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.
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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
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GWR System Disinfection Risk Register
Environmental Human Resources
Footprint Strategic Plan
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�. ORANGE COUNTY SANITATION DISTRICT
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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
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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.
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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. —
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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.
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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
-
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Environmental
Compliance
°mw..°°".°• Awareness
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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
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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.
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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
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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.
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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
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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
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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
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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 ''
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