Lolmatory Returoiahmam at Plant No,1 417.01)) 417J1W Pt-104 Regional F0G Combat CUlle at Plead No.1 3,150,0M 3,150, m SP-127 OMce Spine Planning Study 500,1)00 5W,000 SP-128 Int¢0m4d SecuMy Access Conbol System 450,OW 450,000 SP-08.2 Asset Management Ragmm 5,100,D00 5,100,000 V SP-77 Warehouse Reln"don Projea 600,M0 600,MO FE-J Fadliies Engimenng Projects-Joan 22,110,000 22.110.000 4.0 FEFl FadliBes EngineeMg Pmjeds-Plant 19.110,000 19,110,000 FE-P2 Fadii0es Egineedng Propane-Plant 2 19,110.M0 19,110.000 ew J-100 Temporary Upgrades To Plaid Se rfty Raniom 1,450,0M 1,450,000 P2.96 Plam No.2 landscaping PmjW 440,OW MOAM I.d SP-34 Small Cap.Equip.Replac¢ment Pmjed 10,550,O00 10.550,O00 SP-98 Plant 2 Mi mtormnce Balding ModACMlons 276,0M 27QOW V 74lacallaneous 8 support Pmjecls Total Budget $4,050,O01) 767,000 10,217,W0 73,O/fi,000 Waer Management Protects W J36 Groumlwator Replenishment System 248.400,000 248,400.W0 Water Management Protech Total Budget 248.400,000 2411,400,O100 - W Section 8-Page 116 Summary by Project Status r Treatment&Disposal Projects—Budget By Project Status one Tatel Prol.N Tlite Budget New ConOnulna ReWeud Ware SlmbgkB Maser Planning r SP-105 Orange County Bladlks Production Siding Study 4W,W0 4W,OW Jiu Tralmat Pant Strategic Plan Update 4,WO,000 4.500,000 r, Strategic S Master Planning Total Budget "HAD 400,000 4,500.000 Reaerch B Development SP-120 ReaerN Suelagic Plan WSM 305.00(1 r SP-121 SWerovygea0on of Primary Influent 850,0W 050.000 SPm122 Digaler Ontirlra0on 90,W0 90.000 r SP-127 OlgaterMkl Plain Satetyad COMIM System W0 230,OW 230,OW SP-125 Operegonal Reaartli ftious(annual alkca0od) 10.040,000 ION0.0010 r SP-116 USER anon Maaganent Grand Prolam 230,OW 230.OW Reaarch B Devoloinerd Prolocto Total Budget 11,605,000 11,STO.W0 230.001) Trertmmtl and Disposal Prolate rated Budget 1,946,923,000 10.47.000 919,396,000 1,154,685,00 164,353A011 Equipment Total Budget 16.000,000 16'alli r role Capital lmproamerd Program Budget 2.dB4.241.000 10AW.000 T12.OT9.W0 1.461.0]0.000 340.651.OW r r r r r Section 8—Page 117 one 2008-09 & 2009-10 Budget �W Proposed Equipment Budget 2008-09 w Trucks& Other Mobile Machine Eq Comm Vehicles Eq &Tools Equipment Department 09410000 09410001 09410002 09410003 - W Information Technology - - - 105.000 Facilities Maintenance& Fleet Services 336,800 227,800 - - V Environmental Laboratory&Ocean Monitoring - - - Operations& Maintenance Process Engineering - - 375,000 - W Plant No.2 Operations - - - Mechanical, Reliability&Maint. Support Services - - 203,500 - u Instrumentation&Electrical Maintenance - 35,000 Total Proposed Capital Equipment 336,800 227,800 578.500 140,000 W W u w W w W Section 8- Page 118 W Proposed Equipment Budget Summary r Proposed Equipment Budget ' 2008-09 Instr I Test Safety& Office Fix Computer 2008.09 Equipment Traffic Eq &Eq Equipment Proposed Department 09410004 09410005 09410006 09410007 Budget r Information Technology - 40,000 - 225,900 370,900 Facilities Maintenance&Fleet Services - - - 564,600 r Environmental Laboratory&Ocean Monitoring 113,200 - 36,000 - 149200 Operations&Maintenance Process Engineering - - - - 375,000 Plant No.2 Operations 18,000 - - 18,000 Mechanical, Reliability&Maint.Support Services - - - - 203,500 Instrumentation&Electrical Maintenance 7,100 250,000 292,100 Total Proposed Capital Equipment 138,300 290,000 36.000 225,900 1,973,300 r r r r r r Section 8—Page 119 I- Lr 2008-09 & 2009-10 Budget L Proposed Equipment Budget Detail Proposed Division Equipment Type Equip.Budget W 250-Information Technology Server/StoragelBack-ups 125,000 L Archiving Equipment 5,000 Storage Equipment 10.000 SCADA Storage 30,000 Video Monitoring/Reoording Equip. 25,000 y Video Monitoring/Reccrding Equip. 60.000 Portable Video Monitoring Equip. 20,000 Plotters&Scanners 35,900 Vehicle/License Plate Recognition Equip. 20,000 W Video Monitoring Solution 20,000 Scanner 11 x 17 10,000 E Size Plotter 10,000 Total 370,900 430 - Facilities Maintenance& Fleet Services Electric Carts(4)- Replace#625, 850, 851, 984 36,000 u Sedan-Replace V#390 22,600 Twelve-Passenger Van Pool Van-Replace V#0528 39,800 Tour Bus with Handicap Access- Replace V#0292 157,700 L Full Size Pickup Truck-Replace V#0483 33,800 Manlifl Replacement 130,800 Wheel Tractor-Replace E#1029 61,000 L Generator Truck-Replace V#0217 51,000 Service Body for Flatbed Truck Purchased in FY 07-08(Re-budget) 31,900 Total 564,600 630 - Environmental Laboratory&Ocean Monitoring L Samplers(4) 28,700 Gas Chromatograph Mass Spectrometer(GCMS) 72,500 Miele Dishwasher 12,000 Cubicle Spaces(6)for Infaunal Taxonomy Workstations(New Program) 36,000 Total 149,200 820-Operations&Maintenance Process Engineering 6W Odor Treatment System(Re-budget) 375,000 840-Plant No. 2 Operations Hydrogen Sulfide Meter 18,000 1W 850 - Mechanical Reliability&Maintenance Support Service Gantry Crane and Trolley,4,000 lb. 7,500 L Electric Grease Pump 8,000 Air Motor, Reversible with Geared Head Multiplier& I"Torque Driver Kit 10,000 Puller Set 22,000 20"Abrasive Double Mitering Cut-off Saw with Dust Collector 17,000 j Precision Engine Lathe 14x40 with Associated Tooling 20,000 LI Rebuild Tod Sets(2) 28.000 Lubrication Filter Carts(5) 32,000 Fixtudaser Express Alignment System(XA) 24,000 SpectraQuest Turnkey Vibration Training System 35,000 Total 203,500 Section 8-Page 120 W Proposed Equipment Budget Detail r Proposed Equipment Budget Detail Proposed r Division Equipment Type Equip.Budget 860 - Instrumentation&Electrical Maintenance Personal Hazardous Air Monitoring System(45) 250,000 r Portable Generator System 7,100 Programmable Logic Controller CPUs and Racks Upgraded 35,000 Total 292.100 Total Proposed 2008-09 CORF Equipment Budget 1,973,300 r r r r e• Section 8—Page 121 2008-09 & 2009-10 Budget Proposed Equipment Budget 2009.10 L Trucks& Other Mobile Machine Eq Comm `,j Vehicles Eq &Tools Equipment Department 09410000 09410001 09410002 09410003 I L Information Technology - - - 65,000 Collection Facilities Operations&Maintenance - 14,500 - Facilities Maintenance&Fleet Services 544,100 158,100 - - Environmental Laboratory&Ocean Monitoring - - - - 6a Operations& Maintenance Process Engineering - - - - Instrumentation& Electrical Maintenance 57,000 Total Proposed Capital Equipment 544,100 158,100 14,500 122,000 v V L.i Yr V I L 1 V L L Ir Section 8-Page 122 L r Proposed Equipment Budget Summary r Proposed Equipment Budget 2009.10 Instr I Test Safety& Office Fix Computer 2009-10 Equipment Traffic Eq &Eq Equipment Proposed Department 09410004 09410005 09410006 09410007 Budget r Information Technology 20,000 - 132,500 217,500 Collection Facilities Operations&Maintenance - - - 14,500 ' Facilities Maintenance&Fleet Services - - - - 702,200 Environmental Laboratory&Ocean Monitoring 94,400 - - - 94,400 r Operations&Maintenance Process Engineering 209,000 - - 209,000 Instrumentation&Electrical Maintenance 57,000 Total Proposed Capital Equipment 303,400 20,000 132,500 1,294,600 r r w r r r Section 8—Page 123 I 2008-09 & 2009-10 Budget L Proposed Equipment Budget Detail Proposed L Division Equipment Type Equip.Budget 250-Information Technology Agenda Automation Equip. 60,000 Control Center Video Display 11,600 r Imaging Equipment 15,000 Video Monitoring/Recording Equip. 25,000 Video Monitoring/Recording Equip. 40.000 Remote Capture Equipment 10,000 Scanner hardware 35,900 Vehicle/License Plate Recognition Equip. 20,000 w Total 217.500 420-Collection Facilities Operations&Maintenance Hot/Cold High Pressure Washer; Parts Cleaning Tank 8 Bead Blaster 8,500 Washer and Dryer for North County Yard 6,000 Total 14,500 430 Facilities Maintenance& Fleet Services Generator Truck- Replace V#0237 61,000 L. Twelve-Passenger Van Pool Van-Replace V#0525 41,800 Scissor Lift-Replace E#0829 27.300 Manlift-Replace E#09808 130,800 Pickup Truck-Replace V#0425 33,800 Vector Jet Rodder-Replace V#0396 383,900 Pickup Truck- Replace V#0452 23,600 L, Total 702,200 630 - Environmental Laboratory&Ocean Monitoring Samplers(4) 29,500 Acoustic Doppler Current Meters(ADCP)(2) 64,900 Total 94.400 820.Operations&Maintenance Process Engineering V Handheld VOC Meter 9,000 Electronic Odor Sensing Device(OdoWatch) 200,000 Total 209.000 �+ 860 - Instrumentation& Electrical Maintenance Programmable Logic Controller CPUs and Racks Upgraded 35,000 Infrared Camera System 22,000 V Total 57,000 Total Proposed 2009.10 CORF Equipment Budget 7294,600 it V W Section 8- Page 124 Debt Financing Program CERTIFICATES OF PARTICIPATION A Ten-Year Financial Plan is maintained to DEBT FINANCING PROGRAM establish financing parameters regarding the issuance of debt, the levying of user charges During 1988, the County Sanitation Districts of and the funding level for the four-part reserve Orange County ("the Districts"), the nine (9) structure. The Financial Plan is revised annually predecessor individual Districts to the current to reflect the most current cost and revenue Orange County Sanitation District, embarked figures resulting from capital program revisions upon a 30-year planning program referred to as and operating changes. the "2020 VISION" Master Plan because it considers the planning needs of the District to During 1998 and 1999, a new strategic plan was the year 2020. The Master Plan was produced developed for the period 2000 to 2020. following the most comprehensive wastewater Strategic planning represents a shift from the management study ever undertaken by the traditional "size and build" approach to Districts. The two-year, $4.5 million evaluation developing master plans to a more broadbased, of the engineering, environmental, public health, multi-agency cooperative solution. The planning social and economic aspects of our wastewater process Included collection, treatment, and ,r collection treatment and disposal activities was disposal facilities, management of peak flows, conducted by a team of consultants in equitable financial charges and fee schedules, partnership with District staff, reuse of wastewater and btosolids, advances in .. The "2020 VISION" Master Plan established a technology and regulatory concerns and requirements. Capital Improvement Plan (CIP) that identified significant annual expenses for the construction Four treatment scenarios were evaluated by of Joint Works and trunk sewer projects, as well citizen groups, staff, consultants and Directors as ongoing operation and maintenance (O&M). before a Preferred Alternative was selected. The projected capital cost of the Preferred The Board adopted the "2020 Vision" Master Alternative was $1.53 billion through 2020 and Plan in 1989 based on the Districts'then-current included the Groundwater Replenishment treatment level, which assumed continuation of System, a $472 million wastewater reclamation its current National Pollutant Discharge project with construction costs to be shared Elimination System (NPDES) permit equally with the Orange County Water District. concentration limits under Section 301(h) of the Clean Water Act. The treatment level allowed In 2002, the District completed an Interim under this permit was a blend of 50 percent Strategic Plan Update that evaluated the advanced primary and 50 percent secondary, a advantages and disadvantages of several waiver from the Clean Water Act standard of full possible wastewater treatment alternatives. In secondary treatment. July 2002, the Board of Directors approved a change from the existing level of treatment, a Prior to the 1989 Master Plan, the Districts had blend of 50 percent advanced primary and 50 been able to meet capital requirements and percent secondary treated wastewater, to full O&M expenses from a combination of property secondary treatment standards. The reasoning tax revenues, user fees, connection fees, behind the decision to move to secondary interest earnings,and federal and state grants. discharge standards included (1) the possibility Due to the magnitude of identified future annual that bacteria from the ocean outfall may at times s, capital and operations and maintenance reach the shoreline, (2) upgraded treatment will expenditures, and the discontinuation of federal aid additional water reclamation with the Orange County Water District, (3) and the public clearly and state grant programs, the Master Plan concluded that it was necessary to utilize debt favored upgrading wastewater treatment at this co conclude time. The 2002 Interim Strategic Plan Update financing to meet our obligations. Debt identified financing, recommended by the Master Plan, immproprovemenntsts million of additional capital would enable each District to meet projected needed to move to full secondary n construction schedules while achieving the standards over the next 8.5 years. lowest possible user fees, as well as long-term stability for the user fees. Section 9—Page 1 i 2008-09 & 2009-10 Budget L In preparation for the FY 2008-09 and FY 2009- increase from the 2007-08 CIP estimate. This 10 Budget, District staff conducted strategic increase includes $50 million from the District's V planning workshops with the Board of Directors 5-year Strategic Plan, $28 million in newly to layout a capital program to deliver the levels identified rehabilitation and renewal needs, and of service desired by the Board of Directors. $71 million in project budget revisions for on- These levels of service and resulting capital going projects. We projects are included in the District's 5-year Strategic Plan. This includes approximately$50 The Series 2006 and Series 2007E were issued million of new CIP projects over the next 10 to fund current and future capital improvement years. In addition, District staff has reviewed expenditures. The Series 2007A and Series `+ each CIP project to ensure that the scope of the 2008A were issued to take advantage of the low project was appropriate, and that the cost interest rate market environment and partially estimates were accurate. The validated CIP refund the higher interest earning bonds of the includes 86 large capital projects and 28 special Series 2003 and all of Series 1993. Figure 1 projects with a 15-year expenditure of $1.47 shows the status of all outstanding COPS at billion. This total represents a $149 million June 30,2008. W Figure 1 Summary of Certificates of Participation L Series 1993 Series 2000 Series 2003 Series 2006 Series Issue Name Refunding COPS Refunding COPS cops COPs Issue Date 09-21-1993 0831-2000 08-26-2003 03-05-2006 j Original Par $46,000,000 $218,600,000 $280,08D,000 $20D,000,000 W Outstanding Par $26,900,000 $196,60D,000 $191,500,000 $195,600,000 Payment Date August August Februarys Februarys Use of Proceeds Advance Refunding Refund/Reimb. Reimb./Future CIP Current/FNure CIP Lien or Tier Open senior Open Senior Open Senior Open Senior L Interest Rate Mode Synthetic Fixed Variable Fixed variable Final Maturity Date 08-Di-2016 OMI-2030 0241-2033 02-01-2036 Series 2007A Series 2007E Series 2008A Issue Name Refunding COPS COPS Refunding COPS Issue Date OS22-2007 12-20-20117 09-29-08 Original Par $95,180,000 $300.000,000 $77,165,000 Outstanding Par $93,655,000 $300,000,000 $77,165,000 Payment Date Februarys FebruaryI August Ir Use of Proceeds Advance Refunding CugentlFuture GIP Advance Refunding Lien or Ter Open Senior Open Senior Open Senior Interest Rate Mode Fixed Fixed Fixed Final Maturity Date 02.01-2030 02-011-2032 08.01-2013 The Districts embarked upon its Debt Financing and Management Program, and specifically its COPS are repayment obligations based on a L Variable and Fixed Rate Debt Program (the lease or installment sale agreement. The COP "Program"), in 1990 with the issuance of $100 structure was selected over other structures million in Certificates of Participation ("COP"), because COPS are not viewed as debt by the Capital Improvement Program, 1990 Series "A." State of California, as the purchaser does not The Program was established to accomplish: actually receive a "bond," but rather a share in an installment sale arrangement where the • To finance assets with long useful lives with District serves as the purchaser. Accordingly, long-term debt; the District is not subject to the usual State • To achieve the lowest possible interest costs restrictions surrounding the issuance of debt. and highest investment returns, COPS can be issued with fixed or variable commensurate with the appropriate risk; interest rates. • To recoup reserve moneys that had previously been spent. L Section 9—Page 2 j Y� Debt Financing Program r Fixed-rate debt can be either traditional or variable rate obligations and short-term synthetic in form: investments. The periodic change in interest s, earnings on the District's unrestricted reserve . Fixed-Rate Debt traditionally has a final funds (invested in short-term securities like maturity between 20 and 30 years from the Treasury Bills) will move In a fashion similar to date of issuance. Generally, principal is the movement of the yield on the District's amortized annually. Principal maturing in variable rate obligations. early years typically has a lower interest rate ("coupon")than later maturities. This structure This 'floating hedge" will result In a generally r typically produces a level debt service. The consistent and predictable spread between the District's 2003 series is a traditional fixed-rate District's financing cost and the yield on the debt issuance. invested funds. Moreover, since the District's obligations are tax-exempt, while its reserves • Synthetic Fixed-Rate Debt: Long-term, earn taxable yields, there Is a potential legal variable-rate debt can be Issued and then the arbitrage benefit which may actually lower the interest component can be swapped to a fixed District's cost of funds. There are complex rate. This form of fixed-rate debt achieves a federal regulations that limit the interest balance between short and long-term interest (arbitrage) earnings on tax exempt financings costs and is frequently a less expensive form and the District complies with them. of debt. In some markets, this form of fixed- rate debt is less expensive to issue than the The District has entered into two types of swaps more traditional form of fixed-rate debt since 1990: fixed-to-floating and foating-to- described above. The District's COP fixed. Fixed-to-floating interest rate swaps allow s, Refunding Series 1993 is a synthetic fixed rate an issuer to convert all or a portion of its fixed debt issue. rate debt to a floating rate. This is accomplished as the issuer receives a fixed payment from a Variable-rate debt can be traditional or synthetic: counterparty, and makes floating rate based .. . Variable-Rate Debt: has either a long or short payments to that oounterparty. nominal maturity, but periodic interest rate A floating-to-fixed interest rate swap allows the resets. Typically, the intervals for interest rate issuer to convert floating rate debt to fixed rate. resets are daily, weekly or monthly, but any The counterparty makes floating rate based period is possible. Both the District's Series payments to the issuer and, in return, the issuer 2000 COPS and Series 2006 are variable-rate makes fixed payments to the counterparty. The ,r debt maturing in 30 years, but with sinking certificate holder, in both cases, receives the funds to retire a portion of the principal payment that the counterparty pays to the annually,and a daily interest rate reset. issuer. The certificate holder, or investor, Synthetic Variable-Rate Debt: As described always receives the original stream of payments. above for fixed-rate debt, variable-rate debt Through discussions with the Rating Agencies, can be created from afxetl-rate issue by the District has been permitted to maintain an .. means of a floating-rate swap. overall fixed versus variable rate debt mix of An important factor to keep in mind, however, approximately 50:50. "Synthetic" fixed when reviewing the historical difference between transactions are considered as fixed rate s, variable rate and fixed rate debt is that there are transaction by the Rating Agencies since the two fees that occur with variable rate debt in swap duration matches the maturity of the COP. addition to the interest rate, liquidity fees and remarketing fees. Even including these extra These ratios are higher than those traditionally fees, variable rates have been lower than fixed allowed for most issuers, in part because of the rates over the past several years. District's reserve policy. The maximum level of variable rate obligations The District currently has outstanding synthetic incurred by the District should not exceed the fixed-rate and fixed-rate CON of$669.2 million level of invested reserves available. This policy and variable-rate COPS of $393.0 million, for a will allow a hedge to be maintained between ratio of 64:36. Section 9—Page 3 i V 2008-09 8r 2009-10 Budget 1J Dedicated Fundina Source existing COP Indenture agreements requiring In 1992 and 2004 the Board of Directors minimum coverage ratios of 1.25. The minimum L+ formalized the dedication of certain funding coverage ratio is the ratio of net annual sources. To assure the continuation of revenues available for debt service requirements favorable credit ratings, revenues were to total annual debt service requirements for all dedicated to debt service in the fallowing order: senior lien COP debt. The coverage ratio for senior lien COP debt is being proposed at 2.51 1. Ad valorem property taxes and 2.22 for FY 2008-09 and FY 2009-10, 2. Sanitary sewer service charges respectively. I" 3. Other revenues Future Debt Financinas This apportionment of the ad valorem tax was In May 2008, the District issued $77.2 million of consistent with and pursuant to the Revenue COP fixed rate debt to retire the outstanding Program adopted in April 1979 to comply with amount owed on Series 1993. As the result of regulations of the Environmental Protection having a well-funded reserve policy, Agency and the State Water Resources Control experienced management, and prudent Board and in accordance with COP documents planning, the District was able to secure "AAA" and Board policy. credit rating from Standard and Poors while Up until FY 2003-04, property tax revenues maintaining"Aa' ratings from the other two rating alone had been sufficient to meet current debt agencies. service payments. However, since the $280 The District's long-range financing plan is million COP Series 2003 debt issuance, this designed to maintain these high ratings. Over V revenue source now has to be augmented by the next 12 years, the District is projecting an sewer service charges or user fees. Annual additional $2.4 billion in future treatment plant - increases in these user fees to offset property and collection system capital improvements. In L tax revenue shortfalls, as well as to assist in the accordance with the District's long-term debt funding of the CIP expansion, are projected for fiscal policy, the District will confine long-term the next several years. borrowing to capital Improvements that cannot Establishment of Debt Policy be financed from current revenue. Before any jy In 2001, the District developed a written debt new debt is issued, the Impact of debt service policy for the following underlying reasons: payments on total annual fixed costs will be — • promoting consistency and continuity; analyzed. • rationalizing the decision making process; The District's cash flow forecast calls for the Ir • committing to long-term financial planning; issuance of $200 million and $120 million of • enhancing the quality of decisions; and COP in FY 2008-09 and FY 2009-10, ,r • promoting credit quality to rating agencies, respectively, to help offset the CIP cash outlays scheduled to occur over this time period. A total _ This Board adopted policy serves as the of $550 million in COP debt issuance is being agency's guide in the management of existing proposed over the next five years. These debt and in the issuance of future debt. financings are needed early in the Capital Debt Covereae Ratios program scheduled out to 2020 because the bulk of the construction is scheduled during the The only legal debt limits pertaining to the next six years. District are those that are provided within the Figure 2 L fth.d.le of FuursC rtl8cates of Perticl nlssues and CIP Cash FI (In millions( 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 201F15 2015d6 2016.17 2017-18 New COP Issues $200.0 $120.0 $ 90.0 $ 60.0 $ 80.0 $ 0.0 $ 0.0 It 0.0 $ 0.0 $ 0.0 CIP Osdlays $373.7 $228.9 $182.5 $169.8 $188.7 $197.3 $168.1 $1562 $167.0 $165.3 Section 9-Page 4 L r Debt Financing Program r Total Certificates of Participation Debt Samice Requirements r Pdnclpal and lnleroet Combined r flue IN3 2000 2000 2003 2006 2007A 20076 200M Total Year Refunding Refunding Refunding AcqulsltbN Acqulsl0onl Refunding Acqulslllonl Refunding Payment M (Soria B (0erbs A) CIP Made Constructon Construction (Partial 2003) Construction (19925orles) Par r PeMUMe Term) Fiscal Year 20080 1.370.370 6,606,648 1,995,771 9,575,000 7.569.100 4.365.911 19.403.337 17,805,094 65.690.237 2009-10 1,363.530 0.636.000 2.066,016 9,575,OD0 7,58$100 4,366.144 19.446.737 16,943,128 67,967.655 2010.11 1,356,690 6,638.0D0 2.030.016 9,575,0D0 7,559,100 4,365.061 19,490,371 16,989,602 67,901,840 r 2011.12 1,349,850 17,667,642 1,996.012 0.676.000 7.559.100 4.366.094 19,643.671 5,8811p72 67,736,341 2012.13 1,390,020 16,167,694 2,050,487 9.575.00D 7,588,100 4,387,027 19.591.007 7,103,694 67,613.909 2013.14 1,381,60D 17,641.074 2.011.704 9375.000 7,%§,100 4,368761 19.621.566 19,243,761 81,412.766 20W13 9,038,200 15.895,079 ZM.592 DA75,000 7,589,100 4.369,194 19,612,962 - 66,1282W r 2015-16 9,047.640 15.864.241 2,029,041 9,576,0D0 7,589,1m 4,309,227 19,601.634 - 58.055.083 2010.17 9.134.00 20,226,504 1,981,726 9,575,0D0 7XII.100 4,308,861 19,681,025 - 72.435.795 2017.18 24,894,400 2.036.022 9,v5,000 7.589.100 4,360,094 19.578,025 - 68,020,641 2018.19 - 24.899.025 1,992296 9,575,D00 7,589,100 4,806,927 19.566.817 - 67.969.105 eal 2019-20 24,837.651 2.033.703 9,575,0D0 T,Simi'm 4.365.361 19.595,900 - 67,978,A5 2M21 - 24,864,667 1.983.427 9,675,000 7,569,100 8,780.978 19.633,646 72,406,818 2021.22 - - 2,029MO 24,360,417 16,523,121 4,13D.753 19.622.437 - 68,S88,087 2022-23 2,070,027 24,20,729 16,566,354 4.129,179 19,614,209 - 66,675,498 2023.24 - - 2A13,577 24,323,084 16,692.553 4.127,041 19,602,813 - 66,769,108 202425 2.0414= 24259,730 16,799,563 4,129,239 19.597,042 - 66,529,897 2025-25 - - 1,981501 24,294,208 16,985,888 4,130,667 19,585,8D4 - 66,977.668 2026-27 - 2,015,364 5.409,000 17,148,713 23,030,094 19,572,398 - 67,175,667 2027.28 - - 2,D44,158 5,400,000 17288.636 22,972589 19,561,082 - 67,275,727 r 2M.29 - - 2,D68,3B1 5AMDDD 17.405.463 22916,494 19,545209 67,344,647 2029410 - - 1,993,140 6A09,M 17,499,188 23,762,812 19,533.376 - 68,197,623 203MI - - 2,012.932 30A51.188 17,668.208 - 19.515.917 - 69,651,245 2MI42 - - - 30,494,313 17.510,279 - 19.505229 - 67,809,821 r M-33 - - - 57,W,000 17,825,400 - 19,49003 - 94,719,963 203 34 - - - - 18.013,571 - 19.473.167 - 37A80,735 2034.35 - - - - 16.173,188 - 19.456.188 - 37,629,376 203 36 - - - 16.302.004 - 19,437,625 - 37,739,629 r 2MS-37 - - - - - - 19,420,375 - 19,42g375 Toole T4'S,d55W ,02 ,525 84-6.5 341— 385, 93,6B9 TMff 61 TTATlTff ,7 , 551 T 1, 74 ,692 r r r r Section 9—Page 5 r 2008-09 & 2009-10 Budget L Cert7cales of Parllcipation Debt Service Reouirements Annual Interest Pavmenis V Fiscal 1993 2000 2000 20M 2006 2007A 2007B 200M Trial Ifur Refunding Refunding Refunding AcquMoN AcquisitlaN Refunding AcqulslllaN Refunding InommA ,y or (9m1ea S (5edes A) CIP Relmb Consbu dlon Consbuc6on genial I) Combue0on (1992 Series) Per nW Term) Flseal Yen, 20 9 1.220,370 8,6051648 1.10.777 9.575,000 7,569.100 4,175,911 14,588,337 2,305,094 47,235,237 I 200&10 1,213.00 6,636,OW 1,166,016 9,575,000 7569.100 4,168,144 14,391.737 1,708.128 46,4UM 64 W10.11 12W,690 6,636,W0 1,1W,016 9.575,000 7.%9.100 4,160,061 14,185,371 1,074,802 45.536.840 2011-12 1,199.850 6,267,542 1,096,012 gx5,OW 7-M.iW 4.151.694 1308,671 843,472 46,671,341 — 2012-13 1.190,90) 5,857,694 1,058,487 9,575,WD 7M9.7W 4,142,927 13,741,D87 588,694 43,723,W9 Mn 14 1,181,90D 5,341,074 1,011,704 9,575,OW 7M9.100 4,133,761 13.476,586 48.761 42,337,766 {.a 2014-15 638,280 4.895.D79 M.592 9.575.000 7S89.1W 4,124,194 13,162,982 - 41,133207 20WO 447,640 4,464241 929,041 9S75,000 7,589,1W 4,114227 12,826,634 - 39,925,883 2016.17 M4 w 3S26SO4 881.726 9.575.WO 7569,100 4,10,861 12,471,D25 - 38,461,796 2017-18 - 2.994.400 836,022 9.575.000 7,569.100 4,003,094 12,108,025 - 37.175541 201&19 - 2,099.025 792,296 9.575.000 7,589,1W 4,081.927 11,726,817 - 35.044.165 2019.20 - 1.137.651 733.763 9,575.000 7569,1W 4,070.361 11,360,9W - 34,446.775 202031 - 164,667 083.427 91575.OW 7.569.10 3.980.978 10,98&646 - 32.961.818 21121-22 - - 629,359 9,260,417 7.423.121 3.860,753 10.6,17.437 - 31.Ml.087 20 Z1 - - 570,D27 8.490.729 7,055.354 3.849.179 10.004,209 - 30.OK498 2023.24 - - 513.6" 7.683,084 6.692,583 3,8,17,041 9,07,813 - 28,324,198 2024-25 - - 4 1.323 6,834.730 6299,563 3,824.239 9,087,042 - 26,489,897 202528 - - 381,W1 5,W.m 5,885,688 3,81OS67 8,55()AN - 24.572,868 2W&27 - - 315,364 5.4W,OW 5,448,713 3.43r,M 7.987.396 - 22,595567 led 2027-28 - - 244,458 SAW,OW 4,988,638 2,537,569 7,396.062 - 20,575.727 2028.29 - - 168.381 5,4W,OW 4.5W,463 1,W1,494 6,T52W - 16,159.647 — 202&30 - - 0.140 5.409OW 3,M,l 8 607.819 6.123,376 - 1623ZS23 203031 - - 12,932 4,576,188 3.468,MI8 - 5.438.917 - 13.796245 Iq 203132 - - - 3.SW,313 2.910,279 - 4,720.= - 11.199.821 203233 - - - 1.624.W0 2.325,400 - 3.965.563 - 7914,963 2033411 - - - - 1,713.571 - 3,173.167 - 4.W6,738 203435 - - - - 1.073,188 - 2.341.188 - 3.414.376 W 203538 - - - - 4W,004 - 1,467.625 - 1.869,629 203637 - - - - - - 550,375 - 550.375 _ T.W. 8.533,NO 56.925,5 515556.0/1 6194,333.669 $162,600 1 $80.864,995 32N.W2,9W $ 8.568,751 792M5,892 V V 6. L L Section 9—Page 6 L{ r Debt Financing Program .. LerlMicates of PaRiciOation Debt Service Requirements Mnual Principal Payments r Racal 1993 2000 2000 M03 H06 20D7A 2007B 20WA Togl Year Reiundln9 Refunding Refunding Acquieltlonl AoqulsltloN Refunding Acqulal0on) Refunding Principal r Of (Serlee B ISedee A) CIP Relmb Construction Construction (partial M) Conebuctlon (1992 Series) Per Paymenb Term) Flecal Year 200&O9 MAN - WO.OW - - 190,000 4.815AW 15.5 ,M 21,45 .WD r 2009.10 15&000 - 90D,OW - - 200.000 5A55,000 15,2WM 21.540,000 MIMI 15&OOD - MM - - 205,000 5,30&WO 15,80.OW 22.45&OW 2011-12 15&OW 11,4W,OW 9WdDDO - - 215,000 5,575.000 4.825.000 23A85,000 2012-13 200.M 10.300AOO 1.000,000 - - 225.00D 5A5&000 6.515Aa0 24,a9&WO MIM4 2W,(M10 12,300AW IMM - - 235,000 6,1".000 19,195,ODO 39A75AW r 2014-15 8,200.WO 11,000,000 1.10&DOO - - 245,00D 6.45&000 - 2&9%,W0 2015-16 &M.WO 11AW,000 f,100.000 - - 255,000 6,775AM - 2&130.000 201&17 9,10&OW 16AW,OW 1,100.OW - - 265.DDO 7,110.OW - 33A75.W0 2017-18 - 21.900.000 I== - - 275,000 7,470.OW - 3&84&OW r' 201&19 - 2 MO.000 1,200,000 - - 265,000 7,640,00D - 32.125AW 2111&20 - 23.700,000 1,300,OW - - 295,000 6,23&WD - 33AXODO 20 l - 24,700,000 1.300.000 - - 4.800,000 8,645.000 - M.A . W 2021-Y2 - - 1,40D,000 15,100A00 9,100.000 270,000 9,D75,OW - 3g945,000 r 2022-23 - - 1,5W.= 15,m.m 9,500AD0 280,000 9,530AW - 3&615,W0 202334 - - 1.SO = 16.640.000 10,000,000 290,000 10.0 .= - M,435,W0 2024.25 - - 1.M.000 17,425.OW 10,600,000 305,000 10,51000 - 4&34D,WD 202&26 - - 1,000,000 1&350.0W 11,100,000 320.000 II.M.M - 42AW.M r 202627 - - 1,70&000 - 11,700,D00 19,595,000 11,58&W0 - M,SBDm 2027-28 - - IAW,000 - 12,300,000 20.435.000 1;165,W - 4&7W,0W 202&29 - - l.M.WD - 12,900.000 21.316.000 12.770.= - 48.W5,OW 202&30 - - 1190&OW - 13.500,D00 23.155.000 13Ata,aW - 5t,96&0W r 203031 - - 2ADO.OW 26.575AW 14,200.000 - 14.080.DW - 5&85&OW 203132 - - - 26,M.= 14A00.000 - 14,785,OW - 5&610AW 203233 - - - 55.660,000 15,600.000 - 15,M wo - 8&80&000 2W&34 - - - - 16.30D,DDO - 16.=,Wo - 32.MM 17,10D,000 - 17.115.000 - 3&215,000 17,900,000 - 17,970.OW - 3&870A00 203837 - - - - - - 18,870.000 - 18.870M Tpfzle 2&9W,OW 165, 30� 700,006 11,5 ,000 19&6W,000 993,65&000 $300.OW, 77,18&ODO $1,082,42&000 r r r r r Section 9—Page 7 W 2008-09 & 2009-10 Budget w W v W This page was intentionally left blank W W L L V Section 9—Page 8 v Staffing Allocation Staffing by Department General Operations& Management Maintenance 29.75 299.25 �- Adminislrative — Sevicea 86.50 Technical Services 107.00 Engineering 108.50 Staffing by Category ' Operations& Supervisory Maintenance 10.1 33.5% - _ Engi4neering .8 Technical Services 3.1% Division Management 3.4% Part Time _ 1.i% Professional 34.4% Administrative 8.7% Executive Management 0.9% Section 10—Page 1 2008-09 & 2009-10 Budget Historical Staffing By Department 300 250 200 w _ r 150 100 • - _.� 50 0 2005.06 20D&V 2007-08 2008-09 2009-10 Fiscal Year �Gexral Management —AeminlelmlWe Servkee +Txenkel Sanlcx Engineering OxrMkns a MelMerence Total Historical Staffing 660.00 650.00 640.00 tw630.00 620.00 610.00 - 600.00 2005-06 2006-07 2007-08 2008.09 2009-10 Fiscal Year Section 10 - Page 2 r Historical Staffing Summary r Authorized Authorized Authorized Proposed Proposed Department and Division Name FTE FTE FTE FTES F7Es r 2005-06 2OD6-07 2007-08 2008-W 2009-10 OBios of the General Manager General Management Administration 2.00 3.00 6.50 6.50 6.50 Assistant General ManagerAdministralion - - 3.00 3.00 3.00 Board Services 5.50 6.50 5.25 5.25 5.25 Public Information Office 9.00 7.50 7.00 7.00 7.00 r Safety&Health 8.00 8.001 8.50 8.00 1 8.00 Department Subtotal 24.50 25.00 30.25 29.75 29.75 Administrative Services Department Administrative Services 2.00 2.00 2.00 2.00 2.00 Financial Management 20.00 19.00 18.00 18.00 18.00 r Contracts,Purchasing&Materials Management 27.50 29.50 31.50 29.50 29.50 F!lman Resources 28.00 19.00 16.00 16.00 23.00 Information Technology 32.00 32.00 30.00 31.00 31.00 Dapartrnanl Subtotal 109.501 101.50 97.50 96.50 103.50 Technical Services Department Technical Services Administration 4.00 4.50 3.00 4.00 4.00 r Environmental Compliance&Regulatory Affairs 15.00 16.00 18.50 16.50 16.50 Environmental Laboratory&Ocean Monitoring 37.00 38.00 48.50 46.50 46.50 Source Control 40.00 39.00 39.00 40.00 40.00 r Environmental Compliance Services 18.00 21.50 - Department Subtotal 114.00 119.00 109.00 107.00 107.00 Engineering Department Engineering Administration 3.00 3.00 2.00 2.00 2.00 Planning 16.00 16.00 16.00 19.00 19.00 Project Management Office 15.75 15.75 17.00 17.00 17.00 Engineering&Cmsbuction 64.00 63.50 58.50 60.50 60.50 Facilities Eingineaing 11.00 10.00 10.00 Department Subtotal 98.75 95.25 104.50 108.50 1106.50 r Operations&Maintenance Departmnt Operations&Maintenance Administration 5.00 4.00 2.00 2.00 2.00 Operations&Maintenance Process Engineering 14.50 14.50 12.D0 14.50 14.50 Plant No. 1 Operations 42.25 42.25 41.75 44.75 44.75 Plant No.2 Operations 47.50 47.50 46.00 48.00 48.00 _ Mechanical and Reliability Maintenance 58.50 73.00 74.00 57.D0 57.00 Instrumentation&Electrical Maintenance 54.50 W00 71.00 75.00 75.00 Process Controls Integration 13.00 - - - - _ FegiorW Assets&Services 8.00 0.00 6.00 - - Calledion Facilities Operations&Maintenance 24.00 24.00 23.00 24.D0 24.00 Facilities Maintenance Services 30.00 19.00 17.OD 34.00 34.00 Department Subtotal 297251 300.25 292.75 299.25 29925 r GrrnclTotal•AII Departments 644.001 644.00 1 634.001 641.00 648.00 Section 10-Page 3 2008-09 & 2009-10 Budget W Authorized Authorized Authorized Proposed Proposed _ F Es F FB FTEs FTFs FTB Division&Position 2005-06 2006-07 2007-08 2008-09 2009-10 W Office of the General Manager 110 General Management Administration General Manager 1.00 1.00 1.00 1.00 tA0 W, Assistant General Manager - 1.00 - - - Management Discretion - - 4.00 4.00 4A0 Secretary io the General Manager 1.00 1.00 1.00 1.00 1.00 Intent 0.50 0.50 OSO Total General Management Pdmirestration 200 300 6.50 6.50 6S0 150 Assistant General Manager Administration Assistant General Manager - - 1.00 1.00 1.00 4? Legislative Affairs Liaison - - 1.00 1.00 1A0 Principal Financial Analyst 1.00 1.00 1A0 Total Asst.General Management Administration 3.00 3.00 3D0 Lea 151 Board Services(famedy division 670) Board Services Supervisor - 1.00 - - - ClerkoftheBoard - - 1.00 1.00 1A0 Secretary to the Board of Directors 1.00 1.00 - - - Records Management Specialist 1.00 1.00 1.00 1.00 1A0 Associate Clerk of the Board I - - 1.00 1.00 1A0 Assistant Secretary to the Board of Directors 1.00 1.00 - - - r Administrative Assistant - - - 0.25 025 Progmm Assistant 0.50 0.50 0.25 - - '- Office Assistant 200 200 200 2.00 2.00 4 Total Board Services 5.50 6.50 5.25 5.25 525 162 Public Information Office(formerly dMsion 560) Public Information Manager 1.00 1.00 1.00 1.00 1 O0 W Public Affairs Supervisor 1.00 - - - - Principal Pudic Inlomation Specialist 1.00 1.00 1.00 1.00 100 Senior Public Inbnnation Specialist 200 200 200 2.00 2A0 Public Informaion Specialist 200 200 200 2.00 2A0 6. Exeahtive Assistant 1.00 - - - - AdministrativeAssistant 1.00 1.00 1.00 1.00 1110 Intent - 0.50 - I - - w Total Public Information Office 9.00 7.501 7.001 7.00 7A0 153 Safety&Health(formedy division 530) - Safety&Health Manage - - 1.00 1.00 1A0 Safety&Heath Supervisor 1.00 1.00 1.00 1.0D 1 A0 `tl Safety&Health Specialist 200 200 200 2.00 2.00 Security&Emergency Planning Specialist 1.00 1.00 1.00 1.00 1.00 Senior Safety&Health Representative 200 200 - - _ ear Safety&Health Representative 1.00 1.00 200 2.00 2.00 Hurnan Resources Assistant 1.00 1.00 1.00 1.00 1.00 Imam - - 0.50 � Total Safety&Health 8.00 &00 &50 8.00 800 Total Off ice of the General Manager 20.50 25.00 30.25 29.75 29.75 - W W Section 10-Page 4 W Historical Staffing Detail Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FrEs FTEs _ Division&Position 2005-06 2006-07 2007-08 200&09 2109-10 Administrative Services Department 210 Administrative Services Director of Finance&Administrative Services/Treasurer 1.00 1.00 1.00 1.00 1.00 r. Eeewtive Assistant 1.00 1.00 1.00 1.00 1.00 Taal Finance Administration 2-00 200 200 2.00 2D0 220 Financial Management Controller 1.00 1.00 1.00 1.00 1A0 Accounting Manager 200 200 200 2.00 2.00 Accounting Supervisor 1.00 1.00 1.00 1.00 1.00 Principal Accountant 4.00 4.00 So0 3.00 3D0 Principal Financial Analyst 1.00 200 200 2.00 2.00 Senior Stag Analyst 1.00 1.00 1.00 1.00 1.00 Accountant/SteAAnayst - 1.00 1.00 1.00 . Payroll Technician 200 200 200 2.00 2D0 Accounting Assistant II &00 6.00 Sol) 5.00 5D0 Taal Accounting 20.00 19.00 18.00 18.00 18DO 230 Contracts, Purchasing&Materials Management Contracts&Purchasing Manager 1.00 1.00 1.00 1.00 1 D0 Contracts Supervisor 1.00 1.00 1.00 1.00 100 Purchasing Supervisor 1.00 1.00 1.00 1.00 1.00 Principal Contracts Administrator 1.00 1.00 1.00 2.00 2D0 Materials Control Supervisor 1.00 1.00 1.00 1.00 1 DO Senior Contracts Administrator 4.50 4.50 5.50 3.50 350 yr Contracts Administrator 1.00 3.00 4.00 3.00 3D0 Senior Byer 200 3.00 200 2.00 2D0 Buyer 200 1.00 200 2.00 2D0 Administrative Assistant 4.00 4.00 5.00 3.00 3.00 ,,. Com2cts/Purchasing Assistant - - 2.00 2D0 Lead Storekeeper 3.00 3.00 3.00 3.00 3DO Senior Sbrekeeper 4.00 4.00 3.00 3.00 3110 +r inventory Control Technician 1.00 1.00 - - - Storekeeper 1.001 1.001 200 2.00 1 2110 Taal Contracts, Purchasing&Materials Management 27.50 29.50 31.50 29.50 2950 240 Human Resources(formerly division 510,520,540,550) Directorof Human Resources 1.00 1.00 - - - Human Resources&Employee Relations Manager - 1.00 1.00 1 DO Human Resources Manager 1.00 1.00 - - - Human Resources Supervisor 2.00 200 200 2.00 2A0 Principal Human Resources Analyst 1.00 1.00 1.00 1.00 too New Posaions(TBD) - - - - 7.00 Senior Human Resources Analyst 4.00 4.00 5.00 5.00 5.00 Human Resources Analyst 4.00 4.00 3.00 3.00 3D0 Executive Assistant 1.00 1.00 - ' _ Human Resources Assistant 200 200 3.00 3.00 3110 Program Assistant - - 1.00 1.00 1.00 Office Assistant 1.00 1.00 - - - Intems for agency Roo - - - - Planned Recruitment Position Pool($max) 200 200 - Taal Human Resources 2&OD 19.00 18.00 18.00 23D0 Section 10-Page 5 2008-09 & 2009-10 Budget Authorized Authorized Authorized Proposed Proposed FTEs FfEs FTEs FfEs FTEs Division&Position 20D5-06 2006-07 2007-08 200&09 2009-10 v 25D Information Technology(formerly divisions 910,920,930,antl 940) Director of Information Technology 1.00 1.00 - - - - Infomatlon Technology Systems&Opera4ons Manager - - 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 W Office Assistant 1.00 1.00 - - - Information Technology Manager 1.00 1.00 1.00 2.00 2D0 Information Technology Supervisor 1.00 1.00 - - - y Principal lnfommalon Technology Analyst 1.00 1.00 200 7.00 7.00 Senior lnfomation TechrofogyAnalyst 3.00 5.00 4.00 8.00 8D0 Information Technology Analyst 111 7.00 5.00 3.00 5.00 5.00 Infomnalion Technology Analyst ll 1.00 1.00 1.00 2.OD 2D0 Engineering Data Management Technician 11 - - - - - InfomationTechnologyAnaystl 1.00 1.00 200 2.00 2D0 Staff Analyst - - 1.00 1.00 1.00 it Infonration Technology Technician ll - 1.00 200 2.00 2.00 Information Technology Technician 1 200 1.00 Total Administration,Customer&Network Support 20.00 20.001 18.00 31.OD 31.00 W 940 Information Technology Programming&Database Systems Information Technology Manager 1.00 1.00 1.00 - - Principal Inforrnation Technology Analyst 3.00 5.00 5.00 - - Senior lnfomalionTechnologyAnalyst 4.00 4.00 4.00 -Information Technology Analyst 111 4.00 200 200 Total Programming&Database Systems 1200 1200 1200 95D Information Technology Process Controls Integration Process Controls Manager 1.00 - - -Senior Engineer 1.00 - - - - Principal lnforne4on Technology Analyst 1.00 - - - - iy Engineer 4.00 - - - Senior lnfometfonTechnologyAndysl 2.00 - - - Infonnation Technology Analyst 111 4.00 - - V Taal Process Controls Integration 13.00 Total Administrative Services Department 12250 101.50 97.50 96.50 10350 Technical Services Department 610 Technical Services Administration Director of Techrdcal Services 1.00 1.00 1.00 1.00 1 AO Legislative Affairs Liaison 1.00 1.00 - Senior Engineer - - 1.00 1.00 1D0 Associate Engineer ll - - - 1.00 iDO Grants Specialist - 1.00 - - - SeniorEnvironmentalSpedalist 1.00 - - Source Control Inspector 11 - - - - Executive Assistant 1.00 1.00 1.00 1.00 1 DO Intent - 0.50 - 'w Total Technical Services Adninistralon 4.00 T50 3.00 4A0 14.00 I , W Section 10-Page 6 u r Historical Staffing Detail r Authorized Authorized Authorized Proposed Proposed FfEs FfEs FTE9 FfEs FTEs Division&Position 2005-05 2MB-07 2007-08 2DMO9 2009.10 620 Environmental Compliance& Regulatory Affalrs Envirmmental Assessment Manager 1.00 1.00 1.00 i.OD 1DO r Environmental Supervisor - - 3.00 2.00 2DO Legal&RegulahuyAffairs Liaison 1,00 1.00 - - - Senior Engineer - - 1.00 1.00 1.00 Senior Scientist 200 200 1.00 1.00 iDO Engineer - - 1.00 1.00 1D0 Boat Captain 1.00 1.00 - - RegulatorySpecialist 1.00 1.00 3.00 2.00 2.00 r Associate Engineer 10 - - 1.00 1.OD 1D0 Principal Environmental Specialist &00 &00 200 2.01) 2.00 Senior Environmental Specialist &00 3.00 &00 3.00 3.00 Environmental Specialist 200 200 - - - r Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Intem 1.00 1.50 1.50 1.60 Total Environmental Assessment 15.00 16.00 18.50 16.50 18bD r 630 Environmental Laboratory and Ocean Monitoring Laboratory Manager 1.00 1.00 1.00 1.00 1.00 Laboratory Section Supervise 4.00 4.00 3.00 3.00 3.00 Environmental Supervisor - - 1.00 1.OD 1.00 r LIMSAdministmte 200 2.Oo 1.00 1.00 1.00 Senior Scientist 1.00 1.00 3.00 3.00 3DO Boat Caplan - - 1.00 - - Scientist 2.00 zoo 200 2.00 2410 Principal Environmental Specialist - 200 2.00 2.00 Principal Laboratory Analyst 9.00 9.00 10.00 10.00 10DO Senior Environmental Specialist - - 3.00 COD 4110 r Senior laboratory Analyst 7.00 8.00 11.00 11.OD 11DO Environmental Specialist - - 1.00 1.00 1D0 Laboratory Analyst 6.00 6.00 3.00 3.00 3DO Administrative Assistant 1.00 1.00 1.00 1.00 1 DO r laboratory Assistant 3.00 &00 3.00 3.00 3,00 Program Assistant 1.00 1.00 1.00 - - Intem 1.00 1.50 0.50 050 Total Environmental Sciences Laboratory 37.00 3&00 48.50 46.50 4650 r 540 Source Control Source Control Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 200 200 2.00 2.00 2D0 r Senior Regulatory Specialist 1.00 1.00 1.00 1.00 1.00 Engineer 7.00 7.00 6.00 6.00 6.00 Regulatory Specialist 1.00 1.00 1.00 1.00 1DO Source Ccntml Supervisor 1.00 1.00 1.00 1.00 1.00 r Associate Englreer 111 &00 3.00 &00 3.00 3DO Principal Environmental Specialist 3.00 200 200 2.0D 2D0 Senior Environmental Specialist - - 1.00 2.00 2DO Source Control Inspector ll 1200 12.00 1200 11.01) 11 DO Enviro manal Specialist 1.00 1.00 -Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Environmental Technician 200 2.00 &00 3.00 3DO r Program Assistant 4.00 4.00 4.00 5.00 5.00 06ioe Assisten 1,00 1.00 1.00 1.00 1.00 Total Source Control 40.00 39.00 3&00 1 40.00 40DO Section 10-Page 7 r L 2008-09 & 2009-10 Budget i I. lr Authorized Authorized Authorized Proposed Proposed FTES FTES FTEs FTEs FTEs Division&Position 20D5-W 2006-07 201 2008.09 2DD9-10 L 060 Environmental Compliance Services Engineering Manager 1.00 1.00 - - Engineering Supervisor 1.00 1.00 - - - Legal&RegulatoryAffairsLiaison 1.00 1.00 - - 'y Senior Engineer 1.00 1.00 - - SeniorScientist 1.00 1.00 Engineer 2.00 3.00 - - - 1 Regulatory SPWIaII3t 2.00 1.00 - - LI As soclate Engineer 111 2.00 2.00 - - PrinclpalEnvlronmentalSpecialist 1.00 1.00 - AssoelateEnglneerll 1.00 - - SeniorEnvironmentalSpecialist &00 4.00 Environmental Specialist 1.00 1.00 - - AdministrativeAssistant 1.00 1.00 - - - EnvironmentalTechnician 1.00 1.00 Imem 1.501 b Total Environmental Compliance Services 1600 21.60 Total Technical Services Department 114.00 110.00 100.00 107.00 10700 Engineering Department W 710 Engineering Administration Dlreclor of Enginearing 1.00 1.00 1.00 1.00 1 DO Senior Engineer 1.00 1.00 - � Executive Assistant 1.00 1.00 1.00 1.00 1 DO Total Engineering Administration &00 3.00 2.00 2.00 2.00 740 Planning Engineering Manager 1.00 1.00 1.00 1.00 1.00 V Engineering Supervisor 1.DO 1.00 1.00 2.DD 2DO Senior Engineer 1.00 1.00 - 1.00 1DO Engineer 1.00 1.00 2.00 3.00 3DO L Principal Engineering Dale Management Specialist - 1.00 - - - Son[or Engbearing Data Management Specla list 1.00 1.00 1.00 1.00 1DO Engineering Data Management Specialist 1.00 - - Assoclale Engineer 111 1.00 1.00 1.00 - y Senior Engineering Associate 2.00 2.00 2.00 3.00 3.30 Engineering Associate 1.00 1.00 200 2.00 2110 Engineering Data Management Technician It 3.00 3.00 &00 2.00 2DO Engineering Assistant ll 1.00 1.00 1.00 1100 y Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Engineering Assistant l 1.00 1.001 2.00 2.00 1 2A0 - To1al Planning 16.00 1&00 16.00 19.00 1ODO 760 Prefect Management Office Engineering M onager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 1.00 1.00 1.00 1.00 1100 Senior Capital Improvement Program Project Manager - - 1.00 1.00 1DO Capital Improvement Program Project Manager 8.00 8.00 8.00 6.00 6D0 ise Senior Engineer - - - 1.00 120 Principal Engineering Data Management Specialist 1.00 1.00 1.00 L Principal Starr Analyst 2.00 2.00 zoo 2.00 240 Coat Estimator - - 1.00 1.00 1.00 Planner/Scheduler 1.00 1.00 1.00 1.00 1.00 Engineering Assistant ll 0.75 0.75 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 - led Office Assistant 1.00 1.00 1.00 1.00 1 DO Tagil Project Management office 15.75 15.75 17.001 17.00 1 17,001 L Sectlon 10-Page 8 1 , V r Historical Staffing Detail r Authorized Authorized Authorized Proposed Proposed FTFs FTEs FTEs FfEs FTEs Division&Position 20D5-06 2005-07 2007-08 2008-09 2009-10 r 760 Engineering& Construction Engineering Manager 1.00 1.00 1.00 1.00 1 DO Engineering Supervisor 4.00 4.00 4.00 4.00 4D0 r Senior Construction Inspection Supervisor 1.00 1.00 1.00 1.00 1.00 Senior Engineer 6.00 7.00 &OO 9.00 9DO Construction Inspection Supervisor 3.00 3.00 3.00 2.00 2D0 Engineer 13.00 1200 10.00 12.00 12.00 r Principal Staff Analyst - - - 1.00 1DO Associate Engineer 111 4.00 4.00 4.00 5.00 5.00 Cost Estimator 1.00 1.00 - - r FimnerScheduler 1.00 - - - SeniorEngineerogAssociate 200 2.00 1.00 1.00 1.00 Senior Construction Inspector 9.00 S.00 7.00 7.00 7.00 Associate Engineer ll 1.00 - - - - r Engineering Associate 1.00 1.00 - - - Construction Inspector 9.00 8.00 10.00 10.00 10.00 Engineering Assistantll 3.00 3.00 &00 2.00 2A0 r Administrative Assistant 4.00 3.00 3.00 4.00 4110 Engineering Assistant I 1.00 1.00 1.00 1.00 1.00 Office Assistant 1.00 1.00 1.00 - - Intem 1.50 1.50 0.50 050 r Total Engineering&Construction 6400 63.50 58.50 60.50 6050 770 Facilities Engineering Engineering Manager - - 1.00 1.00 1DO 'r Engineering Supervisor - - 1.00 1.00 1DO Senior Engineer - - 1.00 - - Engineer - - 5.00 5.00 5.00 Associate Engineer III - - 1.00 1.00 1.00 Associate Engineer 11 - - 1.00 - - EngineeringAssociate - - - 1.00 1.00 Administrative Assistant 1.00 1.00 1.001 Total Facilities Engineering - 11.001 10.00 10DO Total Engineering Department 99.75 9&25 104.50 108.50 10850 ,., Operations&Maintenance Departrnent 810 Operations&Maintenance Administration Director of Operations&Maintenance 1.00 1.00 1.00 1.00 1.00 Principal Financial Analyst 1.00 1.00 - - °� Utilities Management Specialist 200 1.00 - - - ExecutiveAssistanl 1.00 1.00 1.00 1.00 1.00 Total Operators&Maintenance Administration 5.00 4.00 200 2.00 2.00 410 Regional Assets&Services Director of Regional Assets&Services 1.00 1.00 - -Engineering Supervisor 1.00 1.00 1.00 - - ,,� Senor Engineer 1.00 1.00 1.00 - - Engineer 1.00 1.00 - - - PrincipaiFlrencialAnalyst 1.00 1.00 1.00 - - PrincipalStaffAnalyst 1.00 1.00 1.00 - - r Senor Engineering Associate 1.00 1.00 1.00 - - &eoutiveAssissnt 1.00 1.00 1.00 Total Regional Assets&Services 8.00 &00 6.00 Section 10-Page 9 2008-09 8l 2009-10 Budget W Auhorzed Authorized Authored Proposed Proposed FTEs FTEs FTEs FTEs FTEs Division&Position 2005-06 2008-07 2037-08 200849 2009-10 y 420 Collection Facilities Operations&Maintenance Engineering Manager - 1.00 1.00 1.00 1 DO Senior Maintenance Supervisor 1.00 1.00 - -Maintenance Supervisor 200 200 200 2.00 2D0 r Senior Engineering Associate - - - - - CMMS Technician ll 1.00 - - - Lead Mechanic 4.00 4.00 4.00 4.00 4.00 y Senior Mechanic &00 9.00 9.00 9.00 9D0 Executive Assistant - - - - - Administrative Assistant - - - 1.00 1D0 Mechanic 8.00 7.001 7.00 7.00 1 700 Total Collection Facilities Operations&Mal ntenance 24.00 24.001 23.00 24.00 2400 43D Facilities Maintenance Services Facifi ies Manager - 1.00 1.00 1.00 1.00 Senior Maintenance Supervisor 1.00 1.00 - - Maintenance Supervisor 3.00 200 200 4.00 4.00 Maintenance Specialist 200 - - 7.00 700 CMMS Technician ll 1.00 - - 6.00 eD0 Lead Mechanic 200 1.00 1.00 1.0D 1D0 Lead Welder/Fabricsbr 1.00 - - - - Maadnist 1.00 - - - - AatomotivelHeavyEquipmentTechnician 3.00 3.00 3.00 3.00 3.00 _ Equipinea Operator 3.00 3.00 200 2.00 2.00 Senior Mechanic 100 - Welder/Fabricator 200 - - - EngineeringAssistantl - - - 1.00 1110 Lead Facilities Worker 3.00 3.00 3.00 3.00 3.00 W Facilities WorkerMuikler 200 200 200 2.00 2D0 Facilities WodcerFainter 200 200 200 2.00 2.00 Aatomtve/Heavy Egapmea Assistant 1.00 1.00 1.00 1.00 1.00 Office Assistant 1.00 10o Ivy Taal Facilities Maintenance Services 30.00 1900 1700 34.00 34.00 82D Operations&Maintenance Process Engineering Engineering Manager 1.00 1.00 1.00 - - W Engineering Supervisor 1.00 1.00 1.00 1.00 1.00 Senior Engineer 3.00 3.00 200 3.00 3.00 Senior Scientist 0.50 0.50 0.50 1.00 1.00 `, Engineer 5.00 5.00 - 1.00 1.00 Principal Financial Analyst - - - 1.00 1.00 Regulatory Specialist - - 1.00 1.00 1.00 Associate Engineer 111 200 200 200 2.00 200 Senior Ervironmental Specialist 1.00 1.00 &00 3.OD 300 Administrative Assistant 1.00 1.00 - - - EnvironmentalTechnician - 1.00 1.00 1D0 W Intern 0.501 0.501 0.50Total Operations&Maintenance Process Engineering 1450 1450 12-001 14.50 1 14.50 - W Section 10- Page 10 W Historical Staffing Detail r Authorized Authorized Authorized Proposed Proposes! i FTEs FTEs FrEs FTEs Division&Position 20D5-06 2006-97 20D7-08 200&09 20D9-10 r 830 Plant No.1 Operations Engineering Manager - - - 1.00 1.00 Operations Manager 0.50 0.50 - - - �. Chief Plant Operator 1.00 1.00 1.00 1.00 1.00 Operations Supervisor 7.00 7.00 7.00 7.00 7A0 Lead Plano Operator - - 5.00 5.00 6.00 r Senior Plant Operator 16.00 16.00 16.00 17.00 17A0 Administrative Assistant 0.75 0.75 0.75 0.75 0.75 plant Operator 14.00 14.00 9.00 10.00 10.00 Control Center Technician 3.00 3.001 3.00 3.00 3A0 •+ Total Plant No.1 Operations 4225 42251 41.75 44.75 44.75 840 Plant No.2 Operations Operations Manager 0.50 0.50 - - - Chief Plant Operator 1.00 1.00 1.00 1.00 1A0 Operations Supervisor &oo 7.00 7.00 7.00 7A0 Lead Plant Operator - - 5.00 5.00 5A0 r Senior Plant Operator 11.00 1200 12-00 13.00 13.00 Rant Operator 24.00 24.00 18.00 19.00 19.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Equipment Operator 1.00 1.00 1.00 1.00 1.00 Control Center Technician 1.00 1.00 1.00 1.00 1DO Total Plant No.2 Operations 47.50 47.501 46.00 48.00 48.00 850 Mechan Nat and Reliability Maintenance a+ Maintenance Manager 0.50 1.00 1.00 1.00 1.00 Senior Engineer - - 200 - - Senior Maintenance Supervisor 1.00 1.00 1.00 1.00 1 AO r Engineer 1.00 1.00 200 - - L1Nites Management Specialist - - 1.00 1.00 1.00 Maintanance Supervisor Soo 7.00 7.00 5.00 5.00 Associate Engineer 111 - - 1.00 1.00 1.00 a+ Maintenance Specialist 3.00 7.00 7.00 - - Reliability Technician - - 1.00 1.00 CMMS Technician ll 200 &00 6.00 - - LeadElectricalTechnician - 1.00 - - - Lead Paver Plant Operator 1.00 - - - - 9ecbicel Technician ll - 200 - - - Lead Mechanic 3.00 Soo 5.00 5.00 5.00 Lead Welder/Fabrirabr 1.00 1.00 1.00 1.00 Power Plant Operator ll 9.00 - - - - Machinist - 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Senior Mechanic 30.00 34.00 3100 33.00 33.00 W81der/Fabricator - 200 200 2.00 2.00 Engineering Assistant l 1.00 1.00 1.00 - - Senior Maintenance Worker 1.00 1.00 - - - Mechanic - - 1.00 2.00 2.00 Maintenance Worker - - - 2.00 2A0 r Office Assistant 1.00 1.00 Total Mechanical and Reliability Maintenance 58.50 73.00 74.00 57.00 57.00 Section 10-Page 11 2008-09 & 2009-10 Budget j V Authorized AtdhDdM Authorized Proposed Proposed _ FTEs FTEs FTEs FfEs FTEs . Division&Position 20D546 2MO-07 2007.08 2008-09 200910 L 86D Instrumentation& Declrical Maintenance Maintenance Manager 0.50 - - - - ProcessControlsManager - 1.00 1.01) 1.0D 1110 Engineering Supervisor 1.00 1.00 2.00 2D0 Senior Engineer - 1.00 200 2.00 2D0 Principal lnforma6on Technology Analyst - 200 200 2.00 2A0 Senior Maintenance Supervisor 1.00 1.00 - - - L Engineer 4.00 200 2.OD 2.00 Senior Information TechnclogyAnslyst - 200 3.00 3.00 3.00 Maintenance Supervisor &00 &Do 500 5.00 5100 L Maintenance Specialist S00 - - - - IrdormationTechnologyAnaystIII - a00 200 2.00 2D0 CMMS Technician If 200 - - - - Infomallon Technology Analys1ll - - 200 1.0D 1.00 r Lead Electrical Technician S00 200 4,00 4.00 4.00 Lead Instrumentation Technician 200 200 200 3.00 3D0 Lead Power Plant Operator - 1.D0 1.00 1.00 1DO 9ectrical Technician It 16.00 14.00 15.00 15.00 15.00 Instrumentation Technician 11 19.00 19.00 19.00 19.00 19D0 Power Plant Operator ll - 9.00 &DO 9.OD 9D0 Admiristralive Assistant 1.00 1.00 1.00 1.00 1DO v Electrical Technician l - - 1.00 1D0 _ Instmnentetion Technician l - - 2.00 2A0 Once Assistart 1.00 Total Instrumentation&Electrical Maintenance 54.50 68,00 71.00 75.00 75D0 Total Operations& Maintenance Department 28425 300.25 29275 299.25 29925 - Grand Total,All Departments 64400 644.00 634.00 641.00 648D0 r W j w tra V Seogon 10-Page 12 r Appropriations Limit r Appropriations Limit In certain situations, proceeds of taxes r Article XIIIB of the California State Constitution, may be spent on emergencies without more commonly referred to as the Gann Initiative having to reduce the limit in future years. or Gann Limit,was adopted by California voters in 1980. The Gann Limit placed limits on the amount Each agency also conducts a review of Its r of proceeds of taxes that state and local Appropriations Limit during Its annual governmental agencies can receive and financial audit. appropriate(authorize to spend)each year. r The law requires a goveming body to annually The limit is different for each agency and the limit adopt, by resolution,an appropriations limit for the changes each year. The annual limit is based on following year,along with a recorded vole the amount of tax proceeds that were authorized regarding which of the annual adjustment factors r to be spent in fiscal year 1978-79 in each agency, have been selected. The Orange County modified for changes in inflation and population in Sanitation District's appropriations limit and annual each subsequent year. adjustment factors are adopted at the same r meeting as the budget. The adjustment factors Proposition 111 was passed by the State's voters used for 2008-09 are the weighted average in June 1990. This legislation made changes to change in city population and the change in state the manner in which the Appropriations Limit is to per capita personal income. r be calculated: The following table shows the annual The annual adjustment factors for inflation appropriations limit for each of the last two years r, and population have been changed. and the appropriations limit and the appropriations, Instead of using the lesser of California or proceeds from taxes,for 2008-09. The increase per capita income, or U.S. CPI,each in the limit is based upon population changes agency may choose either the growth in ranging from 0.34%to 2.58%for major cities �+ the California per capita income,or the within the District as provided by the State growth in assessed valuation due to new Department of Finance and a per capita personal non-residential construction within the income change of 4.29%as provided by the State r district. For population, instead of using Department of Finance. only the population growth of an agency, each agency may choose to use the Annual Appropriation Limits: population growth within its county. These 2006-07 $71,515,000 r are both annual elections. 2007-08 $75,209,000 The revised annual adjustment factors will 2008-09 $79,163,000 r be applied to the 1986-87 limit for most proceeds of Taxes(Appropriations) agencies and each year in between in order to calculate the 1990-91 limit. The 2008-09 $26,416,000 actual limits for the intervening years, �r however, are not affected. As a result of the July 1998 consolidation of the District,a single limit is presented in contrast to Expenditures for`qualified capital outlay", individual limits shown in years prior to 1998. which are capital assets with a value of Population changes for representative cities have r more than $100,000 and an expected life continued to be used in order to ensure of 10 years or more, are excluded from the consistency and to eliminate significant population limit. growth in parts of the County outside of the r District's service area. This method results in a An agency which exceeds the limit in any lower limit than using the County-wide change. one year may choose to not give a tax refund if they fall below the limit in the next r fiscal year. They then have two more years to refund any remaining excess or to obtain a successful override vote. r Section 10-Page 13 i u 2008-09 & 2009-10 Budget W Budget Glossary Budget Document: The official financial spending and resource plan Accounting System: submitted by the General Manager,adopted by L The set of records and procedures which are the Board of Directors, and made available to the used to record,classify, and report information public and other interested parties. on the financial status and operations of an entity. Budget Message: �+ A written explanation by the General Manager of Accrual Basis Accounting: the proposed budget. The budget message Under this accounting method,transactions are explains principal budget and policy issues and L recognized when they occur, regardless of the presents an overview of the General Manager's timing of related cash receipts and budget recommendations. disbursements. Budget Calendar. Administrative and Clerical. The schedule of key dates which the District An employee group that provides administrative follows in preparing and adopting the budget. and clerical support. r; Capital Facilities Capacity Charge: Ad Valorem Taxes: A one-time, nondiscriminatory charge imposed at The District's allocated share of the property the time a building or structure is newly taxes assessed by the County representing a 2% connected to the District's system,directly or V annual increase in assessed values of properly indirectly,or an existing structure or category of taxes. use is expanded or increased. This charge is to pay for District facilities in existence at the time i Annual Budget: the charge is imposed,or to pay for new facilities V A budget applicable to a single fiscal year. to be constructed in the future,that are of benefit to the properly being charged. This charge does I Appropriation Ordinance. not apply to temporary facilities. 60 The official legal document approved by the District's Board of Directors authorizing officials Capital Improvement Program: to obligate and expend resources. A plan over a period of five years setting forth each capital project,the amount to be expended Appropriation: in each year,and the method of financing capital -. An authorization made by the District's Board of expenditures. Directors which permits officials to incur u obligations against and to make expenditures of Capital Outlay: governmental resources. Operating Cash outlays which result in the acquisition of or - appropriations are typically granted for a one- additions to capital assets. Examples include W year period. land, buildings, machinery,equipment,and other improvements. Assessed Valuation: The estimated value of real and personal Capital Assets: W property used by the Orange County Assessor Assets of significant value which have a useful as the basis for levying property taxes. life of several years. Examples are land, - buildings, other improvements, machinery,and v Balanced Budget: equipment. A budget in which the sum of estimated net revenues and appropriated fund balances is Cash Basis Accounting: equal to appropriations. A basis of accounting under which transactions are recognized only when cash Is received or Biennial Budget: disbursed. , A budget applicable to two individual fiscal years. i,-, L Section 10-Page 14 W Budget Glossary r Certificates of Participation(COPS): Enterprise Fund: A type of debt financing in which certificates are In governmental accounting, a fund that provides Issued which represent an investors goods or services to the public for a fee that participation In the stream of lease payments makes the entity self-supporting. paid by the Issuer. COPS are secured by the lease payments. Voter approval is not required Executive Manager., prior to Issuance. The group of employees which head each department. Comprehensive Annual Financial Report (CAFR): Expenditures/Expenses: The official financial report of a government. It Where accounts are kept on the accrual basis of includes an audit opinion as well as basic accounting,expenses are recognized when financial statements and supporting schedules goods are received or services rendered. Where necessary to demonstrate compliance with legal accounts are kept on a cash basis,expenditures and contractual requirements of the District. are recognized only when the cash payments are made. Contingency., r A budgetary reserve set aside for emergencies FEMA: or unforeseen expenditures not otherwise Federal Emergency Management Agency. This budgeted. agency provides federal grant monies for _ disaster relief. Contingent Liabilities: r:Yea Items which may become liabilities of the District A Fiscal scat Year., period to which the annual operating but are undetermined at a given date,such as r pending law suits, unsettled disputed claims, budget applies and at the end of which a unfilled purchase orders,and uncompleted government determines Its financial position and contracts. results of Its operations. The District's fiscal year runs from July 1 -June 30. Contractual Services: Personal services provided to the District from Five-Year Financial Forecast., the private sector or other public agencies. Estimates of future revenues and expenditures to help predict the future financial wndition of Debt Service: the community. Payment of interest and repayment of principal to holders of the District's debt instruments. FLSA: r The Fair Labor Standards Act sets minimum Decision Package: wage,overtime pay, equal pay,and Child Labor A standardized format whereby departments Standards to private and public sector may request budgetary consideration for new employees. Enforcement of the FLSA is programs, positions,capital equipment,and assigned to the Department of Labor(DOL), position reclassification. Wage and Hour Division. r Deficit: Full-Time Equivalents(FTE): The excess of an entity's liabilities over its The amount of time a regular, full-time employee assets. normally works in a year. For example,a full- time employee(1 FTE)is budgeted to work Encumbrance: 2,080 hours per year,while a .5 FTE is budgeted An amount of money committed for the payment to work 1,040 hours per year. of goods and services not yet received or paid for. Fund: An independent fiscal and accounting entity with Engineers: a self-balancing set of accounts recording cash A professional engineers/employee group. and/or other resources together with all related liabilities,obligations, reserves, and equities. Section 10-Page 15 L 2008-09 & 2009-10 Budget L Fund Accounting: Improvements: System used by nonprofit organizations, Buildings,structures, or attachments to land particularly governments. Since there is no profit such as sidewalks,trees,drives,tunnels,drains V motive,accountability is measured instead of and sewers. profitability. The main purpose is stewardship of financial resources received and expended In Interest.- compliance with legal requirements. Revenue derived from the investment of idle V cash and/or reserves. Fund Equity: The excess of an entity's assets over liabilities. Intergovernmental Services: Purchases from other governments of those Lr General Obligation Bonds: specialized services typically performed by local Bonds for which the full faith and credit of the governments. insuring government are pledged for payment. Ad valorem property taxes are pledged to pay Intergovernmental Revenue: the bonds. A two-thirds voter approval is Revenue received from other governmental required prior to bond issuance. agencies and municipalities. L Generally Accepted Accounting Principles Levy' (GAAP)r (Verb)To impose taxes, special assessments,or Uniform standards for financial accounting and service charges for the support of governmental reporting. They govern the form and content of activities. (Noun)The total amount of taxes, the basic financial statements of an entity. special assessments,or service charges imposed by a government levying property Government Finance Officers Association taxes. W (GFOA): Long-Term Debt or Long-Term Liabilities: A nonprofit, professional association,serving Debt borrowed from a source outside the District 13,000 government finance professionals with a maturity of more than one year after the lr through the United States and Canada. date of issuance. GFOA's Distinguished Budget Presentation Maintenance Employees: L Award Program:The only national awards program in An employee group of the District. governmental budgeting. It represents a significant accomplishment in meeting the Manager Employees: L highest principles of governmental budgeting The group of employees who assume and satisfying nationally recognized guidelines management responsibilities for operating for effective budget presentation. divisions. W GFOA's Recommended Practices: NPDES(National Pollution Discharge A listing of the Accounting,Auditing,and Elimination System): Financial Reporting practices recommended by Permit system established by the U.S. U the Government Finance Officers Association of Environmental Protection Agency to regulate the United States and Canada. discharge of treated sewage, storm water, and urban runoff. Groundwater Replenishment System(GWR): u A joint project by the Orange County Water Object: District(OCWD)and the District,the GWR will An expenditure classification which refers to the reclaim up to 100 million gallons a day of the type of item purchased or the service obtained. V Disbict's secondary effluent. It is in the final year Examples Include personnel, supplies,or of construction and when completed will be the contract services. largest water reclamation project in the nation. 6w 64 Section 10-Page 16 L Budget Glossary DES: Program: State Office of Emergency Services. This agency Organizational units directed to attain specific provides state grant monies for disaster relief. purposes or objectives. Operating Engineers: Reserve: An employee group of the District. A term used to indicate that a portion of fund ,r equity is restricted for a specific purpose. Operating Budget: The operating budget is the primary means by Resources: which most of the financing of acquisition, Total dollars available for appropriations spending,and service delivery activities of a including estimated revenues and beginning fund govemment are controlled. equity. Other Revenues: Revenue Bonds: Revenues from sources, other than those Bonds issued pledging future revenues such as specifically identified,that are immaterial in sewer charges to cover debt payments. A amount and do not justify reporting as separate majority voter approval is required prior to bond line items. issuance. Other Charges: Revenue Estimate: Expenditures that do not fit in other categories, A formal estimate of how much revenue will be are immaterial in amount,and do not justify earned from a specific revenue source for some reporting as separate line items. future period,typically a fiscal year. Performance Measure: Revenue: Represents the objectives of each department Income received by the District to support along with a target date for achieving the wastewater treatment services. This income r. objective. may be in the form of property taxes,fees, user charges, grants, and interest. Performance Results: A summary of major accomplishments and Service Charges: objectives that were met during the fiscal year. Charges for specific services rendered. Permits: Service Description: Revenues earned by the issuance of permits A description of the services or functions levied in accordance with the benefits conferred provided by each department or division. by the permit. Significant Changes: �e Personnel: This section provides an overview of the Salaries and benefits paid to the District's changes adopted in the budget. Additionally,the employees. Included are items such as special significant impacts of budgetary changes are duty pay, insurance,and refirement. outlined(Budget Impact)along with dollar amounts(Increase/Decrease). Personnel Benefits: Goals: Gg Strategic G Those benefits paid by the District as conditions S Strafe is goals that demonstrate the District's of employment. Examples include insurance and retirement benefits. long-term commitment to excellence and that establish the framework necessary to maintain Professional Employees: the District's high standards. An employee group consisting of technical experts,analysts,and planners. Section 10- Page 17 s V 2008-09 8t 2009-10 Budget Strategic Plan: A planning effort to define the District's goals, responsibilities, and requirements over a L specified future period. Key factors used in the planning effort include estimates for population growth,new construction,the volume of wastewater delivered to the plants,and viable V water conservation and reclamation programs. Supervisory Employees: V An employee group whose members have responsibility for directing the work of line employees. 4 Supplemental Appropriation: An appropriation approved by the Directors after the initial budget is adopted. Supplies: An expenditure classification for articles and commodities purchased for consumption or L resale. Examples include office and operating supplies,fuel, power,water,gas inventory,or - small tools and equipment. ar Taxes: Compulsory charges levied by a government for the purpose of financing services performed for y the common benefit. Technical Services: Support services to the District's wastewater management program through environmental sampling, analysis and research, source control of industrial users,administration of compliance IW programs to meet federal, state and local environmental standards;provides leadership and influence in the development and implementation of environmental policies, laws, Ld and regulations. i V 6.1 V I L I • L Section 10-Page 18 W _ Miscellaneous Statistics General Information Year of Formation.................................................1948 Miles of Beware..................................................568 miles Form of Government............County Sanitation District On-Plant Pump Station............................................1 Authority.....................................Section 4700 at.seq. Off-Plant Pump Stations.................................................16 .......i..........................California Health 8 Safety Code Operating Authority...............RWQCB/NPDES Permit No. Servce Area............................................471 sq.miles ............................................................CA0110604 Service Population...............Approximately 2.5 million ..........................Statewide WDR Order No.2006-0003 2007-08 Assessed Value........................$292.7 billion Authorized Staff(Full-Time Equivalent)...................641.00 Treatment Information Daily Influent Flow to Total Primary 2006-07 Influent BOD: Capacity Comparison(in mgd) Plant No. 1 .........................290 milligrams per liter °T2 Plant No. 2.........................230 milligrams per liter 400 2006-07 Influent Suspended Solids: 2°° 204 t6B 221 Plant No. 1 .........................273 milligrams per liter 2°p 93 Plant No. 2.........................270 milligrams per liter 100 2006-07 Effluent BOD.......................48 milligrams per liter ° 2006-07 Effluent Suspended Solids..33 milligrams per liter 14-11 Pi. 12 Tme Cepeclty-Prlmery TreaVnenl�30pT-flit EeL lnlluenl 2006-07 Biosolids Beneficially Used .......231,480 wet tons � O Primary Treatment Capacity(includes standby): 2007-08 Estimated Average Daily Influent: Plant No. 1 ........................................204 mgd Plant No. 1.................................................92 mgd Plant No. 2........................................168 mad Plant No. 2...............................................129 mod TOTAL................................3Z2�m TOTAL...................................... 221_mad Secondary Treatment Capacity: 2007-08 estimated Electricity Generated: Plant No. 1.........................................110 mgd Plant No. 1....................................36,624.000 kwh Plant No. 2......................................... 90 mgd Plant No. 2................................... 57,888,000 kwh e TOTAL................................ d TOTAL...........................m.n12000kwh mgd mptl-million pargallons per day kwh-kilowatts per hour Financial Information 2006-07 2007-08 2008-09 2009-10 Actual Projected Proposed Proposed Fees and Charges: One-Time 3-Bedroom Residence Connection $4,360.00 $4,517.00 $4,671.00 $4,834,00 _ Average Annual Single-Family Residence Fee $165.80 $182.00 $201.00 $221.00 Districts Avg.Share of Ad Valorem Property Tax 1.80% 1.80% 1.80% 1.80% Costto Collect,Treat,BDispose off Million Gallons $1,268.38 $ 1,516.06 $ 1.654.98 $ 1,738.13 Sum mary of COP Issues: September 1993 Refunding $26,900.000 May 2007A Refunding $ 93,655,000 August 2000 Refunding/New Money 196,600,000 December 2007B New Money 300,000,000 August 2003 New Money 191,500,000 May 2008A Refunding 77,166,000 March 2006 New Money 196,600,000 Total Outstanding COP Balance 711/08 1,082,420,000 Section 10-Page 19 i ' 69 2008-09 & 2009-10 Budget I 64 Population Information L ORANGE COUNTY SANITATION DISTRICT Estimated Populations of Cities' Served by the Orange County Sanitation District 6+ January 1, 2008 V City Population C Population i Anaheim 346,820 Los Alamitos 12,190 6a Brea 40,080 Newport Beach 84.550 Buena Park 82,770 Orange 140,850 Costa Mesa 113,960 Placentia 51730 Cypress 49,540 Santa Ana 363:180 Fountain Valley 57,930 Seal Beach 26,990 Fullerton 137,440 Stanton 39,280 Garden Grove 173.070 Tustin 74,220 Huntington Beach 201,990 Villa Park 6,260 Irene 209,810 Westminster 93,030 La Habra 62,640 Yorba Linda 68,310 La Palma 16,180 Ir Total 2,441,820 V I . The District also senes some unincorporated areas with an estimated population of 81,000. V V V L.I 6+ Source, Demographic Research Unit, California Department of Finance. Ini V Section 10 -Page 20 V Index Index r Accounting System and Budgetary Control....................................................................................Section 3, Page 22 AdministrativeOfficials...............................................................................................................................................Iv Administrative Services Administration....................................................................................................Pages 21-24 Appropriations Limit......................................................................................................................Section 10, Page 13 Assistant General Manager Administration.................................................................................Section 6, Pages 5-8 Background Information and Description of Services....................................................................Section 2, Page 34 BoardCommittees......................................................................................................................................................I Boardof Directors.......................................................................................................................................................I Board Services..........................................................................................................................Section 6, Pages 9-12 r' Budget Assumptions...............................................................................................................Section 3, Pages 17-21 Budget Glossary....................................................................................................................Section 10, Pages 14.18 BudgetResources.......................................................................................................................Section 4. Page 8.13 r Business Plan..........................................................................................................................Section 2, Pages 17-30 Capital Improvement Expenditure Graphs.................................................................................Section 8, Pages 5, 7 Capital Improvement Program -Budget Summary....................................................................Section 8, Pages 4,6 Capital Improvement Program-Overview....................................................................................Section 8, Page 1-2 .. Capital Improvement Program-Project Detail Sheets.........................................................Section 8, Pages 14-106 Capital Improvement Program -Project Summary by Revenue Program..........................Section 8, Pages 107-111 Capital Improvement Program -Summary of Capital Requirements........................................Section 8, Pages 8-13 r Capital Improvement Program -Summary by Project Status.............................................Section 8, Pages 112-117 Collection Facilities Operations and Maintenance..................................................................Section 6, Pages 81-84 Consolidated Cash Flow Projections.......................................................................................Section 4, Pages 16-17 Contracts, Purchasing and Materials Management................................................................Section 6, Pages 29-32 r Core Values................................................................................................................................................................X Debt Financing Program .............................................................................................................Section 9, Pages 14 Debt Service Requirements Schedule, Interest...............................................................................Section 9, Page 6 Debt Service Requirements Schedule, Principal..............................................................................Section 9, Page 7 r Debt Service Requirements Schedule, Principal& Interest.............................................................Section 9, Page 5 District Expenses by Category...................................................................................................Section 4, Pages 3. 7 DistrictOrganization Chart.........................................................................................................................................iii ., District Revenue by Category.....................................................................................................Section 4, Pages 2, 6 Engineering Administration .....................................................................................................Section 6, Pages 57-60 Engineering and Construction.................................................................................................Section 6, Pages 69-72 Enterprise Funds Chart..................................................................................................................Section 3, Page 23 r Environmental Compliance and Regulatory Affairs.................................................................Section 6, Pages 4548 Environmental Laboratory and Ocean Monitoring...................................................................Section 6, Pages 49-52 Equipment Budget Detail..............................................................................................Section 8, Pages 120-121,124 Equipment Budget Summary...............................................................................Section 8, Pages 118-119. 122-123 Executive Summary......................................................................................................................Section 1, Page 14 Facilities Engineering..............................................................................................................Section 6, Pages 73-76 Facilities Maintenance and Fleet Services..............................................................................Section 6, Pages 85-88 Financial Management............................................................................................................Section 6, Pages 25-28 Financial Overview 8 Budgetary Issues....................................................................................Section 2, Pages 1-15 FiscalPolicy.................................................................................................................................Section 3, Pages 1-8 GFOARecommended Practices...............................................................................................Section 3, Pages 9-15 General Liability and Property Self-Insurance Program...................................................................Section 7, Page 3 General Management Administration..........................................................................................Section 6, Pages 14 GeneralManager's Budget Letter.........................................................................................................................vii-ix Section 10-Pope 21 L 2008-09 & 2009-10 Budget L Index (continued) Historical Staffing Chart..................................................................................................................Section 10, Page 2 V Historical Staffing Detail(by Department by Position)...............................................................Section 10,Page 4-12 Historical Staffing Summary(by Department)................................................................................Section 10, Page 3 Human Resources .................................................................................................................Section 6, Pages 33-36 V Information Technology...........................................................................................................Section 6, Pages 37-40 Instrumentation&Electrical Maintenance...........................................................................Section 6, Pages 105-108 Level of Services Target Levels for FY 2008-09.....................................................................Section 2, Pages 27-30 L Listing of Proposed Purchases Over$100,000..............................................................................Section 5, Page 12 Mechanical and Reliability Maintenance ............................................................................Section 6,Pages 101-104 Miscellaneous Statistics...............................................................................................................Section 10, Page 19 I Notes to Operations Summary..................................................................................................Section 5, Pages 9-11 L. Operations Summary Allocation to Individual Revenue Areas.........................................................Section 5, Page 5 Operations Summary-Comparison by Department........................................................................Section 5, Page 3 Operations Summary-Expense by Category..................................................................................Section 5, Page 4 L Operations Summary-Expense by Line Item.............................................................................Section 5, Pages 6-7 Operations Summary-Budget Overview....................................................................................Section 5, Pages 1-2 Operations Summary-Revenue by Category..................................................................................Section 5, Page 8 Operations&Maintenance Administration..............................................................................Section 6, Pages 77-80 V Operations&Maintenance Process Engineering..................4.................................................Section 6, Pages 89-92 Orange County at a Glance............................................................................................................Section 2. Page 35 Overview of the Budget Process.............................................................................................Section 3, Pages 16-17 Planning...................................................................................................................................Section 6, Pages 61-64 V Plant No. 1 Operations............................................................................................................Section 6, Pages 93-96 Plant No. 2 Operations..........................................................................................................Section 6, Pages 97-100 Population Information, Service Area...............................................4...........................................Section 10, Page 20 L Project Management Office....................................................................................................Section 6, Pages 65-68 Projected Reserves...................................................................................................................Section 4, Page 14-15 Public Information Office.........................................................................................................Section 6, Pages 13-16 Reader's Guide to the Budget.................................................................................................................................v-vi L.i Revenue Sources....................................................................................................................Section 3, Pages 24-26 Safety and Health....................................................................................................................Section 6, Pages 17-20 Self-Insurance Program-Overview.................................................................................................Section 7, Page 1 Source Control ..............................................................................4.........................................Section 6, Pages 53-56 Staffing by Category Chart-...........44.........44................44.................................................................Section 10, Page 1 Staffing by Department Chan.........................................................................................................Section 10, Page 1 Strategic Goal Objectives Table.....................................................................................................Section 2, Page 34 Lr Summary of Outstanding Certificates of Participation......................................................................Section 9, Page 3 Technical Services Administration and Research...................................................................Section 6, Pages 41-44 Total of Self-Insurance Program......................................................................................................Section 7, Page 2 V Treatment Process Diagram............................................................................................................Section 8. Page 3 Where the Money Comes From.................................................4...............................................Section 4,Pages 1, 5 Where the Money Goes.............................................................4.4.............................................Section 4, Pages 1, 5 Workers' Compensation Self-Insurance Program ...........................................................................Section 7, Page 4 Lr L V u Section 10-Page 22 y ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, California 92708-7018 (714) 962-2411 www.ocsd.com