HomeMy WebLinkAbout02-14-2018 Administration Committee Meeting Agenda02/14/2018 Administration Committee Agenda Page 1 of 4
Orange County Sanitation District
Regular Meeting of the ADMINISTRATION COMMITTEE
Wednesday, February 14, 2018 5:00 P.M. Administration Building Board Room
10844 Ellis Avenue Fountain Valley, CA (714) 593-7433
AGENDA
CALL TO ORDER:
PLEDGE OF ALLEGIANCE:
DECLARATION OF QUORUM: (Clerk of the Board)
PUBLIC COMMENTS: If you wish to address the Committee on any item, please complete a
Speaker’s Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by
the Chairman and are requested to limit comments to three minutes.
REPORTS: The Committee Chair and the General Manager may present verbal reports on
miscellaneous matters of general interest to the Committee Members. These reports are for information
only and require no action by the Committee.
CONSENT CALENDAR: The Consent Calendar Items are considered to be routine and will be
enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent
Calendar for separate discussion will be considered in the regular order of business.
1.APPROVAL OF MINUTES (Clerk of the Board)
RECOMMENDATION: Approve Minutes of the December 13, 2017 Administration
Committee Meeting.
2.GM APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVEDOEM SOLE SOURCE LIST (Lorenzo Tyner)
RECOMMENDATION: Recommend to the Board of Directors to:
A. Receive and file District purchases made under the General Manager’s authority for the period of October 1, 2017 to December 31, 2017; and
02/14/2018 Administration Committee Agenda Page 2 of 4
B. Approve the following additions to the pre-approved OEM Sole Source List for the period of October 1, 2017 to December 31, 2017:
• AMOT - Gas valves for CenGen engines
• ELECTRABOND - Coating of belt filter press rollers
• FONTAINE-AQUANOX - PVC stem covers
• INGERSOLL RAND - Air compressor valves and parts
• OVIVO - Trickling filter parts
• PULSAFEEDER - Ferric injection pumps
• QUINCY COMPRESSOR - Air compressor parts and service
• SAFT AMERICA - UPS batteries
• TIRESHARK - Traffic spikes
3. MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD ENDED DECEMBER 31, 2017 (Lorenzo Tyner)
RECOMMENDATION: Recommend to the Board of Directors to: Receive and file Orange County Sanitation District Mid-Year Report for the period ended December 31, 2017. 4. ADOPT RESOLUTION ESTABLISHING AN ENVIRONMENTALLY
PREFERABLE PURCHASING AND PRACTICES POLICY (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: Adopt RESOLUTION NO. OCSD 18-XX entitled “Environmentally Preferable and
Practices Policy.” INFORMATION ITEMS:
5. INVESTMENT PERFORMANCE RESULTS (Lorenzo Tyner) NON-CONSENT:
6. CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FY 2018-19 AND FY 2019-20 BUDGET TWO-YEAR BUDGET (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: Approve the FY
2018-19 and FY 2019-20 budget assumptions and direct staff to incorporate these parameters in the preparation of this two-year budget.
02/14/2018 Administration Committee Agenda Page 3 of 4
7. PROPOSED ORDINANCE ADOPTING REGIONAL SEWER SERVICE CHARGES (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to:
A. Motion to read Ordinance No. OCSD-XX by title only and waive reading of
said entire ordinance; B. Introduce Ordinance No. OCSD-XX, entitled: “An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Regional Sewer
Service Charges and Repealing Ordinance No. OCSD-41 and Ordinance
No. OCSD-46”; and C. Set March 28, 2018, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD-XX.
8. PROPOSED ORDINANCE ADOPTING CAPITAL FACILITIES CAPACITY CHARGES AND FEES (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to:
A. Motion to Read Ordinance No. OCSD-XX by title only and waive reading of said entire ordinance; B. Introduce Ordinance No. OCSD-XX, entitled: “An Ordinance of the Board of
Directors of the Orange County Sanitation District Adopting Capital Facilities Capacity Charges and Repealing Ordinances No. OCSD-40 and No. OCSD-42”; and
C. Set March 28, 2018, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD-XX.
9. PROPOSED ORDINANCE ADOPTING MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGES, SOURCE CONTROL PERMITTEES AND WASTEHAULERS (Lorenzo Tyner)
RECOMMENDATION: Recommend to the Board of Directors to:
A. Motion to Read Ordinance No. OCSD-XX by title only and waive reading of said entire ordinance; B. Introduce Ordinance No. OCSD-XX, entitled: “An Ordinance of the Board of
Directors of the Orange County Sanitation District Adopting Miscellaneous Charges and Fees Relating to Industrial Dischargers, Source Control Permittees and Wastehaulers and Repealing Ordinance No. OCSD-40 and Ordinance No. OCSD-42; and
02/14/2018 Administration Committee Agenda Page 4 of 4
C. Set March 28, 2018, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD-XX. DEPARTMENT HEAD REPORTS:
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY:
ADJOURNMENT:
The next Administration Committee meeting is scheduled for Wednesday, March 14,
2018 at 5:00 p.m.
Accommodations for the Disabled: Meeting Rooms are 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) 593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District’s Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, 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 the Board of Directors, are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore Clerk of the Board (714) 593-7433 klore@ocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager James Herberg (714) 593-7300 jherberg@ocsd.com Assistant General Manager Bob Ghirelli (714) 593-7400 rghirelli@ocsd.com Director of Finance and Administrative Services Lorenzo Tyner (714) 593-7550 ltyner@ocsd.com Director of Human Resources Celia Chandler (714) 593-7202 cchandler@ocsd.com
12/13/2017 Administration Committee Minutes Page 1 of 6
MINUTES OF THE ADMINISTRATION COMMITTEE
Orange County Sanitation District Wednesday, December 13, 2017 at 5:00 P.M.
A regular meeting of the Administration Committee of the Orange County Sanitation
District was called to order by Committee Vice-Chair Wagner on December 13, 2017 at
5:02 p.m. in the Administration Building of the Orange County Sanitation District. Director Scott Peotter led the Flag Salute.
A quorum was declared present as follows:
COMMITTEE MEMBERS PRESENT: Donald P. Wagner, Vice-Chair Barbara Delgleize Jim Ferryman
Peter Kim
Al Krippner Steve Nagel Scott Peotter Theresa Smith
Greg Sebourn, Board Chair
David Shawver, Board Vice-Chair
COMMITTEE MEMBERS ABSENT: Chad Wanke, Chair
Glenn Parker
Sal Tinajero
STAFF PRESENT: Jim Herberg, General Manager Bob Ghirelli, Assistant General Manager Celia Chandler, Director of Human Resources
Jim Colston, Director of Environmental
Services Rob Thompson, Director of Engineering Ed Torres, Director of Operations & Maintenance
Lorenzo Tyner, Director of Finance &
Administrative Services Kelly Lore, Clerk of the Board Angela Brandt Jennifer Cabral
Pongsakdi Cady
Al Garcia Laura Maravilla Riaz Moinuddin Randy Kleinman
Kathy Millea
Tyler Ramirez Mike White Eros Yong
OTHERS PRESENT:
Brad Hogin, General Counsel Pierce Rossum, Carollo
PUBLIC COMMENTS:
None.
ITEM NO. 1
12/13/2017 Administration Committee Minutes Page 2 of 6
REPORTS:
Director of Engineering Rob Thompson provided information regarding unforeseen
expenses to District Trunk Sewer Relief, Project No. 6-17 that due to time constraints will be proceeding directly to the Steering Committee and Board of Directors rather than the Operations Committee.
Committee Vice-Chair Wagner did not provide a report.
CONSENT CALENDAR:
1.APPROVAL OF MINUTES (Clerk of the Board)
MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of theNovember 8, 2017 Administration Committee Meeting.
2.2017 BENEFITS PROGRAM – ONE-TIME FUND REALLOCATION
(Celia Chandler)
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board ofDirectors to: Approve a one-time reallocation of budgeted funds in the amount of$195,000 to be transferred to group health insurance benefits resulting in a total
cost of $12,032,187. The reallocation would not result in an increase to the overall2017 budget.
AYES:Ferryman, Kim, Krippner, Nagel, Peotter, Sebourn, Shawver, T. Smith and Wagner
NOES:None
ABSTENTIONS: NoneABSENT:Delgleize, Parker, Tinajero, and Wanke
NON-CONSENT:
3.ENTERPRISE ASSET MANAGEMENT PHASE IV - LOCK OUT TAG OUT(LOTO) (Lorenzo Tyner)
Director of Finance and Administrative Services, Lorenzo Tyner, introducedInformation Technology Manager John Swindler and Engineering Manager RiazMoinuddin who provided a brief overview of the item.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board ofDirectors to:
A. Approve a Professional Services Agreement with Total Resource Management, Inc. for IBM-Maximo Enterprise Asset Management
Phase IV - Lock Out Tag Out (LOTO) Software, Specification
No. S-2017-871BD, for a total amount not to exceed $188,318; and
12/13/2017 Administration Committee Minutes Page 3 of 6
B. Approve a contingency in the amount of $37,664 (20%).
AYES: Ferryman, Kim, Krippner, Nagel, Peotter, Sebourn, Shawver, T. Smith and Wagner NOES: None
ABSTENTIONS: None ABSENT: Delgleize, Parker, Tinajero, and Wanke
Director Delgleize arrived at 5:10 p.m.
4.RIGHT OF WAY AND PROPERTY MANAGEMENT SERVICES
(Lorenzo Tyner)
Mr. Tyner provided a brief overview of the item describing the services to berendered.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board ofDirectors to:
A. Approve a Professional Consultant Services Agreement with Paragon
Partners Ltd. for Right of Way and Property Management Services, Specification No. CS-2017-879, for the period January 1, 2018 through December 31, 2018, for a total annual amount not to exceed $115,000, with two (2) six-month renewal options; and B. Approve a contingency of $11,500 (10%).
AYES: Delgleize, Ferryman, Kim, Krippner, Nagel, Peotter, Sebourn, Shawver, T. Smith and Wagner NOES: None ABSTENTIONS: None ABSENT: Parker, Tinajero, and Wanke
5.INVEST AND/OR REINVEST DISTRICT’S FUNDS (Lorenzo Tyner)
Mr. Tyner introduced Controller Mike White who provided the changes that weremade to the annual Investment policy being proposed and responded to questionsfrom the Committee regarding a change related to adding supranational securitiesto the list of securities whereas the Sanitation District can invest up to 30% of its
portfolio in supranational securities.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board ofDirectors to: Adopt Resolution No. OCSD 17-XX, entitled “A Resolution of theBoard of Directors of the Orange County Sanitation District, Authorizing the
District’s Treasurer to Invest and/or Reinvest District’s Funds; Adopting District’s
Investment Policy Statement and Performance Benchmarks; and RepealingResolution No. OCSD 16-19.”
12/13/2017 Administration Committee Minutes Page 4 of 6
AYES: Delgleize, Ferryman, Kim, Krippner, Nagel, Peotter, Sebourn, Shawver, T. Smith and Wagner NOES: None
ABSTENTIONS: None ABSENT: Parker, Tinajero, and Wanke
6.ALLIANT INSURANCE SERVICES (Celia Chandler)
Director of Human Resources Celia Chandler introduced Human Resources andRisk Manager Richard Spencer and Principal Financial Analyst Randy Kleinmanwho provided information regarding the insurance services included in the
proposed agreement and the competitive process in the selection of the
consultant.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board ofDirectors to:
A. Approve a Professional Consultant Services Agreement with Alliant Insurance Services, Inc. to act as Broker of Record for the Orange County Sanitation District’s assets and operations insurance coverages, Specification No. CS-2017-884-BD, for the period of January 1, 2018
through December 31, 2018 with up to four (4) one-year renewal options; and B. No direct payment from the Sanitation District is provided. The Broker of Record, Alliant Insurance Services, will be compensated through commission that is paid directly by the insurance carriers.
AYES: Delgleize, Ferryman, Kim, Krippner, Nagel, Peotter, Sebourn, Shawver, T. Smith and Wagner NOES: None ABSTENTIONS: None ABSENT: Parker, Tinajero, and Wanke
7.2017 FACILITIES MASTER PLAN (Rob Thompson)
Engineering Manager Kathy Millea provided an informative PowerPointPresentation regarding the 2017 Facilities Master Plan and responded to questionsregarding the programmatic EIR.
Director T. Smith departed the meeting at 5:42 p.m.
8.ORANGE COUNTY SANITATION DISTRICT WASTEWATER REVENUEPROGRAM RATE STUDY (Lorenzo Tyner)
Mr. Tyner distributed the Consolidated Cash Flow projections and provided aninformative in-depth PowerPoint presentation regarding the rate study performedby consultant Carollo and responded to questions from the Committee.
12/13/2017 Administration Committee Minutes Page 5 of 6
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District’s 2017 Wastewater Revenue Program Rate Study completed by Carollo Engineers.
AYES: Delgleize, Ferryman, Kim, Krippner, Nagel, Peotter, Sebourn, Shawver, and Wagner NOES: None ABSTENTIONS: None ABSENT: Parker, T. Smith, Tinajero, and Wanke Director Delgleize stepped out of the room during Item No. 9.
9. PROPOSITION 218 NOTIFICATIONS (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Direct staff to prepare and mail Proposition 218 compliant
notifications to affected property owners outlining a five-year regional sewer
service fee schedule with annual increases of approximately 1.2 percent over the next five fiscal years beginning with Fiscal Year 2018-19. AYES: Ferryman, Kim, Krippner, Nagel, Peotter, Sebourn, Shawver,
and Wagner NOES: None
ABSTENTIONS: None
ABSENT: Delgleize, Parker, T. Smith, Tinajero, and Wanke INFORMATION ITEMS:
None.
DEPARTMENT HEAD REPORTS: General Manager Herberg reminded the Committee of the upcoming Special Board
Meeting on December 20, 2017 at 3:00 p.m. which will be include a tour of Plant No. 1 and Plant No. 2. CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY:
Board Chairman Sebourn reminded everyone that the Board meeting is being held one
week early this month due to the holiday.
12/13/2017 Administration Committee Minutes Page 6 of 6
ADJOURNMENT:
Committee Vice-Chair Wagner declared the meeting adjourned at 6:00 p.m. to the next
regularly scheduled meeting of Wednesday, February 14, 2018 at 5:00 p.m.
Submitted by:
_____________________ Kelly A. Lore, CMC Clerk of the Board
Page 1 of 2
ADMINISTRATION COMMITTEE Meeting Date 02/14/18 To Bd. of Dir. 02/28/18
AGENDA REPORT Item Number 2 Item Number
Orange County Sanitation District
FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO
THE PRE-APPROVED OEM SOLE SOURCE LIST
GENERAL MANAGER'S RECOMMENDATION
A. Receive and file District purchases made under the General Manager’s authority
for the period of October 1, 2017 to December 31, 2017; and
B. Approve the following additions to the pre-approved OEM Sole Source List for the period of October 1, 2017 to December 31, 2017:
•AMOT - Gas valves for CenGen engines
•ELECTRABOND - Coating of belt filter press rollers
•FONTAINE-AQUANOX - PVC stem covers
•INGERSOLL RAND - Air compressor valves and parts
•OVIVO - Trickling filter parts
•PULSAFEEDER - Ferric injection pumps
•QUINCY COMPRESSOR - Air compressor parts and service
•SAFT AMERICA - UPS batteries
•TIRESHARK - Traffic spikes
BACKGROUND
Orange County Sanitation District staff provides the Administration Committee and the Board of Directors quarterly reports of General Manager approved purchases between
$50,000 and $100,000 and additions to the pre-approved OEM Sole Source List.
The list of additions to the pre-approved OEM Sole Source List displays the original equipment manufacturers (OEM) added this quarter that require sole source procurement to maintain, service, or replace equipment currently in operation at District facilities, because the parts and/or service can only be provided by the OEM or their designated
representative.
RELEVANT STANDARDS
•Quarterly financial reporting
•Ensure the public’s money is wisely spent
Page 2 of 2
PRIOR COMMITTEE/BOARD ACTIONS
December 2016 - Minute Order 12(b) authorized the General Manager to ratify additions
or deletions to the OEM Sole Source list on the General Manager’s quarterly approved
purchases agenda report.
ADDITIONAL INFORMATION
In accordance with Board purchasing policies, Ordinance No. OCSD-47, the General Manager has authority to approve purchases between $50,000 and $100,000. Below is a summary of General Manager approved purchases, in amounts exceeding $50,000, for the second quarter of fiscal year 2017-18:
Vendor Name Amount Department Description/Discussion
JAMISON ENGINEERING CONTRACTORS
INC
$99,995.00 Engineering Digester M Ten Removal at Plant 2 Task Order Bid TOB-2017-889 of Master Service Contract S-2015-700-4
JAMISON ENGINEERING CONTRACTORS
INC
$77,188.00 Operations & Maintenance
Urgent Repairs to Primary Clarifier J at Plant 2 Sole Source Justification 1855 Reason: Time is of the Essence - Potential Permit Violation Risk
MANLEY’S BOILER INC $80,534.00 Operations & Maintenance
CenGen Boiler Retubing and Repair for Unit 2 at Plant 2 Specification No. S-2017-882BD
SHIMMICK CONSTRUCTION CO INC $58,185.00 Operations & Maintenance
Sunflower Pump Station Fall Arrest System Task Order Bid TOB-2017-890 of
Master Service Contract S-2015-700-8
FINANCIAL CONSIDERATIONS
N/A
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
N/A
Page 1 of 3
ADMINISTRATION COMMITTEE Meeting Date 02/14/18 To Bd. of Dir. 02/28/18
AGENDA REPORT Item Number 3 Item Number
Orange County Sanitation District
FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD
ENDED DECEMBER 31, 2017
GENERAL MANAGER'S RECOMMENDATION
Receive and file Orange County Sanitation District Mid-Year Financial Report for the
period ended December 31, 2017.
BACKGROUND
Included in this consolidated report are the following mid-year reports for the period ended
December 31, 2017:
•Mid-Year Budget ReviewThe Budget Review Summary provides the Board of Directors, staff, and the general
public with a comprehensive overview of the mid-year financial results of the Orange
County Sanitation District (Sanitation District) for the period ended December 31,2017.
•Mid-Year Treasurer’s ReportThis section reports on financial portfolio performance with respect to the SanitationDistrict’s funds. Both Long-Term and Liquid Operating Monies Portfolios aresummarized. A performance summary table can be found on page 2 of this section.The report also contains information on the U.S. and global economic outlook from
the Sanitation District’s investment manager, Chandler Asset Management.
•Certificates of Participation Mid-Year ReportThe report includes a summary of each outstanding debt issuance and a comparative
chart illustrating the COP rate history.
RELEVANT STANDARDS
•Quarterly financial reporting
ADDITIONAL INFORMATION
The mid-year treasurer’s report contained within the Consolidated Financial Reports for
the period ended December 31, 2017 is being submitted in accordance with the Sanitation
Page 2 of 3
District’s investment policy that requires the report be submitted to the governing body following the end of each quarter and includes the following information:
• Performance results in comparison with the 3-month treasury bill index for the liquid operating portfolio; and the Merrill Lynch Corp./Govt. 1-5 Year Bond index for the long-term portfolio as identified in the investment policy; and the time-weighted total rate of return for the portfolio for the prior three months, six months,
nine months, twelve months, and since inception compared to the Benchmark
returns for the same periods:
• A listing of individual securities held at the end of each reporting period (see the detailed listings of each security contained within the report).
• Cost and market values of the portfolios: Liquid Oper. Long-Term Cost $145.2 M $397.5 M
MV $145.5 M $396.6 M
• Modified duration of the portfolio compared to Benchmark:
Liquid Oper. Long-Term
District Policy < 0.50 < 5.00 B.M. 0.16 2.58 Port. 0.15 2.26
• Dollar change in value of the portfolio for a one-percent (1%) change in interest rates: Liquid Oper. – $225,095
Long-Term – $8,980,647
• None of the portfolios are currently invested in reverse repurchase agreements.
• The percent of the Liquid Operating Monies portfolio maturing within 90 days: 86.1%
Portfolio Performance Summary As of December 31, 2017
Liquid Operating Monies (%) Long-Term Operating Monies (%)
Total Rate of Return Benchmark Total Rate of Return Benchmark
3 Months 0.28 0.28 -0.24 -0.32
6 Months 0.55 0.55 0.18 0.06
9 Months 0.75 0.75 0.64 0.54
12 Months 0.89 0.86 1.16 1.02
Annualized Since inception 30 Nov 2014 0.52 0.40 1.06 0.99
Page 3 of 3
•Average portfolio credit quality:
Liquid Oper. – AA+/Aaa
Long-Term – AA+/Aa1
•Percent of portfolio with credit ratings below "A" by any rating agency, and a
description of such securities:
Liquid Portfolio – no exceptionsLong-Term Portfolio – Percent of portfolio – 1.7%
Cost Maturity Date Moody S&P Fitch
AMRESCO Residential Securities 1999-1 $ 100,432.85 6/25/2029 Not Rated A+ BBB
Goldman Sachs Group Inc. Note $ 692,806.00 1/18/2018 A3 BBB+ A
American Express Credit Note $ 3,377,385.79 3/19/2018 A3 BBB+ A
Morgan Stanley Note $ 3,200,848.00 7/28/2021 A3 BBB+ A
•All investments are in compliance with this policy and the California GovernmentCode, except for the following Lehman Brothers holdings that the SanitationDistrict is pursuing collection through the bankruptcy court:
Lehman Brothers Note-Defaulted $ 600,000 par value defaulted 9/19/2008Lehman Brothers Note-Defaulted $2,000,000 par value defaulted 9/18/2008
•Sufficient funds are available for the Sanitation District to meet its operatingexpenditure requirements for the next six months.
CEQA
N/A
FINANCIAL CONSIDERATIONS
N/A
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package:
•Mid-Year Consolidated Financial Reports for the period ended December 31, 2017
Page 1 of 2
ADMINISTRATION COMMITTEE Meeting Date 02/14/18 To Bd. of Dir. 02/28/18
AGENDA REPORT Item Number 4 Item Number
Orange County Sanitation District
FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: ADOPT RESOLUTION ESTABLISHING AN ENVIRONMENTALLY
PREFERABLE PURCHASING AND PRACTICES POLICY
GENERAL MANAGER'S RECOMMENDATION
Adopt Resolution No. OCSD 18-XX entitled: “A Resolution of the Board of Directors of
the Orange County Sanitation District Adopting the “Environmentally Preferable Purchasing and Practices Policy.”
BACKGROUND
The intent of the Environmentally Preferable Purchasing and Practices Policy (EPPPP) is to encourage the use of environmentally preferable products and services for Orange County Sanitation District (Sanitation District) operations and increase the Sanitation District’s grant eligibility without increasing costs. The Sanitation District will begin buying and using products and services that reduce negative environmental impacts because of
the way they are made, used, transported, packaged and disposed of, including their potential for reuse or ability to be recycled. The Policy confirms the Sanitation District’s continued commitment to implementing progressive and efficient waste reduction and recycling considerations without increasing costs.
The EPPPP creates a model for successfully purchasing environmentally preferable products for the Sanitation District. Nothing contained in this policy will require a department, purchaser, or contractor to procure products that do not perform adequately for their intended use; increase procurement costs; exclude adequate competition; risk the health or safety of District staff; or are not available at a reasonable price, in a
reasonable period of time. Purchases shall focus on environmentally preferable options.
Additionally, an approved EPPPP enables the Sanitation District to competitively secure potential grants, such as CalRecycle, thus allowing the opportunity for millions of dollars to help fund the Sanitation District’s planned resource recovery projects. In order to
qualify for the next round of competitive CalRecycle Grants, the Sanitation District is required to adopt an EPPPP.
The Sanitation District's mission, vision statement, and strategic initiatives call on the organization to continually seek efficiencies to ensure the public's money is being spent
wisely; to protect public health and the environment; to utilize all practical and effective means for wastewater, energy, and solids resource recovery; and to partner with others to benefit our customers, our region and industry. The adoption of an EPPPP will align with the values and goals of the District and will allow us to leverage grant funds available
Page 2 of 2
through CalRecycle’s program to help fund projects – hence, reducing the financial burden placed on our rate payers.
RELEVANT STANDARDS
•Strategic Plan
•Ensure the public’s money is wisely spent
•Secure outside funding (grants) for recycled water or other capital programs
PROBLEM
The Sanitation District does not currently have an EPPPP, which is required to apply for various grant such as CalRecycle. This policy aligns with the Sanitation District’s core mission and vision.
PROPOSED SOLUTION
Adopt the proposed EPPPP.
TIMING CONCERNS
The timely adoption of the EPPPP is important in order to qualify for new grants, such as the CalRecycle Grants.
RAMIFICATIONS OF NOT TAKING ACTION
Will not qualify for certain grants including CalRecycle Grants.
FINANCIAL CONSIDERATIONS
Financial impacts will be held to a minimum as the EPPPP model will prioritize cost impacts along with the benefits of purchasing environmentally preferable products for the Sanitation District.
ATTACHMENT
The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.com) with the complete agenda package:
•Resolution No. OCSD 18-XX
•Exhibit “A” - Environmentally Preferable Purchasing and Practices Policy (EPPPP)
1284950.1 OCSD 18-XX-1
RESOLUTION NO. OCSD 18-XX
A RESOLUTION OF THE BOARD OF DIRECTORS OF
ORANGE COUNTY SANITATION DISTRICT ADOPTING
THE “ENVIRONMENTALLY PREFERABLE PURCHASING AND PRACTICES POLICY”
WHEREAS, the Orange County Sanitation District purchases a wide variety of
products and services, and purchasing decisions can adversely affect the environment;
and
WHEREAS, in order to protect the environment, the Board of Directors has
determined that staff should consider environmental impacts when making purchasing
decisions, and procure environmentally preferable products and services that compare
favorably to alternatives with respect to price, performance, and availability.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1. The Board of Directors adopts the Environmentally Preferable
Purchasing and Practices Policy attached hereto as Exhibit A.
PASSED AND ADOPTED at a regular meeting of the Board of Directors
held February 28, 2018.
________________________________ Gregory C. Sebourn, PLS Board Chairman
ATTEST:
______________________________ Kelly A. Lore, MMC Clerk of the Board
1284950.1 OCSD 18-XX-2
STATE OF CALIFORNIA )
) ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 18-XX was passed and adopted at a regular meeting of said Board on the 28th day of February 2018, by the following vote, to wit:
AYES:
NOES: ABSTENTIONS: ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 28th day of February 2018.
Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District
1284794.1 OCSD 18-XX-3
Orange County Sanitation District
BOARD OF DIRECTORS Policy
Control Number:
Version Number:
Approved By: Resolution No. OCSD 18-XX
Approved Date: 02/28/2018
Subject: Environmentally Preferable Purchasing and Practices Policy Effective Date: 02/28/2018
I. Purpose – Purchasing decisions can affect the environment. This policy is designed to avoid or
reduce environmental impacts, where feasible, by requiring Orange County Sanitation District (District) staff to consider environmental impacts when making purchasing decisions, in addition to
the traditional factors of price, performance, and availability.
II.Organizational Units Affected – All District departments.
III.Definitions/Acronyms
Durable Goods – goods that are replaced infrequently. Examples include furniture, office
equipment, appliances, audio visual equipment, and power adaptors.
Environmentally Preferable Products (EPPs) – Products and services that have a reducedimpact on human health and the environment when compared to competing products and services.In evaluating environmental and health impacts, staff should consider the entire life cycle of the
product: from raw material acquisition to production, manufacturing, packaging, distribution, reuse,operation, and disposal.
LEED – Leadership in Energy and Environmental Design.
Ongoing Consumables – Items used by the District on a regular basis and will need to be replacedin a sustainable way. These include but are not limited to office paper, envelopes, ink toner,cartridges, and batteries.
Feasible – An EEP is feasible if it compares favorably with alternatives with respect toenvironmental and health impacts, price, performance, and availability.
Recycled Products – Products manufactured with waste material that has been recovered ordiverted from the waste stream. Recycled material may be derived from post-consumer waste(material that has served its intended end-use and been discarded by a final consumer), industrialscrap, manufacturing waste, and/or other waste that otherwise would not have been utilized.
Waste Prevention – means any action undertaken by an individual or organization to eliminate orreduce the amount or toxicity of materials before they enter the municipal solid waste stream. This
action is intended to conserve resources, promote efficiency, and reduce pollution.
IV.Policy Statement
It is the policy of the District to make purchasing decisions, where feasible, that will further the
following goals:
•Conserve natural resources;
1284794.1 OCSD 18-XX-4
•Minimize environmental impacts such as pollution and use of water and energy;
•Eliminate or reduce toxics that create hazards to workers and the community;
•Support strong recycling markets;•Reduce materials that are put into landfills;
•Increase the use and availability of environmentally preferable products
that protect the environment; and
•Encourage manufacturers and vendors to reduce environmental impacts in theirproduction and distribution systems.
V. Procedures When making purchasing decisions, the Purchasing Manager or his or her designee, in
consultation with the Director of the department requesting the procurement, shall consider the environmental impacts of alternative products, in addition to price, performance, and availability.
A. Procurement Practices Where feasible, products should meet the following specifications.
1.Ongoing Consumables
a.Printing and writing papers containing a minimum of 30% post-consumerrecycled content.
b.Paper products including janitorial supplies, facial tissues, toilet paper, file
boxes, hanging file folders, and other products composed largely of paper.
c.Remanufactured laser printer toner cartridges and remanufactured or
refillable ink-jet cartridges.
d.Recycled plastic products such as signs, benches, and posts.
2.Durable Goods
a.ENERGY STAR™ labeled or approved electric equipment, including but not
limited to computers, monitors, scanners, printers, refrigerators,microwaves, television, and audio-visual equipment.
b.LED and low energy use lighting products.
c.Refurbished furnishing and equipment.
3.Buildings Materials
a. Consider LEED certified products and furnishings in design.
b.Low VOC (volatile organic compounds) or zero-VOC products for paints,finishes and adhesives.
B. Waste Prevention Practices
Where feasible, District staff is encouraged to reduce consumption of resources by incorporating the following practices into their daily activities.
1.Consider durability and repair ability of products prior to purchase.
2.Conduct routine maintenance on products and equipment to increase the useful
life.
3.Use duplex features on laser printer and copiers. Specify duplex on print jobs.
1284794.1 OCSD 18-XX-5
4.Create electronic letterhead for use by all District Staff.
5.Send and store information electronically whenever possible.
6. Review record retention policies and implement document imaging systems.
7.Any other waste prevention practices that further the goals of this policy.
C. Responsibilities of Contracts, Purchasing, and Materials Management Division
1.Inform all departments of the responsibilities under this Policy and provideinformation about recycled products and environmental purchase opportunities.
2.Inform suppliers of the requirements of this Policy.
3. Encourage departments to purchase EPPs whenever possible.
4.Review specifications used in public bidding to possibly eliminate barriers torecycled-content products.
VI.Recordkeeping
All records created or generated in the course of this procedure shall be legible and stored in a waythat they are readily retrievable in facilities or electronic document/content management systemsthat provide a suitable environment to prevent damage, deterioration, or loss. Records may be inthe form of any type of media, such as hard copy or electronic media. The OCSD Records RetentionSchedule is the official procedure governing the retention, retirement, and destruction of Districtrecords. Document owners should use these schedules to determine the item and series that bestfit their records. Document owners are responsible for insuring that documents are properlymarked, indexed, and filed for their projects or area of responsibility.
VII.Exceptions/Conditions/Provisions
VIII.References
IX.Revision History
Version Date By Reason 1 10/12/17 Jackie Lagade New Implementation
X. Attachments
Page 1 of 1
ADMINISTRATION COMMITTEE Meeting Date 02/14/18 To Bd. of Dir. --
AGENDA REPORT Item Number 5 Item Number --
Orange County Sanitation District
FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: INVESTMENT PERFORMANCE RESULTS
GENERAL MANAGER'S RECOMMENDATION
Information Only.
SUMMARY
Chandler Asset Management serves as the Orange County Sanitation District’s (Sanitation District) Investment Manager. The Portfolio Manager and Senior Vice President, William Dennehy, CFA, will be providing an informational presentation on the
performance of the Sanitation District’s short-term and long-term investment portfolios over the past year.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
N/A
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package:
N/A
Page 1 of 2
ADMINISTRATION COMMITTEE Meeting Date 02/14/18 To Bd. of Dir. 02/28/18
AGENDA REPORT Item Number 6 Item Number
Orange County Sanitation District
FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET
CALENDAR FOR PREPARATION OF THE FY 2018-19 AND FY 2019-20 BUDGET TWO-YEAR BUDGET
GENERAL MANAGER'S RECOMMENDATION
Approve the FY 2018-19 and FY 2019-20 budget assumptions and direct staff to incorporate these parameters in the preparation of this two-year budget.
BACKGROUND
The Administration Committee establishes the Budget Assumptions and approves the Budget Calendar in the development of the District’s two-year budget.
Staff will make a brief presentation at the Committee meeting.
RELEVANT STANDARDS
•Produce Operations and CIP budgets every two years with annual update.
PROBLEM
Lack of approved assumptions may result in a budget that is misaligned with the direction
of the Board of Directors.
PROPOSED SOLUTION
Ensuring alignment through the presentation of the budget assumptions and subsequent
approval by the Board of Directors.
TIMING CONCERNS
The proposed two-year budget, effective July 1st of this year, will be finalized and
presented to the Board for adoption in June. Please see the attached budget calendar
that lays out the sequential steps for the completion of the proposed budget.
RAMIFICATIONS OF NOT TAKING ACTION
Lack of approved assumptions may result in a budget that is misaligned with the direction
of the Board of Directors.
Page 2 of 2
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
Currently, there are no proposed changes to the District’s Fiscal Policy. The Fiscal Policy is published in the FY 2016-17 and 2017-18 Budget document (Section 3, Pages 1-8), and
is available on the Sanitation District’s website.
CEQA
N/A
FINANCIAL CONSIDERATIONS
N/A
ATTACHMENT
The following attachment(s) is available in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package:
•Preliminary Budget Assumptions
•Budget Calendar
FY 2018-19 Preliminary Budget Assumptions
Economic Assumptions
•Inflation for Orange County in FY 2018-19 is projected to be 2.4 percent based on the 2018projected percentage change in consumer price index obtained from Chapman University. A 2.4 percent inflation factor will also be used for FY 2019-20.
Revenue Assumptions
•Based upon the proposed Sewer Service Fee Rate Schedule to be approved by the Boardin March 2018, the single-family residence (SFR) rate will increase by 1.2 percent to $335 in FY 2018-19.
•Note that each $1 increase in the SFR rate generates approximately $900,000 per year.
•The capital facilities capacity charge (CFCC) fee captures only those infrastructure coststhat relate to additional capacity. The proposed CFCC fee to be approved by the Board inMarch 2018 will increase by 10 percent for FY 2018-19. Other infrastructure costs such asimproved treatment, rehabilitation, refurbishment, and replacement, will be supportedthrough user fees.
•Given the Facilities Master Plan adopted in December 2017, a rate study was completed inDecember 2017 to ensure that the CFCC fee methodology remains equitable and to confirmthat an appropriate share of system costs would be recovered from new development.
•Revenues will be budgeted to reflect little growth in Equivalent Dwelling Unit (EDU)connections that have remained flat over the past five years.
•Propose permit user rates for flow will increase by 4.1 percent, Biochemical OxygenDemand (BOD) will increase by 0.5 percent and Total Suspended Solids (TSS) will increaseby 2.9 percent for FY 2018-19 based upon the Rate Study completed in December 2017.
•Annexation fees capture both the net current assets and the equivalent property taxallocations totaling $4,235 per acre.
•Annexable property in the District’s service area sphere is minimal; consequently, noFY 2018-19 income from annexation fees is anticipated.
•Property tax revenues are preliminarily estimated to increase by approximately five percentfrom FY 2017-18 to $98,349,000.
A two percent annual increase in Assessed Value is authorized by the state constitution and
is included in the increases noted above. The additional increase in assessed value is fromauthorized increases to market value when property is sold at a higher value.
•Earnings on the investment of the District’s operating cash and reserves will be budgeted at1.0 percent of the average cash and investment balance projected for the fiscal year.
•No additional debt issuance is scheduled for FY 2018-19.
Operating Assumptions
•Operating expenses are expected to approximate the adopted FY 2017-18 budget of $154million.
FY 2018-19 Preliminary Budget Assumptions
• Average daily flows are projected at 190 mgd for FY 2018-19 and 191 MGD for FY 2019-20. The FY 2018-19 flow projection of 190 mgd reflects an increase of 3 mgd from the actual for the first 5 months of the current year and is 2 mgd above the final actual flow for FY 2016-17. Employee/Staffing Assumptions
• Staffing level is expected to remain flat. No additional positions are anticipated. The total FY 2017-18 authorized staffing level is 635.00 FTEs, excluding Management Discretion positions.
• Vacant positions as of 12/31/17 are budgeted at 50 percent of step 1 for the remainder of FY 2017-18 and at 100 percent of step 2 for FY 2018-19.
• New positions will be projected at 100 percent of step 1 for FY 2018-19.
• A 5.0 percent vacancy factor on authorized positions has been budgeted for FY 2018-19.
The actual vacancy factor is currently running at 7.6 percent, but is on a downward trend due to the streamlined recruitment processes now in place. This vacancy factor accounts for time spent for recruitment and turnover.
• The Memorandums of Understanding (MOUs) for the OCEA, the Local 501, and the Supervisor and Professional (SPMT) groups expire on June 30, 2019. Salary adjustments will be included in the budget for COLA based upon the current MOUs.
• Retirement costs for employees enrolled in OCERS Plans G and H are estimated at a rate of 15.78 percent of the employee’s base salary for FY 2018-19, down from 15.83 percent in FY 2017-18. The rates for Plans G and H include the District’s pickup of 3.5 percent of employees’ required contributions. Employees enrolled in OCERS Plan B are estimated at a rate of 10.21 percent of the employee’s base salary for FY 2018-19, down from 10.30 percent in FY 2017-18. All employees hired on or after January 1, 2013 are enrolled in OCERS Plan U and are estimated at a rate of 9.27 percent for FY 2018-19, up from 9.25 percent in FY 2017-18. Interns are not enrolled in OCERS so their retirement benefits are calculated at 6.2 percent (FICA rate).
• Other employee benefits and insurances will be budgeted to increase in FY 2018-19 and FY 2019-20 by moderate but yet to be determined amounts. Materials, Supplies, & Services Assumptions
• The proposed operating budget will continue to reflect an emphasis on safety, security, and maintenance of plant assets and infrastructure.
• An amount equal to half of one percent of the Operating materials and services budget will be a contingency for prior year re-appropriations. Since the current year’s budget lapses on June 30, a contingency is needed in the succeeding budget year for goods or services ordered at the end of one budget year but not delivered until the following year.
• An amount equal to 0.85 percent of the Operating materials and services budget will be the General Manager’s contingency budget. These funds will be allocated to appropriate line
FY 2018-19 Preliminary Budget Assumptions
items during the year after requests and justifications for unanticipated needs are approved by the General Manager.
•Resource needs for strategic initiatives will be included in the budget.
Capital Improvement Program Assumptions
•The FY 2018-19 and FY 2019-20 cash flow budget, based on the most current ValidatedCapital Improvement Program (CIP), is the target.
•The baseline CIP cash flow for FY 2018-19 is $169 million and for FY 2019-20 is $193million.
•Continual evaluation of the CIP by the Asset Management Team may result in deferral orreduction of some projects and a resultant increase in O&M repair costs for materials andservices, if the net cash flow impact is a decrease.
•The FY 2018-19 and FY 2019-20 CIP budget will only increase for critical projects whichwere not previously identified in the Strategic Plan Update.
•For the first five months of FY 2017-18, $41.1 million of the $148.1 million CIP budget,approximately 27.8 percent, was expended.
Debt Financing
•The District will issue new debt in the form of Certificates of Participation (COP) as neededto fund the CIP and to maintain reserves.
•No additional debt issuance is scheduled for FY 2018-19 and FY 2019-20.
•Debt will only be used for CIP and capital expenses, not for operating expenses.
•Capital financing plans no longer include future borrowings over the next ten years as theapproved user fee schedule is considered sufficient.
•Borrowing is proposed only for facilities which do not add capacity and that are funded by allusers for replacement, rehabilitation, and improved treatment.
Reserve Assumptions
The existing reserve policy is summarized as follows:
►A cash flow criterion will be established to fund operations, maintenance and certificates
of participation expenses for the first half of the fiscal year, prior to receipt of the firstinstallment of the property tax allocation and sewer service user fees which are collectedas a separate line item on the property tax bill. The level of this criterion will be
established as the sum of an amount equal to six months operations and maintenanceexpenses and the total of the annual debt (COP) service payments due in August eachyear.
►An operating contingency criterion will be established to provide for non-recurringexpenditures that were not anticipated when the annual budget and sewer service fees
FY 2018-19 Preliminary Budget Assumptions
were considered and adopted. The level of this criterion will be established at an amount equal to ten percent of the annual operating budget. ► A capital improvement criterion will be maintained to fund annual increments of the capital improvement program. The long-term target is for one half of the capital improvement program to be funded from borrowing and for one half to be funded from current revenues and reserves. With this program in mind, the target level of this criterion has been established at one-half of the average annual capital improvement
program over the next ten years. ► A catastrophic loss, or self-insurance, criterion will be maintained for property damage including fire, flood and earthquake, for general liability and for workers' compensation.
This criterion is intended to work with purchased insurance policies, FEMA disaster reimbursements and State disaster reimbursements. The potential infrastructure loss from a major earthquake, of which the District currently has limited outside insurance
coverage of $25 million, has been estimated to be as high as $1.3 billion. The level of this criterion has been set at $57 million should such a catastrophic event occur. This criterion amount will assist the District with any short-term funding needs until Federal and State assistance becomes available. ► Accumulated capital funds will be set aside for certain specific, short-term capital improvements as the need and availability arise. ► A capital replacement/renewal criterion has been established to provide thirty percent of the funding to replace or refurbish the current collection, treatment and disposal facilities at the end of their useful economic lives. Based on the Facilities Evaluation Report completed in December 2017, the current replacement value of these facilities is estimated to be $3.17 billion for the collection
facilities and $6.94 billion for the treatment and disposal facilities. The initial criterion level has been established at $50 million, which will be augmented by interest earnings and a small portion of the annual sewer user fee, in order to meet projected needs
through the year 2030. ► Provisions of the various certificates of participation (COP) issues require debt service reserves to be under the control of the Trustee for that issue. These reserve funds are
not available for the general needs of the District and must be maintained at specified levels. The current level of required COP service reserves is projected to be $177.0 million. ► Accumulated funds exceeding the levels specified by District policy will be maintained in a rate stabilization fund. These funds will be applied to future years' needs in order to maintain rates or to moderate annual fluctuations. There is no established target for this criterion.
FY 2018-19 Budget Calendar
Tasks Responsibility Event/Due Date
PHASE I – BUDGET PREPARATION
EMT Strategic Planning Workshop General Manager's Office 8/17/17
Operations Committee Review of Strategic Plan General Manager's Office 10/4/17
Administration Committee Review of Strategic Plan General Manager's Office 10/11/17
Strategic Plan Update Adopted by Board of Directors General Manager's Office 11/15/17
Preliminary Budget Assumptions Identified Financial Planning 12/20/17
CIP - Annual Resource Forecast complete
Review resources needed to complete active CIP projects
Engineering Project Management Office (PMO)
1/11/18
Preparation for Budget Kickoff / Training Session:
•Develop line item worksheets with mid-year actual
expense
•Prepare/update budget instruction manual
Financial Planning 1/18/18
Preliminary Budget Assumptions & Draft Budget Calendar Presented to Executive Management Team (EMT)
Financial Management 1/22/18
Budget Kickoff / Training Session:
•Distribute budget instruction manual update
•Conduct budget training session
•Review submission deadlines
Financial Planning 1/25/18
Operating Divisional Budgets: New Position and Change to Existing Position Decision Packages Due to Human
Resources (Laura Maravilla, Ext. 7007) with copies to John Ralston
Divisional Budget Coordinators 2/9/18
Operating Budget: Promotional Items Request Forms and Conference Request Forms Due to Dr. Robert Ghirelli (Division 110)
Divisional Budget Coordinators 2/9/18
Capital Equipment Budget: Vehicle Capital Equipment Decision Packages Due to Fleet Services (Bob Bell, Ext.
7214)
Divisional Budget Coordinators 2/9/18
Capital Equipment Budget: Computer Capital Equipment
Decision Packages Due to Information Technology (John Swindler, Ext. 7260)
Divisional Budget
Coordinators
2/9/18
FY 2018-19 Budget Calendar
Tasks Responsibility Event/Due Date
Budget Assumptions Presented to Administration Committee Financial Management 2/14/18
Mid-Year Financial Report to Administration Committee Financial Management 2/14/18
Division Budget Packages Due to Financial Planning:
•Projection of 2017-18 actual operating costs
•Proposed operating costs for 2018-19 & 2019-20
•Operating Budget Expense Detail
•Meetings, Memberships and Training Requests
•Capital Equipment Decision Packages (other than
computer and vehicle decision packages which weredue on 2/9/18)
•New program decision packages
(Financial Planning will collate and bind these items – along with salary information - into the Preliminary Division Budget
Document for use during the budget review process.)
Divisional Budget Coordinators 2/23/18
Mid-Year Financial Report to Board Financial Management 2/28/18
Complete the Compilation of the Preliminary Division Budget Update Packages Financial Planning 2/28/18
CIP – Project Budget Reviews Complete Engineering PMO 3/2/18
Department Narrative Updates for Budget Executive Summary Due to Financial Planning EMT 3/21/18
CIP – Validated CIP budgets delivered to IT/Finance Engineering PMO 3/30/18
PHASE II - BUDGET REVIEW
Divisional Budgets - Distribution of Preliminary Line Item Requested Budgets to Department Heads and Managers
along with Analysis/Questions for Review
Financial Planning 3/2/18
Operating Budget – Information on New Positions, Position Upgrades & Reclassifications Submitted to the
General Manager
Human Resources 3/9/18
Operating Budget – Division Budget Review Meetings with Finance and Division Representatives Financial Planning & Division Representatives
3/5/18 – 3/8/18
Operating Budget - Completion of Preliminary Divisional Budgets and Compilation into Departmental Budgets Financial Planning 3/14/18
FY 2018-19 Budget Calendar
Tasks Responsibility Event/Due Date
Operating Budget – Recommendations to General Manager Financial Planning 3/16/18
Final Operating Budget – General Manager Review of Budget Recommendations Financial Planning, General Manager, & Department Heads
3/19/18 – 3/23/18
Capital Equipment Budget – Requests Reviewed & Approved Financial Planning, General Manager, &
Department Heads
3/19/18 – 3/23/18
Divisional Budgets – Performance Budget Documents Due to Financial Planning (John Ralston):
•Organization Charts
•Performance Results (2016-17)
•Performance Measures (2018-19 & 2019-20)
Divisional Budget Coordinators 3/21/18
Operating Budget – Report of General Manager's Decisions on New Positions, Position Upgrades &
Reclassifications Submitted to the Financial Planning
General Manager 3/23/18
CIP – Approve Proposed CIP Budget EMT 3/26/18
CIP - Operations Committee informational item – Review of Proposed Budget Engineering 5/2/18
PHASE III - BUDGET PRESENTATION
Operating Budget – Presentation of Preliminary Budget Update by Division/Department to EMT Financial Management 4/2/18
Operating Budget Update – Overview to Administration Committee Financial Management 4/11/18
CIP - Final CIP Budget Document Preparation and Incorporation into Final Budget Document Financial Planning 4/19/18
CIP – Review draft of Final Budget Document pages with Engineering Planning & PMO Financial Planning 4/19/18
CIP - Section 8 Executive Summary complete Engineering Planning 4/26/18
Initial - Proposed Budget finalized Financial Planning 4/27/18
Operating Budget Update – Overview to Operations Committee Financial Management 5/2/18
General Manager’s Budget Message Completed General Manager/ Financial Management 5/11/18
Approval of General Manager’s Budget Message General Manager 5/16/18
Final - Proposed Budget to Printer Financial Planning 5/23/18
FY 2018-19 Budget Calendar
Tasks Responsibility Event/Due Date
PHASE IV - BUDGET & SEWER SERVICE FEEDELIBERATIONS
Proposition 218 Notification Consideration Board of Directors 12/20/17
First Reading of the Sewer Service Fee Rate Ordinance Board of Directors 2/28/18
Second Reading and Adoption of the Sewer Service Fee Rate Ordinance (Public Hearing) Board of Directors 3/28/18
Final Draft - Proposed 2018-19 & 2019-20 Budget Presented to Committees Financial Management Ops – 6/6/18
Admin – 6/13/18
Adoption of 2018-19 & 2019-20 Budget Board of Directors 6/27/18
PHASE V – DISTRIBUTION OF BUDGET
Final line item budget and equipment budgets posted in
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Financial Planning 7/11/18
PHASE VI - BUDGET DEBRIEFING
Budget Debriefing E-mail Message
•Global changes that occurred in this year’s budget.
•Changes since the Departments’ original submittal.
•Changes that occurred as a result of Board action.
•Results of Budget Survey.
•Overview of Budget Monitoring with Oracle JDEdwards EnterpriseOne Software and review ofBudget Coordinator’s Responsibility.
•Overview of CIP Budget Monitoring.
•Suggestions for Budget Process Improvements.
Financial Planning 7/13/18
Page 1 of 2
ADMINISTRATION COMMITTEE Meeting Date 02/14/18 To Bd. of Dir. 02/28/18
AGENDA REPORT Item Number 7 Item Number
Orange County Sanitation District
FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: PROPOSED ORDINANCE ADOPTING REGIONAL SEWER SERVICE
CHARGES
GENERAL MANAGER'S RECOMMENDATION
A. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said
entire ordinance;
B. Introduce Ordinance No. OCSD-XX entitled: “An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Regional Sewer Service Charges and Repealing Ordinance No. OCSD-41 and Ordinance No. OCSD-46”;
and
C. Set March 28, 2018, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD-XX.
BACKGROUND
Carollo Engineers completed the 2017 Facilities Master Plan which was approved by the Board in December 2017. In conjunction with the Facilities Master Plan, Carollo was
tasked with providing an independent analysis of the Sanitation District’s cash flow modeling and a rate study. This rate study was received and filed by the Board in December 2017.
The proposed five-year rate schedule provides for equitable and proportionate distribution
for the cost of service of operating the Sanitation District's wastewater system:
2018-19 2019-20 2020-21 2021-22 2022-23
$335 $339 $343 $347 $351
RELEVANT STANDARDS
•Stable rates, no large unforeseen rate increases
Page 2 of 2
PROPOSED SOLUTION
Adopt an ordinance with the new proposed five-year rate schedule based on the 2017 rate study completed by Carollo Engineers.
TIMING CONCERNS
February 9th – Notifications Mailed February 28th – First Reading of the Ordinance March 28th – Public Hearing, Second Reading and Adoption of the Ordinance July 1st – Ordinance takes effect
RAMIFICATIONS OF NOT TAKING ACTION
Sewer service fees will be insufficient to support the facilities master plan update.
PRIOR COMMITTEE/BOARD ACTIONS
December 2017 - Approval of the 2017 Facilities Master Plan and Received and Filed the 2017 Rate Study June 2014 - Adoption of Ordinance No. OCSD-46 (Amends OCSD-41)
July 2013 - Adoption of Ordinance No. OCSD-41
January 2013 - Approval of the previous Sanitation District Wastewater Revenue Program Rate Study
ADDITIONAL INFORMATION
Based on the results of the rate study completed by Carollo Engineers, Sanitation District staff is in the process of recommending a five-year revenue program which includes an increase of approximately 1.2 percent annually for the next five years.
ATTACHMENT
The following attachment(s) is available in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.com) with the complete agenda package:
•Ordinance No. OCSD-XX
The Sanitation District’s Board of Directors approved a five-year rate schedule which expires at
the end of the current fiscal year.
PROBLEM
OCSD XX-1
ORDINANCE NO. OCSD-XX
AN ORDINANCE OF THE BOARD OF DIRECTORS OF
ORANGE COUNTY SANITATION DISTRICT ADOPTING
REGIONAL SEWER SERVICE CHARGES AND REPEALING ORDINANCE NO. OCSD-41 AND ORDINANCE NO. OCSD-46
WHEREAS, Health & Safety Code Section 5471 authorizes the Orange
County Sanitation District’s (“District”) Board of Directors to impose fees and other
charges for services and facilities furnished by the District in connection with the District’s sewage collection, treatment, disposal, and reuse system; and
WHEREAS, the District imposes annual sewer service charges on
residential and commercial users. The District uses revenue from these charges
to operate, maintain, replace, and improve the District’s existing facilities. The current service charges are set forth in Ordinance No. OCSD-41, as amended by Ordinance No. OCSD-46; and
WHEREAS, the District recently retained Carollo Engineers to evaluate the
District’s projected revenue needs and recommend rates for the five-year period of July 1, 2018 to June 30, 2023. In December of 2017, Carollo Engineers issued its “Final Report and Recommendations on Wastewater Rates, Fees, and Charges” (“Carollo Report”). The District’s Board of Directors received the Carollo
Report on December 20, 2017, and the Carollo Report is on file with the District;
and
WHEREAS, the recommendations set forth in the Carollo Report are based in part on the District’s 2017 Facilities Master Plan (“Master Plan”). The Master
Plan identified the capital improvement projects that will be needed over the next
20 years, and estimated the cost of each project. The District’s Board of Directors approved the Master Plan on December 20, 2017; and
WHEREAS, pursuant to Article XIIID, section 6, of the California
Constitution, the District mailed notice of a public hearing on the proposed sewer
service charges to the record owner of each parcel subject to the proposed charges. The notice, which set forth the date, time, and location of the public hearing, as well as the charges, fees, and rates proposed for imposition, was mailed no less than 45 days prior to the public hearing; and
WHEREAS, pursuant to Health and Safety Code sections 4766 and 5473, the Board of Directors may elect to have the proposed regional sewer service charges collected on the tax roll in the same manner, by the same persons, and at the same time as, together with and not separately from, its general taxes; and
WHEREAS, pursuant to Health and Safety Code section 5473.1, on March 14, 2018 and again on March 21, 2018, notice of a public hearing regarding the proposed sewer service charges and the election to have such charges collected on the tax roll was published in the Orange County Register, a
newspaper of general circulation within the District published in the county where
OCSD XX-2
the District is located. The notice set forth the date, time and location of the hearing; and
WHEREAS, on Wednesday, March 28, 2018 at 6:00 P.M., in the District’s
Boardroom on the first floor of its Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, the District held a properly noticed public hearing in order to receive and consider comments, including objections, concerning the proposed regional sewer service charges and the election to have
such charges collected on the tax roll; and
WHEREAS, the Board of Directors has carefully reviewed the Carollo Report and considered oral and written comments from the public, Board Members, District staff, and District consultants made at and prior to the March 28,
2018 public hearing;
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN:
SECTION I. Adopt Regional Sewer Service Charges
TABLE OF CONTENTS
ARTICLE I: FINDINGS
Section 1.01 Findings
ARTICLE II: SEWER SERVICE CHARGES
Section 2.01. Purpose and Scope
Section 2.02. Annual Sewer Service Charge Section 2.03. Exemptions, Rebates, Refunds and Reduced Charges A. Exemptions
B. Application for Water Efficiency Rebate/
Reduced Charge C. Application for Refund D. Limitation Period E. Determination
F. Administrative Fee
G. Duration of Reduced Charge H. Penalty
Section 2.04. Annual Charge Based on Fiscal Year
Section 2.05. Method of Collection
Section 2.06. Credit for Industrial Permittees Section 2.07. Open-Air Facilities Table A Annual Sewer Service Charges for Residential Users
Table B Annual Sewer Service Charges
Property Use Classifications
OCSD XX-3
ARTICLE III: MISCELLANEOUS
Section 3.01. Application of Ordinance
Section 3.02. Exceptions Section 3.03. Out of Area Sewer Service Agreements
ARTICLE I
FINDINGS
Section 1.01. Findings. Based upon substantial evidence presented to the Board of Directors, the Board of Directors of District hereby finds
that:
A. The revenues collected pursuant to this Ordinance shall be used to finance the improvements, programs, and staffing needed to operate, maintain, replace, and improve the District’s existing facilities, fund necessary
reserves, and retire debt incurred to finance such activities. The revenues shall be used for no other purpose.
B. The revenues collected pursuant to this Ordinance are reasonably related to, and will not exceed, the cost of the improvements,
programs, and staffing needed to operate, maintain, replace, and improve the District’s existing facilities, fund necessary reserves, and retire debt incurred to finance such activities over a reasonable period of time.
C. The amount charged to each parcel pursuant to this
Ordinance does not exceed the proportional cost of the service attributable to the parcel.
D. The financial requirements of the District as reflected in the Master Plan and other documents, are based on current, reliable information, and
further, that data relating to population projections, wastewater flow, and capital facility needs are expected to be realized in each year as described in the reports.
E. The successful operation, maintenance, replacement, and improvement of the District’s existing facilities is necessary to protect public health,
safety, and the environment.
F. The Sewer Service Charges adopted herein will not result in an expansion of facilities to accommodate growth within or outside the existing service area. The adoption of these Sewer Service Charges will not result in any
specific project, nor result in a direct physical change in the environment.
G. This Ordinance is statutorily exempt from review under the California Environmental Quality Act pursuant to Section 21080(b)(8) of the Public Resources Code, because the Sewer Service Charges will be used (i) for
operating expenses, (ii) for the purchase or lease of supplies, equipment, or materials, (iii) to meet financial reserve needs and requirements, and (iv) to obtain
OCSD XX-4
funds for capital projects necessary to maintain service within existing service areas.
H. That all fees and charges established herein have been
approved by the District’s Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law.
ARTICLE II
SEWER SERVICE CHARGES
Section 2.01. Purpose and Scope. The purpose of this Ordinance is to establish Sewer Service Charges to be paid by property owners
for the services and facilities furnished by the District. The revenues collected
pursuant to this Ordinance shall be used to finance the improvements, programs, and staffing needed to operate, maintain, replace, and improve the District’s existing facilities, fund necessary reserves, and retire debt incurred to finance such activities.
Section 2.02. Annual Sewer Service Charge. Commencing with the effective date of this Ordinance, the owner of each parcel of real property located within the District which is improved with structures designed for residential, commercial, or industrial use and which, at the request of
the owner or the owner’s predecessor-in-interest, is connected to the District’s sewerage system, shall pay an annual Sewer Service Charge based on the respective class of users, in the sum or sums, as set forth in Tables A and B of this Ordinance, below, and incorporated by reference herein. The annual Sewer Service Charges for residential users are set forth in Table A. The applicable
single family residential rate shown in Table A is multiplied by the applicable percentage figure shown on Table B with respect to the particular use classification to arrive at the annual Sewer Service Charge rate per 1,000 square feet or per unit. The annual Sewer Service Charges are dependent upon the respective classifications of property use, determined by reference to Table B.
Section 2.03. Exemptions, Rebates, Refunds and Reduced Charges
A. Exemptions. It is the intent of the District that the legal
owner(s) of parcels of real property, otherwise subject to the levy and payment of the Sewer Service Charges, as prescribed herein, be relieved, in whole or in part, from the payment of said charges, in certain circumstances and under conditions prescribed herein, and be entitled to either a water efficiency rebate, reduced charge, or a refund with respect to charges paid, as more specifically set forth in
Subparagraphs 2.03B and 2.03C below, provided an inequity is established or a billing error is proven, as specified in Subparagraphs 2.03B or 2.03C.
B. Application for Water Efficiency Rebate or Reduced Charge.
(1) A "water efficiency rebate" is the difference between the original flow portion of the service charge paid by a
OCSD XX-5
property owner and the recalculated flow portion of the service charge for the property based on past water use as provided herein.
(2) A “reduced charge” is a lower sewer service charge imposed for the current fiscal year or a future fiscal year for the flow portion of the service charge based on water consumption as provided herein.
(3) “Biochemical Oxygen Demand” (BOD) shall mean a measurement of oxygen utilized by the decomposition of organic material, over a specified time period (usually 5 days) in a wastewater sample. It is used as
a measurement of the readily decomposable organic
content of wastewater.
(4) “Suspended Solids” (SS) shall mean any insoluble material contained as a component of wastewater and
capable of separation from the liquid portion of said
wastewater by laboratory filtration as determined by the appropriate testing procedure and expressed in terms of milligrams per liter.
(5) Any property owner, or legally recognized authorized
representative of the property owner, may apply to the District for a water efficiency rebate or reduced charge by establishing that an inequity exists between the amount of the charge paid and the amount of
wastewater discharged to the District’s system. Proof
satisfactory to the General Manager of the District, or his/her designee, shall establish that either:
(a) The principal water use is agricultural or
horticultural; or
(b) The property is devoted to any other use wherein the amount of wastewater discharged to the District’s system is significantly less on a
regular basis than the amount that would
normally be expected to be discharged by the class of property in question.
(6) Satisfactory proof shall include, but not be limited to,
verifiable documentation showing actual water usage
for each billing cycle during the entire period for which the rebate is sought.
(7) The amount of any water efficiency rebate shall not
reduce the charge payable by any property owner,
whose property is connected to the District’s system, to
OCSD XX-6
less than the single family residential charge shown on the applicable Table attached hereto.
(8) Once a water efficiency rebate or reduced charge to a
service charge is granted, additional rebates or reduced charges will not be granted in the same year unless the property was vacant for the entire year.
(9) If a property owner submits a claim for a water
efficiency rebate and also believes that an inequity exists in the BOD and SS components of the sewer service charge, the property owner may contact the District for sampling procedures to submit verifiable
BOD and SS data to have these charges reviewed.
The District may, in its sole discretion, grant an exemption upon finding satisfactory evidence that the BOD and SS of the property’s wastewater discharge is significantly less on a regular basis than the amounts
that would normally be expected to be discharged by
the class of property in question.
C. Application for Refund.
(1) A "refund" is the difference between the original service
charge paid by a property owner and the corrected service charge when the original charge was billed erroneously.
(2) Any property owner, or legally recognized authorized
representative of the property owner, may apply to the District for a refund of Sewer Service Charges paid to the District by establishing that the amount paid was pursuant to an error in the amount billed or the amount
paid. The applicant for a refund must submit proof
satisfactory to the General Manager of the District, or his/her designee, that a billing error has been made by the District, or the County Tax Collector. Such proof shall include, but not be limited to, proof that:
(a) The owner’s parcel of property is not connected to the District’s system; or
(b) The property has not been classified in the
proper property use classification code; or
(c) A clerical error has been made.
D. Limitations Period.
OCSD XX-7
(1) Applications for water efficiency rebates and reduced charges shall be deemed a claim and be governed by the provisions of California Government Code Sections
935 et seq. Water efficiency rebates are only available
for the most recently ended fiscal year and shall be presented to the District as provided in the Government Tort Claims Act, Government Code Sections 915 et seq., Reduced charge claims are available for the
current fiscal year or future fiscal years. The claim for
water efficiency rebate or reduced charge may only be made with respect to amounts paid or payable under such property tax bill. A claim for water efficiency rebate or reduced charge is not deemed a claim for
refund, and California Revenue & Taxation Code
Sections 5096 and 5097 are not applicable.
(2) Applications for refunds shall be deemed to be governed by the provisions of California Revenue &
Taxation Code Sections 5096 and 5097.
(3) Consistent with Section 2.04, a "year" for purposes of this Section 2.03 commences on July 1 for all annual Sewer Service Charges, based on the District's fiscal
year.
E. Determination. All applications for water efficiency rebates, reduced charges or refunds of the Sewer Service Charge will be determined by the General Manager of the District, or his/her designee, who, based on the
submitted proof, may grant a full or partial rebate, reduced charge or refund.
F. Administrative Fee. At the time of filing the application for a water efficiency rebate, reduced charge or refund, the property owner shall pay District an administrative fee for the processing of such application. The amount
of the fee shall be equal to the total of all fees and charges imposed on the District by any other public entity, such as the Orange County Tax Collector, the Orange County Auditor, or the Orange County Recorder, in connection with the rebate or refund.
G. Duration of Reduced Charge. A reduced charge will remain in effect for one fiscal year, subject to the provisions below:
(1) Standard 3 Year Lock-In. Upon submission of two consecutive fiscal years of verifiable water data that
resulted in a rebate or reduced charge, the District shall
determine the average annual consumption based upon those two years and implement a locked-in reduced charge for a standard period of three years.
(2) Renewals. At the end of the lock-in period, the owner of the parcel may apply for a renewal by submitting
OCSD XX-8
verifiable water consumption data for the previous two years.
(3) Failure to Submit. Failure to submit the required water consumption data with lock-in renewal application is equivalent to making an election to opt-out pursuant to Section 2.03, Article II, G4.
(4) Lock-In Opt-Out. At the time the owner of a parcel qualifies for a three-year lock-in pursuant to Section 2.03, Article II, G1, whether as a first time application for rebate or reduced charge, as a renewal pursuant to Section 2.03, Article II, G2, or upon two annual
submittals of the most recent fiscal year of verifiable water consumption records, the owner may elect in writing to opt-out of the lock-in and instead elect year to year renewals and submit verifiable water consumption records annually.
(5) Significant Change in Business Operation-Demonstration. If the owner of a locked-in parcel is able to demonstrate that a significant change in business operation has occurred, verifiable water
consumption may be submitted for the most recently ended fiscal year to be used in a recalculation of the fee with a duration of one year until two consecutive fiscal years of water consumption have been submitted and then the standard lock-in will apply.
(6) Audit. If the District becomes aware that a lock-in parcel has had a significant change in business operation that increases water consumption, the District may request current verifiable water
consumption records for the most recently ended fiscal year and re-establish the reduced charge prior to the expiration of the three-year period.
H. Penalty. The falsification of an application for a water efficiency
rebate or reduced charge is a misdemeanor, punishable as provided by the law. In addition, any person who falsifies an application for a water efficiency rebate or reduced charge shall be civilly liable to the District in the maximum sum provided by law.
Section 2.04. Annual Charge Based on Fiscal Year. The Sewer Service Charges established by this Ordinance shall be effective as of July 1 of each year, as set forth in Tables A and B, attached hereto, for the District’s fiscal year, and shall remain in effect until such time as the rates adopted herein are changed by District Ordinance. There shall be no proration of such charges in
any fiscal year.
OCSD XX-9
Section 2.05. Method of Collection.
A. Pursuant to the authority granted by California Health &
Safety Code Sections 4766 and 5473, and except as otherwise provided in
Subparagraph 2.05B below, all Sewer Service Charges established herein shall be collected on the County Tax Roll in the same manner, by the same persons, and at the same time as, together with, and not separately from, its general taxes. The County Tax Collector is authorized and hereby ordered to make said
collections in accordance with the terms and conditions of agreements between
the County of Orange and the District.
B. In the event District determines that, due to billing or payment error, or to inequity in the amount billed, a property owner (or person who paid the
tax) has underpaid annual Sewer Service Charges payable to District, District,
within four (4) years after the date of mailing of the tax bill, may:
(1) collect the amount of any deficiency directly on the County Tax Roll;
(2) off-set the amount of any deficiency against any amounts that District determines is owing, by District, to the property owner, as a rebate or refund under this Ordinance; or
(3) submit, directly to the property owner, a bill for the amount of any deficiency, which shall be due and payable within thirty (30) days of the invoice date and which, if not paid, shall become a lien on said property.
Section 2.06. Credit for Industrial Permittees. A credit shall be allowed to all dischargers permitted pursuant to Article 3 of District Ordinance No. OCSD-XX, as amended, in an amount equal to the annual Sewer Service Charge established by Section 2.02 of this Ordinance.
Section 2.07. Open-Air Facilities. Sewer Service Charges for open-air facilities will be based on annual attendance records. Open-Air facilities will pay a rate per million gallons based upon the related sewage flow, Biochemical Oxygen Demand (“BOD”) and Suspended Solids (“SS”) charge for single family
residences. The usage per attendee will be 15 gallons.
OCSD XX-10
TABLE A
ANNUAL SEWER SERVICE CHARGES
RESIDENTIAL USERS
FISCAL YEAR 2018-19 2019-20 2020-21 2021-22 2022-23
SFR* $335.00 $339.00 $343.00 $347.00 $351.00 MFR $234.50 $237.30 $240.10 $242.90 $245.70
SFR = SINGLE FAMILY RESIDENTIAL
MFR = MULTI FAMILY RESIDENTIAL
* The SFR fee is the minimum sewer service charge any user must pay.
All properties located within Revenue Area No. 14 pay no annual sewer service
charges. District costs relating to providing service to these properties are billed by the District directly to the Irvine Ranch Water District, the local agency providing the local sewer service.
OCSD XX-11
TABLE B
ANNUAL SEWER SERVICE CHARGES
PROPERTY USE CLASSIFICATIONS
Assessor Use Code Percentage of SFR or Unit Description Per 1,000 SF
1 Vacant Land Parcel 0%
5 Common Area Parcel 0%
6 “Hold” Parcel 0% 8 Equivalent to Vacant 0% 121 Parcel of Minimal or No Value 0% 122 Subsurface Parcels 0%
124 Oil/Mineral Rights 0%
125 Mineral Rights Equipment 0% 126 Vacant Comm. Area-IMP Alloc. 0% 201 Homeowners Exemption Add’l. 0% 666 Unassigned Vacant 0%
777 Septic Tank Property 0%
112 Steel Building 7% 113 Mini-Warehouse 7% 58 Nurseries (Plants) 10% 100 Drive-In Theater 10%
44 Lumber/Constr. Material Yard 17%
71 Parking Garage 17% 72 Paved Parking Lot 17% 110 Warehouse – Single Tenant 17% 111 Warehouse – Multi Tenant 17%
115 Recreational Vehicle Storage 17%
116 Truck Terminal 17% 33 Church Buildings 20% 94 Department Store 23% 95 Discount Store 23%
96 Unattached Single Store 23%
97 Strip Store 23% 74 Recreational Vehicle Park 27% 36 Financial Buildings 27% 40 Health Club 29%
68 High Rise Office 30%
225 United States Post Office 35% 21 Automobile Dealership 41% 22 Auto Repair Shop 41% 23 Automotive Service 41%
24 Used Car Lot 41%
39 Golf Course 41% 57 Motorcycle/Small Vehicle Building 41% 83 Automotive Service Station 41%
OCSD XX-12
TABLE B (CONTINUED)
ANNUAL SEWER SERVICE CHARGES
PROPERTY USE CLASSIFICATIONS
Assessor Use Code Percentage of SFR or Unit Description Per 1,000 SF
84 Marine Service Station 41%
86 Combin.-Service Station/Convenience 41% 65 Single Office Bldgs. to 3 Stories 41% 66 Small Office Center 41% 67 Office Complex 41%
69 Converted Residence to Office 41%
7 Mobile Home 50% 55 Mobile Home Park 50% 107 Light Industrial – Single Tenant 50% 108 Light Industrial – Multi Tenant 50%
109 Research and Development 50%
114 Industrial Park 50% 37 Fraternal Buildings 51% 101 Unattached Theater 51% 26 Airport and Related Buildings 53%
45 Marinas 53%
88 Low Flow Center 53% 3 Two or More Residences 70% 10 Duplex Only 70% 11 Triplex Only 70%
12 04-Units Only 70%
13 5 to 16 Units 70% 14 17 to 25 Units 70% 15 26 to 40 Units Only 70% 16 41-99 Units Only 70%
17 100 or More Units 70%
18 Developed with a Mix of Forms 70% 63 Low Rise Retirement Building 70% 64 High Rise Retirement Building 70% 56 Low Demand Hotel/Motel 70%
81 Pre-Schools, Nursery or Care 82%
82 Private Schools 82% 98 Store with Offices or Living Quarter 82% 99 Store with Office Upstairs 82% 118 Governmental Use Vacant/Develop. 82%
19 SFR with 1 or 2 rental units 85%
34 Dormitory 97% 42 Hospital 97% 43 High Demand Hotel/Motel 97% 0 Conversion-C/1, Rural PC 100%
2 One Residence 100%
OCSD XX-13
TABLE B (CONTINUED)
ANNUAL SEWER SERVICE CHARGES
PROPERTY USE CLASSIFICATIONS
Assessor Use Code Percentage of SFR or Unit Description Per 1,000 SF
4 Miscellaneous Improvement 100%
85 Comb. Serv. Stn./Restaurant 100% 103 Chemical Tank and Bulk Storage 100% 104 Food Processing Plant 100% 105 Cold Storage Plant 100%
106 Factory 100%
119 Public Utility 100% 120 Water Mutual or Company 100% 888 Conversion-Composite Prop. 100% 32 Cemetery & Related Buildings 101%
38 Funeral Home 101%
60 Nursing Home 102% 61 Convalescent Hospitals 102% 62 Converted Res. Used as Nursing 102% 28 Bowling Alleys 112%
92 Skating Rinks 112%
50 Single Medical Bldgs. to 3 Stories 124% 51 Small Medical Center 124% 52 Medical Center Complex 124% 53 High Rise Medical 124%
54 Converted Residence to Medical 124%
89 Average Flow Center 139% 20 Amusement Parks 144% 35 Entertainment Center 144% 73 Recreation 144%
30 Coin Operated Car Wash 151%
47 Supermarket 151% 48 Convenience Market 151% 224 Nightclub 200% 90 High Flow Center 226%
76 Restaurant – Low Demand 300%
77 Restaurant – Coffee Shop 600% 78 Restaurant – Dinner House 600% 79 Restaurant – Conversion from SF 600% 29 Conventional Car Wash 796%
223 Laundromat 1,800%
NOTE: Multiply the Table A Single Family Residential Rate by the percentage figure above in order to determine the rate per 1,000 square feet for the commercial or industrial user.
OCSD XX-14
ARTICLE III
MISCELLANEOUS
Section 3.01. Application of Ordinance. The provisions of this Ordinance shall be in addition to (i) the provisions of the District’s Wastewater Discharge Regulations for use of District’s sewage facilities, including provisions
for payment of charges or fees related thereto; (ii) District’s ordinance establishing
Fees Concerning Annexations of Territory to the District; (iii) District's ordinance establishing Local Sewer Service Fees, where applicable, and (iii) any other District Ordinances and Resolutions not in conflict herewith.
Section 3.02. Exceptions. The provisions of this Ordinance shall apply to all owners of properties within the District, including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax-exempt organizations, except as expressly provided herein.
Section 3.03. Out of Area Sewer Service Agreements. Pursuant to Health and Safety Code Section 4742.1, the District is empowered to contract for the handling, treatment or disposal by the district of sewage or industrial wastes originating within the district or county or within areas outside of
the district or county when, in the judgment of the District Board, it is for the best interest of the district to do so. In exercise of such power, the District may, from time to time, enter into Out-of-Area Sewer Service Agreements. These Out-of-Area Sewer Service Agreements will establish fees and charges relative to the services provided by the District for each individual agreement.
The Board of Directors of the Orange County Sanitation District does further hereby ORDAIN:
SECTION II. Severability. If any provision of this Ordinance, or the application to
any person or circumstances is held invalid by order of Court, the remainder of the Ordinance, or the application of such provision to other persons or other circumstances, shall not be affected.
SECTION III. Effective Date. This Ordinance shall take effect July 1, 2018.
SECTION IV. Repeal. Ordinance No. OCSD-41 and Ordinance No. OCSD-46 are repealed in their entirety effective June 30, 2018.
SECTION V. Certification and Publication. The Clerk of the Board shall certify to
the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation within 15 days as required by law.
OCSD XX-15
PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held on March 28, 2018.
______________________________
Gregory C. Sebourn, PLS
Chairman, Board of Directors Orange County Sanitation District
ATTEST:
____________________________________ Kelly A. Lore, MMC Clerk of the Board
Orange County Sanitation District
APPROVED AS TO FORM:
____________________________________
Bradley R. Hogin
General Counsel Orange County Sanitation District
OCSD XX-16
STATE OF CALIFORNIA ) )SS.
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD-XX was
introduced for first reading at a regular meeting of said Board on the 28th day of February
2018, and passed and adopted by a vote of not less than two-thirds at a regular meeting of said Board on the 28th day of March 2018, by the following vote, to wit:
AYES:
NOES:
ABSTENTIONS: ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of Orange County Sanitation District this 28th day of March, 2018.
_______________________________
Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District
Page 1 of 3
ADMINISTRATION COMMITTEE Meeting Date 02/14/18 To Bd. of Dir. 02/28/18
AGENDA REPORT Item Number
8
Item Number
Orange County Sanitation District
FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: PROPOSED ORDINANCE ADOPTING CAPITAL FACILITIES CAPACITY CHARGES
GENERAL MANAGER'S RECOMMENDATION
A. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said entire ordinance;
B. Introduce Ordinance No. OCSD-XX entitled: “An Ordinance of the Board of
Directors of Orange County Sanitation District Adopting Capital Facilities Capacity Charges and Repealing Ordinance No. OCSD-40 and Ordinance No. OCSD-42”; and
C. Set March 28, 2018, as the date of the Public Hearing to hear protests and for the
second reading of the Ordinance No. OCSD-XX.
BACKGROUND
The Orange County Sanitation District (Sanitation District) will progress to the fees
determined by the Rate Study over the next five years as opposed to implementing the increases in one year. The five-year schedules for the various fees will follow.
The Capital Facilities Capacity Charge (CFCC) is a one-time, non-discriminatory
charge imposed at the time a building or structure is newly connected to the OCSD’s
system, or an existing structure is expanded or increased. This charge is to pay a portion of the capacity costs and for access to capacity in the system. Based upon the new Facilities Master Plan, the 3-bedroom base rate for the residential CFCC proposed schedule is as follows:
2018-19 2019-20 2020-21 2021-22 2022-23
$4,228 $4,601 $4,973 $5,346 $5,719
The non-residential CFCC schedule for 2018-19 is below and will adjust by the
Engineering News Record Construction Cost Index each year, thereafter.
Use Category 2018-19*
Low Demand $ 332
Average Demand $2,066
High Demand $4,908
Page 2 of 3
*per thousand square feet
The Supplemental Capital Facilities Capacity Charges (SCFCC) are fees to Industrial Permittees that exceed their annual baselines for Flow, Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS):
2018-19 2019-20 2020-21 2021-22 2022-23
FLOW $0.001948 $0.001960 $0.001972 $0.001984 $0.001996
BOD $0.427550 $0.440380 $0.453590 $0.467200 $0.481210
SS $0.231510 $0.240770 $0.250410 $0.260420 $0.270840
FLOW – Gallons Per Day
BOD – Pounds Per Day SS – Pounds Per Day
RELEVANT STANDARDS
•Fair and equitable costs across all customer classes
PROBLEM
The Sanitation District’s Board of Directors approved a five-year rate schedule for Industrial Sewer Service Charges which expires at the end of the current fiscal year.
Capital Facilities Capacity Charges and Supplemental Capital Facility Capacity Charges are currently based upon expansion costs which are now minimal requiring a review and update of the methodology used to calculate the fees.
PROPOSED SOLUTION
Adopt ordinance with updated fee schedules based upon the 2017 Rate Study performed by Carollo Engineers and received and filed by the Board in December 2017.
TIMING CONCERNS
February 9th – Notifications Mailed February 28th – First Reading of the Ordinance March 28th – Public Hearing, 2nd Reading and Adoption of the Ordinance July 1st – Ordinance takes effect
RAMIFICATIONS OF NOT TAKING ACTION
Revenues will be insufficient to support the facilities master plan adopted in December 2017.
Page 3 of 3
PRIOR COMMITTEE/BOARD ACTIONS
December 2017 – Adopted 2017 Facilities Master Plan and Received and filed 2017 Rate Study March 2013 – Adoption of Ordinance No. OCSD 42 (Industrial Charges)
January 2013 – Approval of the previous Sanitation District Wastewater Revenue
Program Rate Study. May 2010 – Adoption of Ordinance No. OCSD-40 (CFCC’s)
ADDITIONAL INFORMATION
To ensure the appropriate allocation of costs and fees, the Orange County Sanitation District (Sanitation District) engaged an engineering consulting firm, Carollo Engineers, to provide an independent analysis of the Sanitation District’s cash flow modeling and a cost of service study. The study demonstrates that the Sanitation District’s proposed fees
are appropriate and reasonable and will support its projected capital and operating
requirements.
Carollo Engineers completed the facilities master plan update. In conjunction with this update, Carollo was tasked with performing an updated sewer rate study to determine the
appropriate rates going forward to support the facilities master plan update. The Rate
Study was received and filed and the Facilities Master Plan was adopted by Resolution No. OCSD 17-16 in December 2017.
ATTACHMENT
The following attachment(s) is attached in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.com) with the complete agenda package:
•Ordinance No. OCSD - XX
OCSD XX-1
ORDINANCE NO. OCSD-XX
AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ADOPTING CAPITAL FACILITIES CAPACITY CHARGES AND REPEALING ORDINANCE NO. OCSD-40 AND ORDINANCE NO. OCSD-42
WHEREAS, Health & Safety Code Section 5471 authorizes the Board of Directors of the Orange County Sanitation District (“District”) to impose fees and other charges for services and facilities furnished by the District in connection with the District’s wastewater collection, treatment, disposal, and reuse system; and
WHEREAS, the District imposes Capital Facilities Capacity Charges on new users and Supplemental Capital Facilities Capacity Charges on specified existing users. These charges are set forth in Ordinance No. OCSD-40, as amended by Ordinance No. OCSD-42; and
WHEREAS, the District recently retained Carollo Engineers to evaluate the District’s projected revenue needs and recommend service fees and capacity charges for the period July 1, 2018 to June 30, 2023. In December of 2017, Carollo Engineers issued its “Final Report and Recommendations on Wastewater Rates, Fees, and Charges”
(“Carollo Report”). The District’s Board of Directors received the Carollo Report on December 20, 2017, and the Carollo Report is on file with the District; and
WHEREAS, the Carollo Report recommended that the District (1) increase the residential CFCC from $3,855 per equivalent dwelling unit to $5,719 per equivalent
dwelling unit by 2023, and (2) increase the commercial-industrial CFCC from $2,000 per 1,000 square feet to $3,639 per 1,000 square feet by 2023; and
WHEREAS, the recommendations set forth in the Carollo Report are based on various studies and plans including, among others, financial forecasts and the District’s
2017 Facilities Master Plan (“Master Plan”). The Master Plan identified the capital improvement projects that will be needed over the next 20 years, and estimated the cost of each project. The District’s Board of Directors adopted the Master Plan on December 20, 2017; and
WHEREAS, on Wednesday, March 28, 2018 at 6:00 P.M., in the District’s
Boardroom on the first floor of its Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, the District held a properly noticed public hearing, and received and considered comments concerning the proposed charges; and
WHEREAS, the Board of Directors has carefully reviewed the Carollo Report
and considered oral and written comments from the public, Board Members, District staff, and District consultants made at and prior to the March 28, 2018 public hearing;
OCSD XX-2
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District does hereby ORDAIN:
SECTION I. Adopt Capital Facilities Capacity Charges
TABLE OF CONTENTS
ARTICLE I: RECITAL OF FINDINGS
Section 1.01. Findings – Declaration of Intent
ARTICLE II: CAPITAL FACILITIES CAPACITY CHARGES
Section 2.01. Purpose and Scope Section 2.02. Definitions Section 2.03. Connection Permits: Required
Section 2.04. Capital Facilities Capacity Charge: Payment Section 2.05. Capital Facilities Capacity Charge: Time of Payment Section 2.06. Capital Facilities Capacity Charge: Schedule of Amounts
Table A Capital Facilities Capacity Charges – Non-Residential Table B Capital Facilities Capacity Charges – Residential Table C Plan Check and Inspection Fee Schedule Section 2.07. Supplemental Capital Facilities Capacity Charge: Significant Commercial – Industrial
Users – Special Purpose Dischargers – Definitions Section 2.08. Supplemental Capital Facilities Capacity Charge: New Significant Commercial – Industrial Users Section 2.09. Supplemental Capital Facilities Capacity Charge: New Special Purpose Dischargers
Section 2.10. Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial – Industrial Users – Special Purpose Dischargers Table D Supplemental Capital Facilities Capacity Charges
Section 2.11. Capital Facilities Capacity Charge: Replacement Section 2.12. Capital Facilities Capacity Charge: Remodeled Section 2.13. Payment of Capital Facilities Capacity Charge: Off-Site Sewers Not Part of Master Plan Relative to Reimbursement Agreements
Section 2.14. No Refund or Transfer Section 2.15. Baseline Transferability Section 2.16. Capital Facilities Capacity Charge: Annual Updates Section 2.17. Affordable Housing Projects Section 2.18. Accessory Dwelling Units (ADU)
OCSD XX-3
ARTICLE III: MISCELLANEOUS Section 4.01. Application of Ordinance Section 4.02. Exceptions Section 4.03. Out of Area Sewer Service Agreements
ARTICLE I
RECITAL OF FINDINGS
Section 1.01. Findings. Based on substantial evidence in the record, the Board of Directors hereby finds as follows:
A. The District operates a system for the collection, treatment, disposal, and reuse of wastewater (“System”). The System protects human health and the
environment from the potentially harmful effects of wastewater.
B. The District regularly constructs, reconstructs, repairs, and/or rehabilitates System facilities through capital improvement projects (“Capital Projects”). The District recovers the cost of Capital Projects through Capital Facilities Capacity
Charges imposed on new users and Supplemental Capital Facilities Capacity Charges
imposed on specified existing users. This Ordinance imposes Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges as recommended in the Carollo Report.
C. The District will use the revenues from Capital Facilities Capacity
Charges and the Supplemental Capital Facilities Capacity Charges to fund future Capital Projects and/or repay principal and interest on debt incurred in connection with past Capital Projects. The revenues shall not be used for the acquisition or construction of new local street sewers or laterals as distinguished from main trunk, interceptor and outfall
sewers.
D. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance are based on the information and analysis set forth in the Carollo Report and the Master Plan, both of which were made
available to the public in accordance with Government Code Section 66016 and other provisions of law.
E. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance do not exceed the estimated
reasonable cost of providing the wastewater collection, treatment, disposal, and reuse services for which the fees are charged. The manner in which the costs are allocated to each payor bears a fair or reasonable relationship to the payor's burdens on, and benefits received from, the District’s System.
OCSD XX-4
F. The Capital Facilities Capacity Charges and Supplemental Capital
Facilities Capacity Charges established by this ordinance will retire debt and fund capital
projects necessary to maintain service within the District’s existing service area. Therefore, adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act pursuant to the provisions of Public Resources Code Section 21080(b)(8) and California Code of Regulations Section 15273(a).
G. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance are not imposed as an “incident of property ownership” within the meaning of Article XIIID of the California Constitution. Thus, the substantive and procedural requirements of Article XIIID do not apply.
H. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance have been approved by the District’s Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law.
ARTICLE II CAPITAL FACILITIES CAPACITY CHARGES
Section 2.01. Purpose and Scope. This Ordinance is designed to ensure that each user pays his or her fair share of the costs of Capital Projects, based on the burden that each user places on the System. The District will use revenues generated by this Ordinance to (i) fund future Capital Projects, and (ii) repay principal and interest on debt incurred in connection with past Capital Projects.
Section 2.02. Definitions. A. “Actual construction costs” include the cost of all activities necessary or incidental to the construction of the District facility, such as financing, planning,
designing, acquisition of the property or interests in the property, construction, reconstruction, rehabilitation, and repair. B. “Capital Facilities Capacity Charge” means a one-time, non-discriminatory charge imposed at the time a building or structure is newly connected to the
District’s system, directly or indirectly, or an existing structure or category of use is expanded or increased. Said charge is to pay for the District facilities in existence at the time the charge is imposed, or to pay for new facilities to be constructed in the future, that are of benefit to the property being charged. This charge does not apply to temporary facilities or operations that are regulated under the provisions of a Special Purpose
Discharge Permit. A schedule of the Capital Facilities Capacity Charges specified herein will be on file in the Office of the Board Secretary of the District, and in the Building Department of each City within the District. C. “Connection fee” means a fee equal to the cost necessary to
physically connect a property to the OCSD’s system, including but not limited to, installation of meters, meter boxes, pipelines, and appurtenances to make the connection
OCSD XX-5
and which fee does not exceed the actual cost of labor, materials, and overhead for the
installation of those facilities.
D. “Non-discriminatory” means that the Capital Facilities Capacity Charge does not exceed an amount determined on the basis of the same objective criteria and methodology applicable to comparable public or non-public users, and is not in excess
of the proportionate share of the cost of the District’s facilities of benefit to the person or
property being charged, based upon the proportionate share of use of those facilities. E. “Public agency” means the United States or any of its agencies, the State or any of its agencies, the Regents of the University of California, a county, city,
district, school district, local or regional public authority, or any other political entity,
subdivision or public corporation of the State. F. The Supplemental Capital Facilities Capacity Charge, as provided for in Sections 2.07, 2.08, 2.09, and 2.10 of this Ordinance, is an annual charge payable to
the District on a quarterly or annual basis, as determined by the District. Said charge is
required to be paid by dischargers that exceed the maximum quantity of flow or constituents (BOD or SS) allowed as a base use for which the Capacity Charge is paid. G. “Accessory Dwelling Unit” means an attached or detached residential
dwelling unit which provides complete independent living facilities for one or more persons.
It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated. The ADU shall not exceed 50 percent of the existing living area, with a maximum increase in floor area of 1,200 square feet.
Section 2.03. Connection Permits: Required. A. Connection permits are required of each and every dwelling unit, and each commercial or industrial building, and structure connecting directly or indirectly to the
District’s sewerage system facilities. Included are the connections of laterals to local municipal sewerage facilities, and the connection of local municipal sewerage facilities and laterals to the District’s facilities. Multiple detached structures on a single parcel of property shall each be required to obtain a connection permit.
B. Except as authorized by the issuance of a Special Purpose Discharge Permit under Sections 305 – 305.6 of the District’s Wastewater Discharge Regulations, or as authorized pursuant to a special extra territorial service agreement approved by the Board of Directors, no permit shall be valid unless the real property to be served by use of the permit is included within the boundaries of the District and within the boundaries of a
local sewering agency authorized to maintain public sewering facilities. However, a permit, as authorized above, may be issued for property to be served outside the boundaries of a local sewering agency if a local sewering agency makes application for the issuance of such permit.
OCSD XX-6
There will be a non-discriminatory Capital Facilities Capacity Charge assessed to
public agencies for connecting directly or indirectly to the District’s sewerage system
facilities, and a connection permit must be obtained.
Section 2.04. Capital Facilities Capacity Charge: Payment Required. No application for a permit for a connection of a structure to an the District sewerage facility,
or to any sewerage facility which discharges into an the District sewerage facility, shall be
approved, nor a permit issued, until an the District Capital Facilities Capacity Charge is paid by the applicant, except as provided for discharges under a Special Purpose Discharge Permit. No connection permit shall be issued unless there is an established category of use of the property to be served or a valid building permit issued which
establishes the category of use of said property.
Section 2.05. Capital Facilities Capacity Charge: Time of Payment.
A. Payment of the Capital Facilities Capacity Charge established by this
Ordinance for connection to the District’s sewerage system facilities shall be required at
the time of issuance of the building permit for all construction within the District, excepting in the case of a building legally exempt from the requirement of obtaining a permit. The payment of the Capital Facilities Capacity Charge for such exempt buildings will be required at the time of and prior to the issuing of a plumbing connection permit for any
construction within the territorial limits of the District, or if none, prior to the issuance of a
Certificate of Occupancy.
B. Upon application of any property owner seeking to connect to the District’s sewerage system, the General Manager or his designee, upon a finding of
compelling need, may, pursuant to the authority of California Health & Safety Code Section
5474, approve of an agreement with the property owner for the payment of the applicable connection charge and/or annexation fees in installment payments over a period of not to exceed five (5) years, bearing an interest rate on the unpaid balance of not to exceed ten (10%) percent per annum and that the charges and interest shall constitute a lien on the
property.
Section 2.06. Capital Facilities Capacity Charge and Plan Check and Inspection Fees: Schedule of Amounts.
A. Every person or entity connecting any new or expanded building or
structure to the District’s system facilities shall pay a Capital Facilities Capacity Charge in the amount for the applicable category of use set forth on Table A & B, below.
B. Every person or entity connecting any new or expanded building or
structure directly to the District’s local or regional system facilities shall pay Plan Check and Inspection Fees in the amount set forth on Table C, below.
OCSD XX-7
TABLE A
CAPITAL FACILITIES CAPACITY CHARGES (CFCC) NON-RESIDENTIAL Use Category Rate Basis Base Charge
Low Demand2 Per 1,000 square feet1 $ 332.001
Average Demand4,5 Per 1,000 square feet $2,066.001
High Demand3 Per 1,000 square feet $4,908.001
1Provided that the minimum Capital Facilities Capacity Charge for such new construction shall be $4,228; and all calculations shall be on a 1,000 square foot, or portion thereof, basis.
2Low Demand connections are the following categories of users: Parking Structures; Nurseries; Warehouses; Churches; Truck Terminals; RV Parks; RV Storage Yards; Lumber/Construction Yards; Public Storage Buildings; and other facilities whose wastewater discharge is similar to these listed categories. Parking Structures not connected to the sewer will not be charged.
3High Demand connections are the following categories of users: Food/Beverage Service Establishments; Supermarkets (with bakery, meat counter, and/or food service); Car Washes; Coin Laundries; Amusement Parks; Shopping Centers with one or more Food/Beverage Service Establishments; Food Courts; Food Processing Facilities; Textile
Manufacturers; Breweries; and other facilities whose wastewater discharge is similar to these listed categories. 4All other connections are Average Demand users including: Church Offices and Schools; Hotels, Shopping Centers/Strip Malls without food/beverage service establishments,
Music Halls without food facilities, Office buildings, Senior Housing with individual living units without kitchens but with a common kitchen 5 Residential Accessory Structures such as workshops and hobby shops that connect to the sewer, will be charged at the average demand rate and the minimum charge does not
apply.
OCSD XX-8
TABLE B
CAPITAL FACILITIES CAPACITY CHARGES (CFCC) RESIDENTIAL (PER UNIT)*
Single Family Residential (SFR)1 Base Charge
5+ Bedrooms $5,877.00 4 Bedrooms $5,031.00 3 Bedrooms $4,228.00 2 Bedrooms $3,425.00 1 Bedroom $2,621.00
Multi-Family Residential (MFR)2 Base Charge 4+ Bedrooms $4,566.00 3 Bedrooms $3,763.00 2 Bedrooms $2,960.00
1 Bedroom $2,114.00
Studio3 $1,353.00
*The Base Rate for Residential CFCC is the 3 Bedroom SFR with all others having a ratethat is a percentage of the base rate depending on the size of the unit. The schedule for
the base rate shall be as follows:
2018-19 2019-20 2020-21 2021-22 2022-23
$4,228 $4,601 $4,973 $5,346 $5,719
1 Bedroom additions are considered a change of use and a CFCC must be paid. Enclosed loft additions, bonus rooms, offices, workout rooms, media rooms, libraries and any other enclosed addition which could potentially be used as a bedroom are included in this
category. The classification of these additions will be reviewed and determined by staff.
2 MFR units consist of multiple attached units that receive one secured property tax bill such as apartments. Senior housing with individual living units that include a kitchen are considered MFR units.
3 Studio – one single room with no separating doors or openings leading to another part of the room (except for a bathroom).
Live/Work units will be charged at the residential rate for the living quarters and at the non-
residential rate for the work portion square footage.
OCSD XX-9
TABLE C
PLAN CHECK AND INSPECTION FEE TABLE
INSPECTION FEES FOR SINGLE CONNECTIONS
Lateral installation to property line:
2018-19 2019-20 2020-21 2021-22 2022-23
$575.00 $650.00 $725.00 $800.00 $875.00
Lateral Installation to existing manhole with clean out:
2018-19 2019-20 2020-21 2021-22 2022-23
$650.00 $800.00 $950.00 $1,050.00 $1,150.00
Core drilling into existing manhole base – add:
2018-19 2019-20 2020-21 2021-22 2022-23
$600.00 $900.00 $1,200.00 $1,450.00 $1,500.00
Installation of new manhole over existing manhole:
2018-19 2019-20 2020-21 2021-22 2022-23
$1,200.00 $1,400.00 $1,600.00 $1,800.00 $1,900.00
Gas Flap Installation – add:
2018-19 2019-20 2020-21 2021-22 2022-23
$450.00 $455.00 $460.00 $465.00 $470.00
INSPECTION FEES FOR MULTIPLE CONNECTIONS
Plan check and inspection fees of 20 percent of the sewer construction cost for new tract
sewers, sewer extensions or special facilities are required when plans are submitted for
plan check.
If additional funds are needed, they must be deposited as soon as they are requested to complete the inspection on the project. If funds are required after the work is completed,
they must be paid before the District finals the sewer project.
OCSD XX-10
Section 2.07. Supplemental Capital Facilities Capacity Charge: Significant Commercial – Industrial Users and Significant Special Purpose Dischargers – Definitions.
A. A Significant Commercial – Industrial User (“SCIU”) is any person or entity who discharges commercial or industrial process flow, but excluding domestic
sewage flow, in an amount greater than 25,000 gallons per day (“gpd”), or Biochemical
Oxygen Demand (“BOD”) greater than 150 pounds per day, or Suspended Solids (“SS”) greater than 150 pounds per day, or who is required to obtain a Waste Discharge Permit, as prescribed by Article 3 of the District’s Wastewater Regulations, due to having federally or the District regulated or significant discharges.
B. A Significant Special Purpose Discharger ("SSPD") is any person or entity who discharges to the sewer system wastewater or process flow in an amount greater than 25,000 gpd (excluding domestic, industrial or commercial) and who is required to obtain a Special Purpose Discharge Permit as prescribed in Section 305 of the
District’s Wastewater Regulations. A Special Purpose Discharger (SPD) discharges
25,000 gpd or less.
C. An Existing SCIU or SSPD is any SCIU or SSPD connected and discharging to the District’s system prior to January 1, 2000.
D. A New SCIU or SSPD is any user who connects and discharges to the the District’s system pursuant to a Waste Discharge Permit issued on or after January 1, 2000; or if previously connected and not an SCIU, as defined in Subparagraphs 2.07A and B above, but, subsequent to January 1, 2000, increases flow, or BOD, or SS to a level
as to constitute an SCIU or SSPD.
E. The maximum discharge allowed to a user, for which a base Capital Facilities Capacity Charge is paid, as per Table A, above, is 25,000 gallons per day (“gpd”), or 150 pounds per day each of BOD and SS (the “base use”). Discharge of flow, or BOD,
or SS in amounts greater than allowed by this Subsection 2.07E shall be subject to the
provisions of Sections 2.08 and 2.09 hereof.
F. Each Existing SCIU shall have a baseline of allowed discharge of flow, and BOD, and SS established by the the District as of January 1, 2000. The baseline
shall be based upon the discharge for Fiscal Year 1998-99, or upon such other discharge
data which the the District determines is representative of the user’s actual annual discharge to the sewerage system. Dischargers who are deemed to be SCIU’s solely because of the requirements to obtain a Waste Discharge Permit, pursuant to Section2.07A above, shall have a minimum baseline established as follows: Flow –
25,000 gallons per day; BOD – 150 pounds per day; and SS – 150 pounds per day. The
SCIU shall be authorized to discharge flow, and BOD, and SS up to the baseline amounts without payment of a Supplemental Capital Facilities Capacity Charge.
G. Each Existing SPD shall have a baseline of 25,000 gpd. The Existing
SPD shall be authorized to discharge flow up to 25,000 gpd without payment of a
Supplemental Capital Facilities Capacity Charge.
OCSD XX-11
H. The Supplemental Capital Facilities Capacity Charge, as prescribed by Sections 2.08, 2.09, and 2.10 below, shall be payable commencing with the effective date of this Ordinance.
Section 2.08. Supplemental Capital Facilities Capacity Charge: New Significant Commercial – Industrial Users. In addition to the base Capital Facilities Capacity Charge, as prescribed in Table A, for commercial – industrial use category properties, all New SCIU’s shall pay a Supplemental Capital Facilities Capacity Charge for each gallon of flow, or pound of BOD, or SS, exceeding the base use discharge
maximums, in the amount shown in Table D.
Section 2.09. Supplemental Capital Facilities Capacity Charge: Significant Special Purpose Dischargers. All SSPDs shall pay a Supplemental Capital Facilities Capacity Charge of $.001948 per gallon per day for each gallon of flow exceeding 25,000
gallons per day.
Section 2.10. Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial – Industrial Users and Special Purpose Dischargers.
A. All Existing Significant Commercial – Industrial Users connected to
and discharging to the the District’s system shall be required to pay a Supplemental Capital Facilities Capacity Charge upon the occurrence of either (i) an increase of discharge flow of 25,000 gallons per day (“gpd”), or 25% per day over its established baseline authorization, whichever is lesser; or (ii) an increase of either BOD or SS discharge of 150
pounds each per day, or 25% each per day, whichever is lesser, over its established
baseline authorization. The daily averages will be based on the daily discharges for a year, utilizing discharge records and reports of the discharger or the District.
B. The Supplemental Capital Facilities Capacity Charge shall be in the
following amounts for each component that is increased as provided in Section 2.10A
above.
TABLE D
SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES Daily Charge
2018-19 2019-20 2020-21 2021-22 2022-23
FLOW $0.001948 $0.001960 $0.001972 $0.001984 $0.001996
BOD $0.427550 $0.440380 $0.453590 $0.467200 $0.481210
SS $0.231510 $0.240770 $0.250410 $0.260420 $0.270840
OCSD XX-12
FLOW – Gallons Per Day
BOD – Pounds Per Day
SS – Pounds Per Day
C. All Existing SPDs connected and discharging to the sewer shall be
required to pay a Supplemental Capital Facilities Capacity Charge upon occurrence of an
increase of discharge flow over 25,000 gpd. The Supplemental Capital Facilities Capacity Charge shall be $ 0.001948 per gallon per day of discharge for each gallon above 25,000 gpd.
D. The Supplemental Capital Facilities Capacity Charge shall be calculated on the basis of the average daily quantity of discharge in excess of the User’s baseline or 25,000 gpd for SPDs. The daily averages will be based on the daily discharges for a year, utilizing discharge records and reports of the District.
Section 2.11. Capital Facilities Capacity Charge: Replacement Structures. For new construction replacing former structures, the Capital Facilities Capacity Charge shall be calculated and paid to the District on the rate basis of the category of the new use and the amounts as set forth in Tables A and B, less a credit amount, up to the amount of the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Tables A
and B that would be for the prior category of use which was terminated and removed.
Section 2.12. Capital Facilities Capacity Charge: Remodeled Structures. In the case of existing structures connected to the District’s system facilities, to which new construction or alteration is made to change or increase the category of use or number of
bedrooms, a Capital Facilities Capacity Charge shall be calculated and paid to the District on the rate basis of the category of the new use and the amounts as set forth in Tables A and B, less a credit amount, up to the amount of the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Tables A and B for the prior category of use.
Section 2.13. Payment of Capital Facilities Capacity Charge: Off-Site Sewers Not Part of Master Plan Relative to Reimbursement Agreements. A charge for connection to off-site sewers which are not included as part of the District Master Plan and for which a Non-Master Plan Reimbursement Agreement has been entered into between the District and the property owner, shall be paid in the amount provided for in said
Agreement, to be known as a Non-Master Plan Capital Facilities Capacity Charge. The amount set forth in said Agreement shall be the amount due, provided the original Agreement is still in force. The Non-Master Plan Capital Facilities Capacity Charge shall be in addition to the other Capital Facilities Capacity Charges provided for in Sections 2.06 through 2.10 hereinabove, established for property connecting to said facilities.
Section 2.14. No Refund or Transfer. A Capital Facilities Capacity Charge is paid for the connection of a specific building or structure on a parcel of property. No refund of any charge shall be made because of non-use or change of use, or any other reason once the connection has been made. If the connection is not made and the request
for connection is withdrawn within 12 months of the payment date, the charges paid will
OCSD XX-13
be refunded upon establishing proof from the City or County of a canceled permit. The
connection permit is non-transferable to any other parcel of property.
Section 2.15. Baseline Transferability. The baseline of allowed discharge of flow, BOD and SS used to calculate a Supplemental Capital Facilities Capacity Charge shall not be transferable to a different property, nor shall a credit for such previously
existing baseline be provided to another SCIU concurrently or subsequently occupying the
same property for a different use. Each such SCIU shall pay Supplemental Capital Facilities Capacity Charges in accordance with Section 2.08 above.
Section 2.16. Capital Facilities Capacity Charge Annual Updates. The
Capital Facilities Capacity Charge is based upon the most recently completed Facilities Master Plan. This The non-residential charge will be updated annually based upon the increase in the Engineering News-Record construction cost index for Los Angeles as of December of the prior year until the completion of the next Rate Study. The residential charge will be updated based upon the schedule of base fees in Table B.
Section 2.17. Affordable Housing Projects. Per Resolution OCSD 11-02, development projects that include lower income housing units shall not be denied approval of an application for service, nor shall conditions be imposed thereon or services reduced which are applied for, unless the District makes specific written findings that the denial,
condition, or reduction is necessary due to the existence of one or more of the following:
(a) insufficient water supply or insufficient water treatment or distribution capacity; (b) a State Department of Health Services order prohibiting new water
connections; (c) insufficient sewer treatment or collection capacity; (d) a Regional Water Quality Control Board order prohibiting new sewer connections; (e) the applicant has failed to agree to reasonable terms and conditions
Section 2.18. Accessory Dwelling Units (ADU). Per California SB 1069 and AB 2299, if a structure meets the legal definition of an ADU and is constructed within an existing residence or accessory structure, Capital Facilities Capacity Charges will not be collected. If the ADU is constructed outside the existing residence or accessory structure,
Capital Facility Capacity Charges will be collected per Tables A and B.
ARTICLE III
MISCELLANEOUS
Section 4.01. Application of Ordinance. The provisions of this Ordinance shall be in addition to the provisions of the District’s Wastewater Discharge Regulations for use of the District’s sewage facilities, including provisions for payment of charges or
fees related thereto; the District’s ordinance establishing Fees Concerning Annexations of
OCSD XX-14
Territory to the District; and any other the District Ordinances and Resolutions not in
conflict herewith.
Section 4.02. Exceptions. The provisions of this Ordinance shall apply to all owners of properties within the District, including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or
statute, including properties owned by other public agencies or tax-exempt organizations,
except as expressly provided herein.
Section 4.03 Out of Area Sewer Service Agreements. The District is empowered to contract for the transport, treatment and disposal of wastewaters originating
within areas outside of the District if it is in the best interest of the District to do so. These
Out of Area Sewer Service Agreements will establish fees and charges relative to the services provided by the District for each individual agreement.
The Board of Directors of the Orange County Sanitation District does further hereby
ORDAIN:
SECTION II. Severability. If any provision of this Ordinance, or the application to any person or circumstances is held invalid by order of Court, the remainder of the Ordinance, or the application of such provision to other persons or other circumstances, shall not be
affected.
SECTION III. Effective Date. This Ordinance shall take effect July 1, 2018.
SECTION IV. Repeal. Ordinance No. OCSD-40 and Ordinance No. OCSD-42 are
hereby repealed.
SECTION V. Certification and Publication. The Clerk of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation as required by law.
OCSD XX-15
PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of
Directors of the Orange County Sanitation District at a Regular Meeting held on March 28,
2018.
______________________________ Gregory C. Sebourn, PLS Chairman, Board of Directors Orange County Sanitation District
ATTEST:
____________________________________
Kelly A. Lore, MMC
Clerk of the Board Orange County Sanitation District
APPROVED AS TO FORM:
____________________________________ Bradley R. Hogin General Counsel Orange County Sanitation District
OCSD XX-16
STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do
hereby certify that the above and foregoing Ordinance No. OCSD-XX was introduced for
first reading at a regular meeting of said Board on the 28th day of February 2018, and passed and adopted by a vote of not less than two-thirds at a regular meeting of said Board on the 28th day of March 2018, by the following vote, to wit:
AYES:
NOES: ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 28th day of March, 2018.
_______________________________ Kelly A. Lore, MMC
Clerk of the Board Orange County Sanitation District
Page 1 of 3
ADMINISTRATION COMMITTEE Meeting Date 02/14/18 To Bd. of Dir. 02/28/18
AGENDA REPORT Item Number 9 Item Number
Orange County Sanitation District
FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: PROPOSED ORDINANCE ADOPTING MISCELLANEOUS CHARGES
AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS
GENERAL MANAGER'S RECOMMENDATION
A. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said entire ordinance on February 28, 2018;
B. Introduce Ordinance No. OCSD-XX entitled; “An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Miscellaneous Charges
and Fees Relating to Industrial Dischargers, Source Control Permittees and Wastehaulers and Repealing Ordinance No. OCSD-40 and Ordinance No. OCSD-42; and
C. Set March 28, 2018, as the date of the Public Hearing to hear protests and for the
second reading of the Ordinance No. OCSD-XX.
BACKGROUND
The Orange County Sanitation District (Sanitation District) will progress to the fees
determined by the Rate Study over the next five years as opposed to implementing the increases in one year. The 5 year schedules for the various fees will follow.
Industrial Sewer Services Charges for Class I and Class II Permittees for Flow,
BOD and TSS:
Class I and II 2018-19 2019-20 2020-21 2021-22 2022-23
Flow (*) $1,433.49 $1,489.42 $1,545.35 $1,601.28 $1,657.22
B.O.D. (**) $ 658.09 $ 661.39 $ 664.69 $ 667.99 $ 671.28
S.S. (***) $ 716.60 $ 736.73 $ 756.86 $ 777.00 $ 797.14
(*) Flow Per million gallons of Flow (**) B.O.D. Per thousand pounds of Biochemical Oxygen Demand (***) S.S. Per thousand pounds of Suspended Solids
Page 2 of 3
Special Purpose Discharge Permits for Flow:
Special Purpose
Discharge Permit 2018-19 2019-20 2020-21 2021-22 2022-23
Flow (*) $1,433.49 $1,489.42 $1,545.35 $1,601.28 $1,657.22 (*) Flow Per million gallons of Flow Wastehauler charges for use*:
2018-19 2019-20 2020-21 2021-22 2022-23
Within OCSD Boundaries $0.06 $0.07 $0.08 $0.09 $0.09
Outside OCSD
Boundaries** $0.14 $0.16 $0.18 $0.20 $0.22
(*) per gallon (**) Outside OCSD boundaries and inside OCSD service area or authorized by the OCSD General Manager
Class I, Class II, SPDP, Wastehauler, and Certified Permit Fees:
2018-19 2019-20 2020-21 2021-22 2022-23
A. Class I/Certified Discharger $ 945 $1,105 $1,265 $1,425 $1,585
B. Class II $ 240 $ 310 $ 380 $ 450 $ 520
C. SPDP1 $1,072 $1,094 $1,116 $1,138 $1,160
SPDP Renewal $ 760 $ 775 $ 785 $ 795 $ 810
D. Wastehauler $ 190 $ 190 $ 190 $ 190 $ 190
E. Certified Zero/No Discharge $ 120 $ 120 $ 120 $ 120 $ 120
1 New permit only - add nonrefundable deposit for first 1 million gallons as defined in Table G
Additional Plan Check Fees and Miscellaneous Fees for Industrial Dischargers that have remained flat for over 10 years, are proposed to be updated as well and are included the attached revised ordinance.
RELEVANT STANDARDS
• Fair and equitable costs across all customer classes
PROBLEM
The Sanitation District’s Board of Directors approved a five-year rate schedule for Industrial Sewer Service Charges which expires at the end of the current fiscal year. All other industrial, wastehauler and miscellaneous fees have not been updated in over
10 years.
Page 3 of 3
PROPOSED SOLUTION Adopt ordinance with updated fee schedules based upon the 2017 Rate Study performed
by Carollo Engineers and received and filed by the Board in December 2017.
TIMING CONCERNS February 9th – Notifications Mailed
February 28th – First Reading of the Ordinance March 28th – Public Hearing, 2nd Reading and Adoption of the Ordinance July 1st – Ordinance takes effect RAMIFICATIONS OF NOT TAKING ACTION
Revenues will be insufficient to support the facilities master plan adopted in December 2017. PRIOR COMMITTEE/BOARD ACTIONS
December 2017 - Adopted 2017 Facilities Master Plan and Received and Filed the 2017 Rate Study March 2013 - Adoption of Ordinance No. OCSD 42 (Industrial Charges) January 2013 - Approval of the previous Sanitation District Wastewater Revenue Program
Rate Study
May 2010 - Adoption of Ordinance No. OCSD-40 (CFCC’s) ADDITIONAL INFORMATION
To ensure the appropriate allocation of costs and fees, the Orange County Sanitation District (Sanitation District) engaged an engineering consulting firm, Carollo Engineers, to provide an independent analysis of the Sanitation District’s cash flow modeling and a cost of service study. The study demonstrates that the Sanitation District’s proposed fees are appropriate and reasonable and will support its projected capital and operating
requirements. Carollo Engineers completed the facilities master plan update. In conjunction with this update, Carollo was tasked with performing an updated sewer rate study to determine the appropriate rates going forward to support the facilities master plan update. The Rate
Study was received and filed and the Facilities Master Plan was adopted by Resolution No. OCSD 17-16 in December 2017. ATTACHMENT The following attachment(s) are available in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.com) with the complete agenda package:
• Ordinance No. OCSD - XX
OCSD-XX-1
ORDINANCE NO. OCSD-XX
AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING MISCELLANEOUS CHARGES AND FEES RELATING TO
INDUSTRIAL DISCHARGERS, SOURCE CONTROL
PERMITTEES AND WASTEHAULERS AND REPEALING ORDINANCE NO. OCSD-40 AND ORDINANCE NO. OCSD-42
WHEREAS, Health & Safety Code Section 5471 authorizes the Board of Directors
of the Orange County Sanitation District (the “District”) to impose fees and other charges for services and facilities furnished by the District in connection with the District’s wastewater collection, treatment, disposal, and reuse system; and
WHEREAS, the District imposes charges and fees on industrial dischargers,
source control permittees, and wastehaulers pursuant to Ordinance No. OCSD-40, as revised by Ordinance No. OCSD-42; and
WHEREAS, the District recently retained Carollo Engineers to evaluate the
District’s projected revenue needs and recommend service fees and capacity charges for
the period July 1, 2018 to June 30, 2023. In December of 2017, Carollo Engineers issued its “Final Report and Recommendations on Wastewater Rates, Fees, and Charges” (“Carollo Report”). The District’s Board of Directors received the Carollo Report on December 20, 2017, and the Carollo Report is on file with the District; and
WHEREAS, the Carollo Report recommended specified adjustments to the fees and charges that the District imposes on industrial dischargers, source control permittees, and wastehaulers; and
WHEREAS, the recommendations set forth in the Carollo Report are based on
various studies and plans including, among others, financial forecasts and the District’s 2017 Facilities Master Plan (“Master Plan”). The Master Plan identified the capital improvement projects that will be needed over the next 20 years, and estimated the cost of each project. The District’s Board of Directors adopted the Master Plan on December
20, 2017; and
WHEREAS, on Wednesday, March 28, 2018 at 6:00 P.M., in the District’s Boardroom on the first floor of its Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, the District held a properly noticed public hearing, and
received and considered comments concerning the proposed charges; and
WHEREAS, the Board of Directors has carefully reviewed the Carollo Report and considered oral and written comments from the public, Board Members, District staff, and District consultants made at and prior to the March 28, 2018 public hearing;
OCSD-XX-2
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does
hereby ORDAIN:
SECTION I. Adopt miscellaneous charges and fees relating to industrial discharges, source control permittees and wastehaulers.
TABLE OF CONTENTS
ARTICLE I: RECITAL OF FINDINGS
Section 1.01. Findings – Declaration of Intent
ARTICLE II: MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL
PERMITTEES AND WASTEHAULERS
Section 2.01. Purpose and Scope Section 2.02. Administrative Fees and Charges Relating to Permittees
Section 2.03. Industrial Discharger, Source Control,
and Non-Compliance Sampling Fees Section 2.04. Special Purpose Discharge Permittees; Charges for Use Section 2.05. Class I and Class II Permittees – Charges
for Use
Section 2.06. Wastehauler Charges for Use Section 2.07. Administrative Appeals Table E Administrative Fees and Charges Relating To Permittees
Table F Industrial Discharger, Source Control and
Non-Compliance Sampling Fees Table G Class I and Class II Permittees and Special Purpose Discharge Permittees Charges For Use
Table H Wastehauler Charges for Use
ARTICLE III: MISCELLANEOUS Section 3.01. Application of Ordinance Section 3.02. Exceptions
Section 3.03. Severability
Section 3.04. Effective Date Section 3.05. Repeal Section 3.06. Certification and Publication
OCSD-XX-3
ARTICLE I
RECITAL OF FINDINGS
Section 1.01. Findings – Declaration of Intent.
A. The District operates a system for the collection, treatment, disposal, and reuse of wastewater (“System”). The System protects human health and the environment from the potentially harmful effects of wastewater.
B. The revenues collected pursuant to this Ordinance shall be used to
finance the improvements, programs, and staffing needed to operate, maintain, replace, and improve the District’s existing facilities, fund necessary reserves, and retire debt incurred to finance such activities. The revenues shall be used for no other purpose.
C. The fees and charges established by this Ordinance are based on
the information and analysis set forth in the Carollo Report and the Master Plan, both of which were made available to the public in accordance with Government Code Section 66016 and other provisions of law.
D. The fees and charges established by this Ordinance do not exceed
the estimated reasonable cost of providing the wastewater collection, treatment, disposal, and reuse services for which the fees are charged. The manner in which the costs are allocated to each payor bears a fair or reasonable relationship to the payor's burdens on, and benefits received from, the District’s System.
E. The fees and charges established by this Ordinance will fund the operations, maintenance, construction, rehabilitation, and repair necessary to maintain service within the District’s existing service area. Therefore, adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act pursuant to the
provisions of Public Resources Code Section 21080(b)(8) and California Code of
Regulations Section 15273(a).
F. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance have been approved by the
District’s Board of Directors at a noticed public meeting, all in accordance with applicable
provisions of law.
ARTICLE II
MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS
Section 2.01. Purpose and Scope. The purpose of this Ordinance is to
recover those costs incurred by the District (i) on account of industrial dischargers’ and wastehaulers’ use of the District’s facilities; (ii) when administering the District’s Source Control Program; and (iii) when performing non-compliance sampling of industrial wastewater dischargers who have violated the District’s Wastewater Discharge
OCSD-XX-4
Regulations or the terms and conditions of the discharger’s permit. Revenues derived
under the provisions of this Ordinance shall be used to defray the costs incurred by the District (i) on account of such use of the District’s facilities; and (ii) in performing these tasks.
Section 2.02. Administrative Fees and Charges Relating to Permittees.
Administrative fees and charges relating to permittees are hereby established in the sum or sums as set forth in Tables E, F, G, H, I and J, below.
Section 2.03. Source Control Non-Compliance Fees. Source control non-
compliance fees are hereby established for dischargers’ non-compliance sampling and
for self-monitoring and data reporting non-compliance, in the sum or sums as set forth in Table F, below.
Section 2.04. Special Purpose Discharge Permittees; Charges for Use. As
authorized by Sections 305.5 and 305.6 of the District’s Wastewater Discharge
Regulations, charges for use are hereby established for Special Purpose Discharge Permittees, as set forth in Table G, below.
Section 2.05. Class I and Class II Permittees – Charges for Use. As
authorized by Sections 302.3, 302.6, 303.3 and 303.6 of the District’s Wastewater
Discharge Regulations, the charges for use are hereby established for Class I and Class II Permittees as set forth in Table F, below.
Section 2.06. Wastehauler Charges for Use. As authorized by Sections
306.3 and 306.7 of the OCSD’s Wastewater Discharge Regulations, the charges for use
are hereby established for wastehaulers as set forth in Table H, below.
Section 2.07. Administrative Appeals.
A. Any user, permit applicant, or permittee affected by any decision,
action, or determination by the District may, within forty-five (45) days of the date of mailing by the District of the initial invoice for fees imposed pursuant to this Ordinance, request that the District reconsider imposition of such fees. Following review of such a request, the District shall notify the user, permit applicant, or permittee by certified mail of
the District’s decision on the reconsideration request.
B. Any user, permit applicant, or permittee adversely affected by the District’s decision on the reconsideration request, may file an appeal in accordance with Sections 618 and 621 of the District’s Wastewater Discharge Regulations.
TABLE E
ADMINISTRATIVE FEES AND CHARGES RELATING TO PERMITTEES
Permit Fees Charges per year
2018-19 2019-20 2020-21 2021-22 2022-23
A. Class I/Certified Discharger $ 945.00 $1,105.00 $1,265.00 $1,425.00 $1,585.00
OCSD-XX-5
B. Class II $ 240.00 $ 310.00 $ 380.00 $ 450.00 $ 520.00
C. SPDP1 $1,072.00 $1,094.00 $1,116.00 $1,138.00 $1,160.00
SPDP Renewal $ 760.00 $ 775.00 $ 785.00 $ 795.00 $ 810.00
D. Wastehauler $ 190.00 $ 190.00 $ 190.00 $ 190.00 $ 190.00
E. Certified Zero/No Discharge $ 120.00 $ 120.00 $ 120.00 $ 120.00 $ 120.00
1 New permit only - add nonrefundable deposit for first 1 million gallons as defined in Table G
Wastehauler Fees Charges
F. Permit Decal Initial Issue $ 25.00 G. Permit Decal Replacement $ 50.00 H. Entry Card Initial Issue $ 50.00 I. Entry Card Replacement $100.00 J. After Hours Discharge – Prearranged $102.00/event K. After Hours Discharge – Emergency $165.00/event
Administrative/Processing Fees Charges
L. OCSD’s Collection of Water Consumption Data $ 500.00/permit
M. Appeal Hearing Filing Fee $ 800.00/appeal N. Late Application (30 days or less from expiration date) $ 500.00 O. Late Application (15 days or less from expiration date) $1,000.00
TABLE F INDUSTRIAL DISCHARGER, SOURCE CONTROL AND NON-COMPLIANCE SAMPLING FEES
Charge Cost of Processing and Sampling Following a Minor Violation $200.00/event
Cost of Processing and Sampling
Following a Major Violation $400.00/event
Non-Compliance Resampling Fee $275.00/event
Cost of Analysis
Heavy Metals: $ 50.00/each - Aluminum - Antimony
- Arsenic
- Cadmium - Chromium - Copper - Gold
- Lead
- Molybdenum - Nickel - Palladrum
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TABLE F (CONTINUED) INDUSTRIAL DISCHARGER, SOURCE CONTROL AND NON-COMPLIANCE SAMPLING FEES - Platinum
- Selenium
- Silver - Thallium - Zinc
Charge
Mercury $ 85.00 601/602 $152.00 604 $223.00
606 $254.00
608 $523.00 610 $ 73.00 612 $200.00 624 $355.00
625 $661.00
Ammonia Analysis as Nitrogen $ 32.00 Biochemical Oxygen Demand (BOD) $ 49.00 BOD and Suspended Solids (SS) Analysis $ 97.00 Chemical Oxygen Demand $ 33.00
Conductivity $ 65.00
Cyanide (Amenable) $146.00 Dissolved Mineral Solids $ 15.00 Gamma Radiation Determination $286.00 Gross Alpha and Beta Determination $ 34.00
Tritium Determination $123.00
Oil & Grease (Hexane Soluble Matter) $ 81.00 Oil & Grease (Mineral Partition) $ 81.00 Total Organic Nitrogen $ 65.00 pH $ 32.00
Fluoride $ 49.00
Suspended Solids (Total) $ 49.00 Suspended Solids (Total and Volatile) $146.00 Total Dissolved Solids $ 49.00 Total Sulfides $ 69.00
SELF-MONITORING AND DATA REPORTING NON-COMPLIANCE Cost of Processing and Issuing Significant
Non-Compliance Notification $165.00
Cost of Processing Annual SNC and Publication $485.00 Non-Compliance Appeal Filing Fee* $150.00 *Filing Fee will be refunded if customer wins appeal
OCSD-XX-7
TABLE G CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES
CHARGES FOR USE
Class I and II 2018-19 2019-20 2020-21 2021-22 2022-23
Flow (*) $1,433.49 $1,489.42 $1,545.35 $1,601.28 $1,657.22
B.O.D. (**) $ 658.09 $ 661.39 $ 664.69 $ 667.99 $ 671.28
S.S. (***) $ 716.60 $ 736.73 $ 756.86 $ 777.00 $ 797.14
Special Purpose Discharge Permit 2018-19 2019-20 2020-21 2021-22 2022-23
Flow (*) $1,433.49 $1,489.42 $1,545.35 $1,601.28 $1,657.22
(*) Flow Per million gallons of Flow (**) B.O.D. Per thousand pounds of Biochemical Oxygen Demand (***) S.S. Per thousand pounds of Suspended Solids All properties located within Revenue Area No. 14 pay no annual service fees. The District’s costs relating to providing service to these properties are billed by the District
directly to the Irvine Ranch Water District, the local agency providing the local sewer
service. TABLE H
WASTEHAULER CHARGES FOR USE
2018-19 2019-20 2020-21 2021-22 2022-23
Within OCSD
Boundaries $0.06 $0.07 $0.08 $0.09 $0.09
Outside OCSD
Boundaries** $0.14 $0.16 $0.18 $0.20 $0.22
(*) per gallon
(**) Outside District boundaries and inside the District service area or authorized
by the District’s General Manager Waste hauled from a source that is not within the District’s service area is prohibited
unless authorized by the General Manager. Service area is defined as any area the OCSD has an agreement to serve.
OCSD-XX-8
ARTICLE IV
MISCELLANEOUS
Section 4.01. Application of Ordinance. The provisions of this Ordinance
shall be in addition to the provisions of the District’s Wastewater Discharge Regulations
for use of the District’s sewage facilities, including provisions for payment of charges or fees related thereto; the District’s ordinance establishing Fees Concerning Annexations of Territory to the District; and any other District Ordinances and Resolutions not in conflict herewith.
Section 4.02. Exceptions. The provisions of this Ordinance shall apply to all owners of properties within the District, including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax-exempt organizations,
except as expressly provided herein.
Section 4.03 Out of Area Sewer Service Agreements. The District is empowered to contract for the transport, treatment and disposal of wastewaters originating within areas outside of the District if it is in the best interest of the District to do
so. These Out of Area Sewer Service Agreements will establish fees and charges relative
to the services provided by the District for each individual agreement.
The Board of Directors of the Orange County Sanitation District does further hereby ORDAIN:
SECTION II. Severability. If any provision of this Ordinance, or the application to any person or circumstances is held invalid by order of Court, the remainder of the Ordinance, or the application of such provision to other persons or other circumstances, shall not be
affected.
SECTION III. Effective Date. This Ordinance shall take effect July 1, 2018.
SECTION IV. Repeal. Ordinance No. OCSD-40 and No. OCSD-42 are hereby repealed.
SECTION V. Certification and Publication. The Clerk of the Board shall certify to the
adoption of this Ordinance, and shall cause a summary to be published in a newspaper
of general circulation as required by law.
OCSD-XX-9
PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held on March 28, 2018.
______________________________
Gregory C. Sebourn, PLS
Chairman, Board of Directors Orange County Sanitation District
ATTEST:
____________________________________ Kelly A. Lore, MMC Clerk of the Board
Orange County Sanitation District
APPROVED AS TO FORM:
____________________________________
Bradley R. Hogin
General Counsel Orange County Sanitation District
OCSD-XX-10
STATE OF CALIFORNIA ) )SS.
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD-XX was introduced for first reading at
a regular meeting of said Board on the 28th day of February 2018, and passed and adopted by
a vote of not less than two-thirds at a regular meeting of said Board on the 28th day of March 2018, by the following vote, to wit: AYES:
NOES:
ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
Orange County Sanitation District this 28th day of March, 2018.
_______________________________
Kelly A. Lore, MMC
Clerk of the Board Orange County Sanitation District
ORANGE COUNTY SANITATION DISTRICT
Agenda
Terminology
Glossary
Glossary of Terms and Abbreviations
AQMD Air Quality Management District
ASCE American Society of Civil Engineers
BOD Biochemical Oxygen Demand
CARB California Air Resources Board
CASA California Association of Sanitation Agencies
CCTV Closed Circuit Television
CEQA California Environmental Quality Act
CIP Capital Improvement Program
CRWQCB California Regional Water Quality Control Board
CWA Clean Water Act
CWEA California Water Environment Association
EIR Environmental Impact Report
EMT Executive Management Team
EPA US Environmental Protection Agency
FOG Fats, Oils, and Grease
gpd gallons per day
GWRS Groundwater Replenishment System
ICS Incident Command System
IERP Integrated Emergency Response Plan
LOS Level Of Service
MGD Million Gallons Per Day
NACWA National Association of Clean Water Agencies
NPDES National Pollutant Discharge Elimination System
NWRI National Water Research Institute
O & M Operations & Maintenance
OCCOG Orange County Council of Governments
OCHCA Orange County Health Care Agency
OCSD Orange County Sanitation District
OCWD Orange County Water District
OOBS Ocean Outfall Booster Station
OSHA Occupational Safety and Health Administration
PCSA Professional Consultant/Construction Services Agreement
PDSA Professional Design Services Agreement
POTW Publicly Owned Treatment Works
ppm parts per million
PSA Professional Services Agreement
RFP Request For Proposal
RWQCB Regional Water Quality Control Board
Glossary of Terms and Abbreviations
SARFPA Santa Ana River Flood Protection Agency
SARI Santa Ana River Interceptor
SARWQCB Santa Ana Regional Water Quality Control Board
SAWPA Santa Ana Watershed Project Authority
SCADA Supervisory Control And Data Acquisition
SCAP Southern California Alliance of Publicly Owned Treatment Works
SCAQMD South Coast Air Quality Management District
SOCWA South Orange County Wastewater Authority
SRF Clean Water State Revolving Fund
SSMP Sewer System Management Plan
SSO Sanitary Sewer Overflow
SWRCB State Water Resources Control Board
TDS Total Dissolved Solids
TMDL Total Maximum Daily Load
TSS Total Suspended Solids
WDR Waste Discharge Requirements
WEF Water Environment Federation
WERF Water Environment & Reuse Foundation
WIFIA Water Infrastructure Finance and Innovation Act
WIIN Water Infrastructure Improvements for the Nation Act
WRDA Water Resources Development Act
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
dissolved nutrients in the wastewater.
Benthos – The community of organisms, such as sea stars, worms, and shrimp, which live on,
in, or near the seabed, also known as the benthic zone.
Biochemical Oxygen Demand (BOD) – The amount of oxygen used when organic matter
undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water.
Biogas – A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel.
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 farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth.
Glossary of Terms and Abbreviations
Capital Improvement Program (CIP) – Projects for repair, rehabilitation, and replacement of assets. Also 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.
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.
Dilution to Threshold (D/T) – The dilution at which the majority of people detect the odor becomes the D/T for that air sample.
Greenhouse Gases (GHG) – In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming
(“greenhouse effect”).
Groundwater Replenishment System (GWRS) – A joint 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 provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply.
Levels Of Service (LOS) – Goals to support environmental and public expectations for
performance.
N-Nitrosodimethylamine (NDMA) – A N-nitrosamine 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 and Water Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing and advancing environmentally sound and
sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance.
Plume – A visible or measurable concentration of discharge from a stationary source or fixed facility.
Glossary of Terms and Abbreviations
Publicly Owned Treatment Works (POTW) – A municipal wastewater treatment plant.
Santa Ana River Interceptor (SARI) Line – A regional brine line designed to convey 30 million gallons per day 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 runoff.
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.
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 runoff – 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. The Orange County
Sanitation District’s service area is in the Santa Ana River Watershed.