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HomeMy WebLinkAbout2008-11 o � MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, November 19, 2008, at 5:30 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, November 19, 2008, at 5:30 p.m., in the District's Administrative Office. A quorum was declared present, as follows: STEERING COMMITTEE MEMBERS: STAFF PRESENT: DIRECTORS PRESENT: Doug Davert, Chair Jim Ruth, General Manager Larry Crandall, Vice Chair Bob Ghirelli, Assistant General Manager Bill Dalton Nick Arhontes, Director of Oper. & Maintenance Jim Ferryman Jim Herberg, Director of Engineering Phil Luebben Ed Torres, Director of Technical Services Ken Parker, Operations Committee Chair Lorenzo Tyner, Director of Finance and Mark Waldman,Administration Committee Administrative Services Chair Michael Gold, Legislative Affairs Liaison Tod Haynes, Engineering Manager DIRECTORS ABSENT Penny Kyle, Clerk of the Board OTHERS PRESENT: Ryal Wheeler Brent Ives f4FI%�Chris Townsend oT§y Heather Dion DEC�17 2000 PUBLIC COMMENTS BY: There were no public comments. REPORT OF THE COMMITTEE CHAIR Chair Davert reported that the CASA Conference would be held January 21-24, 2009 at Indian Wells. He reminded the Directors that an ethics training session would be held at the Sanitation District on December 2n°, and to contact the Clerk of the Board to reserve a seat. It was also reported that Director Parker would be leaving the Board next month. He was appointing Bill Dalton as the Chair of the Operations Committee and Dave Shawver as the Vice Chair. REPORT OF GENERAL MANAGER Jim Ruth, General Manager, provided a brief review of his monthly status report. An update on the Strategic Plan was provided by Bob Ghirelli, Assistant General Manager. The updated plan includes five new initiatives provided at the Strategic Plan Workshop at no additional costs. � o Minutes of the Steering Committee November 19, 2008 Page 2 REPORT OF GENERAL COUNSEL Brad Hogin, General Counsel, reported that the Sanitation District joined Los Angeles County Sanitation Districts in filing a motion to intervene in a Federal case which challenges the South Coast Air Quality Management District (SCAQMD) to continue using internal offsets of emission exchanges. The case is scheduled to be heard December 11, 2008. ACTION ITEMS (1 -2) 1. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the October 22, 2008 Steering Committee meeting. 2. MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to: a) Approve the Five-Year Strategic Plan dated November 2008; and, b) Direct staff to implement the goals and strategies contained in the Plan. INFORMATION ITEMS(3) 3. Legislative Affairs Report—Government Affairs Manager, Michael Gold, reported that the Legislative Workshop would be held on January 28, 2009, at 4:30 p.m., prior to the Steering Committee meeting. The committee received an update via telephone by the federal lobbyists, and suggested a trip to Washington, DC should be considered in February or early March to meet with the delegates. The state lobbyists, Christopher Townsend and Heather Dion, were also in attendance and provided a brief update. CLOSED SESSION The Steering Committee convened at 6:11 p.m. in Closed Session, pursuant to Government Code Section 54956.9(b)to discuss one matter. Confidential Minutes of the Closed Session held by the Steering Committee have been prepared in accordance with Government Code Section 54957.2, and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. The Steering Committee reconvened at 6:25 p.m. in regular session. OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. Minutes of the Steering Committee November 19, 2008 Page 3 ADJOURNMENT The next Steering Committee meeting is scheduled for Wednesday, December 19, 2008. The Chair declared the meeting adjourned at 6:25 p.m. Submitted by: Af: - Penny M. I le Clerk of the Board Proposed New Goals for Strategic Plan Update s GWR System Disinfection Risk Register Environmental Human Resources Footprint Strategic Plan M �. ORANGE COUNTY SANITATION DISTRICT Penny Kyle (2 copies no label) local Dsa aen,re November 13, 2008 Clerk of the Board RP7O6-An a Mexyy Pdeax PO ea"6127 rn,utraun valley U O'c7PMi27 vxtw.ocedwm p tn41e62 z411A1, NOTICE OF MEETING Pm 17141962Ua56 STEERING COMMITTEE sarverg Arwneun ORANGE COUNTY SANITATION DISTRICT tlwna PnM (yMpi WEDNESDAY, NOVEMBER 19, 2008 - 5:30 P.M. Faro:, ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708 B Hake WWW.00SD.COM La P.W. Um:Jemvra Ne,ryai fnm�n ��>•� A regular meeting of the Steering Committee of the Orange P"aaa County Sanitation District will be held at the above location, date Sang Ara and time. S.i 6eaclr Srencn Tumor. Vdw P., %T L"ds U 45.Aft5 Sercery 1b ' M dway:]R nine Reach ltwter IJeNnY fang nl Janya L^2 prcrea pudrrc eeelV entl me enNronmen[dY Ororiding elie_^tive wastewater callecvon, Ppeprrant. arM ec}Ging. STEERING COMMITTEE AND BOARD MEETING DATES *December 17, 2008 January 28, 2009 February 25, 2009 March 25, 2009 April 22, 2009 *May 20, 2009 June 24, 2009 July 22, 2009 August26, 2009 September 23, 2009 October 28, 2009 *November 18, 2009 *Meetings being held the third Wednesday of the month. STEERING COMMLME (1) Roll Call: Meeting Date: November 19, 2008 Meeting Time: 5:30 p.m. Committee Members Doug Davert, Board Chair................................................... ........... Larry Crandall, Vice Chair................................................... .......... Mark Waldman,Administration Committee Chair................ ........... Ken Parker, Operations Committee Chair........................... ........... BillDalton ........................................................................... ........... JimFerryman...................................................................... ..........._ PhilLuebben....................................................................... ..........._ Others Brad Hogin, General Counsel............................................. ........... staff Jim Ruth, General Manager................................................... ._ Bob Ghirelli, Assistant General Manager.................................. ._ Nick Arhontes, Director of Operations&Maintenance................. . Jim Herberg, Director of Engineering....................................... ._ Ed Torres, Director of Technical Services.................................. Lorenzo Tyner, Director of Finance&Administrative Services........_ Michael Gold, Legislative Affairs Liaison.................................... Penny Kyle, Clerk of the Board........................................... ._ Other Staff Present AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, NOVEMBER 19, 2008 AT 5:30 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California www.ocsd.com DECLARATION OF QUORUM PUBLIC COMMENTS REPORT OF COMMITTEE CHAIR REPORT OF GENERAL MANAGER REPORT OF GENERAL COUNSEL ACTION ITEMS (1 -2) 1. Approve minutes of the October 22, 2008 Steering Committee meeting. 2. Recommend to the Board of Directors to: a)Approve the Five-Year Strategic Plan dated November 2008; and, b) Direct staff to implement the goals and strategies contained in the Plan. (Book Page 8) INFORMATION ITEMS (3) 3. Legislative Affairs Report—Gold (Book Page 10) Bonk Page 1 November 19, 2008 CLOSED SESSION (4) During the course of conducting the business set forth on this agenda as a regular meeting of the Steering Committee,the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations,pending or potential litigation,or personnel matters. pursuant to Government Code Sections 54956.8,54956.9,54957 or 54957.6,as noted. Reports relating to(a)purchase and sale of real property:(b)matters of pending or potential litigation;(c)employment actions or negotiations with employee representatives,or which are exempt from public disclosure under the California Public Records Act,may be reviewed by the Directors during a permitted closed session and are not available for public inspection. Al such time as final actions are taken by the Board on any of these subjects,the minutes will reflect all required disclosures of information. Convene in closed session, if necessary. 4. CONFERENCE WITH LEGAL COUNSEL RE. ANTICIPATED LITIGATION (Government Code Section 54956.9(b)) Significant Exposure to Litigation Number of Potential Cases: 1 -- Bushard Trunk Sewer Project Delay Claims, Contract No. 1-2-4 Reconvene in regular session. Consideration of action, if any, on matters considered in closed session. Other business and communications or supplemental agenda items, if any. Adjournment to December 19, 2008, at 5:30 p.m. Book Page 2 November 19, 2008 Agenda Postina: 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 public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of all, of the members of District's Board,are available for public inspection in the office of the Clerk of the Board,located at 10844 Ellis Avenue, Fountain Valley, California. 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 Steering Committee on speck agenda items or matters of general interest. As determined by the Chair, speakers may be deferred until the speck 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 Acioumment: 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 quesfions 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: Doug Daverl (714)318-9550 General Manager: James D. Ruth (714)593.7110 General Counsel: Brad Hogin (714)415-1008 Clerk of the Board: Penny Kyle (714)593-7130 E-mail: pkvleggocsd.com Book Page 3 MINMESOESTEMNIGICOMMIll�MATING Orange County Sanitation District Wednesday, October 22, 2008, at 5:30 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, October 22, 2008, at 5:30 p.m., in the Districts Administrative Office. A quorum was declared present, as follows: STEERING COMMITTEE MEMBERS: STAFF PRESENT: DIRECTORS PRESENT: Doug Davert, Chair Jim Ruth, General Manager Mark Waldman,Administration Committee Bob Ghirelli, Assistant General Manager Chair Nick Arhontes, Director of Oper. &Maintenance Bill Dalton Jim Herberg, Director of Engineering Phil Luebben Ed Torres, Director of Technical Services Lorenzo Tyner, Director of Finance and DIRECTORS ABSENT Administrative Services Larry Crandall, Vice Chair Michael Gold, Legislative Affairs Liaison Ken Parker, Operations Committee Chair Penny Kyle, Clerk of the Board Jim Ferryman OTHERS PRESENT: Ryal Wheeler Layne Baroldi Drew Kolosky, Liberty Composting PUBLIC COMMENTS Drew Kolosky stated that his employer, Liberty Composting, was interested in purchasing the Sanitation District's land in Kings County and was prepared to offer the Sanitation District a proposal of$42/ton of biosolids for four years, with a minimum of 50,000 tons per year. REPORT OF THE COMMITTEE CHAIR Chair Davert reported that the board meeting would be adjourned in memory of Cornell Norby, Director Norby's father. He also reported that Director Crandall was attending the WEFTEC conference in Chicago where he was participating on a leadership panel and also the Utility Executive's Forum. Book Page 4 1 Minutes of the Steering Committee October 22, 2008 i Page 2 REPORT OF GENERAL MANAGER Jim Ruth, General Manager, advised staff was proceeding with preparing the update to the Strategic Plan, and the update would be ready for presentation at the November board meeting. He also provided a brief update on negotiations with SAWPA, a tour of EnerTech in Rialto, and status on SARI line repairs. REPORT OF GENERAL COUNSEL There was no report. ACTION ITEMS(1 -2) 1. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the September 17, 2008 Steering Committee meeting. 2. MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve an agreement with the City of Fountain Valley for permitting P1 Miscellaneous Buildings Office Improvements, Project No. FE07-08, and authorize payment and development fees for an amount not to exceed $356,835, in a form approved by General Counsel. INFORMATION ITEMS (3 -4) 3. Legislative Affairs Report—Government Affairs Manager, Michael Gold, informed the Committee that the list of state bills being tracked by OCSD was in their packet with the final actions taken by the Governor. Gold mentioned that many of the bills OCSD opposed were vetoed. As a result of the growing state budget deficit, it is likely that a special session will be called by the Governor after the election to deal with the impending crisis; however, a bright spot in the state's situation was that the Governor was successful in selling about$5 billion in bonds to the public to cover the short-term cash crunch. In Washington, D.C., Gold reported that the likelihood of a stimulus package including infrastructure funding was growing when the Federal Reserve Chairman expressed his support for it. With Bemanke's support, the President signaled he also might be willing to support infrastructure funding. Finally, Gold reported that at the November Steering Committee meeting, the lobbyists would be available to discuss the implications of the election. 4. Republic of(South) Korea Environmental Management Corporation—Jim Herberg, Director of Engineering, noted that the Memorandum of Understanding focuses on key areas of exchange of information, technology,joint research and cooperative projects, and future visits to OCSD. Book Page 5 Minutes of the Steering Committee October 22, 2008 Page 3 CLOSED SESSION The Steering Committee convened at 5:46 p.m. in Closed Session, pursuant to Government Code Section 54956.8 to discuss one matter. Confidential Minutes of the Closed Session held by the Steering Committee have been prepared in accordance with Government Code Section 54957.2, and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. The Steering Committee reconvened at 5:58 p.m. in regular session. OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. ADJOURNMENT The next Steering Committee meeting is scheduled for Wednesday, November 19, 2008. The Chair declared the meeting adjourned at 5:58 p.m. Submitted by: bm Penny M. V&le Clerk of the Board Book Page 6 STEERING COMMITTEE Meetlng Dare TO Bd.or Dlr. il119108 11/19/OB AGENDA REPORT Item Number Rem Number z Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Robert P. Ghirelli, Assistant General Manager Project Managers: Barbara Collins and Michael Gold SUBJECT: Five-Year Strategic Plan GENERAL MANAGER'S RECOMMENDATION 1) Approve the Five-Year Strategic Plan dated November 2008; and, 2) Direct staff to implement the goals and strategies contained in the Plan. SUMMARY The Strategic Plan has been updated for 2009 and contains a summary of accomplishments over the past year as well as levels of service and new goals. The Plan also includes OCSD's mission, vision and core values and does not carry any additional costs associated with the new goals. PRIOR COMMITTEEIBOARD ACTIONS November 28, 2007: Five-Year Strategic Plan adopted by the Board of Directors ADDITIONAL INFORMATION Strategic Plan Update Process In 2007, the Board of Directors held a series of workshops to develop a Five-Year Strategic Plan containing not only goals and levels of service, but also updated statements of mission, vision and core values. The three-month process culminated in the adoption of a new plan on November 28, 2007. To update the Plan for 2009, staff began with intemal discussions about continually improving operations and refining the goals and levels of service. In July 2008, the Executive Management Team held a retreat to discuss preliminary ideas and suggestions. These suggested goals were discussed at a joint meeting of department heads, managers and supervisors in August. Following this meeting, the issues were then refined into five new goals proposed for the next five years. Staff drafted one-page issue papers to be presented to the Board that described the new goals. Book Page 8 Board Input On October 15, the Board of Directors participated in a workshop facilitated by Brent Ives of BHI Consulting to discuss the five new goals. Discussions at the well-attended meeting did not yield any new goals or significant modification of existing plans, but several board members had comments and questions included in the following: • To increase GWR flows, the Board asked if staff is researching more opportunities for water recycling and staff responded that it has been looking into it. • Board members asked that OCSD coordinate efforts with Orange County Water District and the Irvine Ranch Water District on the future of the Green Acres Project. • Board members questioned if political and financial risks are included as part of the risk register goal and staff noted these are part of the planning efforts. • Related to political and economic risks, the Board discussed the need to be proactive in our efforts and staff responded that the legislative and risk management programs have been, and will continue to, proactively address political and financial risks. Moreover, the topic was discussed at a recent Administration Committee meeting. • Finally, the Board asked if staff was researching cost effective strategies to reduce infiltration and inflow in the collection systems and staff responded that these would be part of the Engineering Facilities Master Plan. Continual Improvement In addition to the new goals (marked "new") there are some other minor changes from last year's plan. One existing goal and level of service has been refined, but not significantly changed, and the presentation has been changed to help readability. The workplace safety level of service was dropped and replaced by two items: employee participation and lost workday rate. Overall, the updated Strategic Plan continues OCSD's goal of moving from good to great through annual assessments and incremental changes. Each year, the Board will be asked to provide strategic leadership and guidance as District staff sets goals and levels of service. The Steering Committee and Board are asked to adopt the new Five-Year Strategic Plan, which contains no new costs and will help guide the organization and staff. H:Wept\•genda\steenng Cammittee\200a\7loswov N steering Strategic Plan.dmx Book Page 9 STEERING COMMITTEE mee"n,DOW To ad.orob. 111,9108 AGENDA REPORT Ism Numbs I[em numbs 3 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Michael Gold, Government Affairs SUBJECT: Legislative, Policy, and Political Update GENERAL MANAGER'S RECOMMENDATION Information Only SUMMARY This report is the monthly update from Washington, D.C. and Sacramento highlighting lobbyists' activities, OCSD legislative priorities and other information of interest to the Steering Committee. PRIOR COMMITTEEIBOARD ACTIONS None ADDITIONAL INFORMATION Post election briefings This month, the Federal and State lobbying teams will be available by phone and in person to discuss the implications of the recent election. Other updates are below. Governor's response to California's budget woes Governor Schwarzenegger held a press conference Thursday following the election to outline his priorities for the special session called to deal with California's budget crisis. At the conference, the Governor confirmed that the State is facing an immediate deficit of$11.2 billion. In addition, California is facing a cash crisis and will likely run out of cash in February or March. In order to address this deficit, and future deficits, he outlined five areas that the legislature should address in the special session: • Reduction in spending on current year programs The Governor is proposing reductions in current year spending on state programs by $4.5 billion. These reductions will likely include education and health, and human services programs. Additionally, the Governor proposed a furlough program for state employees where they would take one day a month off unpaid. The Governor did mention that he does not want to have to make cuts to public safety and other key programs. Form No WJ�IUI lgnvJO Re -sc R«xa ovoNm Page 1 Book Page 10 • Increase in revenues The Governor has proposed that the State raise revenues to generate$4.4 billion in the current year by increasing the sales tax by 1.5 percent. He dismissed the idea of raising the VLF (although there is a proposed $12 increase in "motor vehicle fees"), citing the struggles of the auto industry. While optimistic,the Governor acknowledged that it would be difficult to get the required two-thirds vote this year. • Economic stimulus The Governor is in favor of rapidly dispersing bond funds including: $204 million in water bond funding (Prop 1 E) and $700 million in transportation bond funding. He also proposed non-funding proposals aimed at expediting projects, such as exempting bond projects from CEQA, expedited permitting for hospital construction, and labor law reform (Flex scheduling, etc). • Stabilize foreclosure/housing market The Governor urged the legislature to take up measures providing incentives for the modification of bad loans. Additionally, he will work with the Federal government to expedite previously approved emergency housing funding. • Unemployment Insurance Fund (UIF) The Governor acknowledged that the UIF is facing insolvency at a time when it is needed most, and will work with the legislature to pass legislation increasing contributions and reducing benefits. The Legislature has until November 30 to act on any new proposals. After December 1, a new legislature will be convened and the Governor would have to call another special session to deal with these matters. JDR:mg Fmm No.owtm-i apenea ft�-Sc um.bo.mroam Page 2 Book Page I I 2008 Legislative Tracking Position-Bill Number Summary AB 642(Wolk) Design-build authority for water and wastewater agencies and cities/counties that provide these Watch gOpposeDied o GovAn or- services. Signed Into Law AB 983 (Mal This bill provides that there is an implied warranty in the accuracy and completen the plans Oppose To Governor- and specifications. The bill shifts the burden to the agency if something wrong ocfter the Vetoed completion of the project and the contractor could claim error in the plan, rather thnstruction. AB 1654 Implements the Water Quality and Supply Bond Act of 2006 to include wastewatement as Support To Governor- Huffman 11XXble for funding under the Integrated Regional Water Management Plans. Incted in SB Signed Into Law AS 1978 (Solorio) Sponsored by the County of Orange. Bill clarifies that that GIS and mapping data subject to Support Died same public records act laws as computer software and not subject to public recordses and gmay be sold for non-commercial use F 'a AB 2270(Laird) Promotes greater water recycling and allows wastewater treatment agencies to re water Support To Governor- softeners for the purpose of reducing salts in the wastewater supply. VetoedAB 2716(Ma) Mandates sick leave for all employees working seven or more days in a year(bill to include Oppose Diedall part-time employees)and applies to both public and private sector. IAS 2986(Leno) Requires the State Water Resources Control Board to review, grade and monitor s Oppose To Governor- treatment plants, including collection systems. Allows the Water Boards to impose fees to finance Vetoed the program. Sit 1176(Peratal A re-do of Persia's SB 1001 last year(vetoed by the Governor). This bill makes changes to the Oppose Died Regional Water Quality Control Board membership, including lowering the number of members from nine to seven. Amended into AS 2769(Levine) Form No.O 1=4 FpeW R�pvl-SC Page 3 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 ti i Orange County Sanitation District Five - Year Strategic Plan r TABLE OF CONTENTS OCSD BOARD OF DIRECTORS i STRATEGIC PLAN PROJECT TEAM MESSAGE FROM THE GENERAL MANAGER EXECUTIVE SUMMARY iv A UNIFIED STRATEGIC PLAN 5 OVERVIEW 6 MISSION STATEMENT 7 VISION STATEMENT 8 CORE VALUES 9 STRATEGIC GOALS & LEVELS OF SERVICE 10 Environmental Stewardship 12 Business Principles 14 Wastewater Management 16 Workplace Environment 18 APPENDIX A: ISSUE PAPERS 20 APPENDIX B: PREVIOUS ISSUES PAPERS 26 APPENDIX C: GLOSSARY 32 OCSD BOARD OF DIRECTORS Chair Doug Davert _ Vice Chair Larry Crandall city Active Director Anaheim Harry Sidhu Brea Roy Moore Buena Park Patsy Marshall Cypress Phil Luebben Fountain Valley Larry Crandall Fullerton Don Bankhead Garden Grove Bill Dalton Huntington Beach Don Hansen Irvine Christina Shea La Habra Rose Espinoza La Palma Mark Waldman 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 Davert Villa Park Brad Reese Yorba Linda Jim Winder Sanitary/Water Districts Costa Mesa Sanitary District lames M. Ferryman Midway City Sanitary District Joy L. Neugebauer — Irvine Ranch Water District Darryl Miller Orange County Board of Supervisors Chris Norby STRATEGIC PLAN PROJECT TEAM James D. Ruth General Manager Robert P.Ghirelli Assistant General Manager Nick Arhontes Director of Operations and Maintenance James Herberg Director of Engineering Edward Torres Director of Technical Services Lorenzo Tyner Director of Administrative Services Barbara Collins Principal Analyst Michael Gold Government Affairs Manager Brent Ives BHI Consulting MESSAGE FROM THE GENERAL MANAGER Throughout our distinguished history,the Orange County Sanitation District has protected public health and the environment by providing the highest levels of service,maintaining excellent relationships with our member cities and agencies, — and ratepayers and regulators,while spending public dollars wisely.We are proud to be an internationally recognized leader in our Industry. The OCSD's success is due to the strength of people serving this fine organization:our Board of Directors provides strategic leadership and our staff make every day possible. Following our successful Strategic Plan adopted by the Board of Directors in November 2007, 1 am proud to present this plan that continues charting our course for the next five years.The mission,vision,and — core values adopted as part of the last plan form the building blocks for a continuation of our efforts. In the past year alone,we completed nearly 30 percent of the goals,yet we are not content to maintain the status quo.As I step back and look over our accomplishments of the past year: passing a sound financial plan for five years,an aggressive capital Improvement program injecting$1 million per day into Orange County's economy,and the successful dedication of the Groundwater Replenishment System, I - am confident that our Board and staff will continue to strive for excellence and maintain an eye towards future challenges. Moving forward,this strategic plan adds five new goals that are as diverse as the population we serve and I am pleased that initial Implementation of these goals will add no new costs to the budget. I look forward to a thoughtful discussion with staff and the Board of Directors on these important issues. With significant challenges ahead, I am confident that this strategic plan charts a course for success over the next year and beyond. I am grateful to the Board of Directors for their leadership and support and also to our staff for their dedication. Respectfully submitted, � — te James D. Ruth General Manager iii r EXECUTIVE SUMMARY r In November 2007,the Board of Directors adopted a new comprehensive strategic plan to drive OCSD's efforts and engage the organization to envision service and operations for the next five years. r This year,the Strategic Plan is being updated to continue looking at a five-year horizon. Following a similar process to last years plan,the General Manager's Office initiated the planning effort with the r Executive Management Team,then solicited input and ideas from managers and supervisors. In October 2008,the staff-generated ideas were presented to the Board of Directors during a workshop,where Board Members discussed and deliberated changes and additions to the plan. Driven by our mission,vision and core values,this Strategic Plan, updated for 20D9,continues our aggressive efforts to meet the sanitation, health,and safety needs of the more than 2.5 million people r we serve while protecting the environment where we live. In the past year, nearly 30 percent of the goals were completed. For 2009,this Strategic Plan presents five new goals and maintains the high standards set in the past plan. These new goals were discussed at the October 15 Board of Directors workshop and include the r following: • Reaffirming OCSD's commitment to expand the Groundwater Replenishment System,including completion of the Steve Anderson Lift Station and studying the potential to include flows from the Santa Ana River Interceptor. • Analyzing whether adding chlorine to disinfect effluent into the ocean is cost-effective in comparison to other alternatives that maintain protection of public health and safety. r • Evaluating and promoting OCSD's environmental initiatives and seeking additional opportunities to utilize emerging technologies. • Continuing to assess and Identify risks to OCSD, including political and financial risks,and developing mitigation strategies. — • Developing a comprehensive human resources strategic plan to connect employees with the overall _ mission,values,and vision of the organization and preparing employees for future leadership opportunities. This Strategic Plan continues to chart a focused roadmap of success for the future of the Orange County Sanitation District. It addresses critical operations and construction issues,financial and budgeting challenges, and gives clear and concise direction to staff, ratepayers, regulatory agencies,the public, and our Board of Directors. A UNIFIED STRATEGIC PLAN In creating this document,a considerable amount of thought was given to how a variety of existing planning resources would be used to create a unified Strategic Plan.The graphic below shows the relationship of these resources and how they relate to the overall structure and execution of the plan. Board of Directors Mission Vision Core Values Five—Year Strategic Plan Goals Levels of Service Assessment of Risks Annual Business Plans Business Accountability Charters Staffing Plan Financial Plan _ Facilities Master Plan Asset Management Plan 5 OVERVIEW Since 1954,the Orange County Sanitation District has provided wastewater treatment to the residents and businesses of northern and central Orange County and is the third largest wastewater treatment agency west of the Mississippi River. During fiscal year 2007-08,OCSD collected,treated and disposed of 221 million gallons of wastewater every day.OCSD also recycled 100 percent of its biosolids and reclaimed 17 percent of Its treated wastewater,with a future goal of 40 percent. In July 2002,the Board approved disinfecting the effluent and proceeding with the planning,design,and construction of facilities that will ultimately allow OCSD effluent to meet Federal Clean Water Act secondary treatment standards. .n The current disinfection program includes nearly$5 million annually for chemicals,while the estimated capital construction cost to meet secondary treatment standards is .. $649 million.OCSD is currently in the midst of a$2.6 billion, 20-year capital improvement program with an annual capital budget of nearly$300 million. Rxlxmatioa Rant No. I in Fountain Valley In addition to the OCSD's partnership in the Groundwater Replenishment System and secondary treatment expansion, our capital improvement program includes critical rehabilitation of aging collection systems and treatment plant facilities,and upgrades to provide enhanced odor control and reduced air emissions. Against this backdrop of challenging issues, and to meet the +, - large and complex needs of providing services to over 2.5 million people in the most effective and efficient way possible,the strategic planning process began in 2007 to W Ran,No.2.� li a,& continually map a five-year strategy. Beginning with gathering Input from the staff,with the leadership of the Board of Directors,OCSD developed its mission,vision,and values to allow all levels of the organization to take ownership in the stratgeic planning process. The original plan,along with OCSD's mission,vision and values was adopted in November 2007. For this update,the Executive Management Team once again developed ideas seeking input from managers and supervisors and presented five new goals for discussion by the Board of Directors. In the past year,several goals were completed by staff in the areas of climate change,engine emissions, r. information technology, biosolids,and leadership development. 6 OCSD MISSION STATEMENT The Mission Statement is the basic foundation that defines why we exist. "We protect public health and the environment by providing effective wastewater collection, treatment, and recycling." _ I 7 OCSD VISION STATEMENT 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,vendors,other agencies,the general public,and each other. The Orange County Sanitation District is committed to: Making decisions in an open and honest way ` to produce optimum financial,environmental - and societal results. Cooperating with other stakeholders to protect - the ocean and regional water resources for the _ people we serve. - Beneficially recycling wastewater, biosolids and — other resources using safe and effective processes and systems. Developing the best possible workforce by — providing employees with opportunities to advance their careers through enhanced growth, responsibility, and professional development. — r 8 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. Honesty, Trust and Respect We aspire to the highest degree of integrity, honesty,trust, and respect in our interaction with each other,our suppliers, — our customers,and our community. Teamwork and Problem Solving We strive to reach OCSD goals through cooperative efforts and collaboration with each other and our constituencies.We work to solve problems in a creative,cost-effective and safe manner,and we acknowledge team and Individual efforts. Leadership and Commitment 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 interest of our employees, our organization,and our community. Learning and Teaching — Talents, Skills and Abilities 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. Recognition/Rewards We seek to recognize, acknowledge, and reward contributions — to OCSD by our many talented employees. r 9 STRAGEGIC GOALS & LEVELS OF SERVICE - On the following pages are the strategic goals and levels of service for the next five years. New goals for — this report are noted and all goals include projected completion time.The levels of service standards are measures of service that are seen by our customers as high priorities.Goals and levels of service are divided into four areas: " • Environmental Stewardship • Business Principles • Wastewater Management — • Workplace Environment AF 10 Goals Completed in the Past Year During the past year,the following goals were completed: Environmental Stewardship _ Management System for Environmental Compliance • Implement a management control system for environmental compliance information that incorporates a dashboard-style report. 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. Climate Change/Greenhouse Gasses • Complete development of statewide emission Inventory protocol for publicly-owned treatment works and submit mandatory emission inventory to the California Air Resources Board for Fiscal Year 2007-08. .. Business Principles Enterprise Information Technology Strategic Plan • Complete a District-wide Information technology strategic plan. Wastewater Management Sustainable Blosolids Program • Evaluate the feasibility of deep injection/methane recovery Including commissioning a study of the geological formations below Plants 1 and 2, and availability and acceptability of any existing wells. • Evaluate option of processing some biosolids at the City of Los Angeles Terminal Island demonstration well. • Complete new in-county Compost Take-Back Program Plan strategy. Workplace Environment Succession Plan • Implement the succession management plan including management training and the creation of a Leadership Academy. ECAP Dashboard - <ommn u: Environmental Compliance °mw..°°".°• Awareness I, Program aa, n .1 EU°00m'We°IICCn.--wM u. M.en°.,.a °I°q.m ,aa--.a.. °M n°I�su Oxum.M naMW u4gn°°n Grvvnn n.Wo am�p.° w.°°.o axso'. s:� E eogq® [omplarce Repu4enlenls ias4 gonNo. /gtM°ias4°Oak _ qe0 Yallmv Enen fgtl ....'ad, u o 0 0 uw.m o..ev..o..•... a o o II Environmental Stewardship Goals OCSD participates collaboratively in the protection of regional water resources for the benefit of the people we serve. _ Goals and Targeted Completion Date Santa Ana River Interceptor Line Relocation • Work in conjunction with the County of Orange and the Federal Government to relocate the - Santa Ana River Interceptor Line by March 2012. Targeted for completion in FY 11-12 Management System for Environmental Compliance • Implement management control system for the scope of environmental requirements Targeted for completion in FY 9-10 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 r require control. Targeted for completion in FY 09-10 Engine Emission Compliance • Complete demonstration testing and negotiate engine emission limits and schedule with SCAOM D. Targeted for completion in FY 10-11 _ • Implement capital improvements or operations modifications in order to achieve compliance. Targeted for completion in FY 13-14 Reclaiming SARI Line Flows • Meet with stakeholders,develop a list of obstacles that need to be overcome to reclaim the - SARI Line and develop a strategy to obtain regulatory approval of reclaiming SARI Line flows. Targeted for completion in FY 09-10 Environmental Footprint Initiative(new) • Determine environmental footprint for both treatment plants Targeted for completion 09-10 - • Develop outreach materials describing initiatives already undertaken by OCSO that have r reduced our environmental footprint Torgeted for completion in 09-10 • Conduct research on emerging technologies and evaluate additional initiatives that should be considered by the Board Ongoing goal to be completed annually • Maximize the use of digester gas r Targeted for completion in 10-11 s 12 Environmental Stewardship Levels of Service OCSD will protect public health and the environment FY 07-08 FY 08-09 Results Target Provide capacity to collect and treat dry weather urban runoff 1.65 mgd Up to 4 mgd � Mavimum l0 mgd by 2020 Maximum off-site odor impact Reclamation Plant No. 1 42 D/T 42 D/T 100//by2016 Treatment Plant No. 2 48 D/T 48 D/T 1201rby2016 Air emissions health risk to community and employees, < 10 < 10 per one million people(for each treatment plant) Permit compliance(air, land,and water) 100% 100% OCSD will be a good neighbor FY 07-08 FY 0"9 Results Target Odor complaint response: • Treatment Plants within 1 hour 100% 100% • Collections System within l working day 100% 100% Number of odor complaints: • Reclamation Plant No. 1 34 32 Treatment Plant No.2 8 4 • Collection System 21 34 Restore collection service to customer within 8 hours 100% 100% Respond to collection system spills within 1 hour 100% 100% 13 r Business Principles OCSD makes every decision based on short and long-term environmental,societal, and financial impacts (the triple bottom line). r Goals and Targeted Completion Date Strategic Business Plan • With Board concurrence,annually update and implement the Strategic Plan and Business Plan. ` Ongoing goal to be completed annually — r Review Interagency Agreements • Conduct a comprehensive review of agreements with the Santa Ana Watershed Project Authority,and, If appropriate, reopen for discussion. r Targeted for completion in FY 09-10 • Conduct a comprehensive review of agreements with the Irvine Ranch Water District and, if appropriate, reopen for discussion. Torgeted for completion in FY 11-12 r Complete Facilities Master Plan Update • Complete a comprehensive update of the Facilities Master Plan and obtain Board approval. Targeted for completion in FY 09-10 r Sewer Rate for Green Development • Submit for board approval an amendment to sewer rate ordinance with incentives for green + developments. Targeted for completion in FY 09-10 r Business Accountability Charters • Create Business Accountability Charters for each department consistent with those developed by managers and supervisors. + Ongoing goal to be completed annually Local Sewer Services • Implement the Board's four recommendations based on findings of staffs revenue adequacy report.Continue to seek an asset transfer to other agencies.Also transfer other local assets back to cities that are not serving a true regional purpose. ` Ongoing goal to be completed in FY 11-11 Updating OCSD's Risk Register(new) ` • Review and update OCSD's risk register to include an assessment of technical, regulatory, financial,and political risks(among others)and possible mitigation strategies. r Targeted for completion in FY 10-11 14 Business Principles Levels of Service OCSD will exercise sound financial management FY 07.08 FY 08-09 Results Target COP service principle and interest <O&M expenses <O&M expenses Annual user fees Sufficient Sufficient to cover all O&M requirements Actual annual increase in collection,treatment,and — disposal costs per million gallons in comparison with the 4.3% < 10% budget Annual variance from adopted reserve policy 128.50% >95% OCSD will be responsive to our customers FY 07.08 FY 08.09 Results Target ,. Respond to public complaints or inquires regarding 100% >90% construction projects within 1 working day New connection permits processed within .. one working day 92.4% >90'Yo r - 15 Wastewater Management OCSD beneficially reuses and recycles water and other resources using safe and effective wastewater systems. Goals and Targeted Completion Date Sustainable Biosolids Program • Monitor both opposition to land application in Kern County and Arizona,and availability of sustainable cost-effective alternatives and provide management and Board with recommendation on whether to pursue proposal for selecting a technology to manage the remaining one-third of our biosolids capacity • Ongoing goal to be completed annually • Develop agreement Targeted for completion in FY 10-11 • Implement management option. Targeted for completion in FY 11-12 • Monitor City of Los Angeles'deep injection project and evaluate the regulatory and public relations components of undertaking the project. Ongoing goal to be completed annually • Conduct research to reduce the amount of biosolids produced. Ongoing goal to be completed annually Implement Energy Master Plan • After the completion of the plan,assess final recommendations to ensure adequate power resources and energy management. Ongoing goal to be completed annually Odor Control • Implement Odor Control Projects at Plant 1(trickling filters)and Plant 2 (solids loading facility) by 2016. Targeted for completion in FY 15-16 Groundwater Replenishment System(new) • Maximize the production of GWR System product water to augment and protect the Orange County groundwater basin with a goal of 70 mgd. Targeted for completion in FY09-10 Disinfection of Final Effluent(new) • Develop a cost effective program to sustain protection of public health associated with bacteria in the effluent and gain acceptance of any changes in the program by the public,regulators and other stakeholders. Targeted for completion in FY 09-10 16 r Wastewater Management Levels of Service OCSD will provide a safe reliable effluent for recycling FY 07-08 FY 08-D9 Results Target Concentration of emerging chemical constituents 30 NDMA< 150 plat of concern in Plant No. 1 secondary effluent 1.6 1,4-Dioxane< 2 ppb Thirty-day geometric mean of total coliform bacteria in effluent 266 < 1,000 mpn after Initial dilution of 180:1 r Industry compliance with permits to discharge Into OCSD sewers 100% 100%permit compliance BOD 45 mg/L BOD 100 mg/L ais BCD 30 angA by 2022 Meet secondary treatment standards TSS 33 mg/L TSS 55 mg/L TSS 30 mp/L by 2012 ass �. OCSD will manage Fl FY 07-08 FY 08-D9ows reliably Results Target Frequency of use of emergency one-mile (78-inch diameter) 0 per year during r outfall 0 dry weather less than once per 3 years in peak wet weather r Sanitary sewer spills per 100 miles 0.9 <2.1 Contain sanitary sewer spills within 5 hours 100% 100% ass 09-09 OCSD's effluent will be recycled FY suits FY Target Results Target Provide up to 104 mgd specification effluent to the 35.3 mgd 104 mgd Groundwater Replenishment System during Initial start-up year OCSD will Implement a sustainable biosolids management FY 07-08 FY 08-09 program Results Target r National Biosolids Partnership Certification for Biosolids Recertified Maintain Environmental Management System July 2008 certification Percent of biosolids recycled 100%recycled >95%recycled 0%landfill <5%landfill sas ass 7 Workplace Environment OCSD provides an environment of partnership,growth,opportunity, responsibility and accountability. Goals and Targeted Completion Date r Space Planning Study Recommendations • Complete relocation of staff housed in Information Technology Trailers,Administration r Building, Control Center and Building 6. Targeted for completion in FY 09-10 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. Torgeted for completion in FY 09-10 Safety and Health Strategic Plan • Develop and implement a Safety and Health Strategic Plan for all OCSD activities. Targeted for completion in FY 09-10 r Human Resources Strategic Plan(new) • Design, develop and implement human resources policies, practices systems and tools to s ensure OCSD has a workforce that meets future needs of OCSD and the public it serves. Targeted for completion In FY 09-10 r 18 Workplace Environment Levels of Service OCSD will take care of its people FY 07-08 FY 08-09Results Target Training hours per employee 42.04 45 per year District 5.8 Industry Employee injury incident rate O&M 2.6 average 5.2 _ Mandatory OSHA training requirements 14% 100% Hours worked since last lost work day NA" 1,000,000 Lost work day rate NA" 3.2 'Results not available because these are new levels of service. r 19 APPENDIX A: ISSUE PAPERS In preparation for the October 15, 2008 Board Workshop to discuss the proposed goals for 2009,staff prepared five issue papers related to the new goals.These papers are attached for your reference.The — appendix includes issue papers on the following topics: • Groundwater Replenishment System _ • Disinfection of Final Effluent • Environmental Footprint Initiative • Updating OCSD's Risk Register _ • Human Resources Strategic Plan 0.1- Groundwater _ Replenishment System ..I G W R System Commissioning Dedkatlon on January 25.2008 r 20 r Groundwater Replenishment System Why is this issue important to OCSD? The Orange County Sanitation District(OCSD) has shared in construction costs for Phase 1 of the r Groundwater Replenishment(GWR)System with the Orange County Water District(OCWD), each agency paying equal shares of 50 percent.The first phase has been constructed to reclaim up to 70 million gallons per day(mgd)of water, and will defer the need for OCSD to construct a new ocean r outfall. Ultimate planning for the GWR System allows for reclaiming up to 130 mgd.The major GWR System pipelines and other components have been sized to accommodate this expansion; however,the advanced water purification facilities are sized for 70 mgd.OCSD has not committed additional funding r for expanding the GWR System beyond the present phase. The GWR System began operation in January 2008,and is presently producing about 45 mgd of product r water,reducing OCSD's ocean discharge flow from 225 mgd to 180 mgd.Completion of the Steven Anderson Lift Station(formerly Ellis Avenue Pump Station)will Increase the amount of treated secondary effluent(specification water)available to the OCWD, allowing GWR System production to r increase to near 70 mgd. Goals r D Continue to strive for 104 mgd supply of specification water for reclamation with no planned OCSD capital cost contribution for expansion of the GWR System; r D Complete construction of Steven Anderson Lift Station in the fourth quarter of FY 2008-09 and Y Continue to study the potential for treating flow from the Santa Ana River Interceptor at r Reclamation Plant No. 1 to increase the supply of specification water for reclamation. Desired Outcome ' ➢ Maximizing the production of GWR System product water to augment and protect the Orange County groundwater basin with a goal of 70 mgd of product water by the end of FY 2008-09. r r 21 Disinfection of Final Effluent '•' Why is this issue important to OCSD? OCSD began disinfection of our treated effluent in 2002 in response to two factors: • concern from the public that our effluent might be the cause or contributing to elevated bacteria levels in Huntington State Beach and • ocean monitoring data suggesting that on at least one occasion our effluent plume had come to r within mile of the Newport Pier. Since 2002 evidence has shown that OCSD's effluent was not the source of shoreline bacteria in r Huntington Beach and that our plume is not coming to shore and creating a public health concern. The annual budget for adding chlorine to the effluent for disinfection and sodium bisulfite to remove most of the chlorine before discharging to the ocean is approximately$7.0 million.Since OCSD's '•• facilities were not originally designed with disinfection in mind, there are physical constraints to operating in an efficient manner. r In 2006,staff believed that it was prudent to have an independent review of our disinfection program to determine if it is meeting the intended purpose of protecting public health in a cost-effective manner and not increasing risks to the marine environment.The independent review panel was composed of nine members including a medical doctor,a wastewater engineer, a marine ecologist,a regulator,and a r chemist among others. r Goals D Through the National Water Research Institute(NWRI), commission a panel of experts to review OCSD's disinfection program and provide feedback and recommendations; '•' D Obtain final recommendations from the NWRI Panel on the appropriateness of our current disinfection program and alternatives that should be considered and '• D Develop and implement strategies for responding to the recommendations including demonstration testing, regulatory approval and outreach to stakeholders. r Desired Outcome r ➢ Cost effective program to sustain protection of public health associated with bacteria in our effluent and r ➢ Acceptance of any changes to our disinfection program by regulators, public and stakeholders r r 22 r r r Environmental Footprint Initiative r Why is this issue important to OCSD? The issue of global climate change is gaining considerable interest from both the public and policy makers.As a public agency chartered with the mission to protect public health and the environment, r OCSD should demonstrate leadership in this area. Moreover,wastewater operations consume large amounts of energy and produce green house gases(GHG). Despite the scientific disagreements about climate change,policy makers are addressing the issue.There are many opportunities for OCSD to also address these Issues and shrink our environmental footprint. Goals r ➢ Calculation of the environmental footprint of OCSD's facilities; ➢ Develop outreach materials describing green initiatives undertaken by OCSD; ➢ Evaluate additional initiatives that the OCSD Board should consider; r ➢ Evaluate information from OCSD's research program on emerging green technologies and ➢ Maximize the use of renewable fuels(digester gas). r Desired Outcomes r ➢ Greater awareness of OCSD's sustainable initiatives; ➢ Reduction in OCSD's environmental footprint through immediate greenhouse gas reduction measures and ➢ A plan for implementing future sustainable initiatives. r .w 23 Updating OCSD's Risk Register Why is this issue important to OCSO? Many leading organizations are formally applying risk management processes to identify and manage risks across many aspects of their business.The formalization of risk management processes is a logical step towards increased accountability and transparency placed on the Board and District management. In February 2006,strategic level risk assessment and mitigation workshops were completed by OCSD's Executive Management Team and District Managers.In May 2008,the register was updated to include additional information and to ensure alignment with current strategic plan. Assessment of these risks and their potential impacts must be identified,reviewed and mitigated in alignment with OCSD's Strategic Plan. Goals Identify and assess strategic and organization-wide risks facing OCSD(including technical, regulatory,financial,and political)and to develop a high level risk register; Identify mitigation measures that OCSD currently has in place; Propose additional mitigation measures that OCSD considers appropriate to manage; Review of risk register to ensure it represents a balanced portfolio of the risks and that the mitigation strategies are appropriate; s Develop a plan to monitor the effect of mitigation strategies to ensure that controls are in place and effective; _ Develop a formal reporting process to the Board that includes possible revisions to the overall risk profile; Develop protocols to provide assurance to stakeholders that in the annual strategic business plan processes are in place to manage risks organization wide and Develop an action plan of responsibilities and timeframes for follow-up. Desired Outcome w Y An update of the Risk Register including mitigation strategies(current and proposed) responsibilities,and timeframes 24 r Human Resources Strategic Plan r Why is this Issue Important to OCSD? Human Resources(HR)management has become more complex,evolving from primarily processing employee transactions to serving as a business partner, change agent and leader. OCSD's most important asset is Its workforce.As a generation of this workforce retires,OCSD must be prepared to fill vacancies and prepare the next generation for opportunities, Including leadership continuity. The HR strategic plan provides the focus for HR,the outcomes to be achieved and the associated roles and competencies needed. It creates clarity for planning and allocating resources.A long-range HR r strategy will assure that actions are aligned with OCSD's overall vision, mission,values,and strategies. Goals r ➢ Improve HR processes, systems and infrastructure to provide high levels of efficiency,quality, customer service and cost-effectiveness. r D Develop leading practices in the recruitment, retention and development of our workforce. _ ➢ Support and promote the health and well-being of the workforce. D Foster and maintain a working and learning environment that is inclusive, supportive and free from discrimination. D Provide for organizational change initiatives through labor relations program that have been identified by management to grow a performance-based culture. r D Focus the HR community on the needs of its customers through programs such as recognition and succession management. r Desired Outcome D Design,develop,fund and implement HR policies,strategies, practices,systems,and tools to r ensure OCSD has a workforce that meets the future needs of OCSD and the public it serves. r r r 25 r APPENDIX B: PREVIOUS ISSUE PAPERS Due to the complex nature of many of the challenges that went into the preparation of this Strategic _ Plan,a series of position papers were created to assist in better understanding the issues currently facing the Orange County Sanitation District. Included in appendix are position papers on the following subjects: r • Biosolids Management • Groundwater Replenishment System • Air Quality r • Odor Control • Proposition 218 Notification r r r r r 1 r r Initial m anical sort-up of&erTech's Regional 8losdids Processing raciliry in Rialm on October Ib,2808. r r r 26 r Setting OCSD's Level of Service for Biosolids Management November 2007 Policy Issue for LOS Determination: Recognizing the Board's Resolution(OCSD 06-10)that supports biosolids reuse and encourages its member agencies to use compost made from biosolids,should OCSD continue to pursue our beneficial reuse policy or include disposal options for the remaining 1/3 of Its non-contractually committed biosolids production? r Staff Recommendation: OCSD should continue to pursue beneficial reuse of the remaining 1/3 of its biosolids production.Staff will continue to utilize cost-effective land application reuse options in Kern County and Arizona for as long as possible(anticipated to be less than five years)while pursuing a biosolids-to-energy alternative for the balance of its biosolids production. Analysis: OCSD currently produces 650 tons of biosolids per day,by 2012 when the new secondary treatment processes are fully operational,biosolids production is projected to increase by approximately 30%to 840 tons per day.OCSO currently manages its biosolids as follows via two contracts using five options: • 24 percent is land applied as Class A biosolids in Kern County($43.07/ton) 26 percent is land applied as Class B biosolids in Yuma County,Arizona($45.44) • 38 percent is composted to Class A in Kern County($63.09) 12 percent is composted to Class A La Paz County,Arizona($49.74) 3 percent is land filled in Yuma County,Arizona($45.44) • In 2003,OCSD adopted the Long-Range Biosolids Master Plan(Plan).The main policy recommendations from the Plan were: • Obtain at least three diverse biosolids management options Limit participation in any market to one-half of the biosolids produced • Limit contracts to one-third of total biosolids production • Strive for increased biosolids-based compost use in Orange County • Since the completion of the Plan,OCSD has entered Into two long-term contracts that will service approximately two-thirds of OCSD's biosolids production. EnerTech:225 tans/day of biosolids-to-fuel In Rialto($72.40) _ (on line 12/08) • Synagro:250 tons/day of biosolids composting in Kern County($63.09) Staff is primarily investigating biosolids-to-energy technologies and markets for the remaining one-third of OCSD's biosolids production bemuse of our concern that biosolids composting markets are being saturated which could result in devaluing of the product,making it non-sustainable.The private sector has already significantly invested in developing biosolids-to-energy technologies which enables wastewater agencies to participate in proven and sustainable markets.Staff will also be investigating biosolids management via deep-well injection and methane production which is currently being evaluated by the City of Los Angeles. Alternatives: OCSO will pursue long term contracts if possible for non-beneficial reuse landfill disposal. Cost Implications for the remaining 1/3 of OCSD's biosolids(2007 dollars): Energy Production: $85/ton—Annual cost=$7.8M Deep Well Injection: $40/ton—Annual cost=$3.7M Landfill Disposal: $60/ton—Annual cost=$5.5M 27 Setting OCSD's Level of Service for the Groundwater Replenishment System November 2007 Policy Issue for LOS Determination: The Orange County Sanitation District(OCSD)has shared in construction costs for Phase 1 of the Groundwater Replenishment(GWR)System with the Orange County Water District (OCWD),with each agency paying equal shares of 5D%.Phase 1 will reclaim up to 70 million gallons per day(mgd) of water,and will defer the need for OCSD to construct a new ocean outfall estimated at$200 million.Ultimate planning for the GWR System allows for reclamation up to 130 mgd.The major GWR System pipelines and other components have been sized to accommodate this expansion;however,the advanced water purification facilities are sized for 70 mgd.OCSD has not committed additional funding for expanding the GWR System beyond the present phase. x. Staff Recommendation: OCSO will maintain its commitment for Phase 1 of the GWR System.This commitment for Phase 1 of GWR System includes the following: _ • Providing OCWD with secondary effluent to produce 70 mgd of reclaimed water • Providing 50 percent of capital costs S250 million)for Phase 1 • Providing 50 percent of O&M costs($500,000 per year)to remove 1,4-Dioxane and NOMA x. • In addition to the commitment for Phase 1,staff recommends exploring"low cost"or"no cost'options to expand water availability for the GWR System,Including: • Revisiting the potential use of the SARI with the Department of Health Services • Considering grant funding of future sewer diversion projects Analysis: In 1999,the OCSD Board of Directors(Board)approved Phase 1 of the GWR System,a joint funded project of OCSD and OCWD.The objective of Phase 1 Is to maximize the use of treated effluent for water recycling and to manage OCSD's peak flow,deferring the construction of a second ocean outfall beyond 2020. The GWR System is anticipated to be fully operational in November 2007.Currently,OCSD Reclamation Plant No. 1 has sufficient wastewater to allow the GWR System to produce about 55 mgd of reclaimed water for the first year of operations.When the new Ellis Pump Station is completed in 2009,there will be sufficient flow to operate the GWR System at its full 70 mgd capacity. Even though sufficient flows will be available for Phase 1 of the GWR System,the daily low flow period(1:00 am to 8:00 am)will limit water availability for expansion of the System beyond Phase 1.Camp Dresser and McKee(CDM) has analyzed options to pump additional flows to Plant No.1,segregating reclaimable and non-reclaimable(SAWPA flows)wastewater streams,and constructing separate treatment plants.In light of the benefits of the current level of service versus the high costs of making future flow available for the GWR System,staff recommends that OCSO continue to work with OCWD to study lower cost options to maximize the amount of water that can be reclaimed. Alternatives: OCSD will be directing all available reclaimable flows to Plant No. 1 to maximize reclamation.In the future,as OCSD Flows increase substantially,staff will recommend implementation of the most feasible and cost- effective options for increasing the quantity of flow available for reclamation. Estimated Cost Implications for Future Phases: _ • OCSD Diversions and Infrastructure—up to$700 million • Expansion of OCWD Advanced Water Purification Facilities—about$150 million • Every$1 million in OCSD expenditures Increases single family user rates by$1.13 per year. 28 _ Setting OCSD's Level of Service for Air Qualitl November 20 7 Policy Issue: OCSD expects the South Coast Air Quality Management District to amend existing regulations to require significant reductions In common pollutants(smog.visibility Impairment)in December 2007.A secondary public health benefit of this regulation Is the reduction In air toxic emissions.The estimated capital improvement cost to meet the new requirements is$31 million. _ • If the new regulations are not approved then OCSD will be required by 2012, under the existing regulations,to notify all affected residents and business surrounding our facilities of health risks associated .. with our emissions. • OCSD can avoid Issuing notifications by proactively Installing air pollution control equipment to reduce the air toxic emissions below the notification level. Analysis: Currently,State law and the South Coast Air Quality Management District require facilities to Inventory their air toxic emissions and conduct a Health Risk Assessment of the health risk Impact of their emissions to surrounding residents and businesses. Public notification is required if the cancer risk exceeds 101n one million and non-cancer risk exceeds 1.This means that 30 out of 1 million residents exposed to District air emissions,over a 70-year period,can contract cancer.It is anticipated that after completion of full secondary facilities In 2012,OCSD will exceed the threshold established by South Coast Air Quality Management District and OCSD will be required to notify affected communities. New regulations proposed by the South Coast Air Quality Management District would require OCSD to make significant reductions in common pollutants. The most technically feasible and lowest cost solution will be to add air pollution controls to the existing engines, which would provide the added benefit of reducing air toxic emissions below levels that require public notification. Alternatives(if the new regulations are not enacted): Notify the affected public of the potential health risk from OCSD's toxic air emissions.OCSD would notify the public via direct mailings to the residents,businesses,and schools followed by public meetings. The corresponding materials will also be listed on the SCAQMD Web site and,possibly,printed In local newspapers. • Add air pollution controls to reduce risk to community below public notification level, Staff Recommendation: OCSO should apply feasible and cost-effective controls in orderto reduce the air toxic emissions below the health risk notification level to the surrounding community and OCSD employees. 29 r Setting OCSD's Level of Service for Odor Control November 2007 r Policy Issue: Thousands of homes surround OCSD's two treatment plants.Under current operating procedures, OCSD's goal is to contain odor nuisances within our property boundary. Historically,OCSD based our Level of Service on meeting hydrogen sulfide levels at the exhaust of odor control equipment within the treatment plant r and at the fenceline of our property.Through significant study,staff has determined that hydrogen sulfide is not the best indicator of odor due to the presence of other odorous compounds.To gauge accurately odor nuisances, OCSD is changing to a scientifically based method of odor detection to determine accurately the Level of Service It r wishes to achieve for communities surrounding our treatment plants.The Board must then choose the desired LOS. r Analysis: In 2002,OCSD completed the Odor Control Master Plan,which provided specific recommendations and measures to control and reduce odors.Staff conducted an extensive evaluation of OCSD facilities by collecting and r analyzing odor samples from the plant processing equipment.OCSD used a panel of 6-8 people,with average olfactory sensitivity,to determine the odor detection thresholds scientifically based on the number of times the sample needed to be diluted before the panelist detected odor.Staff then assigned an odor unit to the sample- r the higher the number of dilutions needed to achieve the threshold,the stronger the odor.Staff then fed the data into a computer model to predict the impact to the community. With the modeling analyses completed,staff concluded that under normal operation conditions,by using a guideline of 10 D/T(dilutions to threshold)OCSD would eliminate odor to the surrounding community.OCSD currently meets a 40-50 D/T,which is 4 to 5 times greater than 10 D/T.After the currently approved CIP projects are constructed,OCSD is estimated to reach a level of 25-30 D/T(2.5 to 3 times greater than 10 D/T). Alternatives: r Adopt a treatment plant LOS of 25-30 dilutions/threshold.LOS will be achieved when the projects approved in the current CIP are constructed.Design and construct all future projects to a service level that will keep odors from that project on District property.Staff believes this level is 20 D/T but rase-by-case modeling for the �. projects will be required.The result is no cost Impact to the current approved CIP. • Adopt a treatment plant and future project design and construction LOS for odor control of 10 dilutions/threshold(within the fence line of OCSD)and Incorporate four additional odor control projects Into r the CIP.The result is an increase of$69.6 million to the CIP and$648,000 for O&M. Staff Recommendation: Establish OCSD odor standard based on total odor(D/T).Design all new processes, r structures and equipment at the wastewater treatment plants so that odors remain within treatment plant boundaries.Add two additional odor control projects(Plant 1 trickling filters and Plant 2 biosolids truck loading)to the CIP.The result is an increase of$17.6 million to the CIP and$300,000 annually for 0&M.Conduct research on cost-effective alternatives to control odors from the primary treatment facilities at both plants and report back to the Board on future staff recommendations for any further odor control. 30 Proposition 218 Notices for Annual Sewer Service User Fees November 2007 Proposition 218 was a constitutional initiative governing the establishment of any new taxes,property-related fees or assessments.This initiative was approved by the state's voters in November 1996 and applies to each of California's nearly 7,000 cities,counties,special districts,schools,community college districts,redevelopment agencies,and regional organizations. In order to raise a new tax,assessment,or property-related fee,or to increase an existing one,local governments must comply with Proposition 228 regulations. In general,these requirements are that local governments may use assessments and property-related fees only to finance projects and services that directly benefit property and that most revenue-raising measures be approved in an election. Sewer service user fees are specifically exempted from some of the requirements of Proposition 218.Most notably,they are exempt from the election requirements,but not the requirement that fees cannot exceed the reasonable cost of service. The Board has agreed with staff,however,that we will comply with all of the rest of the requirements,in a spirit of good governance.A notice of rate changes is mailed to every property owner whenever the rates are proposed to increase. Based on the approval to charge for local sewer services,a second(separate)Proposition 218 notice would be included.The rates are adapted through the ordinance process,and that requires a public hearing,two Board meetings and a 2/3 majority approval of the Board. Proposition 218 Notices notify the property owners of the public hearing that coincides with the second reading of the ordinance.Notices must be mailed to property owners 45 days before the public hearing. Mailing of Proposition 218 notices requires significant Sanitation District resources and staff time as staff works with all stakeholders to ensure that notices are printed correctly and mailed to over 550,000 property owners. Additional temporary staff is needed to answer phone calls from customers.Historically,three OCSD staff and two temporary staff answer phone calls for a minimum of four weeks.In addition to written responses(including email),phone calls are also noted and tallied by city of residence.This information is made available to the Directors prior to the public hearing. 31 r APPENDIX C: GLOSSARY Activated-sludge process—A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen,and consume r dissolved nutrients in the wastewater. Biochemical Oxygen Demand BOD —The amount of xyg ( ) oxygen used when organic matter undergoes decomposition by microorganisms.Testing for BOD is done to assess the amount of organic matter in water. _ Biosolids—Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process.This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. r Business Accountability Charten—A business unit strategic plan. Capital Improvement Program(CIP)—Projects for repair, rehabilitation,and replacement of assets.Also r includes treatment improvements,additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E.coli are the most common bacteria in wastewater. r Collections system—In wastewater,it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation(COP)—A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Contaminants of Potential Concern(CPC)—Pharmaceuticals, hormones,and other organic wastewater contaminants. r Dashboard—A computer based business tool used to visually track performance. r Dilution to Threshold(D/T)—the dilution at which the majority of the people detect the odor becomes the D/T for that air sample. 1,4-Dioxane—A chemical used in solvents for manufacturing,fumigants and automotive coolant. Like NDMA, it occurs in the Groundwater Replenishment System water and is eliminated with hydrogen peroxide and additional ultra-violet treatment. Greenhouse gases—In the order of relative abundance water vapor,carbon dioxide, methane,nitrous r oxide,and ozone gases that are considered the cause of global warming("greenhouse effect"). 32 r GLOSSARY continued Groundwater Replenishment(GWR)System—Ajoint water reclamation project that proactively responds to Southern California's current and future water needs.This joint project between the Orange County Water District and the Orange County Sanitation District will provide 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service(LOS)—Goals to support environmental and public expectations for performance. Million gallons per day(mgd)—A measure of flow used in the water industry. Most Probable Number(MPN)—Number of organisms per 100 ml that would yield a test result or the observed test result with the greatest frequency.Commonly used for coliform bacteria. NOMA—N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership(NBP)—An alliance of the National Association of Clean Water Agencies (NACWA)and Water Environment Federation (WEF),with advisory support from the U.S. Environmental Protection Agency(EPA). NBP is committed to developing and advancing environmentally sound and ' sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. O&M—Operations and maintenance of the treatment plants facilities and collections system. Publicly-owned Treatment Works(POTW)—Municipal wastewater treatment plant. Recycling—The conversion of solid and liquid waste into usable materials or energy. Risk Register—An internal document that describes vulnerabilities of the Sanitation District. Santa Ana River Interceptor(SARI)Line—A regional brine line designed to convey 30 million gallons per day(MGD)of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal,after treatment. Sanitary sewer—Separate sewer systems specifically for the carrying of domestic and industrial wastewater.Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District(SCAQMD)—Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment—Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. 33 GLOSSARY continued _ Sludge—Untreated solid material created by the treatment of wastewater. Total suspended solids(TSS)—The amount of solids floating and in suspension in wastewater. Trickling filter—A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media,consume nutrients in wastewater as it trickles over them. Urban run-off—Water from city streets and domestic properties that carry pollutants into the storm drains,rivers,lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed—A land area from which water drains to a particular water body.OCSD's service area is in the Santa Ana River Watershed. 34 ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, California 92708-7018 (714) 962-2411 www.ocsd.com ff '' �d